Cg annual report 2013

CONTENTS

Consolidated Financial Highlights

01 Corporate Information

12 Chairman’s Letter

14 Executive Committee

18 Management Discussion and Analysis

20 Ten Years’ Highlights

44 Directors’ Report

46 Corporate Governance

58 Additional Shareholder Information

68 Stand-Alone Financials

74 Consolidated Financials

120 Accounts in Foreign Currency

157 Products and Services

166 Establishments

172

CONSOL I DAT ED F I NANC I AL H I GHL I GHTS

NET SALES AND SERVICES IN RS CRORE

12,094 EBIDTA Earnings before interest, depreciation and amortisation, taxes & exceptional item IN RS CRORE

459 CONSOLIDATED NET SALES

PROFIT BEFORE TAXES

of business units

& exceptional Item

IN RS CRORE

7,336

IN RS CRORE

185

POWER SYSTEMS

2,593 CONSUMER PRODUCTS

1,835

PROFIT / (LOSS) After exceptional item, minority interest and share of associates (NET) IN RS CRORE

(36)

INDUSTRIAL SYSTEMS

ROCE Return on capital employed, calculated excluding exceptional item IN PERCENT

4.7 RONW Return on net worth IN PERCENT

(1.1) 1

AS GLOBAL ENERGY DEMAND GROWS,

6\Y J\Z[VTLYZ HYL SVVRPUN MVY NYLH[LY LULYN` LMÄJPLUJ` HUK more use out of their assets. Governments are looking to YLK\JL LTPZZPVUZ HUK JVUZ\TLYZ [OLPY IPSSZ THE MOST VISIBLE SOLUTIONS

demonstrate that there is

a global push to make alternative sources of power more ]PHISL ^OPSL HSZV NP]PUN JVUZ\TLYZ TVYL LMÄJPLU[ ^H`Z [V \ZL P[ 7PJ[\YL H ^PUK MHYT WYVK\JPUN NYLLU LULYN` H[ VUL LUK HUK H O`WLY LMÄJPLU[ TV[VY VY HU 3,+ SHTW [OH[ uses minimum power at the other. BUT THERE’S A THIRD, LESS VISIBLE OPPORTUNITY,

that

VM JVUULJ[PUN [OL Z\WWS` ZV\YJLZ HUK \ZLYZ PU TVYL LMÄJPLU[ ^H`Z :`Z[LTZ [OH[ JHU ZLUZL [OL Å\J[\H[PUN LULYN` ULLKZ VM H [V^UZOPW PUK\Z[YPHS JVTWSL_ VY H home and…

ADJUST AUTOMATICALLY

+

SLASH LOSSES

IT’S A MORE INTELLIGENT WORLD HUK P[ PZ [PTL MVY HU PU[LSSPNLU[ Z`Z[LT 2

CG’s 9,500-STRONG TEAM

PU VMÄJLZ HYV\UK [OL ^VYSK

has been hard at work on all three fronts. Investing in innovative technologies that help our customers do more with less in a sustainable manner.

CONSUMERS + GOVERNMENTS + INDUSTRIES + MARKETS

ARE ALL PART OF THE SOLUTION

CG KNOWS WHAT IT TAKES TO CREATE A MORE SUSTAINABLE WORLD. *. ^VYRZ H[ ZL]LYHS SL]LSZ MYVT HU L]LY`KH` \ZL WYVK\J[ Z\JO HZ HU HK]HUJLK SPNO[ I\SI VY [OL ILZ[ PU JSHZZ ^H[LY OLH[LY [V OPNO LUK [LJOUVSVNPLZ Z\JO HZ VMMZOVYL ^PUK Z\IZ[H[PVUZ ^OLYL *. PZ ,\YVWL»Z SLHKPUN Z\WWSPLY *.»Z WV^LY H\[VTH[PVU [LHTZ HYL ^VYRPUN ^P[O \[PSP[PLZ PU :WHPU HUK [OL <2 [V THRL [OL ZTHY[ NYPK H YLHSP[` 0U 0UKPH V\Y LULYN` THUHNLTLU[ ZVS\[PVUZ KP]PZPVU KLSP]LYZ ^OH[»Z ULLKLK ÄYZ[·LMÄJPLUJ` HUK H YLSPHISL Z\WWS` ;OPZ `LHY»Z (UU\HS 9LWVY[ WYLZLU[Z [OPZ ZWLJ[Y\T of projects and products that underline our current JHWHIPSP[LZ HUK OPU[ H[ [OL M\[\YL -VY P[»Z JSLHY [OH[ [OL ^VYSK^PKL KLTHUK MVY LULYN` JVUZLY]PUN ZVS\[PVUZ PZ [OL Z[HY[ VM H UL^ YLHSP[` 3

WE PUT ALL OUR ENERGY INTO

N EW L E D T E C H N O L O G Y SO THAT A ZERO-WATT BULB IS REALLY A ZERO-WATT BULB.

The country that gave the world the concept of ‘zero’, now gets a zero-watt bulb. >LSS HSTVZ[ ;OL UL^ :4(9; KLJV SHTW [HRLZ H TPZLYS` 0.5W and is as bright as a 10W bulb. >O` KVLZ [OPZ TH[[LY& 0[»Z HU VWLU ZLJYL[ [OH[ ZV JHSSLK ºaLYV ^H[[» I\SIZ HYL YLHSS` > VY > I\SIZ (UK ^OLU `V\ HKK \W [OL JVZ[ VM LULYN` JVUZ\TLK that can take the colour out VM H JLSLIYH[PVU >P[O *.»Z 3,+ [LJOUVSVN` `V\ JHU \ZL ZH` H I\SIZ [V SPNO[ \W H Ä]L KH` ^LKKPUN HUK ZH]L units per hour or 50 units in all! *VUZPKLY [VV [OL :4(9;»Z \UPX\L MLH[\YLZ -PYZ[ [OL OV\YZ VM SPML·LUV\NO [V SPNO[ \W KP^HSPZ HUK ^LKKPUNZ MVY H NLULYH[PVU 5L_[ H `LHY replacement warranty. The best part is that it looks like a decorative incandescent bulb PUZ[LHK VM H [PU` 3,+ HUK ^P[O Ä]L JVSV\YZ VU VMMLY P[»Z [PTL [V JLSLIYH[L ,JVUVTPJHSS`

AND STREETLIGHTS GET SMART. Indian municipalities are going green. (UK *. ZOV^Z [OL ^H` 4\UPJPWHSP[PLZ PU ;OHUL *OHUKPNHYO (OTLKHIHK 5HZPR HUK 7\UL OH]L VW[LK MVY *. ZVS\[PVUZ MVY 3,+ Z[YLL[SPNO[PUN 0U 7\K\JOLYY` *.»Z :[YLL[ :THY[ Z`Z[LTZ JHU Z^P[JO VU HUK VMM VY KPT H\[VTH[PJHSS` H[ Z\UYPZL HUK Z\UZL[ ZH]PUN O\NL HTV\U[Z VM LULYN` ;OPZ UL^ [LJOUVSVN` YLWVY[Z [OL MH\S[Z I` :4: [O\Z YLK\JPUN [OL [\YUHYV\UK [PTL and lowering the total cost of ownership. 4

50,000hrs

LIFE OF THE DECO/FROSTED LED LAMP

3years

REPLACEMENT GUARANTEE OFFERED FIRST LAMP IN THE MARKET TO DO SO

5

WE PUT ALL OUR ENERGY INTO FIGURING OUT HOW TO

S S S S

T T L P

O A O E

P , R T , W D OWN E D U P

SO THAT HALMSTAD’S WATER SUPPLY DOESN’T HAVE TO. Clean, constant water for Halmstad needs just eskers, ZVKP\T·HUK JVTT\UPJH[PVU /HSTZ[HK VU [OL :^LKPZO ^LZ[ JVHZ[ LUQV`Z H UH[\YHS Z\WWS` VM W\YL ^H[LY MYVT LZRLYZ H NLVSVNPJHS ^H[LY bearing formation. But managing the pumping stations is another matter. *.»Z KYP]LZ Z[HY[ HUK Z[VW [OL W\TWZ ZTVV[OS` HUK PU H [PTLS` THUULY [V TPUPTPaL ^LHY HUK ZH]L LULYN` (Z [OL ^H[LY KLTHUK ]HYPLZ VM *.»Z KYP]LZ H\[VTH[PJHSS` ZL[ [OL YLX\PYLK ZWLLK VM [OL W\TWZ [O\Z ZH]PUN H SV[ VM LULYN` >P[OV\[ [OLZL KYP]LZ HSS [OL W\TWZ ^V\SK Y\U H[ a constant speed, wasting a lot of LULYN` (UK ÄUHSS` [OL pumping stations at Halmstad are connected to industrial networks that draw water. ( JVTT\UPJH[PVU module manages [OPZ Z\WWS` KLTHUK information link, so [OH[ [OL KYP]LZ ºRUV^» at what speed to run the pumps and to ]HY` [OLT HZ ULLKLK 6

80m3

OF WATER IS PUMPED PER HOUR FROM A DEPTH OF 40 METRES

200

CG SOFT STARTERS INSTALLED

60

CG DRIVES COMMUNICATE WITH

17

PUMPING STATIONS

7

8

WE PUT ALL OUR ENERGY INTO

S 7. P J

105mn

UNITS OF POWER SAVED*

E 5 E A

R L O L

V A P G

I K L A

N G H E I N O N

SO THAT LOSSES ARE CUT BY 43%. AND BREAKDOWNS BY EVEN MORE. It takes more than good engineering to engineer an electrical supply network.

8,000

-L^ \UKLYZ[HUK [OPZ IL[[LY [OHU *. We are a KPZ[YPI\[PVU MYHUJOPZL PU 1HSNHVU·HU HYLH ^P[O H [`WPJHS TP_ VM [V^UZ MHYTZ HUK MHJ[VYPLZ >OLU ^L [VVR V]LY [OL HYLH»Z KPZ[YPI\[PVU Z`Z[LT ^HZ SVZPUN VUL \UP[ PU L]LY` [OYLL \UP[Z YLJLP]LK IPSSPUN HUK JVSSLJ[PVU ^HZ PULMÄJPLU[ HUK IYLHRKV^UZ YPML

NEW CONNECTIONS*

45,000

>L Z[HY[LK I` \UKLYZ[HUKPUN [OL KYHZ[PJHSS` ]HY`PUN ULLKZ VM 1HSNHVU»Z JVUZ\TLYZ MYVT [OL I\SI PU [OL OV\ZLOVSK [V [OL W\TWZL[ PU [OL ]PSSHNL HUK [OL OPNO [LUZPVU TV[VY PU [OL MHJ[VY` ;OLU ^L Z[HY[LK J\Z[VT KLZPNUPUN MVY 1HSNHVU I` THWWPUN [OL ULLKZ [V [OL LX\PWTLU[ HUK [LJOUVSVN` YLX\PYLK ( JYP[PJHS HZWLJ[ ^HZ YV\[PUN VM LULYN` ZLUZPIS` ZV HZ [V TPUPTPZL SVZZLZ WYL]LU[ IYLHRKV^UZ HUK RLLW [OL ^PYLZ O\TTPUN _

CITIZENS BENEFITED*

-PUHSS` ^L \UKLY[VVR [OL JY\JPHS OHYK ^VYR VM YLWHPYPUN 12,000 defective meters, installing new lines and new transformers, and repairing older ones. In parallel, we were training a service workforce and handling customer NYPL]HUJLZ (SS VM [OPZ NP]LU [OL ZJLUHYPV ^OLYL Z^LLWPUN YLWSHJLTLU[ ^HZU»[ HU VW[PVU HUK [PTL ^HZ SPTP[LK ( IPN JO\UR VM 0UKPH»Z NYV^PUN WV^LY ULLKZ JV\SK JVTL MYVT HYLHZ SPRL 1HSNHVU :\Z[HPUPUN [OL Z[VY` PZ L]LY`[OPUN 3V^LY LULYN` SVZZLZ HUK PUJYLHZLK WYVÄ[HIPSP[` HSVUN ^P[O SLZZ NLULYH[PVU HUK [O\Z SV^LY LTPZZPVUZ HYL [OPUNZ [OL NV]LYUTLU[ HUK JP[PaLUZ VM L]LY` WHY[ VM 0UKPH ULLK *Figures are for the period between 5V]LTILY HUK 4HYJO

9

2,27,000 METERS INSTALLED

4,10,000

INHABITANTS PROVIDED SERVICE

10

WE PUT ALL OUR ENERGY INTO FIGURING OUT HOW TO

B A L A N C E V O L T A G E S SO THAT WIND AND SOLAR POWER CAN JOIN THE GRID Making the smart grid a reality takes more than a windmill *. PZ ^VYRPUN [V PU[LNYH[L UL^ LULYN` ZV\YJLZ 0THNPUL H OPNO ZWLLK L_WYLZZ^H` ^P[O [Y\JRZ HUK JHYZ ZWLLKPUN WHZ[ PU HU VYKLYS` Z[YLHT 5V^ HKK H O\UKYLK VY ZV IPJ`JSLZ WLKHSSPUN VU[V [OL [HYTHJ L]LY` ML^ O\UKYLK TL[LYZ 0U H TVKLYU LSLJ[YPJP[` NYPK [OL [Y\JRZ HUK JHYZ HYL [OLYTHS HUK U\JSLHY WSHU[Z" [OL IPJ`JSLZ HYL [OL YLUL^HISL ^PUK HUK ZVSHY ZV\YJLZ 0[»Z JOHVZ HUK ^HZ[L PM UV[ LMÄJPLU[S` THUHNLK 0U [OL <2 ^L HYL HZZPZ[PUN [OL KPZ[YPI\[PVU JVTWHU` 5VY[O >LZ[ PU P[Z 3V=0( WYVQLJ[ OLSWPUN JVUULJ[ SV^ ]VS[HNL wind and solar sources to the grid and using software HSNVYP[OTZ PUZ[LHK VM JYLH[PUN UL^ PUMYHZ[Y\J[\YL [OLYLI` saving millions of pounds.

0U :WHPU *. WYV]PKLZ [OL PU[LSSPNLU[ PUMYHZ[Y\J[\YL [OH[ PZ [OL IHJRIVUL VM ZTHY[ WV^LY·LSLJ[YPJP[` [OH[ HKHW[Z H\[VTH[PJHSS` [V JVUZ\TW[PVU WH[[LYUZ LUOHUJPUN LMÄJPLUJ` HUK SV^LYPUN JVZ[Z 6\Y JOHYNPUN Z[H[PVUZ ZOV^U HIV]L OLSW KYP]L LSLJ[YPJ JHYZ PU [OL JV\U[Y` 0U [OPZ UL^ ^VYSK ZTHY[ TL[LYZ HSNVYP[OTZ HUK Z`Z[LTZ communicate with control rooms which respond to Z`Z[LTPJ PTIHSHUJLZ 9LUL^HISL LULYN` ZV\YJLZ SPRL wind and solar are the future, and at CG we work towards making the grid smarter. 11

CORPORAT E I N F O RMA T I O N BOARD OF DIRECTORS

Auditors

Chairman

Sharp & Tannan

G Thapar

Solicitors Vice Chairman

Crawford Bayley & Co

SM Trehan

Bankers CEO and Managing Director L Demortier

Non-Executive Directors S Apte O Goswami B Hariharan S Labroo C Lewiner M Pudumjee S Prabhu V von Massow

Union Bank of India IDBI Bank Ltd State Bank of India ICICI Bank Ltd Corporation Bank The Royal Bank of Scotland NV Canara Bank Standard Chartered Bank Bank of Maharashtra Credit Agricole CIB Yes Bank Ltd

Registered Office Chief Financial Officer M Acharya

Company Secretary W Henriques

12

6th Floor CG House Dr Annie Besant Road Worli Mumbai 400 030

Mr Gautam Thapar (left) ^P[O 4Y 3H\YLU[ +LTVY[PLY

13

C H A I RMAN ‘ S L E T T E R

*. SL]LYHNPUN 0UKPH HZ H JVZ[ competitive manufacturing O\I MVY PU[LYUH[PVUHSPaPUN LSLJ[YPJHS WYVK\J[Z

14

A MAJOR, FULL FLEDGED RESTRUCTURING FOR CREATING A GREATER AND MORE EFFICIENT GLOBAL FOOTPRINT TAKES TIME

+LHY :OHYLOVSKLY In my letter to you last year, I had begun with the following words: “The history of all growing global corporations is replete with instances when events have required a strategic change of gear. FY2012 was such a time for your Company. After a decade of rapidly growing revenues, EBIDTA, EBIT and PAT that made Crompton Greaves the cynosure of many eyes, there was a sudden break in the momentum.â€? Thereafter, I had explained why this break had occurred, and what the management was proposing to do to address the issues. The turnaround continues and is part of an on-going process of globalisation of CG’s transmission and distribution (T&D) and the Industrial Systems business. There have been different challenges for these two businesses. For T&D, with its global manufacturing and customer footprint, we need to organise and run it as one global entity—encompassing design, manufacturing, sourcing and creating power systems and solutions for our customers. For Industrial Systems, with its more domestic footprint, the challenge is to leverage India as a competitive O\I MVY PU[LYUH[PVUHSPZPUN ZPNUPĂ„JHU[ WHY[Z VM [OL business. ;OLZL HYL ZPNUPĂ„JHU[ JOHSSLUNLZ 4LL[PUN these and restructuring operations in an environment of much slower global economic and investment activity have led to a muted Ă„UHUJPHS WLYMVYTHUJL MVY `V\Y *VTWHU`

Let me start with the results. R Net sales and services grew by 7.5%—from

Rs.11,249 crore in FY2012 to Rs.12,094 crore in FY2013. This was a positive, with your Company’s net turnover rising to above US$ 2.2 billion. R Greater pricing pressure for power sector products, higher materials-to-sales ratios and operational issues in some overseas locations led to a 52% decline in earnings before interest, depreciation, taxes and amortisation (EBIDTA) excluding other income—from Rs.804 crore in FY2012 to Rs.383 crore in FY2013. R Including exceptional items, which involved a one-time cost of Rs.121 crore for restructuring and right-sizing operations at Mechelen, )LSNP\T WYVĂ„[Z ILMVYL [H_ 7); MVY -@ was Rs.64 crore. Also embedded under the various operational heads are incidental costs involved in the Belgium restructuring, aggregating to Rs.108 crore, which are also one-time in nature, thus resulting in total restructuring costs of Rs.229 crore (â‚Ź 33 million). R 7YVĂ„[ HM[LY [H_LZ UL[ VM TPUVYP[` PU[LYLZ[Z HUK ZOHYL VM WYVĂ„[ SVZZ VM HZZVJPH[L JVTWHUPLZ VY PAT) declined from Rs.374 crore in FY2012 to a loss of Rs.36 crore. You deserve to ask “Why so?â€? And get an honest answer, which is what this letter and the chapter on Management Discussion and Analysis are all about. Simply put, your Company’s T&D division’s overseas power business—CG

CHAIRMAN'S LETTER

15

/PNO ]VS[HNL ^PUKPUN WYVJLZZ for Slim Transformers in CG’s +PZ[YPI\[PVU ;YHUZMVYTLY MHJ[VY`

Power Overseas, which accounts for 65% of Crompton Greaves’ Power Systems and 39% of its consolidated sales—performed ILSV^ WHY +LZWP[L H ZPNUPÄJHU[ NYV^[O PU P[Z unexecuted order book and a slight growth in net sales, CG Power Overseas closed FY2013 with a loss of Rs.244 crore at the EBIDTA level. PAT of the overseas legal entity, in which CG Power Overseas accounts for the lion’s share, was down to (-) Rs.475 crore. There are external and internal reasons for such a performance. On the external front, global transmission and distribution (T&D) markets became even more competitive, especially in advanced countries as well as in Middle East and North Africa. Suppliers continued to offer low prices to secure orders and maintain capacity utilisation. As I write, it PZ KPMÄJ\S[ [V WYLKPJ[ ^OLU WYPJLZ ^PSS YL[\YU [V more healthy levels across key global markets. Second, while raw material prices softened PU [OL ZLJVUK OHSM VM -@ [OLPY ILULÄJPHS

16

effects are yet to show up in costs. This is because most of the orders in the pipeline across CG Power’s overseas manufacturing locations were taken in FY2012 or the early part of the FY2013—and the material cost structures have been locked in at higher prices. Going forward, the T&D global structure will mitigate this by commodity price hedging and Z\WWS` JOHPU LMÄJPLUJPLZ 0 SVVR MVY^HYK [V greater traction on this account in FY2014. Third, FY2013 has seen the continuation of a trend that showed up in the previous year— where many customers delayed taking physical delivery of their transformers or substations. This, in turn, blocked scarce factory space, slowed down production lines, prevented timely revenue recognition, locked up working capital and reduced ROCE. The fourth cause is internal to CG Power Overseas. Throughout FY2012 and much of FY2013, production of several power transformers overseas got delayed on account

of various operational factors. On occasions, these delays led to imposition of liquidated damages by customers. The Company correctly opted to right-size operations at Mechelen due to its high costs, overcapacity of power transformers in western Europe and a continuous price drop for power transformers in the EMEA region. This was carried out in the third quarter of FY2013 at a one-time cost of Rs.121 crore. It also meant shifting a large part of the order book from Belgium to Hungary, which led to some teething troubles. As I mentioned earlier, also embedded under various operational heads are incidental costs involved in the Belgium restructuring, which amount to Rs.108 crore, and are also one-time in nature, thus resulting in total restructuring costs of Rs.229 crore (€ 33 million). However, the restructuring in Belgium should result in an annual savings of €14 million—of which €1.5 million was visible in the fourth quarter of FY2013.

3L[ TL Z[YLZZ [OH[ [OL Ă„UHUJPHS WYVISLTZ of your Company were almost exclusively on account of CG Power Overseas. R CG Power India has done well, despite

MHJPUN H KPMÄJ\S[ LJVUVTPJ LU]PYVUTLU[ In FY2013, it earned an EBIDTA of Rs.260 crore; and EBIT of Rs.231 crore and an ROCE of 29.5%. CG’s plant T3 at Mandideep, near Bhopal, has produced and tested and dispatched 108 power transformers since September 2011. Most of these were in the high technology 765 kV category. In addition, [OL ; WSHU[ H[ 2HUQ\Y 4\TIHP WYVÄ[HIS` produced and despatched 260 units during the year under review. R Similarly, on a net sales of Rs.1,835 crore, CG’s Industrial Systems (India and overseas) earned an EBIDTA of Rs.251 crore; an EBIT of Rs.214 crore; and an ROCE of almost 25%. It also commissioned and started production at the new manufacturing facility for large motors and synchronous generators at Mandideep. This 9,284 square metres plant is equipped with world class machines and process technologies and has a capacity to produce 250 large motors and synchronous generators. ;OPZ PZ [OL ÄYZ[ MHJPSP[` ^L OH]L I\PS[ H[ *. ^P[O NSVIHS THYRL[Z PU TPUK 0[ PZ V\Y ÄYZ[ Z[LW PU the globalisation of our Indian manufacturing capability. Going forward, we will build on its success in other areas. R CG’s Consumer Products business, too, did well. It notched a 21.5% growth in the top line to Rs.2,593 crore; earned an EBIDTA of Rs.287 crore; and EBIT of Rs.278 crore; and still clocked an enviable three-digit ROCE of 252%. How does the management propose to effect the globalisation of CG Power and thus bring about the turnaround? -V\Y MHJ[VYZ HYL WHYHTV\U[ ;OL ÄYZ[ PZ WYVK\J[P]P[` ^OPJO OHZ [V KV ^P[O ÄYZ[ [PTL right design, correct slotting of transformers in the product lines, and faster throughput. A major global initiative has been launched on this front with a focused team at the helm. It has shown results in India; and is beginning to get traction in Indonesia, the USA and Hungary. However, such changes will take time to be fully operational. It is in the nature of a transition to being globally world class. The second factor relates to bringing about ZPNUPÄJHU[ HUK JVUZPZ[LU[ PTWYV]LTLU[Z PU global raw material sourcing and supply chain LMÄJPLUJPLZ ^OPJO ^P[OV\[ H NSVIHS I\ZPULZZ

structure, cannot deliver visible gains. The process has begun. But we have a long way to NV (Z `V\Y JOPLM ÄK\JPHY` 0 ZOHSS JHYLM\SS` ^H[JO this development. The third has to do with Europe and the Middle East, and relates to how Hungary will take up the challenge. We took a conscious decision to right-size an expensive facility in )LSNP\T HUK ZPNUPÄJHU[S` YHPZL JHWHJP[PLZ in a more competitive plant at Tapioszele in Hungary. The plant has already expanded capacity from 7,500 MVA per year to 10,000 MVA; and a further expansion to 12,500 MVA is going on. It proved its mettle in successfully producing and despatching several transformers that were transferred from Mechelen. Hungary must now consistently demonstrate that the Company’s faith in its capabilities are well founded. The fourth has to do with the quality of the order book—not just for power transformers and allied products but also for systems revenues. As I mentioned in two of my earlier letters to you, CG Power has to become an end-to-end solutions provider by offering M\SS ÅLKNLK WV^LY Z`Z[LTZ HUK Z\IZ[H[PVUZ instead of standalone equipment. Several successful projects in continental Europe as well as the Humber Gateway project in the UK have demonstrated that CG can tap into this growing market. We must be careful in choosing the right projects. These should come with attractive prices and a good pull-through for CG’s T&D equipment as well as power automation. Moreover, we need to further strengthen project execution skills, so that we complete the work on, or before, time; and at costs that in line with, or less than, budgeted. I look forward to seeing more of the systems and solutions I\ZPULZZ HUK [V LHYUPUN SHYNLY WYVÄ[Z [OYV\NO this value added consolidation. Let me now touch upon ZIV, which your Company acquired in FY2013 for an enterprise value of ₏147 million. We purchased ZIV to complete the front end offerings in the smart grid segment of the T&D market—where we neither had a suite of products and solutions nor the technology. Without this most basic building block, we would have been shut out of some of the most promising areas of growth in the coming years, especially in our Indian markets. In the eight months of FY2013 postacquisition, ZIV’s top-line was less than what

its management believed was possible for the year. This was due to a massive slowdown in orders, especially in Spain. I expect ZIV to do better in FY2014. There has been a tremendous work done in integrating the existing automation offerings of ZIV in CG’s suite. Given a new focus on globalisation outside west Europe, and the integration of its various products with other automation products and solutions, CG power automation would sell these offerings as solutions—both for Power and for Industrial Systems worldwide. If you will recall, I was hopeful last year. So am I today. The process of globalising a major business such as T&D does not get JVTWSL[LK PU H ZPUNSL `LHY ( THQVY M\SS Ă…LKNLK restructuring for creating a greater and more LMĂ„JPLU[ NSVIHS MVV[WYPU[ [HRLZ [PTL Excellent people across CG have got together and focused on doing what is needed. We have seen this in action. When I ask our employees at CG, “What would make us successful in completing this restructuring?â€?, the response is always “We are ordinary persons committed to doing an extraordinary job!â€? Recall that Industrial Systems had problems last year; it has turned around. So too Consumer Products. CG Power India continues doing well; as does Indonesia. And we have secured tremendous orders throughout the world. There is no reason why your Company’s global management team cannot effect the turnaround in FY2014, and deliver better results for the shareholders. I am hopeful of seeing KLĂ„UP[L ZPNUZ VM Z[LHK` WYVNYLZZ HUK PTWYV]LK Ă„UHUJPHS YLZ\S[Z This Company had an outstanding decade. We need to get back to another decade of superior performance. It is possible. The management exists. And we will get there. As always, thank you for your support.

Yours sincerely,

Gautam Thapar Chairman

CHAIRMAN'S LETTER

17

EXE CUT I VE C O MM I T T E E

18

From left to right:

Jayant Kulkarni Executive Vice President & President (Power Business Unit)

Dileep Patil Executive Vice President & *OPLM ;LJOUVSVN` 6MÄJLY

Sanjay Jorapur Executive Vice President & Global Head (Human Resources)

Wilton Henriques Executive Vice President & Global Head (Legal, Governance & Risk)

Madhav Acharya Executive Vice President, *OPLM -PUHUJPHS 6MÄJLY *OPLM 0UMVYTH[PVU 6MÄJLY

Norberto Santiago Elustondo Executive Vice President & President (Automation Business Unit)

Laurent Demortier CEO & Managing Director

Ash Gupta Executive Vice President & President (Consumer Business Unit)

Anil Raina Executive Vice President & President (Industrial Business Unit)

EXECUTIVE COMMITTEE

19

MA D I AN AN

NAG EMENT S CUSS I ON D AL YS I S

:WHUUPUN ZX T[YZ [OL WSHU[ PU 4HUKPKLLW OHZ H JHWHJP[` [V WYVK\JL SHYNL TV[VYZ HUK synchronous generators

9Z JYVYL PZ 9Z TPSSPVU c -@ Z[HUKZ MVY ÄZJHS `LHY P L MYVT (WYPS [V 4HYJO (UHSVNV\ZS` -@ HUK V[OLY ÄZJHS `LHYZ c (SS ÄN\YLZ PU <: MVY -@ HYL [YHUZSH[LK H[ HU H]LYHNL L_JOHUNL YH[L VM <: $ -VY -@ [OLZL HYL [YHUZSH[LK H[ <: $9Z c (SS ÄN\YLZ PU Á MVY -@ HYL [YHUZSH[LK H[ HU H]LYHNL L_JOHUNL YH[L VM Á $ 9Z -VY -@ [OLZL HYL [YHUZSH[LK H[ Á $ 9Z

20

THOUGH A SET OF DIVERSIFIED AND DIFFERENTIATED MULTI-NATIONAL, MULTI-PRODUCT AND MULTI SOLUTIONS ENTERPRISES, CROMPTON GREAVES IS UNIFIED BY THE PHILOSOPHY OF ‘ONE CG’

*YVTW[VU .YLH]LZ 3PTP[LK (‘CG’ or the ‘the Company’) is a global enterprise with manufacturing, solutions and services facilities in Belgium, Brazil, Canada, Hungary, Indonesia, Ireland, France, Saudi Arabia, Spain, Sweden, the United Arab Emirates, the UK and the USA, in addition to over 15 manufacturing and design locations in India. With approx 9,500 employees world-wide, CG’s gross sales and income from services in FY2013 stood at US$ 2.3 billion. ;OV\NO H ZL[ VM KP]LYZPÄLK HUK KPMMLYLU[PH[LK multi-national, multi-product and multisolutions enterprises, Crompton Greaves PZ \UPÄLK I` [OL WOPSVZVWO` VM º6UL *.»·H cohesive entity that leverages global best practices to interface with the different businesses and create customer satisfaction by offering superior products, solutions and services across the world. CG has three major businesses: Power Systems, Industrial Systems and Consumer Products. In addition, after its acquisition of ZIV in Spain in July 2012, it has created a new business vertical to provide across-the-board power automation solutions for power utilities, rapid transport services and other businesses. Though not yet a reportable segment in ÄUHUJPHS HUK HJJV\U[PUN [LYTZ H[ WYLZLU[ *. expects Power Automation Solutions to play HU PUJYLHZPUNS` ZPNUPÄJHU[ YVSL PU [OL `LHYZ [V come. Before getting into a description of each of the businesses, it is useful to touch upon the ZIV acquisition.

ACQUISITION OF ZIV On 27 July 2012, CG acquired 100% of ZIV, a leader in the high value smart grid and power automation solutions segments for utilities and industrial applications, for an enterprise value equivalent to €147 million. A provider of digital equipment for grid automation and advanced metering infrastructure, ZIV operates in over 50 countries, with major presence in Spain (Madrid, Barcelona, Bilbao), Brazil (Rio de Janeiro), and the USA (Chicago). It also has a facility at Bangalore in India. Created in 1993, ZIV designs, manufactures and markets digital equipment and systems in the areas of protection, control, metering, system engineering, services and communication for substation applications in the generation, transmission and distribution of electrical energy. It has installed more than 1.4 million devices for utilities and industries across the world. CG is a leader in electrical transmission and KPZ[YPI\[PVU LX\PWTLU[ ^P[O ZPNUPÄJHU[ THYRL[ share in the Americas, Europe, the Middle East, India and South East Asia. Over the last few

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S

21

IT WAS ANOTHER VERY DIFFICULT YEAR FOR THE COMPANY AS IT RESTRUCTURED TO SHED HISTORICAL COSTS AND MEET FUTURE CHALLENGES

Largest rating synchronous NLULYH[VY THU\MHJ[\YLK PU 0UKPH路 4=( LPNO[ WVSL

22

years, CG has been expanding into systems— to provide end-to-end integrated solutions for utilities and industries. It is expected that ZIV will strengthen CG’s offering for grid automation, and so add to the Company’s differentiated solutions in its core businesses. In addition, the ZIV smart grid platform can be the basis for rapid expansion across Europe, India and the Americas. ZIV has cost-effectively delivered one of the largest smart grid projects in Europe, involving over 500,000 connection points and providing integrated solutions ranging from smart metering innovative distribution automation through a two-way communication infrastructure. By 2020, according to the Boston Consulting Group, the global smart grid market is estimated to be in the region of ₏90 billion. The Company expects ZIV’s equipment and R&D to play a key role in capturing a share of this business.

THE THREE BUs: LOCATIONS AND FACILITIES Power Systems including Power Automation R Has overseas facilities at Mechelen and

Charleroi (Belgium),Rio Grande do Sul and Rio de Janeiro (Brazil), Winnipeg (Canada), St. Leonard (France), Tapioszele (Hungary), Bogor and Jakarta (Indonesia), Cavan and Dublin (Ireland), Moscow (Russia), Saudi Arabia, Bilbao, Madrid and Barcelona (Spain), Singapore, the United Arab Emirates, Jarrow and Stockport (UK), Washington (Missouri, <:( :WYPUNĂ„LSK 5L^ 1LYZL` <:( (SIHU` and Rochester (New York, USA), Connecticut, Florida, Idaho, Illinois, Maryland, Pennsylvania and Rhode Island (USA). R Has Indian facilities at Kanjur Marg (Mumbai), Malanpur and Mandideep (Madhya Pradesh), Nashik and Aurangabad (Maharashtra), Bangalore (Karnataka) and Gurgaon (Haryana). It also has a electricity distribution franchisee business at Jalgaon (Maharashtra).

CONSOLIDATED FINANCIAL HIGHLIGHTS AS ON 31 MARCH

UEOB

PBT

IN RS CRORE

IN RS CRORE

8,368

9,126

FY2012

FY2013

;OL \UL_LJ\[LK VYKLY IVVR <,6) HZ VU 4HYJO Z[VVK H[ 9Z JYVYL ;OPZ ^HZ \W I` V]LY [OL WYL]PV\Z `LHY

Helsingborg (Sweden), Mandideep and Pithampur (Madhya Pradesh), KanjurMarg (Mumbai, Maharashtra), Ahmednagar (Maharashtra) and Colvale and Kundaim (Goa).

Consumer Products R Has facilities at Bethora and Kundaim

(Goa), Baddi (Himachal Pradesh), KanjurMarg (Mumbai), Ahmednagar (Maharashtra), and Vadodara (Gujarat).

550

185

FY2012

FY2013

PAT

IN RS CRORE

IN RS CRORE

11,249 12,094 W 7.5 FY2012

FY2013

PERCENT

5L[ ZHSLZ HUK ZLY]PJLZ NYL^ I` ¡MYVT 9Z JYVYL PU -@ [V 9Z JYVYL PU -@ ;O\Z [OL *VTWHU`Z UL[ [\YUV]LY YVZL [V HIV]L <: IPSSPVU

374

(36)

FY2012

FY2013

ROCE

IN RS CRORE

IN PERCENT

459

FY2012

FY2013

X 46

PERCENT

7YPTHYPS` VU HJJV\U[ VM PUJYLHZLK WYPJPUN pressure for power sector products, higher H]LYHNL TH[LYPHSZ [V ZHSLZ YH[PVZ HUK VWLYH[PVUHS issues in some of the overseas locations, LHYUPUNZ ILMVYL PU[LYLZ[ KLWYLJPH[PVU [H_LZ HUK HTVY[PZH[PVU ,)0+;( L_JS\KPUN V[OLY PUJVTL L_JS\KPUN L_JLW[PVUHS P[LT YLK\JLK I` [V 9Z JYVYL PU -@ 0UJS\KPUN V[OLY PUJVTL ,)0+;( MLSS MYVT 9Z JYVYL PU -@ [V 9Z JYVYL PU -@ VY H KYVW VM

12.9

4.7

FY2012

FY2013

EPS

IN RS CRORE

IN RS

256

FY2012

FY2013

X 57

PERCENT

7YVĂ„[Z ILMVYL PU[LYLZ[ HUK [H_LZ 7)0; YLK\JLK I` MYVT 9Z JYVYL PU -@ [V 9Z JYVYL PU -@ ;OL YLHZVUZ [OH[ HMMLJ[LK ,)0+;( ^LYL [OL VULZ [OH[ KL[LYTPULK [OL MHSS in PBIT.

X 8.2

PERCENT POINTS

9L[\YU VU JHWP[HS LTWSV`LK 96*, JHSJ\SH[LK L_JS\KPUN L_JLW[PVUHS P[LT YLK\JLK I` WLYJLU[HNL WVPU[Z MYVT PU -@ [V PU -@

PBIT

596

X 109.7

PERCENT

7YVĂ„[ HM[LY [H_LZ UL[ VM TPUVYP[` PU[LYLZ[Z HUK ZOHYL VM WYVĂ„[ SVZZ VM HZZVJPH[L JVTWHUPLZ VY 7(; KLJSPULK MYVT 9Z JYVYL PU -@ [V H SVZZ VM 9Z JYVYL

EBIDTA

856

X 66

PERCENT

7YVĂ„[ ILMVYL [H_LZ L_JS\KPUN L_JLW[PVUHS P[LTZ MLSS I` MYVT 9Z JYVYL PU -@ [V 9Z JYVYL PU -@ 0UJS\KPUN L_JLW[PVUHS P[LTZ¡^OPJO ^HZ H VUL [PTL JVZ[ VM 9Z JYVYL MVY YLZ[Y\J[\YPUN HUK YPNO[ ZPaPUN VWLYH[PVUZ H[ 4LJOLSLU )LSNP\T¡7); MVY -@ ^HZ 9Z JYVYL (SZV LTILKKLK \UKLY [OL ]HYPV\Z operational heads are the incidental costs involved in Belgium restructuring, aggregating to 9Z JYVYL ^OPJO HYL HSZV VUL [PTL PU UH[\YL thus resulting in total restructuring costs of 9Z JYVYL Ă TPSSPVU

NET SALES AND SERVICES

Industrial Systems R Has facilities at Tapioszele (Hungary),

W9

PERCENT

5.82

(0.56)

FY2012

FY2013

X 109.7

PERCENT

,HYUPUNZ WLY ZOHYL ,7: MLSS MYVT 9Z PU -@ [V ,7: VM 9Z PU -@

Note: (SS Ă„N\YLZ PU <: MVY -@ HYL [YHUZSH[LK H[ HU H]LYHNL L_JOHUNL YH[L VM <: $ -VY -@ [OLZL HYL [YHUZSH[LK H[ <: $ 9Z -PN\YLZ MVY -@ OH]L ILLU YLNYV\WLK ^OLYL]LY ULJLZZHY` PU VYKLY [V THRL [OLT JVTWHYHISL ^P[O [OVZL VM -@

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S

23

Business Performance FY2013 The key performance highlights of the Company for FY2013 are given below. It was HUV[OLY ]LY` KPMĂ„J\S[ `LHY MVY [OL *VTWHU` HZ P[ restructured to shed historical costs and meet future challenges. The story is straightforward. >OPSL [OL [VW SPUL NYL^ I` V]LY WYVĂ„[Z continued to fall—mostly on account of power sector performance in key overseas locations and a substantial one-time pay-out to facilitate much needed restructuring and re-sizing at the Company’s manufacturing location in Mechelen, Belgium. To a lesser extent, demand pressures on Industrial Systems and investment in brand building and distribution infrastructure in Consumer Products also JVU[YPI\[LK [V [OL KLJSPUL PU WYVĂ„[HIPSP[` Chart A plots the change in net revenues of the three key businesses plus ‘others’ which, for FY2013 also includes Power distribution. CG’s Power Systems’ net revenues grew by 2%—to Rs.7,336 crore in FY2013. Net revenue from Industrial Systems increased marginally by 0.8%—to Rs.1,835 crore in FY2013. Net revenue from Consumer Products rose by 21.5% to Rs.2,593 crore in FY2013. CHART

A

NET REVENUE FROM KEY BUSINESSES IN RS CRORE

390 6;/,9:

146

7,336

W 2.0%

1,835

W 0.8%

2,134

2,593

W 21.5%

FY2012

FY2013

GROWTH

7,195 1,820

24

76>,9 :@:;,4:

05+<:;90(3 :@:;,4:

*65:<4,9 796+<*;:

CG POWER SYSTEMS CG Power Systems (or CG Power) is the Company’s largest BU and focuses on power transmission, distribution, power solutions and associated services businesses. It manufactures a wide range of power transformers, distribution transformers, extra high voltage (EHV) and medium voltage (MV) circuit breakers, switchgears, EHV instrument transformers, lightning arrestors, isolators and vacuum interrupters. In addition, CG Power offers turnkey solutions for transmission and distribution (T&D) through custom-made substation projects, engineering, procurement and construction (EPC) as well as other end-to-end contracts that involve the entire value chain—solutions, design, products, procurement, construction, erection and servicing. A detailed list of CG Power’s products, solutions and services as well as its associated facilities across the globe is given at the end of this Annual Report.

Consolidated Financial Performance The consolidated performance of CG Power is given in Table 1 below. As touched upon earlier, it shows that while the business as a whole ILULÄ[LK MYVT H OLHS[O` NYV^[O PU UL[ ZHSLZ HUK H ZPNUPÄJHU[ PUJYLHZL PU [OL \UL_LJ\[LK VYKLY IVVR <,6) P[Z WYVÄ[HIPSP[` ^HZ HMMLJ[LK PU FY2013—more so compared to the earlier year. R There has been a rise in the UEOB—by 8.8% in FY2013. The UEOB as on 31 March 2013 was Rs.8,525 crore R Net sales of CG Power grew by 2% in FY2013 to Rs.7,336 crore. R EBIDTA has fallen sharply—to Rs.34 crore in FY2013. R There was a loss at the EBIT level in FY2013 of Rs.110 crore. R There was a 32.4% rise in capital employed to Rs.3,382 crore. Much of this was on account of additional investments in India and abroad, as well as longer cycle times which, when it occurred, tied up the BU’s working capital. R The return on capital employed (ROCE) fell to (-)3.3% in FY2013. There are clear reasons for the drop in operating performance—most of which have to do with CG Power’s plants and operations outside India. These will be discussed after outlining the performance of CG Power’s overseas and Indian operations.

CG Power Overseas: Financial Performance ;OL Ă„UHUJPHS WLYMVYTHUJL VM [OL *. 7V^LY Overseas is given in Table 2.

CG Power India: Financial Performance ;HISL NP]LZ [OL RL` ÄUHUJPHS WLYMVYTHUJL indicators for CG Power’s India operations. As Table 3 suggests, while CG Power India has faced a decline in both net sales for FY2013 and UEOB as on 31 March 2013, it has remained WYVÄ[HISL ;V IL Z\YL IV[O ,)0+;( HUK ,)0; declined in FY2013 compared to a year earlier. However, it earned an EBIDTA margin of 9.5% of net sales, and an EBIT margin of 8.5% despite lower sales and pricing pressures. Moreover, at 29.5%, CG Power India’s return on capital employed (ROCE) is not only creditable but also ranks among the best in the world. The problems have arisen out CG Power Overseas. As Table 2 shows, despite doubledigit growth in the UEOB and a modest increase in the top-line, overseas operations have incurred losses. Why has this occurred? It needs careful explanation, given that 65% of the Company’s consolidated power business and 39% of its JVUZVSPKH[LK ZHSLZ KLWLUK \WVU [OL LMÄJPLUJ` and health of its overseas operations. R As expected, there are external and internal factors. On the external front, the global T&D THYRL[Z OH]L ILJVTL ÄLYJLS` JVTWL[P[P]L ;OPZ Z[HY[LK PU -@ PU[LUZPÄLK PU -@ HUK remained at a high pitch throughout FY2013. Suppliers are offering hitherto unheard of prices to bag orders and so maintain throughput across their production lines. At the end of last year, CG believed that the period of PU[LUZL JVTWL[P[PVU ^HZ ÄUHSS` WSH`PUN V\[ Unfortunately, it has not. R Second, while key raw material prices somewhat softened in the second half of -@ [OL ILULÄJPHS LMMLJ[Z VM [OLZL OH]L `L[ to show up in costs. This is because much of the orders in the pipeline across CG Power’s overseas manufacturing locations have been taken in FY2012 or the early part of the year under review and the material cost structures have been locked in at the higher prices. Having said so, the Company expects to mitigate some of this by commodity price hedging and supply JOHPU LMÄJPLUJPLZ ;OLZL PUP[PH[P]LZ OH]L ILLU launched. There should be more visibility on this account in the course of FY2014—not only

because of lower raw material prices but also K\L [V NSVIHS WYVJ\YLTLU[ LMÄJPLUJPLZ R Third, FY2013 has seen the continuation of a trend which appeared in the previous year—that of many customers delaying taking physical delivery of their transformers or Z\IZ[H[PVUZ (Z TLU[PVULK PU SHZ[ `LHYZ (UU\HS Report, it typically involves pushing back the KH[L VM [LZ[PUN H[ [OL IH` ;OPZ PU [\YU ISVJRZ scarce factory space, prevents timely revenue recognition, locks up working capital and, all LSZL ILPUN LX\HS YLK\JLZ 96*, :\WWSPLYZ often have to yield to key customers to maintain SVUN [LYT YLSH[PVUZOPWZ R The fourth set of causes are internal to CG 7V^LY 6]LYZLHZ 0U [OL JV\YZL VM -@ [OL production of several power transformers got

TABLE

01

CONSOLIDATED FINANCIAL PERFORMANCE OF CG POWER

delayed due to various operational problems H[ KPMMLYLU[ V]LYZLHZ ZP[LZ 6U VJJHZPVUZ these delays led to imposition of liquidated KHTHNLZ I` ZVTL J\Z[VTLYZ ;O\Z THU` power transformer orders were at relatively low margins combined with production constraints to result in higher than budgeted unit costs and OPNOLY PU]LU[VYPLZ R (KKP[PVUHSS` [OL *VTWHU` [VVR H JVYYLJ[ view to right-size operations at Mechelen on account of its persistently high costs, overcapacity of power transformers in western Europe and a continuous price drop for power [YHUZMVYTLYZ PU [OL ,4,( YLNPVU ;OPZ ^HZ carried out in the third quarter of FY2013 at a VUL [PTL JVZ[ VM 9Z JYVYL (S[OV\NO [OPZ was in the nature on extraordinary expenses,

TABLE

02

FY2012 VERSUS FY2013

it caused teething troubles and delays in the production of several transformers that ^LYL [YHUZMLYYLK MYVT )LSNP\T [V /\UNHY` Embedded under the various operational heads are incidental costs involved in Belgium YLZ[Y\J[\YPUN HNNYLNH[PUN [V 9Z JYVYL which are also one-time in nature, thus resulting PU [V[HS YLZ[Y\J[\YPUN JVZ[Z VM 9Z JYVYL à TPSSPVU 6U [OL WVZP[P]L ZPKL [OL 4LJOLSLU restructuring should result in an annual savings VM à TPSSPVU¡VM ^OPJO à TPSSPVU ^HZ ]PZPISL PU [OL MV\Y[O X\HY[LY VM -@ R What is CG Power doing to overcome these problems? There are several, of which three HYL ^VY[O TLU[PVUPUN OLYL ;OL TVZ[ PTWVY[HU[ initiative is a single point focus on increasing WYVK\J[P]P[` HUK SPUL [OYV\NOW\[ ;OPZ PU]VS]LZ

TABLE

FINANCIAL PERFORMANCE CG POWER OVERSEAS

03

FINANCIAL PERFORMANCE CG POWER INDIA FY2012 VERSUS FY2013

FY2012 VERSUS FY2013

UEOB AS ON 31 MARCH

UEOB AS ON 31 MARCH

UEOB AS ON 31 MARCH

IN RS CRORE

IN RS CRORE

IN RS CRORE

7,832

8,525

W8.8

4,397

5,195

W18.1

3,435

3,330

X(3.1)

FY2012

FY2013

PERCENT

FY2012

FY2013

PERCENT

FY2012

FY2013

PERCENT

NET SALES

NET SALES

NET SALES

IN RS CRORE

IN RS CRORE

IN RS CRORE

7,195

7,336

W2.0

4,493

4,753

W5.8

2,747

2,725

X(0.8)

FY2012

FY2013

PERCENT

FY2012

FY2013

PERCENT

FY2012

FY2013

PERCENT

EBIDTA

EBIDTA

EBIDTA

IN RS CRORE

IN RS CRORE

IN RS CRORE

410

34

X(91.7)

64

(244)

X(480.9)

348

260

X(25.2)

FY2012

FY2013

PERCENT

FY2012

FY2013

PERCENT

FY2012

FY2013

PERCENT

EBIT

EBIT

EBIT

IN RS CRORE

IN RS CRORE

IN RS CRORE

248

(110)

X(144.4)

(69)

(352)

X(410.6)

320

231

X(27.9)

FY2012

FY2013

PERCENT

FY2012

FY2013

PERCENT

FY2012

FY2013

PERCENT

CAPITAL EMPLOYED

CAPITAL EMPLOYED

CAPITAL EMPLOYED

IN RS CRORE

IN RS CRORE

IN RS CRORE

2,554

3,382

W32.4

1,789

2,514

W40.5

838

780

X(6.8)

FY2012

FY2013

PERCENT

FY2012

FY2013

PERCENT

FY2012

FY2013

PERCENT

ROCE

ROCE

ROCE

IN PERCENT

IN PERCENT

IN PERCENT

9.7

(3.3)

X(13.0)

(3.9)

(14.0)

FY2012

FY2013

PERCENT POINTS

FY2012

FY2013

X(10.1)

38.2

29.5

X(8.7)

PERCENT POINTS

FY2012

FY2013

PERCENT POINTS

Note: Figures have been regrouped whenever necessary to make them comparable

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S

25

IT TAKES TIME FOR PRODUCTION FACILITIES TO RECALIBRATE THEMSELVES AS MANUFACTURING LINES WITH BEST-IN-CLASS PROCESSES

Commissioned and started production for large motors and synchronous generators at Mandideep, India

26

optimisation of design, methodical slotting of production across the various lines, regular validation and proper testing procedures and [OL \ZL VM ºNV UV NV» NH[L^H`Z R Good production practices is not rocket ZJPLUJL 0[ PZ HIV\[ KPZJPWSPUL HUK [OLYL OHZ ILLU H UV[HISL L_HTWSL VM Z\JJLZZ ;OPZ PZ H[ *.»Z ; WSHU[ H[ 4HUKPKLLW PU 4HKO`H Pradesh where, despite producing highly JVTWSL_ [YHUZMVYTLYZ \UP[Z OH]L ILLU [LZ[LK HUK KLZWH[JOLK ZPUJL :LW[LTILY VU [PTL 0U [OL WYVJLZZ ; OHZ ILLU LHYUPUN HU ,)0; THYNPU PU L_JLZZ VM VM UL[ ZHSLZ R This production initiative, anchored by a fully focused and empowered team, is expected [V KLSP]LY YLZ\S[Z /V^L]LY P[ [HRLZ [PTL MVY production facilities to recalibrate themselves as manufacturing lines with best-in-class WYVJLZZLZ -VY [OL V]LYZLHZ WV^LY [YHUZMVYTLY operations, it is anticipated to take three to four quarters before the full effects of this initiative JVTL PU[V WSH` R ( ZLJVUK PUP[PH[P]L PU]VS]LZ JYLH[PUN H JVZ[ LMÄJPLU[ NSVIHS Z\WWS` JOHPU MVY [OL ZV\YJPUN VM JYP[PJHS YH^ TH[LYPHSZ ;OL WYVJLZZ OHZ ILN\U MVY RL` JVTTVKP[PLZ .VPUN MVY^HYK [OPZ PZ H programme that the CG management will be TVUP[VYPUN ]LY` JHYLM\SS`

CG Power: Key Developments in FY2013 Notwithstanding the issues explained above, [OLYL OH]L ILLU THU` WVZP[P]LZ PU *. 7V^LY :VTL VM [OLZL HYL SPZ[LK ILSV^ POWER TRANSFORMERS AND SWITCHGEARS +LZWP[L KPMÄJ\S[PLZ ^P[ULZZLK PU [OL manufacture of power transformers (PTs) in some locations, FY2013 has seen several key Z\JJLZZLZ .P]LU ILSV^ HYL ZVTL L_HTWSLZ World class operational breakthrough at CG’s plant T3 (Mandideep, near Bhopal). (Z TLU[PVULK LHYSPLY ; OHZ WYVK\JLK HUK [LZ[LK 7;Z ZPUJL :LW[LTILY Even more notable is the fact that most of these transformers and reactors in the ‘high [LJOUVSVN`» R= JH[LNVY` (Z H 7; WSHU[ ; exceeded its growth targets with world class ÄUHUJPHS WLYMVYTHUJL 0[ L_LJ\[LK RL` VYKLYZ for: R ;OL 7V^LY .YPK *VYWVYH[PVU VM 0UKPH 3PTP[LK 7.*03 MVY R= [YHUZMVYTLYZ HUK YLHJ[VYZ R The Madhya Pradesh Power Transmission *VTWHU` 3PTP[LK 477;*3 MVY 4=( [YHUZMVYTLYZ

R ;OL *OP[[HYHUQHU 3VJVTV[P]L >VYRZ *3>

MVY SVJVTV[P]L [YHUZMVYTLYZ CG designed, developed, tested and KLSP]LYLK P[Z ÄYZ[ PUKPNLUV\Z R= class auto-transformer to the Power Grid *VYWVYH[PVU VM 0UKPH 3[K 7.*03 PU )PUH 4HKO`H 7YHKLZO 0[ PZ PU VWLYH[PVU MYVT 4H` .SVIHSS` [OL R= JSHZZ VM transformers is limited to a few countries like 9\ZZPH R= 1HWHU R= 0[HS` R= HUK *OPUH R= :PUJL ; WSHU[ H[ 2HUQ\Y 4\TIHP has been India’s largest power transformer manufacturing unit and the largest JVU[YPI\[VY [V THPU[HPUPUN *.»Z SLHKLYZOPW WVZP[PVU PU 0UKPH 0U -@ ; WYVK\JLK HUK KLZWH[JOLK [YHUZMVYTLYZ HUK YLHJ[VYZ Moreover, T1: R :\JJLZZM\SS` KL]LSVWLK HUK [LZ[LK R= ZPUNSL WOHZL ZO\U[ YLHJ[VYZ HUK H\[V [YHUZMVYTLYZ MVY [OL WV^LY NYPK PU 7LY\ R <WNYHKLK H 4=( [OYLL WOHZL NLULYH[VY Z[LW \W .:< MVY 2HWHY ,ULYN` PU 4HSH`ZPH R <WNYHKLK [OYLL WOHZL R= [OYLL WOHZL H\[V [YHUZMVYTLYZ [V 4=( MVY [OL 7\UQHI :[H[L ;YHUZTPZZPVU *VYWVYH[PVU 3PTP[LK 7:;*3 HUK [OL <[[HY 7YHKLZO 7V^LY ;YHUZTPZZPVU *VYWVYH[PVU 3PTP[LK <77;*3 R 4HU\MHJ[\YLK [OL SHYNLZ[ R= H\[V [YHUZMVYTLY 4=( ZPUNSL WOHZL R= MVY :HYH^HR PU 4HSH`ZPH The Bogor PT plant in Indonesia (called PT ID) successfully designed, manufactured HUK [LZ[LK [OL ÄYZ[ ZP_ \UP[Z VM R= power transformers. ;OPZ PZ ÄYZ[ VM P[Z RPUK PU (:,(5 9LNPVU HUK ^PSS WSH` H RL` YVSL PU ^PKLUPUN [OL MVV[WYPU[ VM 7; 0+ PU :V\[O ,HZ[ (ZPH HUK [OL 7HJPÄJ YLNPVU 0[ HSZV KLSP]LYLK [OL ÄYZ[ IH[JO VM MV\Y 4=( TVIPSL Z\IZ[H[PVUZ [V 735 0UKVULZPH ;OPZ PZ V\[ VM HU VYKLY VM Z\JO \UP[Z 0U HKKP[PVU 7; 0+ YLJLP]LK P[Z OPNOLZ[ L]LY VYKLYZ ^VY[O <: TPSSPVU MYVT TNB, the utilities provider in Malaysia, for PTs HUK Z^P[JONLHYZ *. 7V^LY ZPNULK P[Z ÄYZ[ HSSPHUJL agreement with PLN—0UKVULZPH»Z UH[PVUHS \[PSP[` Z[YL[JOPUN HJYVZZ [OL HYJOPWLSHNV 9LJLP]LK [OL ÄYZ[ JVU[YHJ[ MYVT 735 ^VY[O <: TPSSPVU PT Hungary’s (PT HU) plant at Tapioszele has been approved by an increasing

number of European, North Africa and Middle East customers, which has facilitated incremental order intake after the transfer of VYKLYZ MYVT 4LJOLSLU [V /\UNHY` (TVUN others, the plant has secured orders from R :65,3.(A PU (SNLYPH R 2(9 PU 0YHX R ;OL :H\KP ,SLJ[YPJ *VTWHU` PU :H\KP (YHIPH R ,65 PU [OL <2 R ,30( PU )LSNP\T R :5*- PU -YHUJL R :[H[UL[[ PU 5VY^H` 0[ OHZ HSZV THU\MHJ[\YLK HUK KLSP]LYLK H R= [LZ[ [YHUZMVYTLY MVY ; HZ H WHY[ VM 7.*03»Z YLX\PYLTLU[Z" Z\JJLZZM\SS` KLZPNULK HU HK]HUJLK MVYT VM H R= [YHUZMVYTLY 0[ Z\WWVY[LK 7; 0+ PU [OL PUP[PHS WOHZLZ VM P[Z THU\MHJ[\YL VM [OL R= [YHUZMVYTLYZ 7; HU has completed a much needed capacity L_WHUZPVU MYVT 4=( WLY HUU\T [V 4=(" [OL ZLJVUK WOHZL VM L_WHUZPVU [V 4=( WLY `LHY PZ NVPUN VU H[ WYLZLU[ The power transformer plant at Winnipeg, 7; *HUHKH VY 7; *( YLJLP]LK ZVTL THQVY VYKLYZ PU -@ These were: R \UP[Z VM 4=( [YHUZMVYTLYZ MVY /`KYV 6UL H THQVY \[PSP[` [V IL KLSP]LYLK PU -@ R ;^V \UP[Z VM H 4=( H\[V [YHUZMVYTLY MVY :HZRH[JOL^HU 7V^LY R ;OYLL \UP[Z VM H 4=( .:< [YHUZMVYTLYZ for Coast Mountain Hydro, which is a new J\Z[VTLY R ( TVIPSL Z\IZ[H[PVU MVY 5L^MV\UKSHUK 7V^LY HSZV H UL^ J\Z[VTLY R 0U[YVK\JPUN *.»Z Z\YNL HYYLZ[VYZ [V :HZRH[JOL^HU 7V^LY R 0U HKKP[PVU [OL *HUHKH I\ZPULZZ WSH`LK H key role in successfully bringing anti-dumping JOHYNLZ HNHPUZ[ 2VYLHU THU\MHJ[\YLYZ VM ™ 4=( [YHUZMVYTLYZ *VUZLX\LU[S` *HUHKH OHZ PTWVZLK H TPUPT\T VM \W [V H TH_PT\T K\[` VU Z\JO [YHUZMVYTLY KLSP]LYPLZ MVY [OL UL_[ Ä]L `LHYZ·[O\Z improving the competitiveness of Canadian THU\MHJ[\YLYZ PUJS\KPUN 7; *( The medium power transformer plant at Missouri, USA (PT US) had some key manufacturing and order book successes The plant manufactured: R 0[Z ÄYZ[ 4=( H\[VTH[PJ SVHK [HW JOHUNPUN 3;* [YHUZMVYTLY MVY ,H[VU H KP]LYZPÄLK WV^LY THUHNLTLU[ JVTWHU` PU [OL <: R (U 4=( VPS UH[\YHS HPY MVYJLK 65(- transformer for WE Energies, which provides

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S

27

power supply for Wisconsin and parts of 4PJOPNHU R ( R= Âś )HZPJ 0TW\SZL 3L]LS )03 transformer for Cedar Falls Utilities, which WYV]PKLZ LSLJ[YPJP[` PU WHY[Z VM 0V^H R 0[Z Ă„YZ[ aPNaHN ^PUKPUN [YHUZMVYTLY MVY 1\UNI\UaSH\LY PU *HUHKH R 0[Z Ă„YZ[ [YHUZMVYTLY ^P[O 3;* HUK SV^ ]VS[HNL J\YYLU[ NYLH[LY [OHU HTWLYLZ MVY :V\[O ;L_HZ 0U HKKP[PVU 7; <: YLJLP]LK ZVTL RL` VYKLYZ during FY2013, such as: R -YVT .SVIHS -V\UKYPLZ MVY 4=( R= [YHUZMVYTLYZ R -YVT >, ,ULYNPLZ MVY HU 4=( [YHUZMVYTLY ;OPZ PZ [OL Ă„YZ[ SHYNL WV^LY [YHUZMVYTLY VYKLY MVY 7; <: MYVT HU PUKLWLUKLU[S` V^ULK \[PSP[` PU 5VY[O (TLYPJH R -YVT *VUJVYK 4\UPJPWHS 3PNO[ 7SHU[ MVY HU 4=( R= [YHUZMVYTLY¡[OL Ă„YZ[ SHYNL 7; VYKLY MVY 7; <: MYVT H T\UPJPWHSP[` PU 5VY[O (TLYPJH A0=ÂťZ WV^LY H\[VTH[PVU WYVK\J[Z HYL [V IL PU[LNYH[LK ^P[O [OPZ [YHUZMVYTLY R -YVT )YVVRĂ„LSK 9LUL^HISL 7V^LY MVY H 4=( R= [YHUZMVYTLY¡[OL Ă„YZ[ WYVK\JLK PU 7; <: ^P[O HU VPS KPYLJ[LK HPY Ă…V^ 6+(- JVVSPUN Z`Z[LT 9LNHYKPUN L_[YH OPNO ]VS[HNL ,/= HUK TLKP\T ]VS[HNL 4= Z^P[JONLHYZ [OL *VTWHU` LUQV`LK ZL]LYHS Z\JJLZZLZ PU India and abroad. :VTL VM [OLZL ^LYL! R :\JJLZZM\SS` SH\UJOLK H R= ÂşZWYPUN ZWYPUNÂť NHZ JPYJ\P[ IYLHRLY .*) MYVT 0UKPH PU 4H` R :LJ\YLK THQVY VYKLYZ MVY Z\SWO\Y OL_HĂ…\VYPKL :- .*) PU 0UKPH MYVT RL` \ZLYZ R 7; /< Z\WWSPLK R= .0: MVY P[Z Ă„YZ[ offshore installation for the Humber Gateway WYVQLJ[ <2 HUK HSZV JVTWSL[LK PUZ[HSSH[PVU VM P[Z Ă„YZ[ VMMZOVYL R= .0: PU +LUTHYR MVY ,ULYNPUL[ 0U HKKP[PVU 7; /< IHNNLK ZPNUPĂ„JHU[ VYKLYZ MYVT 2\^HP[ MVY R= .0:" YL Z[HY[LK Z\WWSPLZ VM P[Z R= TVKLS [V 0UKVULZPH" HUK P[Z .0: ^HZ YL PUZ[H[LK HWWYV]HS I` ;5) [OL \[PSP[PLZ THQVY PU 4HSH`ZPH R ;OL Z^P[JONLHY MHJPSP[` PU 0UKPH OHZ THU\MHJ[\YLK HUK SH\UJOLK H YHUNL VM R= [V R= VM .0:¡HUK PZ [OL Ă„YZ[ 0UKPHU LU[P[` [V KV ZV 0[ OHZ HSZV IHNNLK VYKLY MYVT THQVY Z[H[L V^ULK \[PSP[PLZ R ;OL 4= Z^P[JONLHY KP]PZPVU KL]LSVWLK UL^ THYRL[Z HUK ZLNTLU[Z PU 0UKPH (MYPJH HUK [OL 4PKKSL ,HZ[ 0U 0UKPH MVY U\JSLHY HUK ZVSHY WV^LY \[PSP[PLZ MVY R= R( HUK R=

28

R( PUKVVY ]HJ\\T JPYJ\P[ IYLHRLY =*) WHULSZ" HUK PU (MYPJH MVY R= R( PUKVVY .0: HUK U\TLYPJHS JVTT\UPJHISL YLSH`Z 0[ KL]LSVWLK UL^ WYVK\J[Z Z\JO HZ R= R( .0: HUK R= R( V\[KVVY .0: MVY *0: countries which are capable of operating at (-) ¢ JLU[PNYHKL 0U HKKP[PVU [OL KP]PZPVU OHZ HSZV THU\MHJ[\YLK R= HUK R= =*)Z DISTRIBUTION TRANSFORMERS (S[OV\NO ZHSLZ HUK VYKLY PU[HRL YLTHPULK TVYL VM SLZZ Ă…H[ PU -@ JVTWHYLK [V [OL WYL]PV\Z year, there were some key developments which HYL SPZ[LK OLYL +; )LSNP\T +; ), VI[HPULK JLY[PĂ„JH[PVU from ÉlectricitĂŠ RĂŠseau Distribution France (ERDF)—France’s low and medium ]VS[HNL KPZ[YPI\[PVU Z`Z[LT ZWHUUPUN million km of lines—for a full range of auto [YHUZMVYTLYZ 4=( 0[ HSZV KLZPNULK HUK WYVK\JLK P[Z P Ă„YZ[ SV^ UVPZL ZTHSS WV^LY [YHUZMVYTLYZ PP Ă„YZ[ OHaHYKV\Z HYLH (;,? JLY[PĂ„LK [YHUZMVYTLYZ AVUL MVY [OL VPS HUK NHZ PUK\Z[Y` HUK PPP Ă„YZ[ 4=( HUK 4=( TVIPSL [YHUZMVYTLYZ MVY *.ÂťZ 7V^LY :`Z[LTZ I\ZPULZZ 0U HKKP[PVU .HTLZH H global technological leader in the wind industry ^P[O 4> PUZ[HSSLK PU JV\U[YPLZ ]HSPKH[LK HUK HJJLW[LK +; ),ÂťZ 4=( ^PUK [\YIPUL [YHUZMVYTLYZ :VTL THQVY ^PUZ PU FY2013 were: R (U ,ULYJVU MYHTL JVU[YHJ[ R ( :PLTLUZ >PUK 7V^LY JVU[YHJ[ R ( *37 .YV\W /VUN 2VUN JVU[YHJ[ R (U ,SPH JVU[YHJ[ DT Ireland (DT IE) developed a competitive ‘low loss’ design for the German market, HUK H UL^ ^PUK Z\IZ[H[PVU MVY [OL <2 renewables market which was described by customer as ‘best in class’. 0[ HSZV VI[HPULK *9,+(* [OL SVJHS \[PSP[` Z[HUKHYK HWWYV]HS MVY (SNLYPH" Z[HY[LK KLSP]LYPLZ MVY .LULYHS ,SLJ[YPJP[` *VTWHU` VM 3PI`H .,*63 " HUK WHZZLK HSS [LZ[Z MVY [OL Z\WWS` VM KPZ[YPI\[PVU [YHUZMVYTLYZ [V ,(5+0: [OL LSLJ[YPJP[` HUK NHZ KPZ[YPI\[VY PU -SHUKLYZ The DT plant in Washington, Missouri, USA (called DT US) successfully designed a three-winding transformer which was Z\JJLZZM\SS` [`WL [LZ[LK [OYV\NO 2,4( PU the Netherlands. 0[ HSZV KLZPNULK H SV^ OPNO SV^ 3/3 [OYLL ^PUKPUN [YHUZMVYTLY MVY [OL YLUL^HISLZ THYRL[ +; <: OHZ YLJLP]LK VYKLYZ

MYVT ,H[VU HUK :PLTLUZ 0[ WSHUZ [V \[PSPZL ,7* relationships to build references for DTs in the VPS HUK NHZ POWER SYSTEMS AND SOLUTIONS 9LHKLYZ VM SHZ[ `LHYÂťZ (UU\HS 9LWVY[ TH` recollect that CG in Europe was involved in four THQVY WV^LY Z`Z[LTZ HUK ZVS\[PVUZ WYVQLJ[Z These were: ,VUÂťZ /\TILY .H[L^H` >PUK MHYT 7YVQLJ[ *. 7V^LY :VS\[PVUZ <2 HUK *. :`Z[LTZ Belgium together secured the order for setting up the offshore and onshore substations at the Humber estuary, off the coast of Yorkshire in [OL <2 ,PNO[ RT VMM [OL @VYRZOPYL JVHZ[ [OL Z\IZ[H[PVU ^HZ [V JVUULJ[ VMMZOVYL ^PUK [\YIPULZ VM 4> LHJO VY 4> PU [V[HS ^P[O WV^LY VM 4=( ( R= Z\I ZLH JHISL was to connect the offshore substation to the onshore facility, which was then to be hooked \W [V [OL <2ÂťZ 5H[PVUHS .YPK JVUULJ[PVU ;OL WYVQLJ[ ^HZ ^VY[O ‰ TPSSPVU¡Â‰ TPSSPVU MVY ZL[[PUN \W [OL VUZOVYL MHJPSP[PLZ HUK ‰ TPSSPVU MVY [OL VMMZOVYL *. WYVK\J[Z [V IL \ZLK in the project were: i. power transformers, reactors and distribution transformers for onshore and VMMZOVYL ii. R= .0: Z^P[JONLHYZ MVY VMMZOVYL HUK iii. CG power automation and control systems MVY IV[O VUZOVYL HUK VMMZOVYL ;^V VM [OL transformers were supplied by PT HU, and [OL V[OLY [^V MYVT 7; ), ;OL <2 HUK )LSNPHU systems businesses continue to work closely together with the objective to deliver the project Z\JJLZZM\SS` HUK VU [PTL MVY ,VU 5VY[O^PUK PU 5VY[O :LH RT VMMZOVYL from Belgian coast =HS\LK H[ Ă TPSSPVU the full project scope of CG, including the overall grid integration compliance study, has ILLU JVTWSL[LK VU [PTL HUK [OL /= Z\IZ[H[PVU will be installed on its seabed foundation in (\N\Z[ Two other European off-shore wind WYVQLJ[Z ^LYL! i. WPD Butendiek, on the German North :LH ZVTL RT VMM [OL JVHZ[ VM :JOSLZ^PN Holstein, valued at â‚Ź10 million, and ii. ,65 (TY\TIHUR >LZ[ RT VMM ZOVYL MYVT /LSNVSHUK PU [OL .LYTHU 5VY[O :LH ]HS\LK H[ Ă TPSSPVU )V[O [OLZL WYVQLJ[Z HYL MVY JVUZ[Y\J[PVU VM _ R= VMMZOVYL

THE POWER AUTOMATION BUSINESS AIMS TO BECOME A WORLD-CLASS PROVIDER OF INTEGRATED SOLUTIONS TO OUR GLOBAL CUSTOMERS

The Power Systems business out of Belgium completed an V]LYZLHZ ,7* WYVQLJ[

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S

29

Assessing assembly processes at CG’s Distribution Transformer factory

substations, and are proceeding according to ZJOLK\SL The Power Systems business out of Indonesia :@ 0+ KPK HU VU [PTL JVTWSL[PVU VM P[Z Ă„YZ[ V]LYZLHZ ,7* WYVQLJ[¡[OL KLZPNU procurement, erection and commissioning VM H R= Z^P[JO`HYK PUJS\KPUN _ 4=( generator step-up transformers, control and protection system, set up in an open cycle gas turbine in a 120 MW power plant at Merrdin, >LZ[LYU (\Z[YHSPH ;OL WYVQLJ[ ^HZ ^VY[O TPSSPVU SY ID also received an EPC contract— which involved design, engineering, procurement, installation and commissioning VM H R= Z\IZ[H[PVU PU 2HSPTHU[HU 0UKVULZPH including civil, automation and grid connection [V :HYH^HR 4HSH`ZPH VU OPNO ]VS[HNL ZPKL HUK [V [OL 735 NYPK PU 0UKVULZPH VU SV^ ]VS[HNL ZPKL ;OL WYVQLJ[ ^HZ ^VY[O TPSSPVU

30

The systems and solutions business in Europe and the Middle East (Systems and Services, EMEA) won some key orders, such as: R ;OL 4PUPZ[Y` VM ,ULYN` 0YHX MVY [\YURL` .0: Z\IZ[H[PVUZ ]HS\LK H[ à TPSSPVU R .,*63 3PI`H MVY ]HYPV\Z OPNO ]VS[HNL WHJRHNLK /= [YHUZMVYTLYZ HUK LX\PWTLU[ LZ[PTH[LK H[ à TPSSPVU R GridCo, Ghana, also a turnkey substation WYVQLJ[ ]HS\LK H[ à TPSSPVU 2L` JVU[YHJ[Z KLSP]LYLK I` :`Z[LTZ HUK Services, EMEA were: R Electricidade de Moçambique (EDM), Mozambique for a mobile substation and Z\IZ[H[PVU \WNYHKLZ ]HS\LK H[ à TPSSPVU R 2LU`H 7V^LY HUK 3PNO[PUN *VTWHU` 273* MVY R= [\YURL` Z\IZ[H[PVUZ H[ à TPSSPVU

R EDM in Malta: the turnkey supply and

PUZ[HSSH[PVU VM [OL 2HWHYH R= Z\IZ[H[PVU H[ Ă TPSSPVU 2L` JVU[YHJ[Z KLSP]LYLK I` [OL ,UNPULLYPUN 7YVQLJ[Z +P]PZPVU ,7+ VM *. 7V^LY 0UKPH were: R +LSP]LYPUN P[Z Ă„YZ[ R= Z\IZ[H[PVU MVY 7.*03 JOHYNLK LPNO[ TVU[OZ WYPVY [V ZJOLK\SL ;OL JVU[YHJ[ ]HS\L ^HZ 9Z JYVYL The project will lend strength and stability to the *LU[YHS .YPK VM 0UKPH HUK MHJPSP[H[L I\SR WV^LY [YHUZTPZZPVU HJYVZZ Z[H[LZ R :\JJLZZM\SS` LYLJ[PUN 7OHZL 00 VM [OL Ă„YZ[ R= Z\IZ[H[PVU WYVQLJ[ VM <77;*3 H[ <UUHV H[ 9Z JYVYL 9LHKLYZ TH` YLJHSS [OH[ 7OHZL 0 VM [OPZ Z\IZ[H[PVU OHZ ILLU JVTTPZZPVULK HUK W\[ PU[V ZLY]PJL I` ,7+ PU 1HU\HY` R *VTTPZZPVUPUN H R= Z^P[JO`HYK MVY 2VYIH WV^LY WSHU[ VM (]HU[OH 7V^LY HUK 0UMYHZ[Y\J[\YL 3PTP[LK MVY P[Z _ 4> [OLYTHS WV^LY WSHU[ H[ 9HPNHYO 0UKPH ;OPZ VYKLY ]HS\LK

H[ 9Z JYVYL PZ HSZV [OL Ă„YZ[ R= JYLKLU[PHS MVY *. 7V^LY (\[VTH[PVU KP]PZPVU L_LJ\[LK PU 0UKPH R :\JJLZZM\SS` JOHYNPUN [OL *OOH[[PZNHYO :[H[L 7V^LY ;YHUZTPZZPVU *VTWHU`ÂťZ Ă„YZ[ R= Z\IZ[H[PVU H[ 9HPW\Y PU *OOH[[PZNHYO ;OPZ WYVQLJ[ ]HS\LK H[ 9Z crore, is playing a vital role in strengthening the Z[H[L NYPK R ,7+ HSZV YLJLP]LK ZVTL IPN VYKLYZ ;OLZL ^LYL! P HU VYKLY ^VY[O 9Z JYVYL MYVT 7.*03 MVY R= UL^ Z\IZ[H[PVUZ HUK L_[LUZPVU WYVQLJ[Z PU 1OHYROHUK 0UKPH" PP ]HYPV\Z R= L_[LUZPVU WHJRHNLZ MYVT 7.*03 MVY T\S[PWSL SVJH[PVUZ PU UVY[O 0UKPH ^VY[O 9Z JYVYL" PPP R= NHZ PUZ\SH[LK Z\IZ[H[PVU .0: [\YURL` WYVQLJ[Z ^VY[O 9Z

TABLE

04

PERFORMANCE OF THE CG INDUSTRIAL SYSTEMS BUSINESS FY2012 VERSUS FY2013

UEOB AS ON 31 MARCH IN RS CRORE

534

601

W12.5

FY2012

FY2013

PERCENT

NET SALES IN RS CRORE

1,820

1,835

W0.8

FY2012

FY2013

PERCENT

EBIDTA IN RS CRORE

266

251

X(5.8)

FY2012

FY2013

PERCENT

EBIT IN RS CRORE

210

214

W1.6

FY2012

FY2013

PERCENT

CAPITAL EMPLOYED IN RS CRORE

823

866

W5.2

FY2012

FY2013

PERCENT

ROCE IN PERCENT

25.5

24.7

X(0.8)

FY2012

FY2013

PERCENT POINTS

crore from various customers like the Haryana =PK`\[ 7YHZHYHU 5PNHT 3[K HUK [OL 7V^LY Transmission Corporation of Uttarakhand 3[K " HUK P] [OL Ă„YZ[ ,/= [\YURL` Z\IZ[H[PVU MVY R= Z\IZ[H[PVUZ HUK L_[LUZPVUZ from Madhya Pradesh Power Transmission *VTWHU` 3PTP[LK MVY T\S[PWSL SVJH[PVUZ ]HS\LK H[ 9Z JYVYL

ELECTRICITY DISTRIBUTION: JALGAON, MAHARASHTRA From 1 November 2011, CG has been THUHNPUN [OL 1HSNHVU 4HOHYHZO[YH KPZ[YPI\[PVU MYHUJOPZL ([ [OL [PTL VM [HRLV]LY MYVT [OL 4HOHYHZO[YH :[H[L ,SLJ[YPJP[` +PZ[YPI\[PVU *VTWHU` [OL 1HSNHVU HYLH OHK KPZ[YPI\[PVU SVZZLZ VM V]LY ;OL MHPS\YL YH[L of transformers and switchgear on both low ]VS[HNL HUK OPNO ]VS[HNL ^HZ X\P[L OPNO ;OL IPSSPUN LMĂ„JPLUJ` ^HZ ^OLYLHZ JVSSLJ[PVU LMĂ„JPLUJ` ^HZ During FY2013, CG carried out the following initiatives to improve the operational parameters: R *VTTLUJLTLU[ VM H _ JHSS JLU[YL catering to both urban and rural areas, which has been a success story, since consumers in MHY Ă…\UN HYLHZ KV UV[ OH]L [V [YH]LS [V [OL *. VMĂ„JLZ [V SVKNL H JVTWSHPU[ R Establishing a Consumer Facilitation Centre *-* [V H[[LUK [V JVUZ\TLYZ R Replacing over 12,000 defective meters JV]LYPUN HWWYV_PTH[LS` VM [OL WVW\SH[PVU R 9LSLHZPUN V]LY UL^ ZLY]PJL connections, thereby adding to the consumer IHZL R Bifurcation of feeders to reduce technical SVZZLZ R Regular maintenance of all power and distribution transformers and switchgear at the Z\IZ[H[PVU ;OLZL PUP[PH[P]LZ OH]L KLSP]LYLK YLZ\S[Z :VTL of these are: R ALYV MHPS\YL VM WV^LY [YHUZMVYTLYZ R ALYV MHPS\YL VM Z^P[JONLHYZ R Reduction in distribution transformer failure MYVT [V

R 0TWYV]LK IPSSPUN LMĂ„JPLUJ` VM

R 0TWYV]LK JVSSLJ[PVU LMĂ„JPLUJ` VM

R Most importantly, reduction of distribution SVZZLZ [V V]LY H ZP_ TVU[O ZSPKPUN ZJHSL

R High tension (HT) motors R 3V^ [LUZPVU 3; TV[VYZ R Fractional horse power (FHP) motors R Direct current (DC) motors R (* HUK +* KYP]LZ R (* NLULYH[VYZ R =HYPHISL MYLX\LUJ` KYP]LZ HUK ZVS\[PVUZ

based on insulated gate bi-polar transistor 0.); [LJOUVSVN`" ZVM[ Z[HY[LYZ HUK ZOHM[ WV^LY TVUP[VYZ" HUK YV[HY` OLH[ L_JOHUNLYZ with switch reluctance motors for saving LULYN` R Traction electronics & traction machines for railway transportation R Railway signalling equipment R :[HTWPUNZ ;HISL NP]LZ [OL Ă„UHUJPHS WLYMVYTHUJL VM 0UK\Z[YPHS :`Z[LTZ V]LY [OL SHZ[ [^V `LHYZ 0UK\Z[YPHS :`Z[LTZÂť UL[ ZHSLZ YLTHPULK TVYL VY SLZZ Ă…H[¡YPZPUN I` V]LY -@ [V YLHJO 9Z JYVYL ( JVTIPUH[PVU VM OPNOLY TH[LYPHS JVZ[Z LZWLJPHSS` PU [OL Ă„YZ[ OHSM VM [OL Ă„UHUJPHS `LHY HUK WYPJPUN WYLZZ\YLZ SLK [V H MHSS PU ,)0+;( [V 9Z JYVYL ;OV\NO ,)0; PUJYLHZLK I` H YPZL PU JHWP[HS LTWSV`LK I` SLK [V H THYNPUHS YLK\J[PVU PU 96*,¡MYVT PU -@ [V PU -@ 0[ ULLKZ UV[PUN [OH[ [OV\NO SV^LY [OHU -@ 0UK\Z[YPHS :`Z[LTZ 96*, H[ PZ Z[PSS OLHS[O` HUK HTVUN [OL ILZ[ PU [OL PUK\Z[Y` ( NVVK UL^Z PZ [OH[ [OL <,6)¡^OPJO OHK YLK\JLK I` PU -@ ]PZ n ]PZ [OL WYL]PV\Z `LHY¡OHZ HNHPU YPZLU I` (Z VU 4HYJO P[ ^HZ H[ 9Z JYVYL :VTL of the key developments for FY2013 are given below: R 3H\UJOLK [OL (WL_Â? :LYPLZ VM 0, 3=

TV[VYZ \W [V R> PU 0UKPH MYVT 1\UL R Tested a prototype of an insulated gate

bi-polar transistor (IGBT) power converter, HSZV PU 1\UL R Launched brushless alternators for mini

O`KYV WYVQLJ[Z PU 1\S` R ;LZ[LK WYV[V[`WLZ VM 07 (* KYP]LZ

MYHTLZ * HUK + PU 8 -@ R 3; TV[VYZ WSHU[ PU .VH \UP[ ILJHTL H

CG INDUSTRIAL SYSTEMS *. 0UK\Z[YPHS :`Z[LTZ THU\MHJ[\YLZ [OL following types of products:

Q\Z[ PU [PTL 10; MHJPSP[` MVY MYHTL ^P[O motors rolling out at the rate of one per 3

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S

31

CG’s state-of-the-art Lighting facility at Baroda manufactures 9Mn lamps per month

CG’S LIGHTING DIVISION IS GROWING AT 13% AGAINST AN INDUSTRY GROWTH OF 12%

32

TPU\[LZ HUK ZLJVUKZ This was achieved PU :LW[LTILY HUK THPU[HPULK [OLYLHM[LY R Lean manufacturing practices used

in the LT motors plant in Ahmednagar 4HOHYHZO[YH YLSLHZLK ZX\HYL TL[YLZ VM ZOVW Ă…VVY HYLH for further production in Q2, -@ R 3H\UJOLK 0, 5,4( 7YLTP\T 3=

iv. :LY]PJLZ I\ZPULZZ! ( YLSH[P]LS` UL^ PUP[PH[P]L this involves the supply of spares and winding RP[Z YLWHPYZ YLOHIPSP[H[PVU HUK YL[YV Ă„[[PUN VM motors and generators, and the commissioning VM SHYNL YV[H[PUN THJOPULZ R Frost & Sullivan Manufacturing

,_JLSSLUJL .VSK *LY[PĂ„JH[L ^HZ H^HYKLK [V [OL 4 +P]PZPVU H[ 4HUKPKLLW HUK [OL :PS]LY *LY[PĂ„JH[L [V 3; 4V[VYZ H[ (OTLKUHNHY

TV[VYZ YHUNL \W [V R> PU 8 -@

POWER AUTOMATION R Commissioned and started production

at the new manufacturing facility for large motors and synchronous generator at Mandideep. *VTWYPZPUN ZX\HYL TL[YLZ the plant is equipped with state-of-the-art THJOPULZ HUK WYVJLZZ [LJOUVSVNPLZ 0[ OHZ H JHWHJP[` [V WYVK\JL SHYNL TV[VYZ HUK Z`UJOYVUV\Z NLULYH[VYZ 0[ OHZ [LZ[PUN MHJPSP[PLZ MVY \W [V 4> 4= TV[VYZ HUK \W [V 4=( MVY Z`UJOYVUV\Z NLULYH[VY ;OL ^PUKPUN HUK ]HJ\\T WYLZZ\YL PTWYLNUH[PVU =70 WYVJLZZLZ HYL H\[VTH[LK¡YLZ\S[PUN PU LULYN` LMĂ„JPLUJ` HZ ^LSS HZ OPNO [OYV\NOW\[ ;OL WSHU[ OHZ H NYLLU HYLH VM HYV\UK ZX\HYL TL[YLZ" and the daylight panels provided on the roof and side walls have increased effective lighting HUK YLK\JLK LULYN` \ZL R Largest rating synchronous generator

manufactured in India— 4=( LPNO[ WVSL R 4HU\MHJ[\YLK [OL SHYNLZ[ YH[PUN 4=

motor for Sterlite India =LKHU[H 7V^LY 6YPZZH ¡ 4> LPNO[ WVSL R= PU -Y MYHTL ZPaL

;OV\NO UV[ H YLWVY[HISL ZLNTLU[ PU Ă„UHUJPHS terms, power automation deserves a JVTTLU[HY` LZWLJPHSS` HM[LY [OL *VTWHU`ÂťZ HJX\PZP[PVU VM A0= ;OL 7V^LY (\[VTH[PVU business comprises three divisions: R SAS or the Substation Automation and

Telecommunication Systems 7YVK\J[Z PU this category are: i. 0,* WYV[LJ[PVU HUK JVU[YVS Z`Z[LTZ ii. protection relays and panels, iii. control devices, iv. communications devices and v. Z\IZ[H[PVU :*(+( KH[H JVUJLU[YH[VYZ R DAS or the Distributed Automation

Systems. The products are i. distribution management systems, ii. distribution automation solutions, iii. smart meters and concentrators, iv. communication devices, and v. (49 (K]HUJLK 4L[LY 9LHKPUN HUK (40 (K]HUJL 4L[LYPUN 0UMYHZ[Y\J[\YL ZVS\[PVUZ HUK ,= ,SLJ[YPJHS =LOPJSL JOHYNPUN Z[H[PVUZ

test facilities established at the Drives and Automation facility at Mandideep in India PU -LIY\HY` 7PSV[ Y\U VM [OL * HUK + MYHTLZ ILNHU PU 4HYJO R Some of the new products and offerings

during FY2013 were: i. 3HYNL YV[H[PUN THJOPULZ! J`SPUKYPJHS YV[VY synchronous generators up to 3 MW, and high ZWLLK 4> [^V WVSL 4= TV[VYZ ii. 9HPS^H`Z! +L]LSVWLK _ R=( H\_PSPHY` JVU]LY[LY MVY /7 R= (* SVJVTV[P]LZ iii. :[HTWPUNZ! <ZL VM ZVM[ THNUL[PJ TH[LYPHS : NYHKL ^OPJO SLHKZ [V SV^LY TH[LYPHS SVZZ PU SHTPUH[PVU MVY TV[VYZ PU MHUZ -/7 HUK 3= TV[VYZ

The challenge, therefore, is to rapidly globalise PU (ZPH HUK (MYPJH ^OLYL [OLYL HYL JSLHY ZPNUZ of the beginning of a huge incremental demand MVY Z\JO WV^LY H\[VTH[PVU ;OPZ YLX\PYLZ [OL I\ZPULZZ [V ZPNUPÄJHU[S` PUJYLHZL P[Z WVY[MVSPV VM homologated products to meet the requirements VM RL` LTLYNPUN THYRL[ JV\U[YPLZ 5V[ Z\YWYPZPUNS` [OL ÄYZ[ [HZR VM HSS [OL [OYLL KP]PZPVUZ VM [OL 7V^LY (\[VTH[PVU I\ZPULZZ PZ [V KV HSS that it takes to introduce its tested products and ZVS\[PVUZ [V (ZPHU HUK (MYPJHU THYRL[Z 0U -@ MVY [OL LPNO[ TVU[OZ HM[LY HJX\PZP[PVU A0=Z [VW SPUL ^HZ SLZZ [OHU ^OH[ the management believed was possible at [OL [PTL VM [OL [HRLV]LY ;OPZ ^HZ SHYNLS` VU account of a massive slowdown in orders, LZWLJPHSS` PU :WHPU ^OPJO ^HZ A0=Z [YHKP[PVUHSS` SHYNL THYRL[ ;OLYL OHZ ILLU H [YLTLUKV\Z work done in integrating the existing H\[VTH[PVU VMMLYPUNZ VM A0= PU *.Z Z\P[L Given its new found emphasis on globalisation, particularly outside Western Europe, and the integration of its various products and ZVS\[PVUZ *. 7V^LY (\[VTH[PVU ^V\SK ZLSS these offerings and solutions—both for Power HUK MVY 0UK\Z[YPHS :`Z[LTZ ^VYSK^PKL

CG CONSUMER PRODUCTS R Transit automation and supervisory

R 07 3= (* KYP]LZ THU\MHJ[\YPUN HUK

clear positive relates to the quality of products and solutions that are offered by all three KP]PZPVUZ ;OL KPMĂ„J\S[` MHJLK H[ WYLZLU[ PZ [OH[ Western Europe, particularly the Euro area, is KL NYV^PUN .P]LU A0=ÂťZ MVV[WYPU[ PU ,\YVWL there may be limits to how much two of the key KP]PZPVUZ¡:(: HUK +(:¡JHU NYV^ PU [OL ZOVY[ Y\U IHZLK VUS` \WVU ,\YVWLHU KLTHUK

control for electric, transportation and water utilities. These involve: i. JVU[YVS YVVT :*(+(Z ii. remote gateways and remote terminal units (RTUs), iii. emergency trip systems, iv. train tracking, and v. MH\S[ KL[LJ[PVU This division largely consists of products, VMMLYPUN HUK ZLY]PJLZ VM 8,0 0UJ 3VJH[LK H[ :WYPUNĂ„LSK 5L^ 1LYZL` <:( *. HJX\PYLK [OPZ WYVĂ„[HISL LU[LYWYPZL PU 4H` 0[ PZ UV^ JHSSLK (\[VTH[PVU :VS\[PVUZ <: VY (:63 <: ;OL 7V^LY (\[VTH[PVU I\ZPULZZ HPTZ [V become a world-class provider of integrated solutions to our global customers in the three KVTHPUZ TLU[PVULK HIV]L 0U KVPUN ZV [OL

The CG Consumer Products business supplies fans, lighting equipment (light sources and luminaires), pumps, a wide range of electrical household appliances and provides solutions for integrated security systems, home H\[VTH[PVU HUK Z[YLL[ SPNO[PUN 0[Z Ă„UHUJPHS WLYMVYTHUJL PZ NP]LU PU ;HISL The CG Consumer Products business, which PZ [OL *VTWHU`ÂťZ ZLJVUK SHYNLZ[ I\ZPULZZ unit in terms of revenues and the largest cash NLULYH[VY ^HZ IHJR VU [OL \WZ^PUN 5L[ ZHSLZ NYL^ I` [V 9Z JYVYL PU -@ ,)0+;( NYL^ I` [V 9Z JYVYL" HUK ,)0; YVZL I` [V 9Z JYVYL ;OL I\ZPULZZÂť 96*, MLSS I` WLYJLU[HNL WVPU[Z ,]LU ZV H[ P[ PZ I` MHY [OL OPNOLZ[ HTVUN HSS JVTWHYHISL JVTWL[P[VYZ

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S

33

;OL I\ZPULZZ OHZ ZPNUPÄJHU[S` PTWYV]LK P[Z service capabilities by establishing more than L_JS\ZP]L H\[OVYPZLK ZLY]PJL JLU[YLZ All regions in India contributed to CG Consumer Product’s top-line growth in -@ ;OL UVY[OLYU YLNPVU NYL^ P[Z I\ZPULZZ I` " ^OPSL LHZ[ ZV\[O HUK ^LZ[ LHJO NYL^ I`

variants were developed and launched in -@ " HUK UL^ WYVK\J[Z HJJV\U[LK MVY V]LY H [OPYK VM [OL KP]PZPVUÂťZ ZHSLZ ( UL^ WYLTP\T YHUNL VM JLPSPUN MHUZ JHSSLK Âş(]HUJLYÂť ^HZ PU[YVK\JLK K\YPUN -@ " P[ OHZ ILLU well appreciated by the market and alone HJJV\U[LK MVY HWWYV_PTH[LS` VM [OL KP]PZPVUÂťZ ZHSLZ

R ;OL MHUZ KP]PZPVU L_JLLKLK 9Z

R *.ÂťZ SPNO[PUN KP]PZPVU PZ NYV^PUN H[

JYVYL VM ZHSLZ K\YPUN -@ THRPUN *. [OL Ă„YZ[ JVTWHU` PU MHUZ [V JYVZZ [OPZ mark. ;VW SPUL NYL^ I` JVTWHYLK [V H THYRL[ NYV^[O VM 0U OV\ZL WYVK\J[PVU PUJYLHZLK I` V]LY [OL WYL]PV\Z `LHY Despite serious pressure on cost due to HU HWWYLJPH[PVU VM [OL <: HUK TL[HS WYPJL increases, the division earned a double-digit ,)0+;( [V ZHSLZ WLYJLU[HNL 0[ THPU[HPULK negative capital employed through controls on KLI[VYZ HUK PU]LU[VY` *.ÂťZ MHUZ JVU[PU\LK [V LUQV` [OLPY Âş:\WLYIYHUKÂť Z[H[\Z MVY ZL]LU[O JVUZLJ\[P]L `LHY :VTL UL^ WYVK\J[Z

HNHPUZ[ HU PUK\Z[Y` NYV^[O VM 0[ OVSKZ HU V]LYHSS UV WVZP[PVU PU [OL 0UKPHU THYRL[ with leadership in high intensity discharge lamps used for public lighting, industrial lighting and Ă…VVK SPNO[PUN *.ÂťZ NYV^[O PU YHWPKS` NYV^PUN WYVK\J[Z Z\JO HZ *VTWHJ[ -S\VYLZJLU[ 3HTWZ *-3 PUKVVY JVTTLYJPHS SPNO[PUN HUK OPNO THZ[ OH]L ILLU HUK ¡]LYZ\Z THYRL[ NYV^[O VM HUK 6U 1HU\HY` [OL *VTWHU` HJX\PYLK [OL *-3 I\ZPULZZ VM 2HYTH 0UK\Z[YPLZ H[ )HKKP Himachal Pradesh, for an approximate value VM 9Z TPSSPVU ;OL HJX\PZP[PVU ^PSS KV\ISL *.ÂťZ JHWHJP[` PU [OL MHZ[ NYV^PUN *-3 SPNO[PUN segment and reinforce its presence in the YHWPKS` NYV^PUN 0UKPHU JVUZ\TLY THYRL[ 9LHKLYZ VM SHZ[ `LHYÂťZ (UU\HS 9LWVY[ TH` YLTLTILY [OH[ [OL *VTWHU` ^HZ [OL Ă„YZ[ PU 0UKPH [V WYVK\JL H OPNOS` LULYN` LMĂ„JPLU[ SPNO[ LTP[[PUN KPVKL 3,+ SHTW ^P[O HU H]LYHNL SPML VM I\YUPUN OV\YZ ^OPJO JVUZ\TLK VUS` watts of power to produce the light of a 40 watt I\SI >OPSL WLUL[YH[PVU VM 3,+ IHZLK SPNO[PUN WYVK\J[Z [VKH` PZ [V VM [V[HS SPNO[PUN it is estimated to reach anywhere between HUK I` -@ >P[O [OPZ PU TPUK CG has entered in to a technology licensing HNYLLTLU[ ^P[O )YPKNLS\_ PU [OL <:(¡VUL VM [OL ^VYSKÂťZ [VW Ă„]L 3,+ JOPW THU\MHJ[\YPUN JVTWHUPLZ ;OPZ JVSSHIVYH[PVU ^PSS LUHISL *. to deliver high performance, long-life, and cost-effective solid state lighting products to business, governments and mass market consumers, and thus replace traditional and PULMĂ„JPLU[ [LJOUVSVNPLZ 0[ PZ ^VY[O TLU[PVUPUN that the division introduced its patented smart street panel to automatically control illumination levels depending on the need and time of KH` 0UZ[HSSLK HZ H WHY[ VM [OL ZTHY[ JP[` ILPUN KL]LSVWLK I` 7.*03 PU 7\K\JOLYY` [OPZ HSSV^Z T\UPJPWHSP[PLZ [V ZH]L LULYN` \W [V *. SPNO[PUN JVU[PU\LK [V YL[HPU P[Z Âş:\WLYIYHUKÂť Z[H[\Z MVY [OL ZP_[O Z\JJLZZP]L `LHY

TABLE

05

PERFORMANCE OF CG CONSUMER PRODUCTS FY2012 VERSUS FY2013

NET SALES IN RS CRORE

2,134

2,593

W21.5

FY2012

FY2013

PERCENT

EBIDTA IN RS CRORE

270

287

FY2012

FY2013

W5.8 PERCENT

EBIT IN RS CRORE

263

278

FY2012

FY2013

W5.8 PERCENT

CAPITAL EMPLOYED IN RS CRORE

92

110

FY2012

FY2013

W19.9 PERCENT

ROCE IN PERCENT

286

252

X(34)

FY2012

FY2013

PERCENT POINTS R 0U H THYRL[ [OH[ NYL^ I` [OL

pumps division increased its top-line by

34

PU -@ *. YL[HPULK P[Z V]LYHSS UV position in this business, with leadership in the domestic pumps segment, where it enjoyed H THYRL[ ZOHYL VM 5L^ WYVK\J[Z SPRL [OL 4PUP :HT\KYH HUK 4PUP .HUNH YHUNL contributed to the increase in domestic pump ZHSLZ 0[ HSZV Z\JJLZZM\SS` SH\UJOLK H UL^ series of submersible pumps which were well YLJLP]LK PU [OL THYRL[ 0[ Z\JJLZZM\SS` LU[LYLK new segments—with vertical and horizontal multi-stage pumps, sewage submersible pumps for sewage and waste water treatment, sophisticated mini pressure boosting systems for domestic shower applications in multi-storeyed buildings, and stainless steel Z\ITLYZPISL W\TWZ MVY \ZL PU ZHUK` ILKZ (KKP[PVU VM H UL^ HZZLTIS` SPUL H[ (OTLKUHNHY OHZ PUJYLHZLK JHWHJP[` I` ZVTL LX\P]HSLU[ \UP[Z ;OL W\TWZ KP]PZPVU ^HZ VUJL HNHPU H^HYKLK [OL º:\WLYIYHUK Z[H[\Z PU -@ R Though relatively small, the appliances

KP]PZPVU NYL^ UL[ ZHSLZ I` PU -@ 0[ Z\WWSPLZ H ^PKL YHUNL VM KVTLZ[PJ HWWSPHUJLZ PU MV\Y THQVY WYVK\J[ JH[LNVYPLZ! ^H[LY OLH[LYZ geysers, small appliances, power solutions HUK HPY JVVSLYZ OLH[LYZ 5V^ H ZPNUPĂ„JHU[ player in geysers, FY2013 saw the successful commercialization of a patented polymer coated technology which will give consumers [OL ILULĂ„[ VM SVUN SPML SLHR WYVVM [HURZ 3H\UJO of the Entice series—a premium range of HWWSPHUJLZ¡^HZ ^LSS HJJLW[LK PU [OL THYRL[ The appliances business is poised for greater growth through the introduction and marketing of a large number of newer and more innovative WYVK\J[Z

Global Research & Development This section outlines the key R&D achievements PU -@ .P]LU ILSV^ PZ HU PSS\Z[YH[P]L SPZ[ of new products developed or solutions PU[YVK\JLK

FOR CG POWER SYSTEMS R Distribution transformer Developed

H UL^ NLULYH[PVU VM :304ÂŽ [YHUZMVYTLYZ for Gamesa to be used for offshore windmill HWWSPJH[PVUZ R Distribution transformer :\JJLZZM\SS` short-circuit, cold start and vibration tested

THE SIX SIGMA DRIVE WAS EXTENDED TO CG PLANTS IN USA, INDONESIA, IRELAND, AND HUNGARY. IN ADDITION, CG CONTINUED WITH ITS SUPPLIER QUALITY ASSESSMENTS IN FY2013

Test bay area of CG’s Distribution Transformer facility

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S

35

on new Gamesa large wind turbine G11x 4=( ;OPZ MVSSV^Z . _ 4=( HUK SLHKZ [V [OL KL]LSVWTLU[ VM . _ 4=( R Distribution transformer 3HYNLZ[ )PV :304ÂŽ MVY VMMZOVYL ^PUK 4=( MVY (SZ[VT >PUK [HYNL[PUN -YLUJO VMMZOVYL ^PUK MHYTZ R Distribution transformer Product launch with special designs including successful shortJPYJ\P[ [LZ[PUN VM R=( \UP[Z MVY -PYZ[ :VSHY R Small power transformersThanks to \ZL VM [OL 70(56 [VVSIV_¡^OPJO PZ *.ÂťZ SV^ noise technology—the Company produced [YHUZMVYTLYZ MVY ,VU .LYTHU` HUK :[LKPU 5L[OLYSHUKZ PU [OL YHUNL VM 4=( [V 4=( with sound pressures by a reduction of about K)( R Gas insulated switchgear (GIS) R= =; MVY .0: ;OPZ PZ *.ÂťZ Ă„YZ[ PUKPNLUV\ZS` developed gas insulated product, and meets Z[YPUNLU[ HJJ\YHJ` YLX\PYLTLU[Z R R= R( ZWYPUN ZWYPUN NHZ JPYJ\P[ breaker ,UOHUJLZ [OL /= NHZ JPYJ\P[ IYLHRLY WVY[MVSPV 9LJLP]LK VYKLYZ MVY Z\JO \UP[Z R R= R( ( PUKVVY .0: ,UOHUJLZ [OL TLKP\T ]VS[HNL .0: WVY[MVSPV 9LJLP]LK VYKLYZ MYVT 5PNLYPH

CG focuses on the productivity of its blue collared employees through the implementation of the Crompton Greaves Production System (CGPS)

36

R R= J\YYLU[ [YHUZMVYTLY HUK R=

R :PUNSL ZLJ[PVU KPNP[HS H_SL JV\U[LY

surge arrester ,UOHUJLZ *.ÂťZ WYVK\J[ WHJRHNL PU R= JSHZZ R R= J\YYLU[ HUK PUK\J[P]L ]VS[HNL transformers Product developed for PU[LYUH[PVUHS THYRL[ 7PSV[ IH[JO VM *=;Z HUK 0=;Z OH]L ILLU KPZWH[JOLK [V <RYHPUL R R=(9 :;(;*64 *.ÂťZ Ă„YZ[ JVTWSL[LS` PUKPNLUV\ZS` KL]LSVWLK :;(;*64" Ă„YZ[ WYV[V[`WLZ KLZWH[JOLK MVY Ă„LSK [YPHSZ R Load balancer Power quality management solutions for low voltage, incorporating PU[LNYH[LK HUHS`[PJZ MVY HSLY[Z

0UKPNLUV\Z KL]LSVWTLU[ VM *.ÂťZ Ă„YZ[ ZHML[` product, an electromagnetic sensor based axle JV\U[LY R Integrated power supply system ( custom-built solution to feed the power supply needs of the railway networks signalling Z`Z[LT

FOR CG INDUSTRIAL SYSTEMS R MTPF bilge pump *.ÂťZ YLSPHISL HUK

LMĂ„JPLU[ TV[VY ZVS\[PVU MVY [OL ; [HURZ VM [OL 0UKPHU (YT` R IE3/NEMA motors To meet European and (TLYPJHU OPNO LMĂ„JPLUJ` UVYTZ MVY YV[H[PUN TV[VYZ ;HYNL[LK MVY 6,4Z ^P[O HU H]HPSHISL YHUNL \W [V /7 R R=( Z[H[PJ PU]LY[LY 0UKPNLUV\Z development using advanced power LSLJ[YVUPJZ HUK LUOHUJLZ *.ÂťZ HZZVJPH[PVU ^P[O 0UKPHU 9HPS^H`Z

FOR CG POWER AUTOMATION R 7\K\JOLYY` 7.*03 WYVQLJ[ CG has

WHY[ULYLK ^P[O 7.*03 [V ZOV^JHZL P[Z capability in smart grid by providing (i) street lighting automation solutions, (ii) transformer condition monitoring system, and (iii) a smart TL[LYPUN ZVS\[PVU R Smart meters Communicable smart TL[LYZ YLHK` MVY ÂşZTHY[ NYPKZÂť HUK WHY[ VM *.ÂťZ H\[VTH[LK TL[LYPUN PUMYHZ[Y\J[\YL ZVS\[PVUZ R Electric vehicle charging stations CG offers a complete portfolio of electric vehicle ,= JOHYNPUN ZVS\[PVUZ YHUNPUN MYVT R> [V R> ;OLZL KL]PJLZ PUJS\KL HK]HUJLK metering, communication and control M\UJ[PVUZ

FOR CG CONSUMER PRODUCTS R Solar MPPT charge controller (TVUN [OL

best-in-class in drawing maximum power from ZVSHY YHKPH[PVU 0[ OHZ HU PU[LSSPNLU[ HSNVYP[OT to balance load needs with available energy ZV\YJLZ R Bus fans <ZPUN SLZZ [OHU > IY\ZOSLZZ DC technology) against the conventional (brush [`WL > R Ceiling fans <ZPUN > HNHPUZ[ [OL JVU]LU[PVUHS > R ‘Street Smart’ lighting automation First VM P[Z RPUK PU 0UKPH ^P[O MLH[\YLZ [V YLK\JL LULYN` IPSS SPRL KH`SPNO[ ZLUZPUN HUK 3,+ KPTTPUN¡ PU[LNYH[LK ]PH HU H\[VTH[LK JVU[YVS HSNVYP[OT >PSS LUOHUJL [OL SPML VM SPNO[ ZV\YJLZ R ,SLJ[YVUPJHSS` JVU[YVSSLK TP_LY with preZL[Z MVY Âş:O\[Âś:LSLJ[Âś-VYNL[Âť VWLYH[PVUZ R Low energy consuming LED based lighting solutions for indoor, outdoor JVTTLYJPHS HUK PUK\Z[YPHS HWWSPJH[PVUZ R Solar based LED street lighting solutions R Sensora, a remote device for fans: Does away with the need to point device to fan for VWLYH[PVUZ" HUK VUL YLTV[L MVY T\S[PWSL MHUZ R (RZO =PKLV :\Y]LPSSHUJL :[H[L VM the-art software for real time viewing, recording and playback from any network cameras—to position CG as an independent solution WYV]PKLY PU ZLJ\YP[` THUHNLTLU[ 0U HKKP[PVU [V [OLZL [OLYL HYL UL^ WYVK\J[PVU processes that have been put to use which PUJYLHZL LMĂ„JPLUJPLZ ;^V VM [OLZL ^LYL! R Autoclave drying of coils in power transformers ;OPZ YLK\JLZ J`JSL [PTL MYVT LPNO[ OV\YZ [V Ă„]L R =HJ\\T PU[LYY\W[LY ZPU[LYPUN WYVJLZZ 9LK\JLZ J`JSL [PTL MYVT OV\YZ [V (Z MHY HZ WH[LU[Z NV -@ ZH^ applications made, with the cumulative count VM HWWSPJH[PVUZ H^HP[PUN NYHU[ Z[HUKPUN H[ ;OYLL WH[LU[Z ^LYL NYHU[LK PU [OL `LHY

Six Sigma and Supplier Quality Assessment :P_ :PNTH ZLLRZ [V PTWYV]L [OL X\HSP[` VM process outputs by identifying and removing the causes of defects, and minimising variability

PU THU\MHJ[\YPUN HUK I\ZPULZZ WYVJLZZLZ 0[ \ZLZ H ZL[ VM KLĂ„ULK X\HSP[` THUHNLTLU[ methods, including statistical tools, and creates a special infrastructure of people within the VYNHUPZH[PVU Z\JO HZ Âş)SHJR )LS[ZÂť HUK Âş.YLLU )LS[ZÂť ^OV HYL L_WLY[Z PU [OLZL TL[OVKZ ,HJO :P_ :PNTH WYVQLJ[ MVSSV^Z H KLĂ„ULK ZLX\LUJL VM Z[LWZ HUK OHZ X\HU[PĂ„LK X\HSP[` PTWYV]LTLU[ [HYNL[Z HUK VY Ă„UHUJPHS [HYNL[Z P L JVZ[ YLK\J[PVU HUK VY WYVĂ„[ PUJYLHZL *. LZWLJPHSS` PU 0UKPH OHZ ILLU MVSSV^PUN :P_ :PNTH MVY ZL]LYHS `LHYZ .P]LU ILSV^ HYL [OL RL` MHJ[Z HIV\[ :P_ :PNTH PU *. K\YPUN -@

Job Evaluation CG has globally partnered with the HayGroup to develop a uniform work measurement that ^PSS LUHISL YVI\Z[ PTWSLTLU[H[PVU VM *.ÂťZ UL^ organisation operating model through globally consistent rewards, talent management and VYNHUPZH[PVU LMMLJ[P]LULZZ WYVJLZZLZ

Talent and Leadership Development

R >P[OPU *. [OLYL ^LYL )SHJR )LS[Z ))Z

Recognizing the need for building a strong talent base and a robust leadership pipeline, UL^ PUP[PH[P]LZ ^LYL KLWSV`LK 5V[HISL HTVUN [OLZL HYL [OL [HSLU[ YL]PL^ WYVJLZZ Development programmes focusing on building global leadership acumen have been put in WSHJL [V JH[LY [V *.ÂťZ NSVIHS MVV[WYPU[

^OV PTWSLTLU[LK :P_ :PNTH WYVQLJ[Z PU -@ ]LYZ\Z PU [OL WYL]PV\Z `LHY

Performance management system

R :PTPSHYS` .YLLU )LS[Z .)Z OLSWLK [V

L_LJ\[L .) WYVQLJ[Z PU [OL `LHY¡^OPJO ^LYL THYNPUHSS` SLZZ [OHU PU -@ R ;OL :P_ :PNTH KYP]L ^HZ L_[LUKLK [V *.

WSHU[Z PU <:( 0UKVULZPH 0YLSHUK HUK /\UNHY` R 0U HKKP[PVU *. JVU[PU\LK ^P[O P[Z Z\WWSPLY

X\HSP[` HZZLZZTLU[Z PU -@ :[HY[LK PU -@ JYP[PJHS [V X\HSP[` *;8 Z\WWSPLYZ are evaluated every year by an assessor who PZ L_[LYUHS [V [OL W\YJOHZPUN KP]PZPVU ;OPZ PZ IHZLK VU HU :87 (ZZLZZTLU[ MVYT JVUK\J[LK ]PH H ^LI WVY[HS ;OPZ KYP]L OHZ ZPNUPĂ„JHU[S` improved the incoming quality of supplies of JYP[PJHS WHY[Z

Human Resources ([ *. V\Y LTWSV`LLZ HYL V\Y HZZL[Z HUK having them organised correctly and in the right roles is as important for our business success HZ HU` V[OLY WYPVYP[` The Company focuses on building global process and policies and, through these, on enhancing the leadership quotient and [HSLU[ KL]LSVWTLU[ ;OL /\THU 9LZV\YJLZ /9 M\UJ[PVU HJ[Z HZ H SL]LY MVY KYP]PUN *.ÂťZ strategic initiatives and helps in integrating and aligning all people practices to the ‘One *.ÂťZ ]PZPVU VM [OL *VTWHU` 0U [OPZ [HSLU[ management, leadership development and Z\JJLZZPVU WSHUUPUN OH]L ILLU PKLU[PĂ„LK HZ RL` MVJ\Z HYLHZ

7LYMVYTHUJL PZ JVYL [V HSS V\Y WYVJLZZLZ ( RL` challenge in ensuring consistency in assessing performance across businesses and locations was presence of multiple performance THUHNLTLU[ WYVJLZZLZ 0U -@ /9 worked on building a uniform performance management process that integrates subprocesses of goal setting, mid-year review and HUU\HS HWWYHPZHS ;OL [VVS PZ I\PS[ VU V\Y VUSPUL portal,CGHR4U, and is being made globally available to all employees across levels and I\ZPULZZLZ

Reward and recognition 0U HU LUKLH]V\Y [V I\PSK H J\S[\YL [OH[ WYVTV[LZ and rewards performance this year, CG launched a comprehensive global programme JHSSLK Âş9,*6.50A,Âť ^OPJO PZ HWWSPJHISL MVY HSS IS\L HUK ^OP[L JVSSHY LTWSV`LLZ ;OPZ PZ H Z[YVUN HUK Ă…L_PISL WSH[MVYT [OH[ HSSV^Z WLLYZ managers, and leaders to recognise efforts in KP]LYZL ^H`Z 0[ HPTZ [V LUNHNL [OL ^VYRMVYJL I` YL^HYKPUN P[Âś MYLX\LU[S` HUK ^P[O TLHUPUNM\S H^HYKZ Âś MVY ILOH]PV\YZ WLYMVYTHUJL HJ[PVUZ HUK H[[P[\KLZ [OH[ YLĂ…LJ[ [OL JVYL ]HS\LZ VM *.

CG

Campus

([ *. ^L ILSPL]L PU U\Y[\YPUN `V\UN [HSLU[ by bringing in fresh graduates from the local \UP]LYZP[PLZ HUK JVSSLNLZ 0[ NP]LZ H JOHUJL MVY *. [V JVUULJ[ ^P[O WV[LU[PHS M\[\YL LTWSV`LLZ These students work in a range of departments MYVT ,UNPULLYPUN -PUHUJL :\WWS` *OHPU [V /9 0U -@ *. YL LULYNPZLK [OL JHTW\Z WYVNYHTTL ^P[O [OL SH\UJO VM Âş96(+4(7Âť through which post-graduates from premier management schools were recruited for I\PSKPUN [OL SLHKLYZOPW WPWLSPUL

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S

37

.YHT =PRHZ )OH]HU 5HZOPR centre for all community related initiatives

Crompton Greaves Production System (SVUN ^P[O [OLZL /9 PUP[PH[P]LZ *. MVJ\ZLZ on the productivity of its blue collar employees through the implementation of the Crompton .YLH]LZ 7YVK\J[PVU :`Z[LT *.7: 0U 0UKPH [OL [OY\Z[ VU WYVK\J[P]P[` PTWYV]LTLU[ JVU[PU\LK [OYV\NOV\[ -@ 7YVK\J[P]P[` norms in manufacturing units were suitably LUOHUJLK" HUK [OL UVU WLYTHULU[ ^VYRMVYJL was rationalised in some locations to improve THUWV^LY \[PSPZH[PVU =HYPHISL WH` SPURLK [V productivity, quality, attendance and seniority OHZ ILLU YL KLZPNULK MVY ZL]LYHS \UP[Z >OPSL the norms have been made more stringent, we have given the workers opportunity to earn TVYL [OYV\NO H TVKPĂ„LK PUJLU[P]L ZJOLTL ([ H NSVIHS SL]LS *.7: PTWSLTLU[H[PVU PZ ULHYPUN JVTWSL[PVU PU [OL WSHU[Z SVJH[LK PU 0YLSHUK *HUHKH HUK [OL <:(

Global HR shared services The global HR shared services framework will provide a foundation to achieve organisational L_JLSSLUJL ;OPZ ^PSS LUHISL *. [V Z[YLHTSPUL P[Z HR practices, policies and processes across multiple units worldwide, while maintaining

38

J\Z[VTLY MVJ\Z ;OL KL[HPSZ HYL ILPUN ^VYRLK V\[ ^P[O H YVSSV\[ PU -@

Industrial Relations CG continues to have an excellent track record VM JVYKPHS PUK\Z[YPHS YLSH[PVUZ 6\Y Z[YH[LN` VM collective bargaining has helped us in ensuring T\[\HSS` ILULÄJPHS JVSSHIVYH[PVU ^P[O \UPVUZ NSVIHSS` ;OPZ OHZ ILLU KVUL JHYLM\SS` HUK intentionally—because the inputs and expertise of unionised employees play key role in LUOHUJPUN WYVK\J[PVU LMÄJPLUJ`

Corporate Social Responsibility -@ PZ [OL ZL]LU[O `LHY VM *.Z KLKPJH[PVU [V *VYWVYH[L :VJPHS 9LZWVUZPIPSP[` *:9 *. has believed that business can—and must— have a positive impact on the communities they ZLY]L HUK VU [OL LU]PYVUTLU[ *. PZ JVTTP[[LK UV[ Q\Z[ [V^HYKZ WYVÄ[HISL NYV^[O I\[ HSZV [V SLH]PUN H KLLWLY PTWYPU[ VU ZVJPL[` HZ H ^OVSL (Z *. L_WHUKZ P[Z NSVIHS MVV[WYPU[ [OL *VTWHU`

is matching its business growth with addressing ZVJPL[HS ULLKZ ^OLYL]LY P[ VWLYH[LZ 0U -@ [OL *VTWHU` YVSSLK V\[ *:9 initiatives on three themes: community outreach, education and skills development, and Z\Z[HPUHISL LULYN` VY LULYN` THUHNLTLU[ ;OL focus is to make efforts across all geographies to HSPNU *:9 HJ[P]P[PLZ \UKLY [OLZL [OYLL [OLTLZ

CSR IN INDIA Community Outreach Initiatives R :RPSSZ [YHPUPUN [V ZLSM OLSW NYV\WZ MYVT 2HUQ\Y

]PSSHNL \UKLY [OL HLNPZ VM [OL 4PUPZ[Y` VM 3HIV\Y HUK ,TWV^LYTLU[ R 0UZ\YHUJL ZJOLTLZ MVY [OL \UVYNHUPZLK sector, especially women involved in domestic ^VYR R *VTT\UP[` SPIYHY` PU 5PTNHVU >HNOH R *VUZ[Y\J[PVU VM H .YHT =PRHZ )OH]HU HUK H JVTT\UP[` N`TUHZP\T H[ 5HUK\Y =HPK`H 5HZOPR ;OL .YHT =PRHZ )OH]HU ^PSS ZLY]L HZ H centre for all community related initiatives such as village meetings, training programmes and J\S[\YHS NL[ [VNL[OLYZ R Health camps organised by the T2 division, 4HSHUW\Y [OL ]PSSHNL VM 9P[OVYH" HUK I` <UP[ 00 PU .VH PU [OL ]PSSHNL VM 7HYWVSP

CG Power Systems US implemented a clean-up drive to keep the highway clean

R Renovation of the Primary Health Centre

PU [OL ]PSSHNL VM 2\YHS I` [OL 3PNO[PUN +P]PZPVU )HYVKH R ,K\JH[PVU HUK :RPSSZ +L]LSVWTLU[ R )YPKNL JSHZZLZ MVY JOPSKYLU MYVT 2HUQ\Y =PSSHNL R Global R&D conducted refresher course PU 4H[OZ MVY Z[\KLU[Z WYLWHYPUN MVY [OLPY IVHYK L_HTZ R :JOVSHYZOPWZ ^LYL H^HYKLK [V ULLK` JOPSKYLU HJYVZZ LPNO[ \UP[Z R Upgrading basic facilities for the Deaf and +\TI ZJOVVS PU (OTLKUHNHY R :WVUZVYPUN H IH[JO VM Z[\KLU[Z MVY 0;0 HUK MV\Y Z[\KLU[Z MVY H U\YZPUN JV\YZL MYVT 2HUQ\Y <WNYHKPUN 0;0 ^P[O LSLJ[YPJHS WHULSZ J\Z[VTPZLK I` *. LUNPULLYZ

VU [OL 4HOHYHZO[YH 0UK\Z[YPHS +L]LSVWTLU[ *VYWVYH[PVU 40+* R ;OL 4 +P]PZPVU 4HUKPKLLW YLJ`JSLK P[Z factory scrap and converted barren land into NHYKLU ZWHJL

CSR IN THE REST OF THE WORLD Community Outreach

volunteer in mentoring students taking up engineering courses in the University of 4HUP[VIH R A0= :WHPU OHZ [PLK \W ^P[O -\UKHJP}U 5V]PH :HSJLKV H UVU WYVĂ„[ VYNHUPZH[PVU [V WYVTV[L LTWSV`TLU[ HTVUN `V\[O 0[ SVVRZ H[ WYV]PKPUN scholarships and industrial exposure to such Z[\KLU[Z

R *. 7V^LY :`Z[LTZ *HUHKH ^VYRLK ^P[O

needy families to build homes for them through /HIP[H[ MVY /\THUP[` R (^HYLULZZ WYVNYHTTLZ HUK M\UK YHPZPUN L]LU[Z ^LYL JVUK\J[LK I` *. 7V^LY :`Z[LTZ *HUHKH HUK *. 7V^LY :`Z[LTZ )LSNP\T [V OLSW [OVZL Z\MMLYPUN MYVT JOYVUPJ PSSULZZLZ R ,TWSV`LLZ VM *. 7V^LY :`Z[LTZ <: participated in a three week mission to provide LK\JH[PVU HUK IHZPJ Ă„YZ[ HPK Z\WWSPLZ PU .OHUH

Sustainability R 3; 4V[VYZ (OTLKUHNHY [VVR \W YHPU^H[LY

Education and Skills Development

harvesting as part of sustainable management H[ [OLPY <UP[ (U \UKLYNYV\UK ^H[LY Z\TW has been created to collect rain water HJJ\T\SH[LK MYVT [OL [LYYHJLZ VM HSS I\PSKPUNZ The underground sump has a capacity to OVSK J\IPJ TL[YLZ VM ^H[LY ;OPZ initiative has helped reduce the dependency

R *. ,SLJ[YPJ :`Z[LTZ /\UNHY` JVUK\J[Z

English speaking classes for the local youth in ;HWPVZaLSL HUK )\KHWLZ[ R *. 7V^LY :`Z[LTZ *HUHKH WYV]PKLZ engineering scholarships to the local university ^P[O WYLMLYLUJL MVY MLTHSL Z[\KLU[Z R *. 7V^LY :`Z[LTZ *HUHKH LUNPULLYZ

Sustainability R *. 7V^LY :`Z[LTZ <: HKVW[LK H WHY[ VM [OL

highway leading to the CG industrial building and implemented a clean-up drive where volunteers [HRL [\YUZ [V RLLW [OL OPNO^H` JSLHU R *. ,SLJ[YPJ :`Z[LTZ /\UNHY` PUP[PH[LK [OL Âş:H]L /LH[PUN ,ULYN` 7YVQLJ[Âť H[ [OL WSHU[ ZP[L I` \ZPUN ZVSHY LULYN` R *. 7V^LY :`Z[LTZ 0YLSHUK ZLJ\YLK H government grant for â‚Ź114,000 under the )L[[LY ,ULYN` >VYRWSHJL :JOLTL MVY ,ULYN` 0TWYV]LTLU[ 7YVQLJ[Z ;OYV\NO [OPZ P[ undertook projects to reduce annual energy ZWLUK I` Ă R Âş*HYSLZZ +H`Âť PZ JVTTVUS` PTWSLTLU[LK across the units at different intervals to help reduce the carbon emissions and promote OLHS[O` SPMLZ[`SLZ

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S

39

Financial Performance

TABLE

06

STANDALONE PERFORMANCE OF CG RS. CRORE, YEAR ENDED 31 MARCH

Particulars

FY 2012

Revenue from operations

>L ÄYZ[ OPNOSPNO[ *. Z[HUKHSVUL YLZ\S[Z HM[LY ^OPJO ^L KPZJ\ZZ [OL ÄUHUJPHS WLYMVYTHUJL VM HUK ÄUHSS` [OL JVUZVSPKH[LK ÄUHUJPHSZ MVY [OL *VTWHU`

CG: STANDALONE FINANCIAL PERFORMANCE The standalone results of CG for the year ended 31 March 2013 and 2012 are given in Table ;HISL ZOV^Z [OL RL` YH[PVZ WYVÄ[HIPSP[` HZZL[Z LMÄJPLUJ` HUK SL]LYHNL YH[PVZ VM [OL LU[P[` MVY -@ HUK -@ R Gross sales, or revenue from operations NYL^ I` [V 9Z JYVYL PU -@ 5L[ ZHSLZ HUK ZLY]PJLZ PUJYLHZLK I` [V 9Z JYVYL R Raw material costs as a share of net sales PUJYLHZLK MYVT PU -@ [V 0U HIZVS\[L [LYTZ [OPZ OLHK VM JVZ[ PUJYLHZLK I` ·^OPJO ^HZ WLYJLU[HNL WVPU[Z TVYL [OHU [OL NYV^[O PU UL[ ZHSLZ R ;OPZ WSH`LK H ZPNUPÄJHU[ WHY[ PU [OL KYVW PU ,)0+;( L_JS\KPUN 60·MYVT 9Z JYVYL PU -@ [V 9Z JYVYL PU -@ R 7); L_JS\KPUN 60 YLK\JLK I` [V 9Z JYVYL PU -@ R 7(; KLJYLHZLK I` [V 9Z JYVYL R ;OL YH[PV VM VWLYH[PUN ,)0+;( [V UL[ ZHSLZ YLK\JLK MYVT PU -@ [V PU -@ R 965> YLK\JLK I` WLYJLU[HNL WVPU[Z [V PU -@ ;OV\NO SLZZ [OHU [OL historical ratios of CG, this remains strong visn ]PZ V[OLY WSH`LYZ PU [OL PUK\Z[Y` R .P]LU [OL MHSS PU ,)0; HUK ZVTL PUJYLHZL PU JHWP[HS LTWSV`LK 96*, KLJSPULK I` WLYJLU[HNL WVPU[Z [V H[ [OL LUK VM -@ >OPSL SV^LY [OPZ Z[PSS YLTHPUZ [OL OPNOLZ[ 96*, HTVUN HSS ZPNUPÄJHU[ JVTWL[P[VYZ PU [OL ZLJ[VYZ [OH[ *. 0UKPH VWLYH[L

Less: excise duty

FY 2013

365

436

Net sales and services

Cost of raw materials and components consumed and construction material

4,726

5,334

,TWSV`LL ILULÄ[Z

363

411

Other expenses

675

795

,)0+;( L_JS\KPUN 60

Other income (OI) ,)0+;( 0UJS\KPUN 60 Finance costs Depreciation and amortisation

50

53

648

3

(20)

91

72

7); L_JS\KPUN 60

7); PUJS\KPUN 60

677

Current tax

193

143

Deferred tax

(21)

7

PAT

446

Less: tax expenses

TABLE

07

STANDALONE PERFORMANCE OF CG—KEY RATIOS YEAR ENDED 31 MARCH

Particulars

FY 2012

FY 2013

PROFITABILITY RATIOS EBIDTA excluding OI / Net Sales

11.1%

8.3%

EBIDTA including OI / Net Sales

11.9%

9.1%

PBT / Net Sales

10.4%

8.4%

RONW

18.7%

14.6%

ROCE (at year-end capital employed)

24.7%

18.5%

Cash ROCE

28.0%

20.8%

EPS (Rs. per share)

7.87

6.95

Cash EPS (Rs. per share)

8.96

8.17

LEVERAGE RATIOS Total Debt To Equity Interest Coverage Ratio

0

0

209.5

NA*

ASSET EFFICIENCY Net Sales To Gross WC (times)

2.0

1.8

Net Sales To Net WC (times)

4.2

3.9

Note: ^P[O JYLKP[Z [OL PU[LYLZ[ WH`V\[ ^HZ 9Z JYVYL MVY -@ ZLL ;HISL HIV]L ;O\Z [OL PU[LYLZ[ JV]LYHNL YH[PV OHZ UV TLHUPUN

CG: OVERSEAS FINANCIAL PERFORMANCE ;OL JVUZVSPKH[LK ÄUHUJPHS WLYMVYTHUJL VM HSS V]LYZLHZ LU[P[PLZ PZ NP]LU PU ;HISL For the CG overseas entities R 5L[ ZHSLZ JVTWYLZZLK I` [V <: TPSSPVU /V^L]LY [OHURZ [V H depreciation of the rupee, net sales increased I` [V 9Z JYVYL PU -@ R ,)0+;( L_JS\KPUN 60 KLJYLHZLK ZOHYWS` MYVT 9Z JYVYL PU -@ [V 9Z JYVYL PU -@ " HUK PU <: MYVT <: TPSSPVU PU [OL WYL]PV\Z `LHY [V <: TPSSPVU PU -@

40

(Z TLU[PVULK LHYSPLY PU [OPZ JOHW[LY [OPZ MHSS PU ,)0+;( L_JS\KPUN 60 ^HZ SHYNLS` VU HJJV\U[ VM *. 7V^LY 6]LYZLHZ ;V H SLZZLY L_[LU[ P[ HSZV YLÅLJ[LK A0= KLSP]LYPUN WVVYLY YLZ\S[Z [OHU anticipated at the time of the acquisition— which the Company hopes will reverse in -@ R 7); L_JS\KPUN 60 JVU[PU\LK [V KYVW HUK remained in negative territory: from a loss of 9Z JYVYL <: TPSSPVU PU -@ P[

PUJYLHZLK [V H SVZZ VM 9Z JYVYL VY <: TPSSPVU PU -@ R 3VZZLZ H[ [OL SL]LS 7(; HSZV PUJYLHZLK MYVT 9Z JYVYL SVZZ VM <: TPSSPVU PU -@ [V 9Z JYVYL <: TPSSPVU PU -@ 6M [OL SH[[LY 9Z JYVYL ^HZ VU HJJV\U[ VM [OL 4LJOLSLU YLZ[Y\J[\YPUN HUK YPNO[ZPaPUN 5L[ VM [OPZ 7(; ^HZ H[ H SVZZ VM 9Z JYVYL <: TPSSPVU PU -@ R (SZV LTILKKLK \UKLY [OL ]HYPV\Z operational heads are the incidental costs

involved in Belgium restructuring, aggregating 9Z JYVYL ^OPJO HYL HSZV VUL [PTL PU UH[\YL

CG: CONSOLIDATED FINANCIAL PERFORMANCE ;HISL NP]LZ [OL JVUZVSPKH[LK WLYMVYTHUJL VM *. ;HISL ZL[Z V\[ [OL RL` YH[PVZ R 5L[ ZHSLZ HUK ZLY]PJLZ! 0U Y\WLLZ P[ NYL^ I` [V 9Z JYVYL PU -@ 0U <: P[ YLK\JLK I` [V <: IPSSPVU -@ ^HZ [OL [OPYK Z\JJLZZP]L `LHY ^OLU *.»Z UL[ ZHSLZ HUK ZLY]PJLZ L_JLLKLK [OL <: IPSSPVU THYR R -VY YLHZVUZ TLU[PVULK LHYSPLY ,)0+;( L_JS\KPUN 60 YLK\JLK I` PU -@ [V 9Z JYVYL" HUK MLSS I` [V <: TPSSPVU R 7); L_JS\KPUN 60 YLK\JLK PU -@ [V 9Z JYVYL VY <: TPSSPVU R 0U -@ 7(; HM[LY HJJV\U[PUN MVY minority interests and share of associated companies, but before the exception one-time cost on account of restructuring operations at 4LJOLSLU ^HZ 9Z JYVYL VY <: TPSSPVU (M[LY HJJV\U[PUN MVY [OPZ JVZ[ *. WVZ[LK H 7(; VM 9Z JYVYL VY <: TPSSPVU R Embedded under the various operational heads are incidental costs involved in the )LSNP\T YLZ[Y\J[\YPUN HNNYLNH[PUN 9Z JYVYL ^OPJO HYL HSZV VUL [PTL PU UH[\YL

Risk Management Crompton Greaves continues to deploy a ^LSS HY[PJ\SH[LK YPZR THUHNLTLU[ MYHTL^VYR This is based upon a three-tiered approach encompassing (i) enterprise risks, (ii) process YPZRZ HUK PPP JVTWSPHUJL YPZRZ ,U[LYWYPZL YPZR PKLU[PÄJH[PVU HUK TP[PNH[PVU initiatives are managed through an on-going action agenda between the corporate risk department and each of the businesses, as well HZ MVY [OL *VTWHU` HZ H ^OVSL ;OL JV]LYHNL extends to all key business exposures as well as to lost opportunities—both internal and L_[LYUHS·[OH[ HYL PKLU[PÄLK PU JVUQ\UJ[PVU ^P[O [OL I\ZPULZZLZ (M[LY NL[[PUN H TLHZ\YL of each such enterprise risk, the corporate risk KLWHY[TLU[ [YHJRZ [OL TP[PNH[PVU HJ[PVUZ Process risk management involves HZZ\YHUJLZ I` [OL *VTWHU`»Z PU[LYUHS H\KP[ department regarding the effectiveness of I\ZPULZZ HUK ÄUHUJPHS JVU[YVSZ HUK WYVJLZZLZ

:P_ :PNTH WYVQLJ[Z ^LYL PTWSLTLU[LK PU -@

TABLE

08

CONSOLIDATED FINANCIAL PERFORMANCE OF THE OVERSEAS ENTITIES YEAR ENDED 31 MARCH

FY 2012 Particulars Revenue from operations

Rs. Crore

FY 2013

US$ Million

Rs. Crore

US$ Million

4,794

996

5,097

936

,)0+;( L_JS\KPUN 60

68

Other income (OI)

16

3

39

7

,)0+;( PUJS\KPUN 60

84

Finance cost (net of exchange gain/loss)

42

9

90

16

Depreciation and amortisation expenses

169

35

125

23

7); L_JS\KPUN 60 ILMVYL L_JLW[PVUHS P[LT

PBT including OI (before exceptional item)

(127)

(26)

(403)

(74)

-

-

121

22

(96)

Exceptional Items* 7); HM[LY L_JLW[PVUHS P[LT Less: tax expenses Current tax

23

5

40

7

Deferred tax

(14)

(3)

(90)

(16) (87)

(474)

Minority interest

0

0

1

0

:OHYL VM WYVÄ[ SVZZ VM HZZVJPH[LZ

0

0

(2)

0

(87)

PAT

PAT carried forward to the Balance Sheet

,_JOHUNL YH[L MVY <:

Note: ;OL L_JLW[PVUHS P[LT PU -@ ^HZ [OL VUL [PTL YLZ[Y\J[\YPUN HUK YPNO[ZPaPUN JVZ[Z PUJ\YYLK PU 4LJOLSLU ]HS\LK H[ 9Z *YVYL

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S

41

TABLE

09

CONSOLIDATED FINANCIAL PERFORMANCE YEAR ENDED 31 MARCH

FY 2012 Particulars

Rs. Crore

Gross sales and services Less: excise duty Net Sales and Services

FY 2013

US$ Million

Rs. Crore

US$ Million

366

76

439

81

1,533

Cost of raw materials and components consumed and construction material

7,685

1,597

8,346

,TWSV`LL )LULĂ„[Z

1,466

305

1,740

320

Other Expenses

1,294

269

1,625

299

383

52

11

76

14

46

10

71

,)0+;( L_JS\KPUN 60 Other Income (OI) ,)0+;( PUJS\KPUN 60 Finance Costs

84 13

Depreciation and Amortisation

260

54

203

37

7); L_JS\KPUN 60

498

PBT including OI (before Exceptional Item)

550

114

185

34

-

-

121

22

64

Current tax

217

45

185

34

Deferred tax

(35)

(7)

(84)

(15)

7(; ILMVYL ,_JLW[PVUHS 0[LT

368

76

84

7(; HM[LY ,_JLW[PVUHS 0[LT

368

76

(37)

(7)

Minority Interest

1

0

1

0

:OHYL VM WYVĂ„[ SVZZ VM HZZVJPH[L JVTWHUPLZ

5

1

0

0

374

77

(36)

(7)

Less: Exceptional Item 7); HM[LY ,_JLW[PVUHS 0[LT Less: Tax Expenses

PAT after minority interest and share of associate companies

,_JOHUNL YH[L MVY <:

TABLE

10

CG’S CONSOLIDATED FINANCIAL PERFORMANCE—KEY RATIOS YEAR ENDED 31 MARCH

Particulars

FY 2012

FY 2013

PROFITABILITY RATIOS EBIDTA excluding OI / Net sales

7.1%

3.2%

EBIDTA including OI / Net sales

7.6%

3.8%

PBT / Net sales (excluding exceptional item)

4.9%

1.5%

10.5%

(1.1%)

RONW ROCE (terminal)*

12.9%

4.7%

Cash ROCE (terminal)*

18.5%

8.4%

EPS

5.8

(0.6)

Cash EPS

9.3

1.3

PER SHARE RATIOS

LEVERAGE RATIOS Total debt to equity

0.2

0.4

18.5

6.5

Net sales to gross working capital (times)

1.9

1.9

Net sales to net working capital (times)

6.0

6.7

Interest coverage ratio

ASSETS EFFICIENCY RATIOS

*Calculated excluding exceptional item

42

in all key activities across the various I\ZPULZZLZ Compliance risk management comprises a detailed mechanism of assurances with respect to adherence of all laws and regulations in every country, with a comprehensive reporting process that cascades upwards from the HJJV\U[HISL I\ZPULZZ SPUL L_LJ\[P]LZ [V *.ÂťZ Ă„K\JPHY` (\KP[ HUK 9PZR *VTTP[[LL (9* HUK [OLU VU [V [OL )VHYK VM +PYLJ[VYZ The outcomes of business review meetings conducted by management and internal audit regarding processes and their compliance, as ^LSS HZ VIZLY]H[PVUZ VM [OL (9* HUK [OL )VHYK of Directors are continuously incorporated to JHW[\YL UL^ YPZRZ HUK \WKH[L [OL L_PZ[PUN VULZ (SS [OYLL KPTLUZPVUZ VM *.ÂťZ 9PZR Management framework are reviewed annually MVY [OLPY YLSL]HUJL HUK TVKPĂ„JH[PVUZ HZ YLX\PYLK ;OL I\ZPULZZLZ HUK PU[LYUHS H\KP[ THRL YLN\SHY WYLZLU[H[PVUZ [V [OL (9* MVY KL[HPSLK YL]PL^ ;OL YPZR THUHNLTLU[ WYVJLZZ including its tracking and adherence, is substantially e-enabled for greater consistency HUK IL[[LY YLWVY[PUN JHWHIPSP[PLZ

Internal Controls and their Adequacy CG believes that a strong internal controls framework is an essential pre-requisite of NYV^PUN P[Z I\ZPULZZLZ ;V [OH[ LUK P[ OHZ HU LMMLJ[P]L HUK LMĂ„JPLU[ PU[LYUHS JVU[YVS Z`Z[LT to conduct the audit of various divisions, sales VMĂ„JLZ JVYWVYH[L OLHKX\HY[LYZ HUK V]LYZLHZ VWLYH[PVUZ ;OL PU[LYUHS H\KP[ [LHT MVJ\ZLZ primarily on operational and systems audits [OH[ TVUP[VY JVTWSPHUJL ^P[O KLĂ„ULK 9\SLZ VM 7YVJLK\YL 9V7 VM [OL *VTWHU` (UU\HS PU[LYUHS H\KP[ WSHU JV]LYZ RL` HYLHZ VM VWLYH[PVUZ ;OPZ PZ ]L[[LK I` )VHYK SL]LS (9* ^OPJO PZ \WKH[LK L]LY` X\HY[LY¡HUK occasionally between successive quarters—of [OL ZPNUPĂ„JHU[ PU[LYUHS H\KP[ VIZLY]H[PVUZ compliance with statutes, risk management HUK JVU[YVS Z`Z[LTZ ;OL (9* HZZLZZLZ [OL adequacy and effectiveness of inputs given by internal auditor and suggests improvement for strengthening internal controls from time to [PTL *.ÂťZ PU[LYUHS JVU[YVSZ OH]L ILLU KLZPNULK 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 reliability of ÄUHUJPHS YLWVY[PUN ;OL *VTWHU` \ZLZ :(7 HZ its key data and analytics tool—which has over the years considerably enhanced the internal JVU[YVS TLJOHUPZT (Z YLJVTTLUKLK I` (9* PU[LYUHS H\KP[ OHZ developed and extended an internally coded Risk Control Framework (RCF) software across [OL *VTWHU` ;OPZ OLSWZ PU \UKLYZ[HUKPUN the risk and control environment from the perspective of each unit—be it a division or a THYRL[PUN ZHSLZ VMÄJL ;OL (9* WLYPVKPJHSS` YL]PL^Z [OL ÄUKPUNZ VM 9*- HUK Z\NNLZ[Z PTWYV]LTLU[Z ^OLYL ULLKLK (Z TLU[PVULK PU [OL WYL]PV\Z ZLJ[PVU *. also has a comprehensive risk management policy, which conducts risk assessment, YLWVY[Z [V [OL )VHYK SL]LS (9* HUK simultaneously suggests mitigation procedure [V [OL *VTWHU`Z THUHNLTLU[

Outlook The global economic scenario for 2013 YLTHPUZ KLWYLZZLK (JJVYKPUN [V KH[H MYVT [OL 0U[LYUH[PVUHS 4VUL[HY` -\UK 04- PU (WYPS real GDP for the world as a whole is expected to NYV^ H[ PU 4H[[LYZ HYL ^VYZL PU [OL KL]LSVWLK UH[PVUZ .YV^[O MVY [OL . JV\U[YPLZ PZ L_WLJ[LK [V KLJSPUL MYVT PU [V PU -VY [OL ,\YV HYLH P[ PZ WVVYLY Z[PSS! P[Z YLHS .+7 PZ L_WLJ[LK [V JVU[YHJ[ I` The only beacons of hope are the emerging THYRL[Z ;OHURZ [V [OL OLM[ VM *OPUH KL]LSVWPUN (ZPH PZ L_WLJ[LK [V NYV^ H[ PU " HUK Z\I :HOHYHU (MYPJH I` 0M VUL RLLWZ (ZPH HUK (MYPJH HZPKL MVY the moment, it is clear that any company specialising in power and industrial systems for the western world will be hard-pressed to NLULYH[L OLHS[O` NYV^[O ^P[O Z\MÄJPLU[ WYVÄ[Z PU [OL ZOVY[ [V TLKP\T [LYT ;OLYLMVYL MVY both power and industrial systems, CG will have to single-mindedly focus on improving productivity and throughput, and reducing TH[LYPHS HUK JVU]LYZPVU JVZ[Z ;OLZL HYL UVU negotiable elements of building a global T&D VYNHUPZH[PVU 0U HKKP[PVU [OL *VTWHU` ULLKZ [V ZLJ\YL more orders for end-to-end power systems and solutions and for integrated motors-cum-power automation packages—not only from utilities

I\[ HSZV MYVT V[OLY ZLJ[VYZ Z\JO HZ VPS HUK NHZ Moreover, the systems and solutions orders must be well executed, so that these end up NLULYH[PUN [OL I\KNL[LK THYNPUZ HUK JHZO Furthermore, CG will have to seriously SL]LYHNL [OL VMMLYPUNZ [OH[ A0= IYPUNZ [V WV^LY automation to increase this business and its WYVĂ„[HIPSP[` HJYVZZ KL]LSVWPUN (ZPH HUK Z\I :HOHYHU (MYPJH ;OPZ TH` [HRL ZVTL [PTL )\[ P[ ^PSS OH]L [V IL KVUL 0UK\Z[YPHS Z`Z[LTZ [VV ^PSS IL \UKLY WYLZZ\YL MYVT JVTWL[P[PVU 0[Z ZHS]H[PVU SPLZ PU upgrading products and in combining rotating motors with power automation systems to give J\Z[VTLYZ Z\WLYPVY VMMLYPUNZ ;OLYL HYL LHYS` ZPNUZ VM [OPZ VJJ\YYPUN ^P[OPU [OL I\ZPULZZ )\[ P[ ULLKZ [V IL OHYK ^PYLK HUK LMĂ„JPLU[S` L_LJ\[LK (Z MHY HZ JVUZ\TLY WYVK\J[Z NV [OL THYRL[Z HYL HSZV ILPUN JVU[LZ[LK *. T\Z[ JYLH[L a nimble, customer-focused, go-to-market JVUZ\TLY WYVK\J[Z VYNHUPZH[PVU PU YHWPK [PTL Through all this there must be a singular [OLTL! Âş6UL *.Âť HJYVZZ HSS P[Z SVJH[PVUZ THYRL[Z HUK I\ZPULZZLZ *. T\Z[ SL]LYHNL capacities, engineering skills, R&D, as well as JVZ[ HUK X\HSP[` Z`ULYNPLZ [V IL H WYVĂ„[HISL supplier of choice across its key markets—with a clear bias in favour of the faster growing LTLYNPUN JV\U[YPLZ 0UP[PH[P]LZ HYL UV^ PU WSHJL [V THRL [OLZL TV]LZ OHWWLU ;OLYL ^PSS IL TVYL LMMVY[Z [V align, cooperate and create an organisation with increasing returns to scale—where ‘One WS\Z 6UL ,_JLLKZ ;^VÂť However, these will take time to deliver their YLZ\S[Z ;O\Z MVY -@ [OL *VTWHU`ÂťZ V\[SVVR YLTHPUZ Z\IK\LK 0[ L_WLJ[Z OPNOLY NYV^[O HUK IL[[LY WLYMVYTHUJL )\[ P[ HSZV recognises that the path to a better tomorrow PZ OHYK >L OVWL [V KV IL[[LY PU -@ )\[ PU [OL WYLZLU[ LU]PYVUTLU[ P[ PZ KPMĂ„J\S[ [V ZH` I` OV^ T\JO

CAUTIONARY STATEMENT The management of Crompton Greaves has WYLWHYLK HUK PZ YLZWVUZPISL MVY [OL Ă„UHUJPHS Z[H[LTLU[Z [OH[ HWWLHY PU [OPZ YLWVY[ ;OLZL are in conformity with accounting principles NLULYHSS` HJJLW[LK PU 0UKPH HUK [OLYLMVYL may include amounts based on informed Q\KNLTLU[Z HUK LZ[PTH[LZ ;OL THUHNLTLU[ also accepts responsibility for the preparation VM V[OLY Ă„UHUJPHS PUMVYTH[PVU [OH[ PZ PUJS\KLK PU [OPZ YLWVY[ :[H[LTLU[Z PU [OPZ 4HUHNLTLU[ +PZJ\ZZPVU HUK (UHS`ZPZ KLZJYPIPUN [OL *VTWHU`ÂťZ VIQLJ[P]LZ WYVQLJ[PVUZ LZ[PTH[LZ and expectations may be ‘forward looking Z[H[LTLU[ZÂť ^P[OPU [OL TLHUPUN VM HWWSPJHISL SH^Z HUK YLN\SH[PVUZ 4HUHNLTLU[ OHZ IHZLK these forward looking statements on its current expectations and projections about future L]LU[Z :\JO Z[H[LTLU[Z PU]VS]L RUV^U HUK \URUV^U YPZRZ ZPNUPĂ„JHU[ JOHUNLZ PU WVSP[PJHS HUK LJVUVTPJ LU]PYVUTLU[ PU 0UKPH VY RL` markets abroad, tax laws, litigation, labour YLSH[PVUZ L_JOHUNL YH[L Ă…\J[\H[PVUZ PU[LYLZ[ and other costs and may cause actual results to KPMMLY TH[LYPHSS`

Laurent Demortier *,6 HUK 4HUHNPUN +PYLJ[VY Mumbai, 24 May 2013

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S

43

EARNINGS

CONSOLIDATED 2013

STAND-ALONE 2013

2012

2012

2011

2011

2010

2010

2009

2009

2008

2008

2007

H I GHL I GHTS

2007

2006

2006

2005

2005

2004

T EN YEARS ’

YEAR ENDED 31ST MARCH, IN RS. CRORE

TOTAL INCOME

1888 2180 2200 2771 4412 3695 6039 4290 7247 4940 9090 5585 9469 6356 10430 6901 11668 7624 12609

GROSS SALES AND SERVICE

1861 2153 2172 2739 4346 3660 5934 4223 7181 4904 9031 5516 9376 6277 10331 6850 11615 7571 12533

NET SALES AND SERVICE

1711 1973 1989 2521 4127 3368 5640 3876 6832 4611 8737 5284 9141 5951 10005 6485 11249 7135 12094

EBIDTA*

185

190

194

265

390

377

588

553

811

674

1054

927

1371 1012 1443

771

856

648

459

PBT

90

125

128

195

277

307

436

486

615

614

867

870

1189

927

1229

677

550

596

185

PAT ** @

71

115

120

163

233

192

282

314

407

397

560

617

860

694

889

505

374

446

(36)

DIVIDEND PAY-OUT

37

37

37

37

37

47

47

59

59

73

73

81

81

141

141

90

90

77@@

77@@

WHAT THE COMPANY OWNED

YEAR ENDED 31ST MARCH, IN RS. CRORE

GROSS BLOCK (INCL. CAPITAL WIP)

801

819

825

861

1733

959

2335 1078 2733 1124 3083 1204 3099 1651 3890 1424 4558 1560 5539

NET BLOCK (INCL. CAPITAL WIP)

368

351

354

364

541

433

1087

515

1245

523

1379

567

1376

923

1941

675

2258

775

3066

INVESTMENTS

70

77

83

102

65

135

65

195

93

266

167

688

553

782

675

1053

786

1055

791

NET CURRENT ASSETS

246

295

297

331

571

414

708

361

759

570

969

620

1085 1139 1603 1552 1887 1825 1795

684

723

734

797

1177

982

1860 1071 2097 1359 2515 1875 3014 2458 3875 2802 4463 3173 5176

NET ASSETS EMPLOYED

,)0+;( $ ,HYUPUNZ ILMVYL 0U[LYLZ[ +LWYLJPH[PVU (TVY[PZH[PVU ;H_ HUK ,_JLW[PVUHS 0[LT 7YVÄ[ HM[LY [H_ 4PUVYP[` 0U[LYLZ[ HUK :OHYL VM (ZZVJPH[L *VTWHUPLZ MVY *VUZVSPKH[LK 7YVÄ[ HUK 3VZZ (JJV\U[ @ (M[LY L_JLW[PVUHS L_[YHVYKPUHY` P[LTZ @@ 0UJS\KLZ WYVWVZLK KP]PKLUK

44

2013

2013

2012

2012

2011

2011

2010

2010

2009

2009

2008

2008

2007

2007

2006

2006

2005

2005

2004 WHAT THE COMPANY OWED

YEAR ENDED 31ST MARCH, IN RS. CRORE

BORROWINGS

334

315

315

250

422

270

904

88

842

54

718

27

501

TOTAL LIABILITIES

982

912

915

1052 1970 1317 3139 1383 3484 1570 3919 1627 3518 1712 3874 1826 5003 2163 6435

NET WORTH OF THE COMPANY

13

470

8

1044

14

2029

YEAR ENDED 31ST MARCH, IN RS. CRORE

SHARE CAPITAL

52

52

52

52

52

73

73

73

73

73

73

128

128

128

128

RESERVES & SURPLUS

288

356

367

484

733

601

896

858

1229 1169 1758 1637 2376 2176 3146 2573 3483 2929 3433

SHAREHOLDERS’ FUNDS

340

408

419

536

785

674

969

931

1302 1242 1831 1765 2504 2304 3275 2701 3611 3057 3561

TANGIBLE NET WORTH***

340

408

419

536

742

674

927

931

1243 1242 1783 1765 2504 2304 3275 2701 3560 3057 3393

RATIOS

128

128

128

128

YEAR ENDED 31ST MARCH

BOOK VALUE PER SHARE (IN RS.)

5.3

6.4

6.5

8.4

11.6

10.5

14.5

14.5

19.4

19.4

27.8

27.5

42.1

55.5

47.7

EARNINGS PER SHARE @ (IN RS.)

1.10

1.79

1.87

2.54

3.63

3.00

4.39

4.89

6.34

6.19

8.73

9.62 13.40 10.82 13.85 7.87

5.82

6.95 (0.56)

CASH EARNINGS PER SHARE @ (IN RS.)

2.12

2.45

2.53

3.40

5.03

4.03

6.48

5.76

8.36

7.08 11.22 10.74 16.62 11.91 17.13 8.96

9.34

8.17

1.30

CURRENT RATIO

1.38

1.49

1.5

1.41

1.37

1.39

1.32

1.28

1.29

1.38

1.3

1.39

1.36

1.70

1.48

1.88

1.46

1.87

1.39

DEBT EQUITY RATIO

0.98

0.77

0.75

0.47

0.57

0.4

0.98

0.09

0.68

0.04

0.4

0.02

0.2

0.00

0.09

0.00

0.17

0.00

0.44

EBIDTA / NET SALES (IN %)

10.8

9.6

9.8

10.5

9.4

11.2

10.4

14.3

11.9

14.6

12.1

17.5

15.0

17.0

14.4

11.9

7.6

9.1

3.8

RETURN ON TANGIBLE NET WORTH (IN %)

20.9

28.2

28.6

30.4

31.4

28.5

30.4

33.7

32.7

32.0

31.4

35.0

34.3

30.1

27.1

18.7

10.5

14.6

(1.1)

FIXED ASSETS TURNOVER RATIO (IN TIMES)

4.6

5.6

5.6

6.9

7.6

7.8

5.2

7.5

5.5

8.8

6.3

9.3

6.6

6.5

5.2

9.6

5.0

9.2

3.9

NO OF PERMANAENT EMPLOYEES

39.0

35.9

51.0

52.9

5470 5256 8174 4916 7801 4912 7972 5002 8307 5094 8564 5116 8647 5214 8702 5365 8966 5575 9575 ;HUNPISL 5L[ >VY[O $ :OHYLOVSKLYZ» -\UKZ ¶ 4PZJLSSHULV\Z ,_WZ \UHTVY[PZLK ¶ +LMLYYLK ;H_ (ZZL[ UL[

TEN YEARS' HIGHLIGHTS

45

D I R E C TORS ’ R E PORT

Distribution Transformers, )LSNP\T VI[HPULK JLY[PÄJH[PVU from Electricite Reseau Distribution, France (ERDF) for a full range of auto transformers

88 46

THE CONSOLIDATED NET REVENUE OF THE COMPANY DURING 2012-2013 GREW BY 7.5% AT RS.12,094 CRORE, AS COMPARED WITH RS.11,249 CRORE LAST YEAR

To The Members, Your Directors are pleased [V WYLZLU[ [OLPY :L]LU[` :P_[O (UU\HS 9LWVY[ VU [OL business and operations of the Company and the HJJV\U[Z MVY [OL Ă„UHUJPHS `LHY LUKLK 4HYJO

;OL :HSLZ HUK 7YVĂ„[ )LMVYL 0U[LYLZ[ HUK ;H_ 7)0; VM [OL YLZWLJ[P]L )\ZPULZZ .YV\WZ compared with last year is given in Table 1 ( KL[HPSLK YL]PL^ VM [OL VWLYH[PVUZ HUK performance of the Company and each )\ZPULZZ .YV\W HZ ^LSS HZ [OL *VTWHU`ÂťZ 0U[LYUH[PVUHS VWLYH[PVUZ PZ JVU[HPULK PU [OL 4HUHNLTLU[ +PZJ\ZZPVU HUK (UHS`ZPZ 9LWVY[ which is given as a separate chapter in the (UU\HS 9LWVY[

ACQUISITION THE YEAR IN RETROSPECT The consolidated net revenue of the Company K\YPUN NYL^ I` H[ 9Z JYVYL HZ JVTWHYLK ^P[O 9Z JYVYL SHZ[ `LHY ;OL *VTWHU` OHZ HJOPL]LK H Z[HUK HSVUL UL[ [\YUV]LY VM 9Z JYVYL K\YPUN [OL `LHY \UKLY YL]PL^ HZ JVTWHYLK ^P[O 9Z JYVYL K\YPUN [OL WYL]PV\Z `LHY H YPZL VM *VUZVSPKH[LK WYVĂ„[ ILMVYL [H_ HM[LY L_JLW[PVUHS P[LT KLJYLHZLK [V 9Z JYVYL HZ JVTWHYLK ^P[O 9Z JYVYL PU [OL WYL]PV\Z `LHY H KLJYLHZL VM V]LY SHZ[ `LHY :[HUK HSVUL WYVĂ„[ ILMVYL [H_ KLJYLHZLK MYVT 9Z JYVYL [V 9Z JYVYL H KLJYLHZL VM Consolidated loss after tax (after exceptional P[LT ^HZ 9Z JYVYL HZ JVTWHYLK ^P[O JVUZVSPKH[LK WYVĂ„[ HM[LY [H_ VM 9Z JYVYL PU [OL WYL]PV\Z `LHY H KLJYLHZL VM ;OL *VTWHU` YLJVYKLK H Z[HUK HSVUL WYVĂ„[ HM[LY [H_ VM 9Z JYVYL H KLJYLHZL VM

6U 1\S` [OL *VTWHU` HJX\PYLK A0= .YV\W IHZLK PU :WHPU LUNHNLK PU [OL KLZPNU engineering, manufacturing and support of 0U[LSSPNLU[ ,SLJ[YPJHS +L]PJLZ 0,+Z HUK WV^LY H\[VTH[PVU Z`Z[LTZ MVY <[PSP[PLZ HUK 0UK\Z[YPLZ MVY HU ,U[LYWYPZL =HS\L VM Ă TPSSPVU A0=ÂťZ VMMLYPUNZ ZWHU MYVT :\IZ[H[PVU HUK +PZ[YPI\[PVU (\[VTH[PVU [V (K]HUJLK 4L[LYPUN 0UMYHZ[Y\J[\YL (40 A0= OHZ PUZ[HSSLK TVYL [OHU TPSSPVU 0,+Z MVY <[PSP[PLZ HUK 0UK\Z[YPLZ HJYVZZ [OL ^VYSK ;OPZ HJX\PZP[PVU L_WHUKZ [OL CG portfolio for power system automation and protection and creates a strong platform for CG PU [OL ZTHY[ NYPK HYLUH 6U 1HU\HY` [OL *VTWHU` HJX\PYLK [OL *VTWHJ[ -S\VYLZJLU[ 3HTWZ *-3 I\ZPULZZ VM 2HYTH 0UK\Z[YPLZ H[ )HKKP Himachal Pradesh, for an approximate value of 9Z TPSSPVU ;OL HJX\PZP[PVU ^PSS KV\ISL [OL *VTWHU`ÂťZ JHWHJP[` PU [OL MHZ[ NYV^PUN *-3 lighting segment and reinforce its presence in [OL YHWPKS` NYV^PUN 0UKPHU JVUZ\TLY THYRL[

DIRECTORS' REPORT

47 88

DURING THE YEAR, CG HAS FORMED A CORE GROUP FOR EXCHANGE OF KNOWLEDGE AND TO STANDARDIZE THE SYSTEMS AND PROCEDURES ACROSS ALL CG LOCATIONS WORLDWIDE

First hazardous area ATEX JLY[PÄLK [YHUZMVYTLYZ designed and despatched for the oil and gas industry

88 48

AMALGAMATION

DIVIDEND

CG-ZIV Power Automation Solutions Ltd (CG-ZIV) is a Joint Venture Company between the Company and ZIV Spain. Post HJX\PZP[PVU VM A0= .YV\W MVY ZPTWSPĂ„JH[PVU VM the shareholding structure and operational synergies, the Board of Directors at their Meeting held on 18 April 2013, approved the amalgamation of CG-ZIV with the Company. A :JOLTL VM (THSNHTH[PVU ^PSS ZOVY[S` IL Ă„SLK with the High Court of Judicature at Bombay.

The Company declared two interim dividends during the year : R Rs.0.40 per equity share (20%) aggregating to a total dividend payout of Rs.30 crore (including dividend tax) declared on 20 July 2012; the Book Closure for this purpose was 28 July 2012 to 3 August 2012 and the Interim Dividend was paid on 8 August 2012. R Rs.0.40 per equity share (20%) aggregating to a total dividend payout of Rs.30 crore (including dividend tax) declared on 2 November 2012; the Record Date for this purpose was 8 November 2012 and the Interim Dividend was paid on 20 November 2012.

JOINT VENTURE On 2 May 2013, the Company entered into a Joint Venture Agreement with PT Prima Layanan Nasional Enjinring (PLNE) of Indonesia, for the manufacture of high voltage (HV) and extra high voltage (EHV) switchgear ranging from 70kV to 500kV in Indonesia. The Joint Venture will be owned 51% by CG and 49% by PLNE.

RATIONALIZATION The Company has been progressively evaluating opportunities for improving operational viability of the various businesses of CG. The transformer market in Western Europe is facing both over capacity and price pressure. Therefore, in order to have globally competitive and sustainable business operations in Europe, it was decided that CG’s Belgium operations be optimised for cost advantages, through administrative cost reduction measures and a right-sizing of its workforce at its Mechelen, Belgium site. This rationalisation program was concluded on 14 December 2012 with the separation of approximately 200 employees. Job Search and other employee help programs were implemented to assist separated employees [V Ă„UK UL^ QVIZ 7VZ[ [OL WYVQLJ[ H ¸-YLZO Startâ€? program comprising communication and engagement initiatives was launched to reinforce Company’s strategy, vision and expectations, monthly updates on the business situation and weekly department meetings. Senior Management is actively PU]VS]LK [OYV\NO H -YLZO :[HY[ :[LLYPUN Committee which oversees the overall communication and employee involvement processes to sustain employee productivity commitment and morale after the rationalization.

The above mentioned dividend payout as a percentage of the share capital works out to 40%. The Board of Directors have recommended H -PUHS +P]PKLUK VM KLJSHYLK VU 4H` 2013; the Book Closure for this purpose is Monday, 29 July 2013 to Tuesday, 6 August 2013, both days inclusive.

RESERVES The Reserves, on stand-alone basis, at the beginning of the year were Rs.2,573 crore. The Reserves at the end of the year are Rs.2,929 crore.

DIRECTORATE Mr B Hariharan was appointed as an Additional Director on the Company’s Board of Directors with effect from 1 November 2012. Dr (Mrs) C Lewiner was appointed as an Additional Director on the Company’s Board of Directors with effect from 28 January 2013. Mr S Apte was appointed as an Additional Director on the Company’s Board of Directors with effect from 18 April 2013. Mr Hariharan, Dr Lewiner and Mr Apte hold VMÄJL \W[V [OL KH[L VM [OL MVY[OJVTPUN HUU\HS general meeting, and considering that the *VTWHU` ^PSS ILULÄ[ MYVT [OLPY JVU[PU\HUJL as a Director, their appointments are being recommended. Mr S Bayman, Independent Director stepped down from his directorship of the Company, with effect from 1 April 2013. The Board places on record its gratitude and appreciation for Mr Bayman’s guidance to the Company during his tenure as Director.

TABLE

01

SALES AND PROFIT BEFORE INTEREST AND TAX (PBIT) IN RS CRORE ORE

POWER SYSTEMS (CG STAND-ALONE) SALES

2,747

2,725

2011-2012

2012-2013

PBIT

320

231

2011-2012

2012-2013

INDUSTRIAL SYSTEMS (CG STAND-ALONE) SALES

1,520

1,499

2011-2012

2012-2013

PBIT

225

213

2011-2012

2012-2013

CONSUMER PRODUCTS SALES

2,134

2,593

2011-2012

2012-2013

PBIT

263

278

2011-2012

2012-2013

POWER SYSTEMS (INCLUDING INTERNATIONAL OPERATIONS) SALES

7,195

7,336

2011-2012

2012-2013

PBIT

248

(110)

2011-2012

2012-2013

INDUSTRIAL SYSTEMS (INCLUDING INTERNATIONAL OPERATIONS) SALES

1,820

1,835

2011-2012

2012-2013

PBIT

210

214

2011-2012

2012-2013

DIRECTORS' REPORT

49 88

TABLE

02

FINANCIAL HIGHLIGHTS RS. CRORE FOR THE YEAR ENDED 31 MARCH 2013 AND 31 MARCH 2012

Particulars

A B C D E F

Gross Sales

G H I J

7YVÄ[ ILMVYL 0U[LYLZ[ +LWYLJPH[PVU (TVY[PZH[PVU HUK ;H_LZ

K L

7YVÄ[ ILMVYL L_JLW[PVUHS P[LTZ HUK [H_LZ

CG Stand-alone

CG Non-India Consolidated *@

2013

2013

2012

CG Consolidated**

2012

2013

2012

7,571

6,850

5,097

4,794

12,533

436

365

-

-

439

366

Net Sales

7,135

6,485

5,097

4,794

12,094

11,249

Less: Operating Expenses

6,540

5,764

5,324

4,726

11,711

10,445

595

721

(227)

68

383

804

53

50

39

16

76

52

648

771

(188)

84

459

856

Less: Excise Duty

6WLYH[PUN 7YVÄ[ Add: Dividend and Other Income

11,615

Less: Finance costs

(20)

3

90

42

71

46

7YVÄ[ ILMVYL +LWYLJPH[PVU (TVY[PZH[PVU HUK ;H_LZ

668

768

(278)

42

388

810

Less: Depreciation, Amortisation

72

91

125

169

203

260

596

677

(403)

(127)

185

550

-

-

121

-

121

-

M N O P

7YVÄ[ )LMVYL ;H_

596

677

(524)

(127)

64

550

3LZZ! 7YV]PZPVU MVY *\YYLU[ @LHY ;H_

143

193

40

23

185

217

7

(21)

(90)

(14)

(84)

(35)

446

505

(474)

(136)

(37)

368

Q R S

Minority Interest

-

-

1

0

1

1

:OHYL VM 7YVÄ[ VM (ZZVJPH[L *VTWHUPLZ UL[

-

-

(2)

0

0

5

446

505

(475)

(136)

(36)

374

Less: Exceptional Items

3LZZ! 7YV]PZPVU MVY +LMLYYLK ;H_ 7YVÄ[ (M[LY ;H_

7YVÄ[ H]HPSHISL MVY KPZ[YPI\[PVU

* Consolidated Accounts of CG International BV (CGIBV), the holding company for CG’s international operations. ** Includes results of CG Stand-alone and Indian subsidiaries, Crompton Greaves Holdings Mauritius 3PTP[LK *. 0U[LYUH[PVUHS /VSKPUNZ :PUNHWVYL 7;, 3[K HUK *.0)= JVUZVSPKH[LK ' -PN\YLZ OH]L ILLU YLNYV\WLK MVY [OL W\YWVZLZ VM JVUZVSPKH[PVU

Second phase of expansion to 12,500 MVA per year in progress at CG’s Power Transformer facility, Hungary

88 50

TABLE

03

FINANCIAL HIGHLIGHTS EURO MILLION FOR THE YEAR ENDED 31 MARCH 2013 AND 31 MARCH 2012

Particulars

A B C D E F

Gross Sales

G H I J K L M N O P Q R S

7YVĂ„[ ILMVYL 0U[LYLZ[ +LWYLJPH[PVU (TVY[PZH[PVU HUK ;H_LZ

CG Stand-alone

CG Non-India Consolidated *@

2013

2013

Less: Excise Duty Net Sales Less: Operating Expenses 6WLYH[PUN 7YVĂ„[ Add: Dividend and Other Income

2012

CG Consolidated**

2012

2013

2012

1,080

1,035

727

724

1,788

62

55

-

-

63

1,755 55

1,018

980

727

724

1,725

1,700

933

871

759

714

1,670

1,578

85

109

(32)

10

55

122

7

8

6

2

10

8

92

117

(26)

12

65

130

Less: Finance costs

(3)

1

13

6

10

7

7YVĂ„[ ILMVYL +LWYLJPH[PVU (TVY[PZH[PVU HUK ;H_LZ

95

116

(39)

6

55

123

Less: Depreciation, Amortisation

10

14

18

26

29

39

7YVĂ„[ ILMVYL L_JLW[PVUHS P[LTZ HUK [H_LZ

85

102

(57)

(20)

26

84

-

-

17

-

17

-

7YVĂ„[ )LMVYL ;H_

85

102

(74)

(20)

9

84

3LZZ! 7YV]PZPVU MVY *\YYLU[ @LHY ;H_

20

29

6

3

26

33

1

(3)

(13)

(2)

(12)

(5)

64

76

(67)

(21)

(5)

56

Minority Interest

-

-

0

0

0

0

:OHYL VM 7YVĂ„[ VM (ZZVJPH[L *VTWHUPLZ UL[

-

-

0

0

0

1

64

76

(67)

(21)

(5)

57

Less: Exceptional Items

3LZZ! 7YV]PZPVU MVY +LMLYYLK ;H_ 7YVĂ„[ (M[LY ;H_

7YVĂ„[ H]HPSHISL MVY KPZ[YPI\[PVU

* Consolidated Accounts of CG International BV (CGIBV), the holding company for CG’s international operations. ** Includes results of CG Stand-alone and Indian Subsidiaries, Crompton Greaves Holdings Mauritius 3PTP[LK *. 0U[LYUH[PVUHS /VSKPUNZ :PUNHWVYL 7;, 3[K HUK *.0)= JVUZVSPKH[LK ' -PN\YLZ OH]L ILLU YLNYV\WLK MVY [OL W\YWVZLZ VM JVUZVSPKH[PVU 5V[L! (]LYHNL L_JOHUNL YH[L JVUZPKLYLK MVY ,<96 PU PZ Rs.70.1028 and in 2011-12 is Rs.66.1764

Mr SP Talwar, Independent Director stepped down from his directorship of the Company, with effect from 24 May 2013. The Board places on record its gratitude and appreciation for Mr SP Talwar’s guidance to the Company during his tenure as Director. Dr O Goswami, Ms M Pudumjee and Mr S Prabhu are the Directors who retire by rotation at the forthcoming Annual General Meeting; and being eligible, offer themselves for reappointment to the Board. The details of the Directors being recommended for appointment and re-appointment are contained in the accompanying Notice of the forthcoming Annual General Meeting.

PROMOTER GROUP The Company is a part of the USD 4 Billion Avantha Group, one of India’s leading business conglomerates, led by Chairman Mr Gautam Thapar. With a global footprint, the Avantha Group operates in 90 countries with more than 25,000 employees worldwide. As required by the Listing Agreement with Stock Exchanges, CG periodically discloses its promoter group and persons acting in concert

PU [OL ZOHYLOVSKPUN WH[[LYU HUK V[OLY Ă„SPUNZ ^P[O the Stock Exchanges.

RESEARCH AND DEVELOPMENT CG’s continues its commitment and increased focus on R&D, since these efforts are important drivers for global competitiveness and growth. Our business units were consolidated NSVIHSS` [V YLĂ…LJ[ ¸6UL *.š HUK [OL VMMLYPUNZ VM *. OH]L ILLU YL HSPNULK HSVUN ¸.SVIHS 7YVK\J[ Linesâ€?. This has necessitated realignment of R&D initiatives globally. SBU R&D units and the Global R&D Centre have been suitably integrated to create internal and external synergies and extract better value from the new model for R&D. ,ULYN` LMĂ„JPLUJPLZ HUK JVZ[ YLK\J[PVU ^LYL the main triggers for product innovation during the year. Extended range of IE3 motors, motors with regenerative drives, low loss, low noise transformers, extended range of LED based light sources, low energy consuming fans & appliances, lighting management systems for small buildings are salient examples in our drive to reach out to the market. Some of these new products have been highlighted in the Annexure to the Report.

CG has been consistently leading [LJOUVSVNPJHS PUUV]H[PVUZ M\SÄSSPUN [OL evergrowing requirements of its customers in India and worldwide. CG continues to have a strong presence and has commercialized production of its 1200 kV offerings in India – Capacitive Voltage Transformer, Surge Arrester and Power Transformer. R&D continues to facilitate the indigenous design, development and manufacturing of 800 kV Power transformers, gas circuit breakers, instrument transformers and surge arresters. CG’s R&D efforts have resulted in 15 R&D units which have received recognition from the +LWHY[TLU[ VM :JPLU[PÄJ 0UK\Z[YPHS 9LZLHYJO Ministry of Science & Technology, India. These recognitions further support CG in its quest for building a stronger foundation for innovativeness in development of technology as an important driver towards a stronger global presence, in future.

SUBSIDIARY COMPANIES The Company has four Indian subsidiaries—CG Energy Management Limited, CG-PPI Adhesive Products Limited, CG-ZIV Power Automation Solutions Limited and CG Power Solutions

DIRECTORS' REPORT

51 88

TABLE

04

FINANCIAL HIGHLIGHTS USD MILLION FOR THE YEAR ENDED 31 MARCH 2013 AND 31 MARCH 2012

Particulars

A B C D E F

Gross Sales

G H I J

7YVĂ„[ ILMVYL 0U[LYLZ[ +LWYLJPH[PVU (TVY[PZH[PVU HUK ;H_LZ

K L

7YVĂ„[ ILMVYL L_JLW[PVUHS P[LTZ HUK [H_LZ

M N O P

7YVĂ„[ )LMVYL ;H_

Q R S

CG Stand-alone

CG Non-India Consolidated *@

2013

2013

2012

CG Consolidated**

2012

2013

2012

1,391

1,424

936

996

2,303

80

76

-

-

81

76

Net Sales

1,311

1,348

936

996

2,222

2,338

Less: Operating Expenses

1,202

1,198

978

981

2,152

2,171

109

150

(42)

15

70

167

10

11

7

3

14

11

119

161

(35)

18

84

178

Less: Excise Duty

6WLYH[PUN 7YVĂ„[ Add: Dividend and Other Income Less: Finance costs 7YVĂ„[ ILMVYL +LWYLJPH[PVU (TVY[PZH[PVU HUK ;H_LZ

2,414

(3)

1

16

9

13

10

122

160

(51)

9

71

168

Less: Depreciation, Amortisation

13

19

23

35

37

54

109

141

(74)

(26)

34

114

Less: Exceptional Items

-

-

22

-

22

-

109

141

(96)

(26)

12

114

26

40

7

5

34

45

1

(4)

(16)

(3)

(15)

(7)

82

105

(87)

(28)

(7)

76

Minority Interest

-

-

0

0

0

0

:OHYL VM 7YVĂ„[ VM (ZZVJPH[L *VTWHUPLZ UL[

-

-

0

0

0

1

82

105

(87)

(28)

(7)

77

3LZZ! 7YV]PZPVU MVY *\YYLU[ @LHY ;H_ 3LZZ! 7YV]PZPVU MVY +LMLYYLK ;H_ 7YVĂ„[ (M[LY ;H_

7YVĂ„[ H]HPSHISL MVY KPZ[YPI\[PVU

* Consolidated Accounts of CG International BV (CGIBV), the holding company for CG’s international operations. **Includes results of CG Stand-alone and Indian Subsidiaries, Crompton Greaves Holdings Mauritius 3PTP[LK *. 0U[LYUH[PVUHS /VSKPUNZ :PUNHWVYL 7;, 3[K HUK *.0)= JVUZVSPKH[LK ' -PN\YLZ OH]L ILLU YLNYV\WLK MVY [OL W\YWVZLZ VM JVUZVSPKH[PVU 5V[L! (]LYHNL L_JOHUNL YH[L JVUZPKLYLK MVY <:+ PU PZ Rs.54.4316 and in 2011-12 is Rs.48.1233

Limited (CGPS). In addition to the above, the Company has 41 foreign subsidiaries as under : ‹ Crompton Greaves Holdings Mauritius Ltd ‹ CG International Holdings Singapore PTE Ltd ‹ CG International B.V. ‹ PT. CG Power Systems Indonesia ‹ CG Holdings Belgium N.V. ‹ CG Power Holdings Ireland Ltd ‹ CG Power Systems Belgium N.V. ‹ CG Automation Systems UK Ltd ‹ CG Power Systems USA Inc ‹ CG Automation Solutions USA Inc ‹ CG Power Systems Ireland Ltd ‹ Viserge Ltd ‹ *. :HSLZ 5L[^VYRZ -YHUJL :( ‹ Microsol Ltd ‹ CG Service Systems Curacao NV ‹ *. :LY]PJL :`Z[LTZ -YHUJL :(: ‹ CG Holdings Hungary Kft ‹ CG Holdings Germany GmbH ‹ CG Electric Systems Hungary Zrt ‹ CG Sales Networks Americas Inc ‹ CG Power Solutions USA Inc ‹ CG Power Systems Canada Inc ‹ CG Power Solutions UK Ltd

88 52

‹ CG Power Solutions Saudi Arabia Ltd ‹ CG Sales Networks Singapore PTE Ltd ‹ CG Holdings USA Inc ‹ CG Power Systems Brazil Ltda ‹ CG Power County LLC ‹ CG Drives & Automation Germany GmbH ‹ Emotron Latin America Inc ‹ CG Industrial Holdings Sweden AB ‹ Crompton Greaves Holdings Sweden AB ‹ CG Drives & Automation Sweden AB ‹ CG Drives & Automation Netherlands BV ‹ ZIV I +D Smart Energy Networks ‹ ZIV Aplicaciones y Tecnologia SL ‹ ZIV Communications SA ‹ ZIV Metering Solutions SL ‹ ZIV USA Inc

subsidiaries so desires, the Company will be happy to make available the Annual Accounts of the subsidiaries to them, on request. These will also be available for inspection at the 9LNPZ[LYLK 6MĂ„JL VM [OL *VTWHU` HUK VM P[Z subsidiaries, during working hours up to the date of the Annual General Meeting. The details of each subsidiary with respect to capital, reserves, total assets, total liabilities, details of investment (except in case of PU]LZ[TLU[ PU Z\IZPKPHYPLZ [\YUV]LY WYVĂ„[ ILMVYL [H_H[PVU WYV]PZPVU MVY [H_H[PVU WYVĂ„[ HM[LY taxation and proposed dividend as prescribed by the Ministry of Corporate Affairs, are detailed in Information in respect of subsidary companies in the accounts section of this Report.

‹ ZIV Grid Automation SL ‹ ZIV do Brasil Ltda

Pursuant to a general exemption granted by the Ministry of Corporate Affairs under Section 212 of the Companies Act, 1956, the Company is not required to annex to this Report, the Annual Reports of the abovementioned 4 Indian subsidiaries and 41 foreign subsidiaries, for the year ended 31 March 2013. However, if any Member of the Company or the respective

BRANCH OFFICE ;OL *VTWHU` OHZ LZ[HISPZOLK H IYHUJO VMĂ„JL H[ 7VSHUK ;OL Z[HUK HSVUL Ă„UHUJPHS Z[H[LTLU[Z VM [OL *VTWHU` PUJS\KLZ [OL Ă„UHUJPHS statements of its Poland branch i.e. Crompton Greaves Ltd SA.

CONSOLIDATION OF ACCOUNTS As required by Accounting Standards AS21 and AS-23 of the Institute of Chartered

ENERGY EFFICIENCIES AND COST REDUCTION WERE THE MAIN TRIGGERS FOR PRODUCT INNOVATION DURING THE YEAR

Belwind is the largest green energy project in Belgium with a total capacity of 165MW

DIRECTORS' REPORT

53 88

Competitive low loss design for distribution transformers developed for the renewables market in the UK

(JJV\U[HU[Z VM 0UKPH [OL ÄUHUJPHS Z[H[LTLU[Z VM [OL *VTWHU` YLÅLJ[ [OL JVUZVSPKH[PVU VM [OL Accounts of the Company, its 45 subsidiaries TLU[PVULK HIV]L HUK Ä]L (ZZVJPH[L Companies. The Associate Companies are Avantha Power & Infrastructure Limited, CG Lucy Switchgear Limited, Pauwels Middle East Trading & Contracting Pvt Co. LLC, K.K. ,S -P 1HWHU HUK :H\KP 7V^LY ;YHUZMVYTLYZ Company Ltd.

CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION AND FOREIGN EXCHANGE EARNINGS AND OUTGO As required by the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1988, the relevant data pertaining to conservation of energy, technology absorption and foreign exchange earnings and outgo are given in the prescribed format as Annexure to this Report.

PARTICULARS OF EMPLOYEES The statement of particulars required pursuant to Section 217(2A) of the Companies Act,

88 54

1956 read with the Companies (Particulars of Employees) (Amendment) Rules, 2011, forms a part of this Report. However, as permitted by the Companies Act, 1956, the Report and Accounts are being sent to all Members and other entitled persons excluding the above statement. Those interested in obtaining a copy of the said statement may write to the Company :LJYL[HY` H[ [OL 9LNPZ[LYLK 6MÄJL HUK [OL same will be sent by post. The statement is also H]HPSHISL MVY PUZWLJ[PVU H[ [OL 9LNPZ[LYLK 6MÄJL during working hours up to the date of the Annual General Meeting.

DIRECTORS’ RESPONSIBILITY STATEMENT The Directors would like to assure the Members [OH[ [OL ÄUHUJPHS Z[H[LTLU[Z MVY [OL `LHY under review conform in their entirety to the requirements of the Companies Act, 1956. ;OL +PYLJ[VYZ JVUÄYT [OH[ ! R the Annual Accounts have been prepared in conformity with the applicable Accounting Standards; R the Accounting Policies selected and applied on a consistent basis, give a true and fair view of

[OL HMMHPYZ VM [OL *VTWHU` HUK VM [OL WYVÄ[ MVY [OL ÄUHUJPHS `LHY" R Z\MÄJPLU[ JHYL OHZ ILLU [HRLU [OH[ HKLX\H[L accounting records have been maintained for safeguarding the assets of the Company; and for prevention and detection of fraud and other irregularities; R the Annual Accounts have been prepared on a going concern basis.

AUDITORS The Company’s Statutory Auditors, Sharp ;HUUHU OVSK VMÄJL \W [V [OL JVUJS\ZPVU of the forthcoming Annual General Meeting; and, being eligible, are recommended for re-appointment on terms to be negotiated by the Audit Committee of the Board of Directors. ;OL` OH]L M\YUPZOLK [OL YLX\PZP[L JLY[PÄJH[L [V the effect that their re-appointment, if effected, will be in accordance with Section 224(1B) of the Companies Act, 1956. The Company had appointed Ashwin Solanki & Associates, Cost Accountants, to audit the cost accounts related to the Company’s WYVK\J[Z MVY ;OL K\L KH[L MVY ÄSPUN

[OL HIV]L JVZ[ H\KP[ YLWVY[Z ^HZ -LIY\HY` " [OL HJ[\HS KH[L VM Ă„SPUN ^HZ +LJLTILY 2012. The Company has re-appointed Ashwin Solanki & Associates as Cost Auditors, for the Ă„UHUJPHS `LHY

FIXED DEPOSITS The Company has discontinued acceptance of fresh deposits and also renewal of existing deposits. One person has not claimed repayment of his matured deposit amounting to Rs.10,000 as at 31 March 2013. At the date of this Report, an amount of Rs.4,27,000 has been claimed and repaid, or transferred to [OL 0U]LZ[VY ,K\JH[PVU 7YV[LJ[PVU -\UK VU completion of seven years. Link Intime India Pvt. Ltd (formerly Intime Spectrum Registry Limited) continues to be the Company’s Registrars for all matters related [V [OL *VTWHU`Z -P_LK +LWVZP[ :JOLTL The contact details of Link Intime India Pvt. Ltd are mentioned in the Report on Corporate Governance.

SHARE REGISTRAR & TRANSFER AGENT The Company’s Registrar & Transfer Agents MVY ZOHYLZ PZ +H[HTH[PJZ -PUHUJPHS :LY]PJLZ 3[K +-:3 +-:3 PZ H :,)0 YLNPZ[LYLK 9LNPZ[YHY ;YHUZMLY (NLU[ ;OL JVU[HJ[ KL[HPSZ VM +-:3 are mentioned in the Report on Corporate Governance. Investors are requested to address their X\LYPLZ PM HU` [V +-:3" OV^L]LY PU JHZL VM KPMÄJ\S[PLZ HZ HS^H`Z [OL` HYL ^LSJVTL [V contact the Company’s Investor Services Department, the contact particulars of which are contained in the Report on Corporate Governance.

ENVIRONMENT, HEALTH & SAFETY CG’s global initiative to review and monitor the energy, paper & water consumption as well as health & safety parameters at its various divisions/entities in India and abroad through an Environment, Health & Safety (EHS) scorecard is progressing well. Targets assigned to each division/entity to reduce the resource consumption for next year is regularly monitored through an EHS scorecard and reviewed at monthly business review meetings. The improved awareness for EHS and also the 2L` 7LYMVYTHUJL 0UKPJH[VYZ PKLU[PÄLK I` LHJO division/entity for improvements has helped CG [V YLK\JL [OL U\TILY VM HJJPKLU[Z ZPNUPÄJHU[S` Water consumption has reduced by 15% and paper consumption has reduced by 17%.

To strengthen this initiative further, a new Key Performance Indicator of material waste reduction has been added for 2013-2014. All units have budgeted targets for reduction in material waste. This initiative of optimum utilization of materials will be an important contribution from CG, for environment protection activities. During the year, CG has formed a core group for exchange of knowledge and to standardize the systems and procedures across all CG locations worldwide. This core group also assesses the various Units on safety and environment protection improvement activities. Audits were conducted by this core group twice during the year. CG has implemented several company-wide processes at its Units, including improved awareness and communication programmes, safety audits, periodic health check-ups for its employees as well as accident prevention and investigation programs, to further improve its EHS track record. Safety Week was observed across all Units from 4 March 2013 to 10 March 2013 to create continuing awareness on safety. 28 manufacturing plants of CG worldwide OH]L HJOPL]LK JLY[PĂ„JH[PVUZ MVY 0:6 Environmental Management Systems and OHSAS 18001- Occupational Health & Safety Assessment series. CG is pursuing similar *LY[PĂ„JH[PVU MVY P[Z V[OLY YLTHPUPUN SVJH[PVUZ Certifying authorities periodically conducts surveillance audits of both ISO 14001 and OHSAS 18001, to ensure continued conformity with these Standards.

ACKNOWLEDGEMENTS The Directors wish to convey their gratitude and appreciation to all of the Company’s employees at all its locations worldwide for their tremendous personal efforts as well as their collective dedication and contribution to the Company’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 G Thapar Chairman Mumbai, 24 May 2013

DIRECTORS' REPORT

55 88

Annexure to Directors’ Report Information Under Section 217(1)(e) of the Companies Act, 1956

A. CONSERVATION OF ENERGY (a) 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 of electricity. The illustrative measures taken towards LULYN` JVUZLY]H[PVU H[ <UP[Z HYL! R Installation of solar systems, solar lights and biogas plants in canteens R Replacement of oven control panels with thyristor controlled panels that are more LULYN` LMÄJPLU[ R 0U[YVK\J[PVU VM ZOVW ÅVVY MHUZ ^P[O [PTLYZ MVY more centralized controls R Change of centrifugal compressors to LULYN` LMÄJPLU[ ZJYL^ JVTWYLZZVYZ R Usage of LED (Light Emitting Diode) types of lighting R Replacement of On-Off controller of furnace heater with PID controller R Reduction of cycle time in autoclave and usage of compressed air R Installation of Bio natural gas plants for the purpose of heating ovens which replace existing electrical heating (b) Additional investments and proposals, if any, being implemented for reduction in consumption of energy The following processes are under implementation for further reducing energy JVUZ\TW[PVU! R Installation of draft cooling towers to control heat capacities R Rain water harvesting R Conversion to LED lighting in manufacturing locations R <ZHNL VM (J[P]L 7V^LY -HJ[VY *VYYLJ[PVU panels R 4VKPÄJH[PVU VM NHZ ÄYLK V]LUZ PU *-3 manufacturing R Installation of waste heat recovery unit R Usage of screw compressors and compressor load balancing R 3PNO[PUN THUHNLTLU[ PU VMÄJL

56

(c) Impact of the measures at (a) and (b) for reduction of energy consumption and consequent impact on the cost of production The measures at (a) and (b) above have resulted in saving in electricity by 6.5%, saving in water by 15%, saving in paper usage by 17%, resulting in reduction in cost of production.

R ¸3VHK )HSHUJLY¹ MVY H\[VTV[P]L

B. TECHNOLOGY ABSORPTION

R

Research and Development

R

1. Specific areas of significance in which R&D is carried out by the Company CG’s R&D efforts are aligned with its strategic business objectives. The main areas of focus are innovative products and platforms at JVTWL[P[P]L JVZ[Z LULYN` LMÄJPLUJ` </= JSHZZ products, renewable and smart grid ready products.

R

2. Benefits derived as a result of the above R&D NEW PRODUCT COMMERCIALISED POWER SYSTEMS R 100 kVaR STATCOM R ( (J[P]L OHYTVUPJ ÄS[LY R 126 kV Current and Inductive voltage transformers R 72.5 kV Voltage Transformer (VT) for gas insulated switchgear R 12 kV 31.5 kA & 40 kA compact series Vacuum Interrupters (VIs) for oil and gas market R 420 kV 50 kA spring-spring gas circuit breaker R 36 kV, 26.3 kA,1250A indoor gas insulated switchgear R 52 kV 3150A condenser bushings for 765 kV transformer R 550 kV transformer bushings R 550 kV Surge Arrestors R 800 kV Current transformer R 800 kV & 1200 kV Surge Arrester R Communicable Smart Meter R <WNYHKLK +PZ[HUJL 9LSH`Z! 5L^ /PNO Speed High Current distance relay R Electric Vehicle Charging Stations R Analog Power Line Carrier (PLC) with built-in analog teleprotection system (OPL_1T) R Medium Voltage PLC (NDLC-1)

R

R R R

R R R R

R

manufacturing set up which reduces energy bill by fast load compensation Phase 1 of native IEC61850 Substation Central Unit (UCX) 6.5 MVA Bio-SLIM transformers for offshore wind 20–25 MVA low noise technology based transformers 245 kV gas insulated switchgear Small power transformers with low noise Neutral point reactor coils ATEX transformers (zone 2) for oil and gas applications 20 MVA and 30 MVA mobile transformers for the Systems business G11 x 5.56 MVA wind turbine transformer Multiwinding transformers for solar HWWSPJH[PVU! KV\ISL Z[VJR HUK SV^ OPNO SV^ concepts 4=( 2->- VMMZOVYL ^PUK [\YIPUL transformer ¸:PTWSPÄLK *VTWHJ[ 9\YHS :\IZ[H[PVU¹ KPZ[YPI\[PVU [YHUZMVYTLYZ MVY -YHUJL

INDUSTRIAL SYSTEMS R 0, /PNO LMÄJPLUJ` 3= TV[VYZ \W [V R> R IE3/NEMA range extended up to 10 HP R LV alternators for mini hydro market R Cylindrical rotor synchronous generator up

to 3 MW R High speed (3 MW, 2 Pole) MV motors R 2 x 3000 HP Power Converter R IGBT based 3 x 130 kVA Auxiliary Converter R Soft magnetic material S0 grade – Low loss

R R R R R R R R R R

WYVJLZZLZ SHTPUH[PVU MVY -HUZ -/7 4 Range Motors ,ULYN` LMÄJPLU[ TV[VY MVY W\TW HWWSPJH[PVU for defence Single section digital axle counter for railways Integrated power supply system Electronically commutated motor IP20/21 version of 11–132 kW LV drives 3 MW 2-pole squirrel cage motor 7YVÄUL[ 06 JVTT\UPJH[PVU VW[PVU LV soft starter 16 to 100A Regenerative drive with active front end of 1500A 1080 kW 40 Pole, 690V Synchro Generator for Hydro

TABLE

05

EXPENDITURE ON R&D RS. CRORE FOR THE YEAR ENDED 31 MARCH 2013

Stand-alone

A B C D

Capital

44.38

Revenue

41.56

;V[HS ( )

85.94

;V[HS 9 + L_WLUKP[\YL! 1.20%

HZ H WLYJLU[HNL VM UL[ [\YUV]LY

14.42%

HZ H WLYJLU[HNL VM WYVĂ„[ ILMVYL [H_

TABLE

06

2. Imported Technology Nil

FOREIGN EXCHANGE EARNED & USED RS. CRORE

;V[HS ;V[HS -VYLPNU ,_JOHUNL ,HYULK

877.16

;V[HS -VYLPNU ,_JOHUNL <ZLK

829.05

CONSUMER PRODUCTS R 3 kW solar charger controller with best in JSHZZ LMĂ„JPLUJ` R 35W ceiling fan with lower energy consumption R 18W bus fan R ¸:[YLL[ :THY[š YHUNL VM Z[YLL[ SPNO[ management systems with reduced energy consumption and features which enhanced reliability of operations. R ¸*VU[YVSP[Lš 4HUHNLTLU[ :VS\[PVUZ R ¸5,63(š ,SLJ[YVUPJHSS` *VU[YVSSLK 4P_LY ^P[O ¸:O\[ :LSLJ[ -VYNL[š MLH[\YLZ R ¸=@64š ZLYPLZ 3,+ )HZLK 3PNO[PUN Solutions with contemporary styling for Z[YLL[ SPNO[ HUK Ă…VVK SPNO[PUN ZVS\[PVUZ R ¸:LUZVYHš YLTV[L JVU[YVS MVY -HUZ R ¸(RZO š =PKLV :\Y]LPSSHUJL Z`Z[LTZ NEW PROCESSES IMPLEMENTED AND PROCESSES IMPROVED R Paint technology for fans R Autoclave drying in power transformer R Improved sintering process for vacuum interrupters TECHNOLOGY COMPETENCY ACHIEVED R Acoustic Partial Discharge location for power transformer R Design for low weight power transformer R Transformer designed for renewable energy

TECHNOLOGY ABSORPTION, ADAPTATION AND INNOVATION 1. Efforts and BeneďŹ ts The Company is in progress of absorption and integration of ZIV technologies for smart metering, substation automation and distribution automation. The Company has indigenously developed technology for springspring Circuit Breaker.

R Power Quality solutions R Power Line communications R Smart meters

C.FOREIGN EXCHANGE EARNINGS AND OUTGO (a) Activities relating to exports; initiatives taken to increase exports; development of new export markets for products and services; and export plans The Company’s activities and initiatives relating to exports are contained in the Management Discussion and Analysis Report.

R ,MĂ„JPLU[ IH[[LY` JOHYNPUN [OYV\NO [YPJRSL

charging R MV GIS technologies R Reliable mechanism for switchgears

INTELLECTUAL PROPERTY +\YPUN -@ [OYLL WH[LU[Z OH]L ILLU granted. CG now has 35 active patents in its WVY[MVSPV +\YPUN -@ *. OHZ HKKP[PVUHSS` Ă„SLK WH[LU[ HWWSPJH[PVUZ VM *.ÂťZ WH[LU[ applications are pending with the Patent Registrar. +\YPUN -@ KLZPNUZ OH]L ILLU registered. CG now has 1004 designs YLNPZ[LYLK PU P[Z WVY[MVSPV +\YPUN -@ *. OHZ HKKP[PVUHSS` Ă„SLK KLZPNU HWWSPJH[PVUZ

(b) Total Foreign Exchange Earned and Used The total foreign exchange earned and used by the Company is given in Table 6. On behalf of the Board of Directors G Thapar Chairman Mumbai, 24 May 2013

3. Future plan of action The Company’s future R&D efforts will comprise consolidating its efforts towards development of innovative products at lower cost with higher LULYN` HUK V]LYHSS LMÄJPLUJPLZ 9 + ^PSS MVJ\Z VU KL]LSVWTLU[Z PU LULYN` LMÄJPLUJ` ZTHY[ and intelligent products, renewable energy, and product range extensions. 4. Expenditure on R&D The Company’s expenditure on R&D is given in Table 5.

DIRECTORS' REPORT

57

CORPORAT E GOVE RNANC E

Transformers for large multimegawatt wind turbines

58

MAJOR FUNDAMENTAL CHANGES HAVE BEEN MADE, TO BETTER RESPOND TO THE NEEDS OF A “ONE CG” GLOBALLY.

The Company’s Philosophy on Corporate Governance Over the past decade, the Company’s Board has progressively strengthened Organizational Structures HUK 7YVJLZZLZ [V M\SÄSS [OL Board’s responsibilities of creating sustainable value for its various stakeholders. Corporate Governance is a journey; and, the Company continues its pursuit of Excellence in this area. The Board regularly reviews and advises Management on the strategic direction of the Company, as well as its priorities and plans to achieve these objectives in the short, medium and long-term. In addition, through periodic interactions with the Senior Management, the Board also reviews and monitors deployment of action plans, in its endeavour to support Management in achieving the Company’s strategic objectives. Accountability and transparency are two important tenets of Corporate Governance;

and, during the year, further actions have been taken to strengthen the Company’s systems and processes in these areas. With the Company’s increasing global footprint across new geographies and expansion in new business areas, there is an increased thrust of the Company’s Corporate Governance PUP[PH[P]LZ H[ H \UPÄLK SL]LS NSVIHSS` [V IL[[LY KLSP]LY [OL JVUJLW[ VM ¸6UL *.¹ ;OL .SVIHS Organisational Structure has been designed and, the Global Authority-Responsibility MatrixCG Global Rules of Procedure for Management has been further upgraded and continues to be deployed worldwide. These major fundamental changes have been made, to better respond to [OL ULLKZ VM H ¸6UL *.¹ NSVIHSS` TV]PUN PU VUL direction, with enhanced accountability and transparency. CG’s Code of Business Practices continues to be the benchmark for business standards that govern all employees of CG, both internally and externally across the world; providing principles in various business situations, to guide decision-making and actions, with integrity and discipline. External communication to its various stakeholders on developments related to the Company continues to be an important channel for better transparency. Through greater dissemination of information, the Company continues to work and improve its communication. This objective is achieved through regular and detailed media releases, postings on the Company’s website and

C O R P O R AT E G O V E R N A N C E

59

TABLE

01

COMPOSITION OF THE BOARD AS ON 24 MAY 2013

6[OLY )VHYK 9LWYLZLU[H[PVUZ Name

Particulars

Directorships (a)

*VTTP[[LL 4LTILYZOPWZ I Committee Chairmanships I

4Y .H\[HT ;OHWHY

Non-Executive; Chairman; Promoter

9

2

0

4Y :\KOPY ;YLOHU

Non-Executive; Vice-Chairman

3

0

0

Mr Laurent Demortier

Executive; CEO and Managing Director

3

0

0

Mr Shirish Apte*

Non-Executive; Independent

0

0

0 3

Dr Omkar Goswami

Non-Executive; Independent

11

6

4Y ) /HYPOHYHU

Non-Executive

15

5

3

4Y :HUQH` 3HIYVV

Non-Executive; Independent

16

2

0

Dr (Mrs) Colette Lewiner***

Non-Executive; Independent

0

0

0

4Y :\YLZO 7YHIO\

Non-Executive; Independent

3

0

0

Ms Meher Pudumjee

Non-Executive; Independent

6

1

0

Dr Valentin von Massow

Non-Executive; Independent

1

0

0

(a) Includes private limited companies, but excludes alternate directorships and foreign bodies corporate. (b) Of only public limited companies. *Appointed on 18 April 2013. **Appointed on 1 November 2012. ***Appointed on 28 January 2013.

disclosures in its Annual Report and other 9LN\SH[VY` Ă„SPUNZ MHY PU L_JLZZ VM WYLZJYPILK norms.

BOARD OF DIRECTORS Composition As on the date of this Report, the Company has an eleven member Board of Directors. The Chairman, Mr Gautam Thapar is a NonExecutive Director and represents the Promoter Group. The Vice-Chairman, Mr SM Trehan is a Non-Executive Director. Mr Laurent Demortier is the CEO and Managing Director. Two new Independent Directors—Dr (Mrs) Colette Lewiner and Mr Shirish Apte, as well as Mr B Hariharan, Avantha Group Director œ -PUHUJL ^LYL PUK\J[LK VU [OL )VHYK LHJO bringing with them rich business experience and professional expertise. Mr B Hariharan is a Non-Executive Director VU [OL )VHYK 4Y /HYPOHYHU PZ H X\HSPÄLK Chartered Accountant, Cost Accountant and Company Secretary, having over 29 `LHYZ L_WLYPLUJL PU ÄUHUJL (Z .YV\W +PYLJ[VY -PUHUJL OL KYP]LZ [OL ÄUHUJPHS HUK growth strategy of the Avantha Group, the Promoter Group of CG. Mr Hariharan has been instrumental in the success of key M&A and turnaround projects for CG and other Avantha Group Companies and has played a pivotal role in the Group’s transformation and successful foray in the international capital markets. Dr (Mrs) Colette Lewiner is a PhD in physics and has over 35 years of experience as a researcher, academician and as an industry expert in fossil fuel (oil and gas), nuclear and renewable energies. Dr Lewiner joined ,SLJ[YPJP[t KL -YHUJL ,+- PU HUK OHZ

60

thereafter worked in senior capacities with YLW\[LK T\S[PUH[PVUHSZ PUJS\KPUN HZ ,+-ÂťZ Ă„YZ[ woman Executive Vice President, Chairwoman of the Board & CEO of SGN Eurisys Group and Executive Vice President and Global Leader of the Energy, Utilities and Chemicals Sector in Capgemini. Dr Lewiner is presently the Energy Advisor to the Chairman and CEO of Capgemini. She has been honored with [^V ZPNUPĂ„JHU[ -YLUJO JP]PSPHU H^HYKZ" ZOL PZ ¸*VTTHUKL\Yš PU [OL 3LNPVU VM /VUV\Y HUK PU the Order of Merit. Mr Shirish Apte is the Chairman of Asia 7HJPĂ„J )HURPUN MVY *P[PNYV\W HUK OHZ ILLU ^P[O Citigroup for more than 30 years. He has held various assignments in Corporate Banking, 9PZR 4HUHNLTLU[ *VYWVYH[L -PUHUJL HUK Investment Banking during this tenure. Mr Apte was responsible for Citibank’s acquisition of Bank Handlowy in the year 2000 and led its merger and integration with Citibank. Mr Apte is a Chartered Accountant from the Institute of Chartered Accountants of England & Wales; and, also holds an MBA degree from the London Business School. Mr Scott Bayman, Non-executive Independent Director stepped down from his directorship of the Company w.e.f. 1 April 2013 due to his other personal commitments. Mr SP Talwar, Non-executive Independent Director stepped down from his directorship of the Company w.e.f. 24 May 2013 due to his other personal commitments. -P]L V[OLY 5VU ,_LJ\[P]L +PYLJ[VYZ Âś +Y Omkar Goswami, Mr Sanjay Labroo, Mr Suresh Prabhu, Ms Meher Pudumjee and Dr Valentin von Massow – are independent in terms of

Clause 49 of the Listing Agreement with Stock Exchanges. Thus, as at 24 May 2013, the Board of Crompton Greaves presently comprises of one Executive Director and ten Non-Executive Directors, of whom seven are Independent Directors. Table 1 gives the composition of the Board, and the number of outside Directorships held by each. None of the Directors are related to each other.

Board Meetings ;OLYL ^LYL ZP_ )VHYK 4LL[PUNZ OLSK K\YPUN -@ ! VU (WYPS 4H` 1\S` 2012, 3 August 2012, 1–2 November, 2012 and 28-29 January 2013. The Company’s last Annual General Meeting was held on 3 August 2012. Table 2 gives the attendance record of the Directors.

DIRECTORS’ COMPENSATION CEO Managing Director’s Compensation The annual remuneration package of Mr Laurent Demortier, CEO and Managing Director JVTWYPZLZ H Ä_LK ZHSHY` JVTWVULU[ H IHZRL[ of allowances/reimbursements, performance linked bonus/commission, housing and other cash as well as non-cash perquisites usually applicable to expatriate appointments at this level. The shareholders at the Annual General Meeting held on 19 July 2011 have empowered the Remuneration Committee of the Board to revise the remuneration package upto a JLPSPUN VM VM [OL *VTWHU`Z UL[ WYVÄ[Z HZ permitted by the Companies Act,1956. A service contract exists with Mr L Demortier which contains his terms and conditions of

Successfully designed and manufactured a low-high-low three winding transformer for the renewables market

service, including remuneration, notice period, severance compensation, etc, as approved by the Remuneration Committee and the Board of Directors, from time to time, within the overall limits approved by the shareholders, as mentioned above.

Non-Executive Directors’ Compensation The shareholders, at the 73rd Annual General Meeting held on 19 July 2010 approved payment of commission to the Company’s Non-Executive Directors, collectively, upto VM UL[ WYVÄ[Z JVTW\[LK PU [OL THUULY provided in Section 309(5) of the Companies Act. The Board has formulated Guidelines for apportionment of commission amongst the Non-Executive Directors, which provides for H TPUPT\T Ä_LK WH`TLU[ MVY WHY[PJPWH[PVU H[ Board Meetings and Committee Meetings and

TABLE

02

ATTENDANCE RECORD OF THE DIRECTORS FOR THE FINANCIAL YEAR 2013

Attendance Name

)VHYK 4LL[PUNZ

Last AGM

4Y .H\[HT ;OHWHY

6

@LZ

4Y :\KOPY ;YLOHU

6

@LZ

Mr Laurent Demortier

6

@LZ

NA

NA

Mr Shirish Apte* 4Y :JV[[ )H`THU

2

No

Dr Omkar Goswami

6

@LZ

4Y ) /HYPOHYHU

2

NA

4Y :HUQH` 3HIYVV

4

@LZ

Dr (Mrs) Colette Lewiner****

1

NA

4Y :\YLZO 7YHIO\

6

@LZ

Ms Meher Pudumjee

5

No

4Y :H[`H 7HS ;HS^HY

6

@LZ

Dr Valentin von Massow

5

No

* Appointed on 18 April 2013. ** Resigned on 1 April 2013. *** Appointed on 1 November 2012. **** Appointed on 28 January 2013. *****Resigned on 24 May 2013.

C O R P O R AT E G O V E R N A N C E

61

TABLE

03

COMPENSATION OF THE DIRECTORS FOR THE FINANCIAL YEAR 2013 (IN RUPEES)*

Salary

Perquisites, Allowances, 9LPTI\YZLTLU[Z

Retirement )LULĂ„[Z

Others

4,50,28,000

4Y .H\[HT ;OHWHY 1,20,00,000

4,10,28,671

2,78,17,520

Sitting Fees 2,40,000

11,00,000

4Y :\KOPY ;YLOHU Mr Laurent Demortier

Commission

47,78,102

44,00,000

;V[HS 4,52,68,000

1,20,000

12,20,000

0

9,00,24,293

4Y :JV[[ )H`THU

3,34,000

40,000

3,74,000

Dr Omkar Goswami

37,37,000

2,40,000

39,77,000

4Y ) /HYPOHYHU

5,43,000

40,000

5,83,000

4Y :HUQH` 3HIYVV

7,42,000

1,40,000

8,82,000

Dr (Mrs) Colette Lewiner****

6,02,000

20,000

6,22,000

13,00,000

2,00,000

15,00,000

4Y :\YLZO 7YHIO\ Ms Meher Pudumjee

8,34,000

1,00,000

9,34,000

4Y :H[`H 7HS ;HS^HY

13,00,000

2,20,000

15,20,000

Dr Valentin von Massow

46,68,000

1,00,000

47,68,000

:PUJL 4Y :OPYPZO (W[L ^HZ HWWVPU[LK VU (WYPS OL ^HZ UV[ LU[P[SLK [V HU` JVTWLUZH[PVU K\YPUN -@ **Resigned on 1 April 2013. ***Appointed on 1 November 2012. ****Appointed on 28 January 2013 *****Resigned on 24 May 2013

also a variable component for contributions as Chairman of Board Committees, greater involvement with the Company’s initiatives and strategic direction, and for roles as nominee directors on the Board/Committees of joint ventures, subsidiaries and associate companies, based on their attendance. Based on these Guidelines, the commission payable to Mr G Thapar is higher than the other NonExecutive Directors. The compensation of all the Directors is given in Table 3. The Company does not have any stock option plans or schemes.

Directors’ Shareholding As on 31 March 2013, Mr B Hariharan held 657 equity shares of Rs 2/- each and Dr von Massow held 2,687 Global Depository Receipts; none of the other Non-Executive Directors held any shares in the Company.

Code of Conduct The Company has a Code of Conduct for +PYLJ[VYZ HUK :LUPVY 4HUHNLTLU[ [OH[ YLÅLJ[Z its high standards of integrity and ethics. The Directors and Senior Management of the *VTWHU` OH]L HMÄYTLK [OLPY HKOLYLUJL [V [OPZ Code of Conduct and to the absence of any HJ[\HS VY WV[LU[PHS JVUÅPJ[ ^P[O [OL PU[LYLZ[Z of the Company with reference to material, ÄUHUJPHS HUK JVTTLYJPHS [YHUZHJ[PVUZ K\YPUN -@ (Z YLX\PYLK I` *SH\ZL VM [OL 3PZ[PUN Agreement, Mr Laurent Demortier, as the Company’s CEO and Managing Director, has

62

ZPNULK HUK JVUĂ„YTLK HKOLYLUJL [V [OPZ *VKL of Conduct, which is annexed to this Report.

COMMITTEES OF THE BOARD Audit and Risk Comtmittee +\YPUN -@ [OL (\KP[ HUK 9PZR *VTTP[[LL JVTWYPZLK VM Ä]L 5VUœ,_LJ\[P]L +PYLJ[VYZ VM whom four are Independent. ;OL JVTWVZP[PVU PZ HZ \UKLY! R Dr Omkar Goswami (Chairman,Independent Director) R Mr Sanjay Labroo (Independent Director) R Mr Suresh Prabhu (Independent Director) R Mr Satya Pal Talwar (Independent Director)* R Mr Gautam Thapar (Non-Executive Director) *Mr SP Talwar resigned on 24 May 2013. The CEO and Managing Director, Chief -PUHUJPHS 6MÄJLY *OPLM VM 0U[LYUHS (\KP[ HUK representatives of the Statutory Auditors attend the meetings of Audit and Risk Committee. The Company Secretary is the Secretary to this Committee. The Chairman of the Audit and Risk Committee briefs the Board of Directors on the discussions at the Audit and Risk Committee Meeting, at every Board Meeting and the Minutes of all these Committee Meetings are also circulated to the Board of Directors, for a full disclosure of the discussions at these Meetings. The Company has an independent inhouse internal audit function with adequate professional resources and skills, aligned with the Company’s nature, size and complexity of business. The Head of Internal Audit reports

directly to the CEO and Managing Director and also to the Audit and Risk Committee. During the year, the Audit functions of India HUK V]LYZLHZ SVJH[PVUZ ^LYL M\SS` \UPĂ„LK PU[V a single Audit team to further the concept of a ¸6UL *.š 6YNHUPZH[PVU ( ZPUNSL NSVIHS H\KP[ team ensures greater oversight and control of ^VYSK^PKL H\KP[ HJ[P]P[PLZ LMĂ„JPLU[ YLZV\YJL management and a better prioritisation of audit coverage. During the year, the team focused on intensive audits of operational systems & processes in the areas of revenue recognition, order-to-cash and procure-to-pay cycles as well as systems audits. Nearly 50% of the audits planned during the year took place at overseas SVJH[PVUZ 2L` H\KP[ Ă„UKPUNZ VM 0UKPHU HZ ^LSS as overseas locations are reported to the Audit and Risk Committee at each meeting. The Risk Based Internal Auditing (RBIA) process which commenced two years HNV OHZ ILLU Ă„YTS` LTILKKLK PU[V H\KP[ WYVJLZZLZ ;OPZ LUZ\YLZ [OH[ [OL YPZR WYVĂ„SL of a business/division is always considered, whilst determining audit priorities. The RBIA ZVM[^HYL MHJPSP[H[LZ JVTWHYPZVU VM H\KP[ Ă„UKPUNZ across functions/divisions/companies, and provides inferential management dashboards, in important areas. Standard process manuals for managing operating cycles of Order to Cash, Procure to Pay and Plan to Deliver were compiled last year for the Consumer BU and Industrial BU. These ensure that similar processes rendered by different divisions of a BU are more consistent and predictable. This project is being

progressively extended to the other BUs as well. In addition, the Avantha Risk Management Policy is deployed at all locations. The mitigation plans proposed by the businesses are reviewed periodically by the Audit and Risk Committee. +\YPUN -@ MV\Y (\KP[ HUK 9PZR *VTTP[[LL TLL[PUNZ ^LYL OLSK! VU 4H` 2012, 20 July 2012, 1 November 2012 and 28 January 2013. The attendance record is given in Table 4.

Remuneration Committee Although not mandatory in terms of Clause 49 of the Listing Agreement, the Company has a Remuneration Committee comprising three Non–Executive Directors, of which two, including the Chairman, are independent. 7YLZLU[S` [OL *VTTP[[LL JVTWYPZLZ! R Mr Sanjay Labroo (Chairman, Independent Director) R Dr Omkar Goswami (Independent Director) R Mr Gautam Thapar (Non-Executive Director)

TABLE

04

AUDIT AND RISK COMMITTEE MEETINGS FOR THE FINANCIAL YEAR 2013

Director

Status Chairman; Independent Director

4

4Y :HUQH` 3HIYVV

4LTILY" 0UKLWLUKLU[ +PYLJ[VY

1

4Y :\YLZO 7YHIO\

4LTILY" 0UKLWLUKLU[ +PYLJ[VY

4

4Y :H[`H 7HS ;HS^HY

4LTILY" 0UKLWLUKLU[ +PYLJ[VY

4

4Y .H\[HT ;OHWHY

4LTILY" 5VU ,_LJ\[P]L +PYLJ[VY

3

TABLE

05

REMUNERATION COMMITTEE MEETINGS FOR THE FINANCIAL YEAR 2013

Director

Status

Shareholders’ and Investors’ Grievance Committee The Company has a Shareholders’/Investors’ Grievance Committee, details of which are NP]LU \UKLY [OL :LJ[PVU ¸:OHYLOVSKLYZ¹ PU [OPZ Report.

MANAGEMENT Management Discussion and Analysis Report This is given as a separate Chapter in the Annual Report.

Disclosure of Material Transactions Considering the size and nature of operations, there were no related party transactions of H TH[LYPHSS` ZPNUPÄJHU[ UH[\YL PU [LYTZ VM [OL Listing Agreement with Stock Exchanges that JV\SK OH]L H WV[LU[PHS JVUÅPJ[ ^P[O [OL PU[LYLZ[Z of the Company at large.

4LL[PUNZ /LSK

Meetings Attended

4Y :HUQH` 3HIYVV

Chairman; Independent Director

2

2

Dr Omkar Goswami

4LTILY" 0UKLWLUKLU[ +PYLJ[VY

2

2

4Y .H\[HT ;OHWHY

4LTILY" 5VU ,_LJ\[P]L +PYLJ[VY

2

2

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

Insider Trading As part of its remit, the Committee reviews the remuneration paid to the CEO and Managing Director. +\YPUN -@ [^V 9LT\ULYH[PVU Committee Meetings were held on 3 August 2012 and 28 January 2013. The attendance record is given in Table 5.

Meetings Attended

Dr Omkar Goswami

The Company has comprehensive guidelines in accordance with the SEBI Regulations in this regard, which advise and caution the Directors, Management and Executives 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. In the context of CG’s increasing global footprint, its many entities outside India, and to align with CG’s Corporate Governance philosophy, a need was felt to re-visit CG’s Insider Trading Code; and, accordingly, the Board of Directors, at its Board Meeting held on (\N\Z[ OHZ TVKPÄLK [OL *VKL LMMLJ[P]L from 1 September 2012. The salient features of the revised Code are: i. The Non-Trading Window period, has been enhanced; and, will commence from the 16th of the third month of each Quarter and continue for seven exclusive days after the date of the *. )VHYK 4LL[PUN OLSK MVY HWWYV]HS VM ÄUHUJPHS results for each Quarter. ii. The disciplinary actions for non-adherence to this Code have been made more comprehensive in coverage. iii. The Code is extended to all employees of CG and its subsidiaries worldwide.

uiet 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. ;OPZ ¸8\PL[ 7LYPVK¹ JVTTLUJLZ VU [OL [O VM the third month of each quarter and continues upto the conclusion of the Board Meeting at ^OPJO [OL ÄUHUJPHS YLZ\S[Z MVY LHJO X\HY[LY HYL announced to the Stock Exchanges. However, during the Quiet Period, the Company’s Investor Services Department continues to address investor related issues and communications with the Stock Exchanges and other Regulatory Authorities as required by law.

SHAREHOLDERS Disclosure regarding Appointment and or Re-appointment of Directors Dr Omkar Goswami, Ms Meher Pudumjee and Mr Suresh Prabhu retire by rotation at the forthcoming Annual General Meeting and are eligible for re-appointment. Mr B Hariharan, Dr (Mrs) Colette Lewiner and Mr Shirish Apte were appointed as Additional Directors by the Board, HUK [OLZL HWWVPU[TLU[Z ULLK [V IL JVUÄYTLK by the shareholders at the forthcoming Annual .LULYHS 4LL[PUN ;OLPY IYPLM WYVÄSLZ HYL NP]LU ILSV^! Dr Omkar Goswami (born in 1956) is the Executive Chairman of CERG Advisory Pvt Ltd, a company engaged in corporate advisory and consulting services for companies in India and abroad. Dr Goswami has a Master’s Degree in Economics from the Delhi School of Economics, and also a D. Phil (PhD) from Oxford University, UK.

C O R P O R AT E G O V E R N A N C E

63

PIANO toolbox - CG’s low noise technology produced in the range up to 40MVA with sound pressures by a reduction of about 25 dBA

Dr Goswami has taught and researched economics at various universities and has been associated as advisor to several government committees and international organisations SPRL [OL >VYSK )HUR [OL 6,*+ [OL 04- HUK [OL ADB, during his career spanning more than 31 years. He has also served as Chief Economist with the Confederation of Indian Industry. Dr Goswami has made noteworthy research contributions on the economics and economic history.

R DSP Blackrock Investment Managers

INDIAN DIRECTORSHIPS R Dr Reddy’s Laboratories Ltd R Infosys Technologies Ltd R 0+-* 3[K R Ambuja Cements Ltd R Cairn India Ltd R Godrej Consumer Products Ltd R )HQHQ -PUHUJL 3[K R Max Healthcare Institute Ltd R Infosys BPO Ltd

Dr Goswami is an Independent Director on the Board. He is also a Chairman of the Audit & Risk Committee and a Member of the Remuneration Committee. He does not have any relationship with any of the other Directors on the Board. He does not hold any shares in the Company LP[OLY PU OPZ PUKP]PK\HS JHWHJP[` VY ILULÄJPHSS` for others. Ms Meher Pudumjee (born in 1966) holds a Master’s Degree in Chemical Engineering from

Pvt Ltd COMMITTEE POSITIONS R Dr Reddy’s Laboratories Ltd (1) R 0+-* 3[K R Cairn India Ltd (2) R Godrej Consumer Products Ltd (1) R )HQHQ -PUHUJL 3[K R Infosys BPO Ltd (1) R Infosys Technologies Ltd (1)

the Imperial College of Science & Technology, London; and, is the Chairperson of Thermax Ltd, a company focused in the business of providing solutions for energy and environment management. INDIAN DIRECTORSHIPS R RDA Holdings Pvt Ltd R Thermax Babcock & Wilcox Energy

Solutions Pvt Ltd R ;OLYTH_ :VJPHS 0UP[PH[P]L -V\UKH[PVU R 0TWLYPHS *VSSLNL 0UKPH -V\UKH[PVU

64

R :OHR[P :\Z[HPUHISL ,ULYN` -V\UKH[PVU R 0UKPH' -V\UKH[PVU R ;LHJO -VY 0UKPH R (RHURZOH -V\UKH[PVU

FOREIGN DIRECTORSHIPS R Thermax International Ltd

COMMITTEE POSITIONS R Thermax Ltd (1)

Ms Pudumjee is an Independent Director on the Board. She does not have any relationship with any of the other Directors on the Board. She does not hold any shares in the Company either in her individual capacity or ILULĂ„JPHSS` MVY V[OLYZ Mr Suresh Prabhu (born in 1953) is a Chartered Accountant with a Degree in Law; and has also been conferred an Honorary +VJ[VYH[L I` [OL 0U[LYUH[PVUHS -VYLZ[Y` Resources and Institutions. An ex Union Cabinet Minister of Power, Industry, Energy, ,U]PYVUTLU[ -VYLZ[Z *OLTPJHSZ -LY[PSPaLYZ Heavy Industry and Public Enterprises, and a Member of Parliament from 1996 till 2009, Mr Prabhu has left an indelible mark on Indian politics and an impeccable reputation as a performing minister. Mr Prabhu has also led, and represented India in several bilateral meetings, International summits and Parliamentary fora, such as . ,< (ZPH >VYSK >H[LY -VY\T <5,:*6 GLOBE and Parliamentary Network of World Bank, India-USA, India-Japan and IndiaGermany strategic dialogues. Mr Prabhu currently Chairs the Global Water Partnership (South Asia) and is a Member of the United Nations Commission for biodiversity and land use change; and is also a senior advisor to the UN. He is also associated with a large number of organizations in the education, art, literature, sports, social and cultural circuits. Mr Prabhu is also connected with over 100 organizations including NGOs dealing in rural development, education, HIV AIDS, medical care, vocational training, music, arts, culture, literary work, libraries, old age care, infrastructure, watershed development, farmers, youth, sports administration, industry organizations and employees welfare. INDIAN DIRECTORSHIPS R United Phosphorus Ltd R Survall Global Projects Pvt Ltd R 0*(0 (JJV\U[PUN 9LZLHYJO -V\UKH[PVU R Climate Change Association India R :OHR[P :\Z[HPUHISL ,ULYN` -V\UKH[PVU He is an Independent Director on the Board and also a Member of the Audit & Risk Committee. He does not have any relationship with any of the other Directors on the Board. He does not hold any shares in the Company LP[OLY PU OPZ PUKP]PK\HS JHWHJP[` VY ILULĂ„JPHSS` for others.

4Y ) /HYPOHYHU IVYU PU PZ H X\HSPĂ„LK Chartered Accountant, Cost Accountant and Company Secretary, having over 29 years of L_WLYPLUJL PU -PUHUJL (Z .YV\W +PYLJ[VY -PUHUJL OL KYP]LZ [OL Ă„UHUJPHS HUK NYV^[O strategy of the Avantha Group, the Promoters of Crompton Greaves. Mr Hariharan has been instrumental in the success of key M&A and turnaround projects for CG and the Avantha Group Companies. INDIAN DIRECTORSHIPS R Avantha Holdings Ltd R Avantha Power & Infrastructure Ltd R Avantha Realty Ltd R Ballarpur Industries Ltd R Bilt Graphic Paper Products Ltd R Biltech Building Elements Ltd R CG Power Solutions Ltd R Global Green Company Ltd R Newquest Insurance Broking Services Ltd R Premier Tissues (India) Ltd R Salient Business Solutions Ltd

Dr (Mrs) Colette Lewiner (born in 1945) is a PhD in physics and has over 35 years of experience as a researcher, academician and as an industry expert in fossil fuel (oil and gas), nuclear and renewable energies. +Y 3L^PULY QVPULK ,SLJ[YPJP[t KL -YHUJL ,+- PU OLHKPUN [OL -\LS 7YVJ\YLTLU[ division and has worked in senior capacities ^P[O YLW\[LK T\S[PUH[PVUHSZ PUJS\KPUN HZ ,+-ÂťZ Ă„YZ[ ^VTHU ,_LJ\[P]L =PJL 7YLZPKLU[ PU OLHKPUN ,+-ÂťZ +L]LSVWTLU[ HUK *VTTLYJPHS Strategy Division, Chairwoman of the Board & CEO of SGN Eurisys Group and Executive Vice President and Global Leader of the Energy, Utilities and Chemicals Sector in Capgemini. Dr Lewiner is presently the Energy Advisor to the Chairman and CEO of Capgemini. +Y 3L^PULY PZ H 4LTILY VM [OL -YLUJO Academy of Technology and of the European Union Advisory Group on Energy. :OL OHZ ILLU OVUV\YLK ^P[O [^V ZPNUPĂ„JHU[ -YLUJO JP]PSPHU H^HYKZ" ZOL PZ ¸*VTTHUKL\Yš PU the Legion of Honour and in the Order of Merit.

R Solaris Chemtech Industries Ltd R KP Cement Mfg Co Pvt Ltd

FOREIGN DIRECTORSHIPS

R Avantha Ergo Life Insurance Company Ltd

R ;+R Bouygues Group

FOREIGN DIRECTORSHIPS R CG Holdings Belgium NV R Global Green USA Ltd R :HIHO -VYLZ[Z 0UK\Z[YPLZ :KU )OK R Salient Business Solutions USA Inc R Ballarpur International Holdings BV R Ballarpur International Graphic Paper Holdings BV R Ballarpur Paper Holdings BV R Ballarpur Packaging Holdings BV R Ballarpur Speciality Paper Holdings BV R Global Green International NV COMMITTEE POSITIONS R Avantha Holdings Ltd (1) R Avantha Power & Infrastructure Ltd (1) R Ballarpur Industries Ltd (2) R Bilt Graphic Paper Products Ltd (1) R Global Green Company Ltd (1) R Salient Business Solutions Ltd (1) R Solaris Chemtech Industries Ltd (1) Mr Hariharan is a Non-Executive Director on the Board. He holds 657 equity shares in the Company in his individual capacity, and does UV[ ILULĂ„JPHSS` MVY V[OLYZ /L KVLZ UV[ OH]L HU` relationship with any of the other Directors on the Board.

R Colas R Lafarge R Nexans R Eurotunnel R TGS Nopec ASA R Cowin SARL R Renifort SCI R Carwin SCI R Rejale SCI R Courtalis SARL

Dr Lewiner is an Independent Director on the Board. She does not have any relationship with any of the other Directors on the Board. She does not hold any shares in the Company either in her individual capacity, or ILULÄJPHSS` MVY V[OLYZ Mr Shirish Apte (born in 1952) is a Chartered Accountant from the Institute of Chartered Accountants of England & Wales; and, also holds an MBA degree from the London Business School. He has more than 30 years of experience with Citigroup during which, he has held various assignments in Corporate )HURPUN 9PZR 4HUHNLTLU[ *VYWVYH[L -PUHUJL and Investment Banking in Citigroup. Mr Apte was responsible for Citibank’s acquisition of Bank Handlowy in the year 2000, following which he was appointed as

C O R P O R AT E G O V E R N A N C E

65

+LW\[` 7YLZPKLU[ HUK *OPLM 6WLYH[PUN 6MÄJLY of Citibank Handlowy. During 2000 to 2003, he also led the merger and integration of Citibank and Bank Handlowy. Between 2003 and 2009, Mr Apte was CEO for Central & Eastern Europe, Middle East and Africa (CEEMEA) Region, before ILJVTPUN *,6 MVY (ZPH 7HJPÄJ PU 4Y (W[L PZ WYLZLU[S` *OHPYTHU VM (ZPH 7HJPÄJ Banking for Citigroup. He is also a member of the Citigroup’s Business Development Committee and its Senior Advisory Group. He is also Citibank’s Senior Statesman at the London Business School. FOREIGN DIRECTORSHIPS R Bank Handlowy R Citibank Singapore Ltd R Citibank Japan Ltd R 0UZ[P[\[L VM )HURPUN -PUHUJL :PUNHWVYL

COMMITTEE POSITIONS R Bank Handlowy (1)

Mr Apte is an Independent Director on the Board. He does not have any relationship with any of the other Directors on the Board. He does not hold any shares in the Company LP[OLY PU OPZ PUKP]PK\HS JHWHJP[` VY ILULÄJPHSS` for others. The attendance record of these Directors at the Board Meetings during the year under review is given in Table 2.

Communication to Shareholders -\SS HUK JVTWSL[L KPZJSVZ\YL VM PUMVYTH[PVU YLNHYKPUN [OL *VTWHU`»Z ÄUHUJPHS WVZP[PVU and performance is an important part of the Company’s Corporate Governance ethos. The Company has demonstrated this commitment by sending its shareholders a full version of its Annual Report, despite a Regulatory exemption. Towards providing better and clearer information, the stand-alone as well as JVUZVSPKH[LK IHSHUJL ZOLL[ HUK WYVÄ[ HUK SVZZ account are also provided in USD and Euro in the Annual Report to give shareholders a better perspective of the Company’s performance in these two major international currencies. ;OL *VTWHU` ^LSJVTLZ [OL ¸.YLLU Initiatives” being promoted by the Ministry of Corporate Affairs (MCA), to encourage e-enabled regulatory compliances, in its efforts to conserve consumption of paper and preserve the environment. In furtherance of this important initiative, the MCA has permitted

66

companies to provide its shareholders documents, including the Annual Report, by electronic mode. In support of MCA’s endeavours in this direction, for shareholders who have consented to receive the Annual Report in electronic format, the Company sends its Annual Report as well as other shareholder correspondence by e-mail to e-addresses registered with the Company/ depository participants for this purpose. In case any such shareholder desires to receive a physical copy of the Annual Report, the Company will be happy to provide the same upon request. Clause 41 of the Listing Agreement requires a company to only submit stand-alone \UH\KP[LK ÄUHUJPHS YLZ\S[Z" HUK NP]LZ HU VW[PVU to a company having subsidiaries, to submit consolidated results to Stock Exchanges. However, despite this Regulatory exemption available, the Company has consciously chosen to submit quarterly consolidated \UH\KP[LK ÄUHUJPHS YLZ\S[Z [V [OL :[VJR Exchanges, and additionally also publish both Z[HUK HSVUL HUK JVUZVSPKH[LK ÄUHUJPHS YLZ\S[Z in the newspapers, for better disclosures to its shareholders and the general investor community. The Company’s quarterly results in the format prescribed by the Stock Exchanges are approved and taken on record by the Board within the prescribed timeframe, and sent immediately to all Stock Exchanges on which the Company’s shares are listed. These results are published in leading newspapers – The -PUHUJPHS ,_WYLZZ PU ,UNSPZO HUK 3VRZH[[H in vernacular, and are also uploaded on the ¸5,(7:¹ ^LIZP[L ZWVUZVYLK I` [OL 5H[PVUHS :[VJR ,_JOHUNL ;OL *VTWHU` M\Y[OLY ÄSLZ VU SPUL PUMVYTH[PVU VU ÄUHUJPHS Z[H[LTLU[Z HUK V[OLY TH[[LYZ ZWLJPÄLK VU [OL 75 5L^Z^PYL website which is approved by the London Stock Exchange. After every quarterly Board Meeting for declaration of results, the Company conducts an analyst interaction, to provide NYLH[LY [YHUZWHYLUJ` HUK JSHYPÄJH[PVUZ VU [OL *VTWHU`»Z ÄUHUJPHS WLYMVYTHUJL Presentations made at these meetings or call transcripts are available on the Company’s website www.cgglobal.com. Information about the Company in general, P[Z ÄUHUJPHS YLZ\S[Z HUK V[OLY PUMVYTH[PVU PUJS\KPUN VMÄJPHS WYLZZ YLSLHZLZ JHU HSZV IL accessed at the Company’s website.

During the year, the Investor Services Department launched two new initiatives for CG ZOHYLOVSKLYZ HZ MVSSV^Z! 1. CG’S E-ENABLED INVESTOR QUERY SYSTEM CG Investor Query System is a web-based mechanism through which shareholders can send their queries, relating to any processing activity concerning their shareholding in CG. An email sent by the shareholders is directed [V [OL *.»Z 9 ; (NLU[·+H[HTH[PJZ -PUHUJPHS Services Limited, who will promptly respond to the e-mails of the querist. Each query is PZZ\LK H \UPX\L PKLU[PÄJH[PVU JVKL MVY YLMLYLUJL and tracking. This initiative has enhanced the ZWLLK HUK LMÄJPLUJ` PU YLZVS]PUN X\LYPLZ VM [OL shareholders. 2. CG’S E-ENABLED INFORMATION TO INVESTOR SYSTEM To provide investors researching CG with an authentic suite of information relating to CG, a ^LI IHZLK ¸0UMVYTH[PVU [V 0U]LZ[VY¹ :`Z[LT was launched on CG website www.cgglobal. JVT ;OL Z`Z[LT WYV]PKLZ ¸SP]L¹ ZOHYL WYPJLZ as well as, graphical information relating to the OPZ[VYPJHS ZOHYL WYPJLZ HUK W\ISPZOLK ÄUHUJPHSZ .YHWOZ YLSH[PUN [V PUJVTL WYVÄ[HIPSP[` balance sheet & equity position, ratios, share returns on the stand-alone and consolidated position of CG are readily available, across a number of years, in a user friendly manner.

Information on General Body Meetings Details of the last three Annual General Meetings held are given in Table 6. The Special Resolutions that were approved by ZOHYLOVSKLYZ H[ [OLZL (.4Z HYL NP]LU \UKLY! 19 JULY 2010 Special Resolution was passed for payment of commission to Non-Executive Directors \W[V VM [OL UL[ WYVÄ[Z VM [OL *VTWHU` WLY annum. 19 JULY 2011 Special Resolution was passed for appointment VM 4Y : .VZ^HTP [V OVSK HU VMÄJL VM WSHJL VM WYVÄ[ PU [OL *VTWHU`»Z Z\IZPKPHY` 3 AUGUST 2012 No Special Resolution was passed at the 75th Annual General Meeting held on 3 August 2012.

TABLE

06

:[VJR ,_JOHUNLZ HUK [OL ZHPK *LY[PĂ„JH[L PZ contained in this Annual Report.

ANNUAL GENERAL MEETINGS PARTICULARS

-PUHUJPHS @LHY 2009–2010

Location

Date

9H]PUKYH 5H[`H 4HUKPY 4\TIHP

2010–2011

9H]PUKYH 5H[`H 4HUKPY 4\TIHP

2011–2012

Swatantryaveer Savarkar Rashtriya Smarak, 4\TIHP

Details of Capital Market NonCompliance, if any The Company has complied with all requirements of the Listing Agreement with Stock Exchanges as well as the regulations and guidelines prescribed by SEBI. There were no penalties or strictures imposed on the Company by any Regulatory Authorities for non-compliance on any matter related to capital markets, during the last three years.

Shareholders’and Investors’ Grievance Committee ;OL *VTTP[[LL JVTWYPZLZ! R Mr Gautam Thapar (Chairman, NonExecutive Director) R Mr Laurent Demortier (Executive Director) R Mr SP Talwar (Independent Director)* *Mr SP Talwar resigned on 24 May 2013. +\YPUN -@ [OL :OHYLOVSKLYZ 0U]LZ[VYZ Grievance Committee met on 29 January 2013 at which meeting all Members were present. The Committee reviews the redressal of investors’ complaints related to transfers and transmission of shares, non-receipt of annual reports, dividends and other share related matters, the periodicity and effectiveness of the ZOHYL [YHUZMLY WYVJLZZ Z[H[\[VY` JLY[PÄJH[PVUZ depository related issues and activities of the Registrar and Transfer Agent. In addition to review by this 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 received eight shareholders’ JVTWSHPU[Z K\YPUN [OL ÄUHUJPHS `LHY \UKLY review, which were of a routine nature and were satisfactorily resolved. There are no outstanding complaints or shares pending transfer as on 31 March 2013.

Unclaimed Shares Clause 5A of the Listing Agreement with Stock Exchanges requires a listed company to transfer shares, which have remained

;PTL

19 July 2010

3.30 pm

19 July 2011

3.30 pm

3 August 2012

3.00 pm

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 Clause requires a Company to send three reminders in this regard before the transfer. During the year, the Company opened the Unclaimed Suspense Demat Account. 13 shareholders have claimed 7525 shares which were transferred to their respective demat accounts.

AUDITORS’ CERTIFICATE ON CORPORATE GOVERNANCE ;OL *VTWHU` OHZ VI[HPULK H JLY[PÄJH[L from the Auditors of the Company regarding compliance with the provisions relating [V *VYWVYH[L .V]LYUHUJL MVY -@ as prescribed by Clause 49 of the Listing Agreement with Stock Exchanges, which is attached herewith.

REPORT ON CORPORATE GOVERNANCE This Chapter, read together with the information NP]LU PU [OL JOHW[LY [P[SLK ¸(KKP[PVUHS Shareholder Informationâ€?, constitutes the Compliance Report on Corporate Governance MVY -@

GOVERNANCE OF SUBSIDIARIES 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 JVU[YVSZ -VY LMMLJ[P]L NV]LYUHUJL [OL TH[LYPHS contents of the minutes of Board Meetings of all Indian as well as foreign subsidiaries of the Company are placed before the Board of Directors of the Company. The Company has also established a mechanism through which material defaults, show cause notices, dangerous occurrences, product liability JSHPTZ ZPNUPÄJHU[ KL]LSVWTLU[Z PU O\THU YLZV\YJLZ THQVY ÄUHUJPHS KLJPZPVUZ HUK ZPTPSHY ZPNUPÄJHU[ HJ[PVUZ KLJPZPVUZ VM HSS Z\IZPKPHY` companies are reported to the Company’s Board of Directors. In addition, the internal control procedures and operational risks of these subsidiaries are also reviewed by the Audit and Risk Committee of the Board.

CEO/CFO CERTIFICATION -VY -@ 4Y 3 +LTVY[PLY *,6 HUK Managing Director and Mr M Acharya, Chief -PUHUJPHS 6MĂ„JLY OH]L JLY[PĂ„LK [V [OL )VHYK ^P[O YLZWLJ[ [V [OL Ă„UHUJPHS Z[H[LTLU[Z internal controls and other matters, as required by Clause 49 of the Listing Agreement with

C O R P O R AT E G O V E R N A N C E

67

ADD I T I ONAL SHAR E HO L D E R I N F O RMA T I O N

66% increase in capacity at CG’s new LVRM plant, Goa. A justin-time facility that rolls out one motor per 3 minutes, 30 seconds

68

DURING THE YEAR, TWO NEW INITIATIVES: E-ENABLED INVESTOR QUERY SYSTEM AND INFORMATION TO INVESTOR SYSTEM, WERE LAUNCHED

ANNUAL GENERAL MEETING

UNCLAIMED DIVIDENDS

Date

+P]PKLUKZ WLY[HPUPUN [V [OL ÄUHUJPHS `LHYZ 2006–2007 to 2012–2013, which remain unclaimed for a period of seven years, will be transferred to the Investor Education and 7YV[LJ[PVU -\UK ;V LUHISL [OL 4LTILYZ [V claim their dividend before its transfer to the HIV]L -\UK [OL WYVWVZLK KH[LZ VM [YHUZMLY HYL NP]LU ILSV^!

Tuesday, 6 August 2013 Time

3.00 pm Venue

Swatantryaveer Savarkar Rashtriya Smarak [O -SVVY 252, Veer Savarkar Marg Shivaji Park, Dadar Mumbai 400 028

FINANCIAL CALENDAR First Quarter Results

End July/First fortnight of August Second Quarter Results

End October/First fortnight of November Third Quarter Results

End January/First fortnight of February Last Quarter Results and Annual Audited Results

April/ May

Dates of Book Closure

29 July 2013 to 6 August 2013 The Register of Members and Share Transfer Books of the Company will remain closed from Monday, 29 July 2013 to Tuesday, 6 August 2013, both days inclusive.

Date of Declaration of Dividend

Date for Due Transfer to the Investor Education and Protection Fund

14 October 2006 1HU\HY` 21 March 2007 30 October 2007 30 January 2008 28 March 2008 21 October 2008 1HU\HY` 24 March 2009 27 October 2009 1HU\HY` 25 October 2010 1HU\HY` 23 March 2011 19 October 2011 31 January 2012 23 March 2012 20 July 2012 1 November 2012

13 November 2013 -LIY\HY` 20 April 2014 29 November 2014 1 March 2015 27 April 2015 20 November 2015 -LIY\HY` 23 April 2016 26 November 2016 -LIY\HY` 24 November 2017 -LIY\HY` 22 April 2018 18 November 2018 2 March 2019 22 April 2019 19 August 2019 30 November 2019

A D D I T I O N A L S H A R E H O L D E R I N F O R M AT I O N

69

REGISTRAR AND AGENTS For Shares The Company’s R&T Agent is Datamatics -PUHUJPHS :LY]PJLZ 3[K +H[HTH[PJZ -PUHUJPHS Services Ltd is a SEBI registered Registrar and ;YHUZMLY (NLU[ ^OVZL JVU[HJ[ KL[HPSZ HYL!

Datamatics Financial Services Ltd Unit Crompton Greaves Limited Plot No B-5, Part B Crosslane MIDC Marol Andheri (East) Mumbai 400 093 Tel + 91 (0)22 6671 2151 to 6671 2160 Fax + 91 (0)22 6671 2230 Email cginvestors@dfssl.com

For Fixed Deposits ;OL 9LNPZ[YHY KL[HPSZ HYL HZ \UKLY!

MARKET PRICE DATA THE STOCK EXCHANGE, MUMBAI

Z[ [YHKPUN KH` VM [OL 4VU[O

/PNOLZ[ VM [OL Month (Rs.)

3V^LZ[ VM [OL Month (Rs.)

April 2012

148.50

123.75

144.45

17,478.15

May 2012

133.10

102.40

131.15

17,301.91

June 2012

122.90

105.75

108.00

15,965.16

July 2012

136.00

112.10

125.90

17,398.98

August 2012

122.50

105.20

118.70

17,257.38

:LW[LTILY

131.75

103.20

106.65

17,384.40

6J[VILY

141.70

119.40

125.45

18,823.91

5V]LTILY

126.35

108.60

124.05

18,561.70

+LJLTILY

124.15

110.25

115.35

19,305.32

January 2013

125.85

100.00

119.10

19,580.81

-LIY\HY`

108.30

88.35

106.30

19,781.19

March 2013

101.90

89.25

94.05

18,918.52

Month

Closing (Rs.)

Sensex

Share Price

Sensex

93.70

18,835.77

As on 28 March 2013

Link Intime India Pvt Ltd (formerly Intime Spectrum Registry Ltd) C-13 Pannalal Silk Mills Compound L B S Marg Bhandup (West) Mumbai 400 078 Tel + 91 (0)22 2596 3838 Fax + 91 (0)22 2596 2691 Email fd@linkintime.co.in

SHARE TRANSFER SYSTEM The Company’s shares are compulsorily traded in dematerialised form. In the case of transfers in physical form which are lodged at the 9LNPZ[YHY HUK ;YHUZMLY (NLU[Z VMÄJL [OLZL HYL processed within a maximum period of 30 days from the date of receipt. All share transfers and other share related issues are approved by a Director or by a Senior Executive duly authorised by the Board. During -@ HWWYV]HSZ ^LYL VI[HPULK ;OL [V[HS number of shares in physical form transferred during the year under review was 39,411 shares.

represented 14,74,295 underlying equity shares.

The Company’s payment of listing fees is up to date.

STOCK CODES

PLANT LOCATIONS

BSE, Mumbai

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

500093

National Stock Exchange

CROMPGREAV GDR

5090318 ISIN

INE067A01029 (NSDL & CDSL) Corporate IdentiďŹ cation Number

L99999MH1937PLC002641 The Company’s shares are listed and traded on the Mumbai and National Stock Exchanges. The Company’s GDRs are listed on the London Stock Exchange. The details of the Stock Exchanges on which [OL *VTWHU`Z ZOHYLZ HYL SPZ[LK HYL!

The Stock Exchange, Mumbai Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400 001

GLOBAL DEPOSITORY RECEIPTS (GDRS) The Company issued GDRs in 1996 and the underlying shares for each GDR were issued PU [OL UHTL VM ;OL )HUR VM 5L^ @VYR [OL Depository. Each GDR of the Company is LX\P]HSLU[ [V Ă„]L ZOHYLZ (Z VU 4HYJO 2,94,859 GDRs were outstanding, which

70

Corporate Secretarial Department The Corporate Secretarial Department is SVJH[LK H[ [OL *VTWHU`ÂťZ /LHK 6MĂ„JL H[ [O -SVVY *. /V\ZL +Y (UUPL )LZHU[ 9VHK >VYSP Mumbai 400 030.

LISTING DETAILS

DEMATERIALISATION OF SHARES As on 31 March 2013, 98.99% of the total shares of the Company were dematerialised, compared with 98.78% last year.

ADDRESS FOR CORRESPONDENCE

National Stock Exchange of India Ltd Exchange Plaza Bandra-Kurla Complex Bandra (East) Mumbai 400 051

Investor Services Department In addition to the Share Registrar and Transfer Agent, our Investor Services Department, which is located at the Company’s Registered 6MÄJL ^PSS IL OHWW` [V HZZPZ[ PU JHZL PU]LZ[VYZ L_WLYPLUJL HU` KPMÄJ\S[PLZ PU [OLPY PU[LYHJ[PVU ^P[O +H[HTH[PJZ -PUHUJPHS :LY]PJLZ 3[K Contact Person Mr SK Athalekar Deputy Manager, Corporate Secretarial Time WT [V WT 4VUKH`Z [V -YPKH`Z Tel + 91 (0)22 2423 7805 Fax + 91 (0)22 2423 7788 E-mail shirish.athalekar@cgglobal.com

NON-MANDATORY REQUIREMENTS

SHARE PERFORMANCE VS BSE SENSEX

The Company has implemented the following non-mandatory requirements recommended I` *SH\ZL VM [OL 3PZ[PUN (NYLLTLU[!

CROMPTON GREAVES SHARE PRICE AND BSE SENSEX = 100 ON 1 APRIL 2012

Chairman’s and Vice-Chairman’s Office 6MÄJLZ ^P[O YLX\PZP[L MHJPSP[PLZ HYL WYV]PKLK and maintained at the Company’s expense for use by the Chairman and Vice-Chairman of the Company. The Company also reimburses all expenses incurred in their furthering the Company’s business interests.

Remuneration Committee A Remuneration Committee comprising three Non-Executive Directors is already functional, for review and decisions on the remuneration package of the CEO and Managing Director.

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(WYPS

Financial Results

4HYJO

DISTRIBUTION OF SHAREHOLDING

-PUHUJPHS YLZ\S[Z HZ W\ISPZOLK PU [OL newspapers are made available to the Members on request. These results are also sent by e-mail, to those Members who have provided their e-mail ids to the Company.

AS ON 31 MARCH 2013

5V VM :OHYLZ

5V VM :OHYLOVSKLYZ

VM :OHYLOVSKLYZ

1,23,371

86.02

501–1000

8,729

6.09

1001–2000

5,366

3.74

2001–3000

1,850

1.29

3001–4000

1,070

0.75

4001–5000

598

0.42

1,292

0.90

<W[V

5001–10000 HUK HIV]L

1,154

0.81

1,43,430

100.00

Whistle Blower Policy The Company has a dedicated email id addressed to the CEO and Managing Director for enabling employees to represent concerns about unethical practices, fraud or violation of the Company’s Code of Business Practices. ;OPZ TLKP\T WYV]PKLZ Z\MÄJPLU[ ZHMLN\HYKZ against victimisation of employees who report such matters. On behalf of the Board of Directors

CATEGORIES OF SHAREHOLDERS AS ON 31 MARCH 2013

Category Promoters

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%

26,74,51,070

41.69

Indian Institutional Investors

4,76,57,260

7.43

)VKPLZ *VYWVYH[L

4,79,90,217

7.48

Foreign Institutional Investors

9,52,82,079

14.85

1,09,66,794

1.71

Mutual Funds

10,78,66,875

16.82

.LULYHS 7\ISPJ

6,42,76,584

10.02

590Z 6*)Z .+9Z

Directors

657

0.00

64,14,91,536

100.00

G Thapar Chairman Mumbai, 24 May 2013

A D D I T I O N A L S H A R E H O L D E R I N F O R M AT I O N

71

CEO & CFO’S CERTIFICATE ON CORPORATE GOVERNANCE

AUDITOR’S CERTIFICATE ON CORPORATE GOVERNANCE

To The Board of Directors Crompton Greaves Limited >L OH]L YL]PL^LK [OL :[HUK HSVUL HUK *VUZVSPKH[LK Ă„UHUJPHS YLZ\S[Z HUK [OL JHZO Ă…V^ Z[H[LTLU[ VM *YVTW[VU .YLH]LZ 3PTP[LK [OL *VTWHU` MVY [OL Ă„UHUJPHS `LHY LUKLK 4HYJO HUK JLY[PM` [OH[!

To The Members Crompton Greaves Limited CG House Dr. Annie Besant Road Worli Mumbai 400 030

(a) These results and statements, to the best of our knowledge and

Dear Sirs,

ILSPLM! i. do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading; ii. present a true and fair view of the Company’s affairs and are in compliance with existing accounting standards, applicable laws and regulations. (b) To the best of our knowledge and belief, there are no transactions entered into by the Company during the year, which are fraudulent, illegal or violative of the Company’s Code of Conduct. (c) We accept responsibility for establishing and maintaining internal

controls and have evaluated the effectiveness of the internal control systems of the Company and have disclosed to the Auditors and the (\KP[ *VTTP[[LL KLÄJPLUJPLZ PU [OL KLZPNU VY VWLYH[PVU VM PU[LYUHS controls of which we are aware, and the steps taken and proposed to IL [HRLU [V YLJ[PM` [OLZL KLÄJPLUJPLZ (d) >L OH]L HSZV PUKPJH[LK [V [OL (\KP[VYZ HUK [OL (\KP[ *VTTP[[LL! i. ZPNUPÄJHU[ JOHUNLZ PU [OL PU[LYUHS JVU[YVSZ ^P[O YLZWLJ[ [V ÄUHUJPHS reporting during the year and the achievement of adequate internal controls within the Company’s ERP systems; ii. ZPNUPÄJHU[ JOHUNLZ PU HJJV\U[PUN WVSPJPLZ K\YPUN [OL `LHY HUK [OLZL OH]L ILLU KPZJSVZLK PU [OL UV[LZ [V [OL ÄUHUJPHS Z[H[LTLU[Z (e) To the best of our knowledge and belief, there are no instances of

ZPNUPĂ„JHU[ MYH\K PU]VS]PUN LP[OLY [OL 4HUHNLTLU[ VY LTWSV`LLZ OH]PUN H ZPNUPĂ„JHU[ 9VSL PU [OL *VTWHU`ÂťZ PU[LYUHS JVU[YVS Z`Z[LTZ ^P[O YLZWLJ[ [V Ă„UHUJPHS YLWVY[PUN L Demortier CEO & Managing Director M Acharya *OPLM -PUHUJPHS 6MĂ„JLY Mumbai, 24 May 2013

72

We have examined the compliance of conditions of Corporate Governance by Crompton Greaves Limited, for the year ended 31 March 2013, as stipulated in Clause 49 of the Listing Agreement entered into by the Company with the Stock Exchanges. The compliance of conditions of Corporate Governance is the responsibility of the Management. Our examination was limited to a review of the procedures and implementations thereof, adopted by the Company for ensuring compliance with the conditions of Corporate Governance as stipulated in the said clauses. It is neither an audit nor an L_WYLZZPVU VM VWPUPVU VU [OL Ă„UHUJPHS Z[H[LTLU[Z VM [OL *VTWHU` In our opinion and to the best of our information and according to the explanations given to us and the representations made by the Directors and the Management, we certify that the Company has complied with the conditions of Corporate Governance as stipulated in Clause 49 of the above mentioned Listing Agreement. We further state that such compliance is neither an assurance as to [OL M\[\YL ]PHIPSP[` VM [OL *VTWHU` UVY VM [OL LMĂ„JPLUJ` VY LMMLJ[P]LULZZ with which the Management has conducted the affairs of the Company. For Sharp & Tannan Chartered Accountants Registration No 109982W L. Vaidyanathan Partner Membership No 16368 Mumbai, 24 May 2013

DECLARATION OF COMPLIANCE WITH CODE OF CONDUCT This is to certify that all the Members of the Board of Directors and Senior Management (i.e. one level below the Executive Directors i.e. *] (TR QJ[JQ TK YMJ (TRUFS^ MF[J HTSà WRJI HTRUQNFSHJ \NYM YMJ Company’s Code of Conduct during April 2012 to March 2013. The Company’s Code requires every Member of the Board and Senior Management to: R +ZQà QQ YMJ KZSHYNTSX TK YMJNW TKà HJ \NYM NSYJLWNY^ FX \JQQ FX

professionalism and exercise the powers attached thereto, with due care and diligence. R &HY NS YMJ GJXY NSYJWJXYX TK FSI KZQĂ QQ YMJNW Ă IZHNFW^ TGQNLFYNTSX YT YMJ Company’s shareholders, whilst also considering the interests of other stakeholders. R Take informed business decisions based on independent judgment FSI NS YMJ GJXY NSYJWJXYX TK YMJ (TRUFS^ STY NSĂ‚ZJSHJI G^ UJWXTSFQ interest or gain. R 7JXUJHY YMJ HTSĂ IJSYNFQNY^ TK NSKTWRFYNTS FSI ZXJ ZYRTXY INXHWJYNTS whilst deciding its disclosure or dissemination, ensuring that no personal advantage or detriment to the Company results from the same. R Make available to, and share information with fellow Directors/ Executives when considered expedient in the best interests of the Company. R Protect and use the Company’s assets for legitimate business purposes and be alert to situations that could lead to loss or misuse of these assets. R 2NSNRNXJ FS^ XNYZFYNTS TW FHYNTS YMFY HFS HWJFYJ HTSĂ‚NHY TK NSYJWJXYX of the Company vis-Ă -vis personal interest or interests of associated persons, and make adequate disclosures, where necessary. R Act in a manner that will protect the Company’s reputation. R Encourage reporting of behaviour, which is contrary to the Company’s “Valuesâ€?, and ensure that the person reporting such violation is not aggrieved in any manner. R Comply, in letter and spirit, with all applicable laws, rules and regulations, and also honour the philosophy of “good faithâ€?, guided by one’s sense of right and wrong. R Abide by the relevant terms of the Insider Trading Code formulated by the Company, and any other Code that may be formulated from time to time, as applicable. R Adhere to the terms of the powers delegated by the Board. R Whilst entering into contracts with Service Providers and Consultants, protect the arrangement for disclosure or dissemination of HTSĂ IJSYNFQ NSKTWRFYNTS R Establish processes and systems for storage, retrieval and dissemination of documents, both in physical and electronic form, so YMFY YMJ TGQNLFYNTSX TK YMNX (TIJ TK (TSIZHY FWJ KZQĂ QQJI R Raise concerns, if any, on the above issues, at a Board Meeting. L Demortier CEO & Managing Director Mumbai, 24 May 2013

ADDITIONAL SHAREHOLDER INFORMATION

73

S TAND -AL ONE F I NANC I AL S

74

I N D E P E N D E N T AU D I TO R S ’ R E P O RT

TO THE MEMBERS OF CROMPTON GREAVES LIMITED

Report on the Financial Statements

Opinion

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Management’s Responsibility for the Financial Statements

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Report on Other Legal and Regulatory Requirements

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FINANCIALS

75

A N N E X U R E TO T H E I N D E P E N D E N T AU D I TO R S ’ R E P O RT

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

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76

;OL *LU[YHS ,_JPZL (J[ HUK :LY]PJL [H_ \UKLY [OL -PUHUJL (J[

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to [V

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

A N N E X U R E TO T H E I N D E P E N D E N T AU D I TO R S ’ R E P O RT

(Contd.)

_ ;OL *VTWHU` OHZ UV HJJ\T\SH[LK SVZZLZ HZ H[ Z[ 4HYJO HUK P[ OHZ UV[ PUJ\YYLK HU` JHZO SVZZLZ PU [OL ÄUHUJPHS `LHY LUKLK VU [OH[ KH[L HUK PU [OL PTTLKPH[LS` WYLJLKPUN ÄUHUJPHS `LHY _P (JJVYKPUN [V [OL PUMVYTH[PVU HUK L_WSHUH[PVUZ NP]LU [V \Z PU V\Y VWPUPVU [OL *VTWHU` OHZ UV[ KLMH\S[LK PU [OL YLWH`TLU[ VM K\LZ [V HU` ÄUHUJPHS PUZ[P[\[PVUZ VY IHUR HZ H[ [OL IHSHUJL ZOLL[ KH[L ;OL *VTWHU` OHZ UV[ PZZ\LK HU` KLILU[\YLZ _PP (JJVYKPUN [V [OL PUMVYTH[PVU HUK L_WSHUH[PVUZ NP]LU [V \Z [OL *VTWHU` OHZ UV[ NYHU[LK HU` SVHUZ HUK HK]HUJLZ VU [OL IHZPZ VM ZLJ\YP[` I` ^H` VM WSLKNL VM ZOHYLZ KLILU[\YLZ HUK V[OLY ZLJ\YP[PLZ _PPP ;OL WYV]PZPVUZ VM HU` ZWLJPHS Z[H[\[L HWWSPJHISL [V JOP[ M\UK UPKOP T\[\HS ILULÄ[ M\UK ZVJPL[PLZ HYL UV[ HWWSPJHISL [V [OL *VTWHU` _P] 0U V\Y VWPUPVU HUK HJJVYKPUN [V [OL PUMVYTH[PVU HUK L_WSHUH[PVUZ NP]LU [V \Z [OL *VTWHU` PZ UV[ KLHSPUN PU VY [YHKPUN PU ZLJ\YP[PLZ ;OL *VTWHU` OHZ PU]LZ[LK Z\YWS\Z M\UK PU T\[\HS M\UKZ (JJVYKPUN [V [OL PUMVYTH[PVU HUK L_WSHUH[PVUZ NP]LU [V \Z WYVWLY YLJVYKZ OH]L ILLU THKL VM [OL [YHUZHJ[PVUZ HUK JVU[YHJ[Z HUK [PTLS` LU[YPLZ OH]L ILLU THKL [OLYLPU ;OL PU]LZ[TLU[Z PU T\[\HS M\UKZ OH]L ILLU OLSK I` [OL *VTWHU` PU P[Z V^U UHTL

_]PP (JJVYKPUN [V [OL PUMVYTH[PVU HUK L_WSHUH[PVUZ NP]LU [V \Z HUK VU V]LYHSS L_HTPUH[PVU VM [OL IHSHUJL ZOLL[ VM [OL *VTWHU` ^L YLWVY[ [OH[ UV M\UKZ YHPZLK VU ZOVY[ [LYT IHZPZ OH]L ILLU \ZLK MVY SVUN [LYT PU]LZ[TLU[Z _]PPP ;OL *VTWHU` OHZ UV[ THKL HU` WYLMLYLU[PHS HSSV[TLU[ VM ZOHYLZ [V WHY[PLZ VY JVTWHUPLZ JV]LYLK PU [OL YLNPZ[LY THPU[HPULK \UKLY :LJ[PVU VM [OL *VTWHUPLZ (J[ K\YPUN [OL `LHY _P_ ;OL *VTWHU` OHZ UV[ PZZ\LK HU` KLILU[\YLZ K\YPUN [OL `LHY /LUJL YLWVY[PUN VU 7HYHNYHWO _P_ VM [OL *VTWHUPLZ (\KP[VY»Z 9LWVY[ 6YKLY WLY[HPUPUN [V JYLH[PVU VM ZLJ\YP[` VY JOHYNL MVY KLILU[\YLZ KVLZ UV[ HYPZL __ ;OL *VTWHU` OHZ UV[ YHPZLK HU` TVUL` I` W\ISPJ PZZ\LZ K\YPUN [OL `LHY (JJVYKPUNS` 7HYHNYHWO __ VM [OL *VTWHUPLZ (\KP[VY»Z 9LWVY[ 6YKLY PZ UV[ HWWSPJHISL [V [OL *VTWHU` __P +\YPUN [OL JV\YZL VM V\Y L_HTPUH[PVU VM IVVRZ HUK YLJVYKZ VM [OL *VTWHU` JHYYPLK V\[ PU HJJVYKHUJL ^P[O [OL NLULYHSS` HJJLW[LK H\KP[PUN WYHJ[PJLZ PU 0UKPH HUK HJJVYKPUN [V [OL PUMVYTH[PVU HUK L_WSHUH[PVUZ NP]LU [V \Z ^L OH]L ULP[OLY JVTL HJYVZZ HU` PUZ[HUJLZ VM TH[LYPHS MYH\K VU VY I` [OL *VTWHU` UV[PJLK VY YLWVY[LK K\YPUN [OL `LHY UVY OH]L ^L ILLU PUMVYTLK VM Z\JO JHZL I` [OL THUHNLTLU[

_] 0U V\Y VWPUPVU HUK HJJVYKPUN [V [OL PUMVYTH[PVU HUK L_WSHUH[PVUZ NP]LU [V \Z [OL [LYTZ HUK JVUKP[PVUZ VM N\HYHU[LL NP]LU I` [OL *VTWHU` MVY SVHUZ [HRLU I` V[OLYZ MYVT IHURZ VY ÄUHUJPHS PUZ[P[\[PVUZ HYL UV[ prima facie WYLQ\KPJPHS [V [OL PU[LYLZ[Z VM [OL *VTWHU` _]P 0U V\Y VWPUPVU HUK HJJVYKPUN [V [OL PUMVYTH[PVU HUK L_WSHUH[PVUZ NP]LU [V \Z [OL [LYT SVHUZ OH]L ILLU HWWSPLK MVY [OL W\YWVZLZ MVY ^OPJO [OL` ^LYL VI[HPULK

For SHARP & TANNAN CHARTERED ACCOUNTANTS 9LNPZ[YH[PVU 5V

>

L. Vaidyanathan 7SHJL! 4\TIHP +H[L! [O 4H`

PARTNER 4LTILYZOPW 5V

FINANCIALS

77

` crore

BA L A N C E S H E E T

AS AT 31ST MARCH, 2013

5V[L 5V

(Z H[

(Z H[

128.30 2928.55

EQUITY AND LIABILITIES 1.

SHAREHOLDERS’ FUNDS: H :OHYL JHWP[HS I 9LZLY]LZ HUK Z\YWS\Z

3056.85 2.

NON-CURRENT LIABILITIES: H 3VUN [LYT IVYYV^PUNZ I +LMLYYLK [H_ SPHIPSP[PLZ UL[ J 6[OLY SVUN [LYT SPHIPSP[PLZ K 3VUN [LYT WYV]PZPVUZ

0.75 49.83 27.33 38.09

116.00 3.

CURRENT LIABILITIES: H :OVY[ [LYT IVYYV^PUNZ I ;YHKL WH`HISLZ J 6[OLY J\YYLU[ SPHIPSP[PLZ K :OVY[ [LYT WYV]PZPVUZ

12.93 1514.31 421.66 147.87

TOTAL

2096.77

5269.62

ASSETS 1.

NON-CURRENT ASSETS: H -P_LK HZZL[Z P ;HUNPISL HZZL[Z PP 0U[HUNPISL HZZL[Z PPP *HWP[HS ^VYR PU WYVNYLZZ P] 0U[HUNPISL HZZL[Z \UKLY KL]LSVWTLU[ I 5VU J\YYLU[ PU]LZ[TLU[Z J 3VUN [LYT SVHUZ HUK HK]HUJLZ

604.32 56.17 74.91 39.86 554.58 18.10

1347.94 2.

CURRENT ASSETS: H *\YYLU[ PU]LZ[TLU[Z I 0U]LU[VYPLZ J ;YHKL YLJLP]HISLZ K *HZO HUK IHUR IHSHUJLZ L :OVY[ [LYT SVHUZ HUK HK]HUJLZ M 6[OLY J\YYLU[ HZZL[Z

TOTAL

500.46 548.50 1840.62 288.79 693.57 49.74 3921.68

5269.62

CONTINGENT LIABILITIES AND COMMITMENTS SIGNIFICANT ACCOUNTING POLICIES ;OL HJJVTWHU`PUN UV[LZ MVYT HU PU[LNYHS WHY[ VM ÄUHUJPHS Z[H[LTLU[Z

(Z WLY V\Y YLWVY[ H[[HJOLK For SHARP & TANNAN

Madhav Acharya

Laurent Demortier

CHARTERED ACCOUNTANTS

CHIEF FINANCIAL OFFICER

CEO & MANAGING DIRECTOR

L. Vaidyanathan

Wilton Henriques

Gautam Thapar

PARTNER

COMPANY SECRETARY

CHAIRMAN

9LNPZ[YH[PVU 5V

>

4LTILYZOPW 5V 4\TIHP [O 4H`

78

4\TIHP [O 4H`

` crore

S TAT E M E N T O F P RO F I T A N D L O S S

FOR THE YEAR ENDED 31ST MARCH, 2013

5V[L 5V

INCOME: :HSLZ HUK ZLY]PJLZ

7571.07

Less: ,_JPZL K\[`

435.77

9L]LU\L MYVT VWLYH[PVUZ

7135.30

Other income

98.68

TOTAL REVENUE

7233.98

EXPENSES: *VZ[ VM YH^ TH[LYPHSZ HUK JVTWVULU[Z JVUZ\TLK HUK JVUZ[Y\J[PVU TH[LYPHSZ

3565.28

7\YJOHZLZ VM Z[VJR PU [YHKL

1811.80

*OHUNLZ PU PU]LU[VYPLZ VM ÄUPZOLK NVVKZ ^VYR PU WYVNYLZZ HUK Z[VJR PU [YHKL

(42.99)

,TWSV`LL ILULÄ[Z

411.17

-PUHUJL JVZ[Z

25.41

+LWYLJPH[PVU HUK HTVY[PZH[PVU

71.86

6[OLY L_WLUZLZ

795.43

TOTAL EXPENSES PROFIT BEFORE TAX

6637.96

596.02

TAX EXPENSE: *\YYLU[ [H_

143.58

+LMLYYLK [H_

PROFIT FOR THE YEAR ,HYUPUNZ WLY ZOHYL IHZPJ HUK KPS\[LK `)

6.60 150.18

445.84

504.86

6.95

-HJL ]HS\L VM LX\P[` ZOHYL VM ` LHJO

SIGNIFICANT ACCOUNTING POLICIES

;OL HJJVTWHU`PUN UV[LZ MVYT HU PU[LNYHS WHY[ VM ÄUHUJPHS Z[H[LTLU[Z

(Z WLY V\Y YLWVY[ H[[HJOLK For SHARP & TANNAN

Madhav Acharya

Laurent Demortier

CHARTERED ACCOUNTANTS

CHIEF FINANCIAL OFFICER

CEO & MANAGING DIRECTOR

L. Vaidyanathan

Wilton Henriques

Gautam Thapar

PARTNER

COMPANY SECRETARY

CHAIRMAN

9LNPZ[YH[PVU 5V

>

4LTILYZOPW 5V 4\TIHP [O 4H`

4\TIHP [O 4H`

FINANCIALS

79

` crore

C A S H F L OW S TAT E M E N T

FOR THE YEAR ENDED 31ST MARCH, 2013

596.02

[A] CASH FLOWS FROM OPERATING ACTIVITIES 7YVÄ[ ILMVYL [H_LZ (KQ\Z[TLU[Z MVY! +LWYLJPH[PVU HUK HTVY[PZH[PVU

71.86

(SSV^HUJL MVY KV\I[M\S KLI[Z HUK HK]HUJLZ

18.92

0U[LYLZ[ L_WLUZLZ 0U[LYLZ[ PUJVTL 0UJVTL MYVT PU]LZ[TLU[Z UL[

25.35

(45.61)

(0.32)

7YVÄ[ VU ZHSL VM PU]LZ[TLU[Z UL[

(23.45)

<UYLHSPZLK L_JOHUNL NHPU SVZZ UL[

(10.75)

0.55

7YVÄ[ 3VZZ VU ZHSL VM Ä_LK HZZL[Z UL[

6WLYH[PUN WYVÄ[ ILMVYL ^VYRPUN JHWP[HS JOHUNLZ

36.55

632.57

(KQ\Z[TLU[Z MVY! (543.77)

0UJYLHZL +LJYLHZL PU PU]LU[VYPLZ

0UJYLHZL +LJYLHZL PU [YHKL HUK V[OLY YLJLP]HISLZ

(98.90)

0UJYLHZL +LJYLHZL PU [YHKL HUK V[OLY WH`HISLZ

294.32

7.01

(341.34)

0UJYLHZL +LJYLHZL PU WYV]PZPVUZ

*HZO \ZLK PU MYVT VWLYH[PVUZ

291.23

+PYLJ[ [H_LZ WHPK UL[ VM YLM\UKZ

(110.08)

181.15

Net cash (used in) / from operating activities

[A]

[B] CASH FLOWS FROM INVESTING ACTIVITIES (KK! 0UÅV^Z MYVT PU]LZ[PUN HJ[P]P[PLZ :HSL VM Ä_LK HZZL[Z :HSL VM PU]LZ[TLU[Z UL[ (THSNHTH[PVU VM Z\IZPKPHYPLZ 0U[LYLZ[ YLJLP]LK 0UJVTL YLJLP]LK MYVT PU]LZ[TLU[Z

3.97

23.94

-

-

45.74

0.32

73.97

(176.37)

-

Less: 6\[ÅV^Z MYVT PU]LZ[PUN HJ[P]P[PLZ 7\YJOHZL VM Ä_LK HZZL[Z 7\YJOHZL VM PU]LZ[TLU[Z UL[ 0U]LZ[TLU[ PU Z\IZPKPHYPLZ

Net cash (used in) / from investing activities

80

[B]

(3.02)

(179.39)

(105.42)

` crore

C A S H F L OW S TAT E M E N T

FOR THE YEAR ENDED 31ST MARCH, 2013 (Contd.)

12.90

12.90

[C] CASH FLOWS FROM FINANCING ACTIVITIES (KK! 0UÅV^Z MYVT ÄUHUJPUN HJ[P]P[PLZ 7YVJLLKZ MYVT ZOVY[ [LYT IVYYV^PUNZ UL[

Less: 6\[ÅV^Z MYVT ÄUHUJPUN HJ[P]P[PLZ 9LWH`TLU[Z VM SVUN [LYT IVYYV^PUNZ

(6.12)

0U[LYPT KP]PKLUKZ WHPK

(76.95)

(KKP[PVUHS [H_ VU KP]PKLUK

(12.49)

0U[LYLZ[ WHPK

(25.38)

(120.94)

(108.04)

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

(32.31)

*HZO HUK IHUR IHSHUJLZ H[ ILNPUUPUN VM [OL `LHY

321.10

*HZO HUK IHUR IHSHUJLZ H[ LUK VM [OL `LHY

288.79

5L[ JHZO \ZLK PU MYVT ÄUHUJPUN HJ[P]P[PLZ

[C]

9LMLY 5V[L infra Notes: ;OL JHZO ÅV^ Z[H[LTLU[ OHZ ILLU WYLWHYLK \UKLY [OL PUKPYLJ[ TL[OVK HZ ZL[ V\[ PU (JJV\U[PUN :[HUKHYK (: *HZO -SV^ :[H[LTLU[Z HZ ZWLJPÄLK PU [OL *VTWHUPLZ (JJV\U[PUN :[HUKHYKZ 9\SLZ (KKP[PVUZ [V Ä_LK HZZL[Z PUJS\KL TV]LTLU[Z VM JHWP[HS ^VYR PU WYVNYLZZ K\YPUN [OL `LHY *HZO HUK JHZO LX\P]HSLU[Z H[ [OL LUK VM [OL `LHY YLWYLZLU[ JHZO HUK IHUR IHSHUJLZ HUK PUJS\KL \UYLHSPZLK SVZZ VM ` JYVYL 7YL]PV\Z `LHY \UYLHSPZLK NHPU VM ` JYVYL VU HJJV\U[ VM [YHUZSH[PVU VM MVYLPNU J\YYLUJ` IHUR IHSHUJLZ -PN\YLZ MVY [OL WYL]PV\Z `LHY OH]L ILLU YL NYV\WLK YL JSHZZPÄLK ^OLYL]LY ULJLZZHY`

(Z WLY V\Y YLWVY[ H[[HJOLK For SHARP & TANNAN

Madhav Acharya

Laurent Demortier

CHARTERED ACCOUNTANTS

CHIEF FINANCIAL OFFICER

CEO & MANAGING DIRECTOR

L. Vaidyanathan

Wilton Henriques

Gautam Thapar

PARTNER

COMPANY SECRETARY

CHAIRMAN

9LNPZ[YH[PVU 5V

>

4LTILYZOPW 5V 4\TIHP [O 4H`

4\TIHP [O 4H`

FINANCIALS

81

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES

)HZPZ VM WYLWHYH[PVU HUK WYLZLU[H[PVU VM ÄUHUJPHS Z[H[LTLU[Z!

;OL ÄUHUJPHS Z[H[LTLU[Z OH]L ILLU WYLWHYLK PU HJJVYKHUJL ^P[O [OL .LULYHSS` (JJLW[LK (JJV\U[PUN 7YPUJPWSLZ PU 0UKPH 0UKPHU .((7 \UKLY [OL OPZ[VYPJHS JVZ[ JVU]LU[PVU L_JLW[ MVY [OL YL]HS\H[PVU VM JLY[HPU Ä_LK HZZL[Z HJX\PYLK ILMVYL [O 1\UL VU HJJY\HS IHZPZ ;OL ÄUHUJPHS Z[H[LTLU[Z VM [OL *VTWHU` OH]L ILLU WYLWHYLK [V JVTWS` ^P[O [OL (JJV\U[PUN :[HUKHYKZ UV[PÄLK \UKLY [OL *VTWHUPLZ (JJV\U[PUN :[HUKHYKZ 9\SLZ HZ HTLUKLK HUK [OL YLSL]HU[ WYV]PZPVUZ VM [OL *VTWHUPLZ (J[ *LY[HPU LZJHSH[PVU HUK V[OLY JSHPTZ HYL HJJV\U[LK MVY PU [LYTZ VM JVU[YHJ[Z ^P[O [OL J\Z[VTLYZ HKTP[[LK I` [OL HWWYVWYPH[L H\[OVYP[PLZ ;OL HJJV\U[PUN WVSPJPLZ HKVW[LK PU [OL WYLWHYH[PVU VM [OL ÄUHUJPHS Z[H[LTLU[Z HYL JVUZPZ[LU[ ^P[O [OVZL MVSSV^LK PU [OL WYL]PV\Z `LHY

2.

Use of estimates:

;OL WYLWHYH[PVU VM ÄUHUJPHS Z[H[LTLU[Z PU JVUMVYTP[` ^P[O .((7 YLX\PYLZ [OL THUHNLTLU[ [V THRL LZ[PTH[LZ HUK HZZ\TW[PVUZ [OH[ HMMLJ[ [OL YLWVY[LK HTV\U[Z VM HZZL[Z SPHIPSP[PLZ YL]LU\L HUK L_WLUZLZ HUK KPZJSVZ\YL VM JVU[PUNLU[ SPHIPSP[PLZ HUK HZZL[Z ;OL LZ[PTH[LZ HUK HZZ\TW[PVUZ \ZLK PU [OL HJJVTWHU`PUN ÄUHUJPHS Z[H[LTLU[Z HYL IHZLK \WVU THUHNLTLU[»Z L]HS\H[PVU VM [OL YLSL]HU[ MHJ[Z HUK JPYJ\TZ[HUJLZ HZ VM [OL KH[L VM [OL ÄUHUJPHS Z[H[LTLU[Z ;OL L_HTWSLZ VM Z\JO LZ[PTH[LZ PUJS\KL [OL \ZLM\S SPML VM [HUNPISL HUK PU[HUNPISL Ä_LK HZZL[Z HSSV^HUJLZ MVY KV\I[M\S KLI[Z HK]HUJLZ M\[\YL VISPNH[PVUZ PU YLZWLJ[ VM YL[PYLTLU[ ILULÄ[ WSHUZ L[J (J[\HS YLZ\S[Z TH` KPMMLY MYVT [OL LZ[PTH[LZ HUK HZZ\TW[PVUZ HUK PU Z\JO JHZL [OL KPMMLYLUJL PZ YLJVNUPZLK PU [OL WLYPVK PU ^OPJO [OL YLZ\S[Z HYL RUV^U

-P_LK (ZZL[Z! H -P_LK HZZL[Z HYL Z[H[LK H[ VYPNPUHS JVZ[ UL[ VM [H_ K\[` JYLKP[ H]HPSLK PM HU` L_JLW[ MVY SHUK HUK I\PSKPUN HJX\PYLK WYPVY [V [O 1\UL ^OPJO HYL Z[H[LK H[ YL]HS\LK JVZ[ HZ H[ [OH[ KH[L IHZLK VU [OL YLWVY[ VM [LJOUPJHS L_WLY[ SLZZ HJJ\T\SH[LK KLWYLJPH[PVU HUK HTVY[PZH[PVU :\IZLX\LU[ \WNYHKH[PVUZ LUOHUJLTLU[Z ^OPJO YLZ\S[Z PU HU PUJYLHZL PU [OL M\[\YL ILULÄ[Z MYVT Z\JO HZZL[Z IL`VUK [OL WYL]PV\ZS` HZZLZZLK Z[HUKHYK VM WLYMVYTHUJL HYL HSZV JHWP[HSPZLK I (KTPUPZ[YH[P]L HUK V[OLY NLULYHS V]LYOLHKZ [OH[ HYL ZWLJPÄJHSS` H[[YPI\[HISL [V JVUZ[Y\J[PVU VY HJX\PZP[PVU VM Ä_LK HZZL[Z VY IYPUNPUN [OL Ä_LK HZZL[Z [V ^VYRPUN JVUKP[PVU HYL HSSVJH[LK HUK JHWP[HSPZLK HZ H WHY[ VM Ä_LK HZZL[Z J 7YL VWLYH[P]L L_WLUZLZ PUJS\KPUN PU[LYLZ[ VU IVYYV^PUNZ \W[V [OL KH[L VM JVTTLYJPHS VWLYH[PVUZ HYL [YLH[LK HZ WHY[ VM WYVQLJ[ JVZ[ HUK JHWP[HSPZLK K 0U[LYUHSS` THU\MHJ[\YLK Ä_LK HZZL[Z HYL JHWP[HSPZLK H[ MHJ[VY` JVZ[ PUJS\KPUN L_JPZL K\[` ^OLYL HWWSPJHISL L *HWP[HS ^VYR PU WYVNYLZZ PUJS\KLZ JVZ[ VM Ä_LK HZZL[Z \UKLY PUZ[HSSH[PVU \UKLY KL]LSVWTLU[ HZ H[ [OL IHSHUJL ZOLL[ KH[L M

*HWP[HS L_WLUKP[\YL VU [HUNPISL HZZL[Z MVY YLZLHYJO HUK KL]LSVWTLU[ PZ JSHZZPÄLK \UKLY Ä_LK HZZL[Z HUK PZ KLWYLJPH[LK VU [OL ZHTL IHZPZ HZ V[OLY Ä_LK HZZL[Z

N -P_LK HZZL[Z HYL LSPTPUH[LK MYVT ÄUHUJPHS Z[H[LTLU[Z LP[OLY VU KPZWVZHS VY ^OLU YL[PYLK MYVT HJ[P]L \ZL 3VZZLZ HYPZPUN PU JHZL YL[PYLTLU[ VM HZZL[Z HUK NHPUZ VY SVZZLZ HYPZPUN MYVT KPZWVZHS VM Ä_LK HZZL[Z HYL YLJVNUPZLK PU [OL Z[H[LTLU[ VM WYVÄ[ HUK SVZZ PU [OL `LHY VM VJJ\YYLUJL 4.

Impairment of assets:

(Z H[ LHJO IHSHUJL ZOLL[ KH[L [OL JHYY`PUN HTV\U[Z VM HZZL[Z PUJS\KPUN NVVK^PSS HYPZPUN VU HJX\PZP[PVU HYL [LZ[LK MVY PTWHPYTLU[ ZV HZ [V KL[LYTPUL! H [OL WYV]PZPVU MVY PTWHPYTLU[ SVZZ PM HU`" HUK I [OL YL]LYZHS VM PTWHPYTLU[ SVZZ YLJVNUPZLK PU WYL]PV\Z WLYPVKZ PM HU` 0TWHPYTLU[ SVZZ PZ YLJVNUPZLK ^OLU [OL JHYY`PUN HTV\U[ VM HU HZZL[ L_JLLKZ P[Z YLJV]LYHISL HTV\U[ 9LJV]LYHISL HTV\U[ PZ KL[LYTPULK! H 0U [OL JHZL VM HU PUKP]PK\HS HZZL[ H[ [OL OPNOLY VM [OL UL[ ZLSSPUN WYPJL HUK [OL ]HS\L PU \ZL" HUK I 0U [OL JHZL VM JHZO H NLULYH[PUN \UP[ H NYV\W VM HZZL[Z [OH[ NLULYH[LZ PKLU[PÄLK PUKLWLUKLU[ JHZO Ã…V^Z H[ [OL OPNOLY VM [OL JHZO NLULYH[PUN \UP[»Z UL[ ZLSSPUN WYPJL HUK [OL ]HS\L PU \ZL

82

=HS\L PU \ZL PZ KL[LYTPULK HZ [OL WYLZLU[ ]HS\L VM LZ[PTH[LK M\[\YL JHZO Ã…V^Z MYVT [OL JVU[PU\PUN \ZL VM HU HZZL[ HUK MYVT P[Z KPZWVZHS H[ [OL LUK VM P[Z \ZLM\S SPML

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

1. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

0U[HUNPISL HZZL[Z HUK HTVY[PZH[PVU! 0U[HUNPISL HZZL[Z HYL YLJVNUPZLK ^OLU P[ PZ WYVIHISL [OH[ [OL M\[\YL LJVUVTPJ ILULÄ[Z [OH[ HYL H[[YPI\[HISL [V [OL HZZL[Z ^PSS ÅV^ [V [OL *VTWHU` HUK [OL JVZ[ VM [OL HZZL[ JHU IL TLHZ\YLK YLSPHIS` 0U[HUNPISL HZZL[Z HYL HTVY[PZLK HZ MVSSV^Z! H 0U[HUNPISL HZZL[Z! :WLJPHSPZLK ZVM[^HYL

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+L]LSVWTLU[ JVZ[!

+L]LSVWTLU[ L_WLUKP[\YL VU UL^ WYVK\J[ PZ JHWP[HSPZLK HZ PU[HUNPISL HZZL[ PM HSS VM [OL MVSSV^PUN JHU IL KLTVUZ[YH[LK P [OL [LJOUPJHS MLHZPIPSP[` VM JVTWSL[PUN [OL PU[HUNPISL HZZL[ ZV [OH[ P[ ^PSS IL H]HPSHISL MVY \ZL VY ZHSL" PP [OL *VTWHU` OHZ PU[LU[PVU [V JVTWSL[L [OL KL]LSVWTLU[ VM PU[HUNPISL HZZL[ HUK \ZL VY ZLSS P[" PPP [OL *VTWHU` OHZ HIPSP[` [V \ZL VY ZLSS [OL PU[HUNPISL HZZL[" P] [OL THUULY PU ^OPJO [OL WYVIHISL M\[\YL LJVUVTPJ ILULÄ[ ^PSS IL NLULYH[LK PUJS\KPUN [OL L_PZ[LUJL VM H THYRL[ MVY V\[W\[ VM [OL PU[HUNPISL HZZL[ VY [OL PU[HUNPISL HZZL[ P[ZLSM VY PM P[ PZ [V IL \ZLK PU[LYUHSS` [OL \ZLM\SULZZ VM [OL PU[HUNPISL HZZL[" ] [OL H]HPSHIPSP[` VM HKLX\H[L [LJOUPJHS ÄUHUJPHS HUK V[OLY YLZV\YJLZ [V JVTWSL[L [OL KL]LSVWTLU[ HUK [V \ZL VY ZLSS [OL PU[HUNPISL HZZL[" HUK ]P [OL *VTWHU` OHZ HIPSP[` [V TLHZ\YL [OL L_WLUKP[\YL H[[YPI\[HISL [V [OL PU[HUNPISL HZZL[ K\YPUN [OL KL]LSVWTLU[ YLSPHIS`

6.

+L]LSVWTLU[ JVZ[Z VU [OL PU[HUNPISL HZZL[Z M\SÄSSPUN [OL JYP[LYPH HYL HTVY[PZLK V]LY H WLYPVK VM Ä]L `LHYZ V[OLY^PZL HYL L_WLUZLK PU [OL WLYPVK PU ^OPJO [OL` HYL PUJ\YYLK

Investments: Long-term investments:

3VUN [LYT PU]LZ[TLU[Z HYL JHYYPLK H[ JVZ[ /V^L]LY WYV]PZPVU MVY KPTPU\[PVU PZ THKL [V YLJVNUPZL H KLJSPUL PU [OL WLYTHULU[ UH[\YL PU [OL ]HS\L VM PU]LZ[TLU[Z Current investments:

0U]LZ[TLU[Z [OH[ HYL YLHKPS` YLHSPZHISL HUK HYL PU[LUKLK [V IL OLSK MVY UV[ TVYL [OHU VUL `LHY MYVT [OL KH[L VU ^OPJO Z\JO PU]LZ[TLU[Z HYL THKL HYL JSHZZPÄLK HZ J\YYLU[ PU]LZ[TLU[Z HUK HYL JHYYPLK H[ JVZ[ VY MHPY ]HS\L ^OPJOL]LY PZ SV^LY ;OL KL[LYTPUH[PVU VM JHYY`PUN HTV\U[ VM Z\JO PU]LZ[TLU[Z PZ KVUL VU [OL IHZPZ VM ^LPNO[LK H]LYHNL JVZ[ VM LHJO PUKP]PK\HS PU]LZ[TLU[

7.

Inventories: H 9H^ TH[LYPHSZ WHJRPUN TH[LYPHSZ *VUZ[Y\J[PVU TH[LYPHSZ Z[VYLZ HUK ZWHYLZ

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K -PUPZOLK NVVKZ ¶ ;YHKPUN

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([ SV^LY VM JVZ[ VU ^LPNO[LK H]LYHNL IHZPZ HUK UL[ YLHSPZHISL ]HS\L

;OL JVZ[ VM PU]LU[VYPLZ OH]L ILLU JVTW\[LK [V PUJS\KL HSS JVZ[ VM W\YJOHZLZ JVZ[ VM JVU]LYZPVU HUK V[OLY YLSH[LK JVZ[Z PUJ\YYLK PU IYPUNPUN [OL PU]LU[VYPLZ [V [OLPY WYLZLU[ SVJH[PVU HUK JVUKP[PVU :SV^ HUK UVU TV]PUN TH[LYPHSZ VIZVSLZJLZ KLMLJ[P]L PU]LU[VYPLZ HYL K\S` WYV]PKLK MVY HUK ]HS\LK H[ UL[ YLHSPZHISL ]HS\L .VVKZ HUK TH[LYPHSZ PU [YHUZP[ HYL ]HS\LK H[ HJ[\HS JVZ[ PUJ\YYLK \W[V [OL KH[L VM IHSHUJL ZOLL[

8.

Cash and cash equivalents: H *HZO JVTWYPZLZ JHZO VU OHUK HUK KLTHUK KLWVZP[Z ^P[O IHURZ I *HZO LX\P]HSLU[Z HYL ZOVY[ [LYT OPNOS` SPX\PK PU]LZ[TLU[Z [OH[ HYL YLHKPS` JVU]LY[PISL PU[V RUV^U HTV\U[Z VM JHZO HUK ^OPJO HYL Z\IQLJ[ [V PUZPNUPÄJHU[ YPZR VM JOHUNLZ PU ]HS\L

9.

Foreign currency transaction and foreign operations: H ;OL YLWVY[PUN J\YYLUJ` PZ 0UKPHU 9\WLL I -VYLPNU J\YYLUJ` [YHUZHJ[PVUZ HYL YLJVYKLK VU PUP[PHS YLJVNUP[PVU PU [OL YLWVY[PUN J\YYLUJ` \ZPUN [OL L_JOHUNL YH[L H[ [OL KH[L VM [OL [YHUZHJ[PVU ([ LHJO IHSHUJL ZOLL[ KH[L MVYLPNU J\YYLUJ` TVUL[HY` P[LTZ HYL YLJVYKLK \ZPUN [OL JSVZPUN L_JOHUNL YH[L ,_JOHUNL KPMMLYLUJLZ [OH[ HYPZL VU ZL[[SLTLU[ VM TVUL[HY` P[LTZ VY VU YLWVY[PUN H[ LHJO IHSHUJL ZOLL[ KH[L VM [OL *VTWHU`»Z TVUL[HY` P[LTZ H[ [OL JSVZPUN YH[L HYL YLJVNUPZLK HZ PUJVTL VY L_WLUZLZ PU [OL WLYPVK PU ^OPJO [OL` HYPZL

5VU TVUL[HY` P[LTZ ^OPJO HYL JHYYPLK H[ OPZ[VYPJHS JVZ[ KLUVTPUH[LK PU H MVYLPNU J\YYLUJ` HYL YLWVY[LK \ZPUN OPZ[VYPJHS YH[L

J -PUHUJPHS Z[H[LTLU[Z VM MVYLPNU VWLYH[PVUZ HYL [YLH[LK HZ PU[LNYHS VWLYH[PVUZ HUK [YHUZSH[LK HZ PU [OL ZHTL THUULY HZ MVYLPNU J\YYLUJ` [YHUZHJ[PVUZ HZ KLZJYPILK HIV]L ,_JOHUNL KPMMLYLUJLZ HYPZPUN VU Z\JO JVU]LYZPVUZ HYL YLJVNUPZLK PU [OL Z[H[LTLU[ VM WYVÄ[ VY SVZZ PU [OL WLYPVK PU ^OPJO [OL` HYPZL

FINANCIALS

83

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

1. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

10. Derivative contracts: H +LYP]H[P]L JVU[YHJ[Z LU[LYLK PU[V [V OLKNL MVYLPNU J\YYLUJ` WYPJL YPZRZ VU \UL_LJ\[LK ÄYT JVTTP[TLU[Z HUK OPNOS` WYVIHISL MVYLJHZ[ [YHUZHJ[PVUZ HYL YLJVNUPZLK PU [OL ÄUHUJPHS Z[H[LTLU[Z H[ MHPY ]HS\L HZ VU [OL IHSHUJL ZOLL[ KH[L ;OL NHPUZ VY SVZZLZ HYPZPUN V\[ VM MHPY ]HS\H[PVU VM KLYP]H[P]L JVU[YHJ[Z HYL YLJVNUPZLK PU [OL Z[H[LTLU[ VM WYVÄ[ HUK SVZZ VY IHSHUJL ZOLL[ HZ [OL JHZL TH` IL HM[LY HWWS`PUN [OL [LZ[ VM OLKNL LMMLJ[P]LULZZ ;OL NHPUZ VY SVZZLZ HYL YLJVNUPZLK HZ OLKNL YLZLY]L PU [OL IHSHUJL ZOLL[ ^OLU [OL OLKNL PZ LMMLJ[P]L HUK ^OLYL [OL OLKNL PZ PULMMLJ[P]L [OL ZHTL PZ YLJVNUPZLK PU [OL Z[H[LTLU[ VM WYVÄ[ HUK SVZZ I ;OL WYLTP\T VY KPZJV\U[ VU MVY^HYK JVU[YHJ[Z PZ HTVY[PZLK HZ L_WLUZL VY PUJVTL V]LY [OL WLYPVK VM [OL JVU[YHJ[ J .HPUZ HUK SVZZLZ VU YVSS V]LY VY JHUJLSSH[PVU VM KLYP]H[P]L JVU[YHJ[Z ^OPJO X\HSPM` HZ LMMLJ[P]L OLKNL HYL YLJVNUPZLK PU [OL Z[H[LTLU[ VM WYVÄ[ HUK SVZZ PU [OL ZHTL WLYPVK PU ^OPJO [OL OLKNLK P[LT PZ HJJV\U[LK 11. Revenue recognition: (a) Sale of goods: 9L]LU\L MYVT ZHSL VM NVVKZ PZ YLJVNUPZLK ^OLU HSS [OL ZPNUPÄJHU[ YPZRZ HUK YL^HYKZ VM V^ULYZOPW HYL [YHUZMLYYLK [V [OL I\`LY HZ WLY [OL [LYTZ VM JVU[YHJ[Z HUK UV ZPNUPÄJHU[ \UJLY[HPU[` L_PZ[Z YLNHYKPUN [OL HTV\U[ VM [OL JVUZPKLYH[PVU [OH[ ^PSS IL KLYP]LK MYVT ZHSL VM [OL NVVKZ 0[ HSZV PUJS\KLZ L_JPZL K\[` HUK WYPJL ]HYPH[PVU PM HU` HUK L_JS\KLZ ]HS\L HKKLK [H_ ZHSLZ [H_ IYVRLYHNL HUK JVTTPZZPVU I :HSL VM ZLY]PJLZ! :LY]PJL PUJVTL PZ YLJVNUPZLK HZ WLY [OL [LYTZ VM [OL JVU[YHJ[Z ^P[O [OL J\Z[VTLYZ VU WYVWVY[PVUH[L JVTWSL[PVU TL[OVK (c) Revenue from contracts: 9L]LU\L MYVT JVU[YHJ[Z PZ YLJVNUPZLK I` HWWS`PUN WLYJLU[HNL VM JVTWSL[PVU TL[OVK HM[LY WYV]PKPUN MVY MVYLZLLHISL SVZZLZ PM HU` 7LYJLU[HNL VM JVTWSL[PVU PZ KL[LYTPULK HZ H WYVWVY[PVU VM [OL JVZ[Z PUJ\YYLK \W[V [OL YLWVY[PUN KH[L [V [OL [V[HS LZ[PTH[LK JVZ[ [V JVTWSL[L -VYLZLLHISL SVZZ PM HU` VU [OL JVU[YHJ[Z PZ YLJVNUPZLK HZ HU L_WLUZL PU [OL WLYPVK PU ^OPJO P[ PZ MVYLZLLU PYYLZWLJ[P]L VM [OL Z[HNL VM JVTWSL[PVU VM [OL JVU[YHJ[ >OPSL KL[LYTPUPUN [OL HTV\U[ VM MVYLZLLHISL SVZZ HSS LSLTLU[Z VM JVZ[Z HUK YLSH[LK PUJPKLU[HS PUJVTL UV[ PUJS\KLK PU JVU[YHJ[ YL]LU\L PZ [HRLU PU[V JVUZPKLYH[PVU *VU[YHJ[ PZ YLÃ…LJ[LK H[ JVZ[ [PSS Z\JO [PTL [OL V\[JVTL VM [OL JVU[YHJ[ JHUUV[ IL HZJLY[HPULK YLSPHIS` HUK H[ YLHSPZHISL ]HS\L [OLYLHM[LY K 9L]LU\L MYVT WV^LY KPZ[YPI\[PVU I\ZPULZZ! 9L]LU\L MYVT WV^LY KPZ[YPI\[PVU I\ZPULZZ PZ HJJV\U[LK VU [OL IHZPZ VM IPSSPUNZ [V [OL J\Z[VTLYZ HUK PUJS\KLZ \UIPSSLK YL]LU\LZ HJJY\LK \W[V [OL LUK VM HJJV\U[PUN `LHY *\Z[VTLYZ HYL IPSSLK HZ WLY [OL [HYPMM YH[LZ PZZ\LK I` ,SLJ[YPJP[` 9LN\SH[VY` *VTTPZZPVU 0U[LYLZ[ PZ HJJV\U[LK VU HJJY\HS IHZPZ VU V]LYK\L IPSSZ (e) Interest income: 0U[LYLZ[ PUJVTL VU KLWVZP[Z ZLJ\YP[PLZ HUK SVHUZ PZ YLJVNUPZLK H[ [OL HNYLLK YH[L VU [PTL WYVWVY[PVUH[L IHZPZ (f) Dividend income: +P]PKLUK PUJVTL PZ HJJV\U[LK MVY ^OLU [OL YPNO[ [V YLJLP]L [OL KP]PKLUK PZ LZ[HISPZOLK (g) Lease income: 3LHZL HNYLLTLU[Z ^OLYL [OL YPZRZ HUK YL^HYKZ PUJPKLU[HS [V [OL V^ULYZOPW VM HU HZZL[ Z\IZ[HU[PHSS` ]LZ[ ^P[O [OL SLZZVY HYL YLJVNUPZLK HZ VWLYH[PUN SLHZLZ 3LHZL YLU[HSZ HYL YLJVNUPZLK VU Z[YHPNO[ SPUL IHZPZ HZ WLY [OL [LYTZ VM [OL HNYLLTLU[Z PU [OL Z[H[LTLU[ VM 7YVÄ[ VY SVZZ ,TWSV`LL ILULÄ[Z! H :OVY[ [LYT LTWSV`LL ILULÄ[Z! (SS LTWSV`LL ILULÄ[Z WH`HISL ^OVSS` ^P[OPU [^LS]L TVU[OZ VM YLUKLYPUN ZLY]PJL HYL JSHZZPÄLK HZ ZOVY[ [LYT LTWSV`LL ILULÄ[Z )LULÄ[Z Z\JO HZ ZHSHYPLZ ^HNLZ ZOVY[ [LYT JVTWLUZH[LK HIZLUJLZ WLYMVYTHUJL PUJLU[P]LZ L[J HUK [OL L_WLJ[LK JVZ[ VM IVU\Z L_ NYH[PH HYL YLJVNUPZLK K\YPUN [OL WLYPVK PU ^OPJO [OL LTWSV`LL YLUKLYZ YLSH[LK ZLY]PJL I 7VZ[ LTWSV`TLU[ ILULÄ[Z! +LÄULK JVU[YPI\[PVU WSHUZ *VTWHU`»Z JVU[YPI\[PVUZ WHPK WH`HISL K\YPUN [OL `LHY [V VMÄJLY»Z Z\WLYHUU\H[PVU M\UK LTWSV`LL Z[H[L PUZ\YHUJL ZJOLTL HUK SHIV\Y ^LSMHYL M\UK HYL YLJVNUPZLK K\YPUN [OL WLYPVK +LÄULK ILULÄ[ WSHUZ -VY KLÄULK ILULÄ[ ZJOLTLZ PU [OL MVYT VM NYH[\P[` M\UK WYV]PKLU[ M\UK HUK WVZ[ YL[PYLTLU[ TLKPJHS ILULÄ[Z [OL JVZ[ VM WYV]PKPUN ILULÄ[Z PZ KL[LYTPULK \ZPUN [OL 7YVQLJ[LK <UP[ *YLKP[ 4L[OVK ^P[O HJ[\HYPHS ]HS\H[PVUZ ILPUN JHYYPLK V\[ H[ LHJO IHSHUJL ZOLL[ KH[L ^OPJO YLJVNUPZLZ LHJO WLYPVK VM ZLY]PJL HZ NP]PUN YPZL [V HKKP[PVUHS \UP[ VM LTWSV`LL ILULÄ[ LU[P[SLTLU[ HUK TLHZ\YLZ LHJO \UP[ ZLWHYH[LS` [V I\PSK \W [OL ÄUHS VISPNH[PVU ;OL VISPNH[PVU PZ TLHZ\YLK H[ [OL WYLZLU[ ]HS\L VM [OL LZ[PTH[LK M\[\YL JHZO Ã…V^Z ;OL KPZJV\U[PUN YH[L \ZLK MVY KL[LYTPUPUN [OL WYLZLU[ ]HS\L VM [OL VISPNH[PVU \UKLY KLÄULK ILULÄ[ WSHUZ PZ IHZLK VU [OL THYRL[ `PLSKZ VU NV]LYUTLU[ ZLJ\YP[PLZ HZ H[ [OL IHSHUJL ZOLL[ KH[L OH]PUN TH[\YP[` WLYPVKZ HWWYV_PTH[LS` [V [OL [LYTZ VM YLSH[LK VISPNH[PVUZ ;OL *VTWHU` THRLZ JVU[YPI\[PVU [V^HYKZ WYV]PKLU[ M\UK PU Z\IZ[HUJL H KLÄULK JVU[YPI\[PVU YL[PYLTLU[ WSHU ;OL WYV]PKLU[ M\UK PZ HKTPUPZ[LYLK I` [OL [Y\Z[LLZ ;OL 9\SLZ VM [OL *VTWHU`»Z 7YV]PKLU[ -\UK HKTPUPZ[LYLK I` H [Y\Z[ YLX\PYL [OH[ PM [OL )VHYK VM ;Y\Z[LLZ HYL \UHISL [V WH` PU[LYLZ[ H[ [OL YH[L KLJSHYLK I` [OL .V]LYUTLU[ \UKLY 7HYH VM [OL ,TWSV`LLZ» 7YV]PKLU[ -\UK :JOLTL MVY [OL YLHZVU [OH[ [OL YL[\YU VU PU]LZ[TLU[ PZ SLZZ MVY HU` V[OLY YLHZVU [OLU [OL KLÄJPLUJ` ZOHSS IL THKL NVVK I` [OL *VTWHU` THRPUN PU[LYLZ[ ZOVY[MHSS HZ H KLÄULK ILULÄ[ WSHU /H]PUN YLNHYK [V [OL HZZL[Z VM [OL -\UK HUK YL[\YU VU PU]LZ[TLU[Z [OL *VTWHU` KVLZ UV[ L_WLJ[ HU` KLÄJPLUJ` PU [OL MVYLZLLHISL M\[\YL HUK OLUJL SPHIPSP[` PZ YLZ[YPJ[LK [V^HYKZ [OL TVU[OS` JVU[YPI\[PVUZ VUS` (J[\HYPHS NHPUZ SVZZLZ HYL YLJVNUPZLK PU M\SS PU [OL Z[H[LTLU[ VM WYVÄ[ HUK SVZZ MVY [OL WLYPVK PU ^OPJO [OL` VJJ\Y 7HZ[ ZLY]PJL JVZ[ PZ YLJVNUPZLK PTTLKPH[LS` [V [OL L_[LU[ [OH[ [OL ILULÄ[Z HYL HSYLHK` ]LZ[LK HUK V[OLY^PZL PZ HTVY[PZLK VU H Z[YHPNO[ SPUL IHZPZ V]LY [OL H]LYHNL WLYPVK \U[PS [OL ILULÄ[Z ILJVTL ]LZ[LK ;OL YL[PYLTLU[ ILULÄ[ VISPNH[PVUZ YLJVNUPZLK PU [OL IHSHUJL ZOLL[ YLWYLZLU[Z [OH[ WYLZLU[ ]HS\L VM [OL KLÄULK ILULÄ[ VISPNH[PVU HZ HKQ\Z[LK MVY \UYLJVNUPZLK WHZ[ ZLY]PJL JVZ[ HUK HZ YLK\JLK I` [OL MHPY ]HS\L VM [OL ZJOLTL VM HZZL[Z J 3VUN [LYT LTWSV`LL ILULÄ[Z! *VTWLUZH[LK HIZLUJLZ ^OPJO HYL UV[ L_WLJ[LK [V VJJ\Y ^P[OPU [^LS]L TVU[OZ HM[LY [OL LUK VM [OL WLYPVK PU ^OPJO [OL LTWSV`LL YLUKLYZ [OL YLSH[LK ZLY]PJLZ HYL YLJVNUPZLK HZ H SPHIPSP[` H[ [OL WYLZLU[ ]HS\L VM [OL KLÄULK ILULÄ[ VISPNH[PVU H[ [OL IHSHUJL ZOLL[ KH[L K ;LYTPUH[PVU ILULÄ[Z! ;LYTPUH[PVU ILULÄ[Z HYL YLJVNUPZLK HZ HU L_WLUZL PU [OL WLYPVK PU ^OPJO [OL` HYL PUJ\YYLK

84

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

1. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

13. Depreciation: H 6^ULK HZZL[Z! (1) Revalued assets: +LWYLJPH[PVU VU YL]HS\LK HZZL[ PZ WYV]PKLK VU Z[YHPNO[ SPUL TL[OVK VU [OL ]HS\LZ HUK H[ [OL YH[LZ ZWLJPÄLK PU :JOLK\SL ?0= [V [OL *VTWHUPLZ (J[ ;OL KPMMLYLUJL IL[^LLU KLWYLJPH[PVU WYV]PKLK VU YL]HS\LK HTV\U[ HUK VU OPZ[VYPJHS JVZ[ PZ YLJV\WLK V\[ VM YL]HS\H[PVU YLZLY]L (2) Assets carried at historical cost: +LWYLJPH[PVU VU [OL Ä_LK HZZL[Z JHYYPLK H[ OPZ[VYPJHS JVZ[ WYV]PKLK H[ [OL YH[LZ HUK PU [OL THUULY ZWLJPÄLK PU :JOLK\SL ?0= [V [OL *VTWHUPLZ (J[ VU >YP[[LU KV^U ]HS\L TL[OVK V[OLY [OHU VU I\PSKPUNZ HUK WSHU[ HUK LX\PWTLU[Z ^OPJO HYL KLWYLJPH[LK VU H Z[YHPNO[ SPUL TL[OVK -P_LK HZZL[Z ^OPJO HYL HKKLK KPZWVZLK VMM K\YPUN [OL `LHY KLWYLJPH[PVU PZ WYV]PKLK VU WYV YH[H IHZPZ ^P[O YLMLYLUJL [V [OL TVU[O VM HKKP[PVU KLSL[PVU I 3LHZLK HZZL[Z! 3LHZLOVSK SHUKZ HYL HTVY[PZLK V]LY [OL WLYPVK VM SLHZL )\PSKPUNZ JVUZ[Y\J[LK VU SLHZLOVSK SHUK HYL KLWYLJPH[LK H[ UVYTHS YH[L HZ WYLZJYPILK PU :JOLK\SL ?0= [V [OL *VTWHUPLZ (J[ ^OLYL [OL SLHZL WLYPVK PZ IL`VUK [OL SPML VM [OL I\PSKPUN 0U V[OLY JHZLZ I\PSKPUNZ JVUZ[Y\J[LK VU SLHZLOVSK SHUKZ HYL HTVY[PZLK V]LY [OL WYPTHY` SLHZL WLYPVK VM [OL SHUKZ )VYYV^PUN JVZ[Z! H )VYYV^PUN JVZ[Z [OH[ HYL H[[YPI\[HISL [V [OL HJX\PZP[PVU JVUZ[Y\J[PVU VY WYVK\J[PVU VM H X\HSPM`PUN HZZL[ HYL JHWP[HSPZLK HZ H WHY[ VM [OL JVZ[ VM Z\JO HZZL[ [PSS Z\JO [PTL [OL HZZL[ PZ YLHK` MVY P[Z PU[LUKLK \ZL VY ZHSL ( X\HSPM`PUN HZZL[ PZ HU HZZL[ [OH[ ULJLZZHYPS` YLX\PYLZ H Z\IZ[HU[PHS WLYPVK VM [PTL NLULYHSS` V]LY [^LS]L TVU[OZ [V NL[ YLHK` MVY P[Z PU[LUKLK \ZL VY ZHSL I (SS V[OLY IVYYV^PUN JVZ[Z HYL YLJVNUPZLK HZ L_WLUZL PU [OL WLYPVK PU ^OPJO [OL` HYL PUJ\YYLK 15. Segment accounting: (a) Segment accounting policies: :LNTLU[ HJJV\U[PUN WVSPJPLZ HYL PU SPUL ^P[O [OL HJJV\U[PUN WVSPJPLZ VM [OL *VTWHU` ;OL JVTWHU` PKLU[PÄLZ WYPTHY` I\ZPULZZ ZLNTLU[ IHZLK VU [OL KPMMLYLU[ YPZRZ HUK YL[\YUZ [OL VYNHUPZH[PVU Z[Y\J[\YL HUK [OL PU[LYUHS YLWVY[PUN Z`Z[LTZ :LJVUKHY` ZLNTLU[Z HYL PKLU[PÄLK VU [OL IHZPZ VM NLVNYHWO` PU ^OPJO ZHSLZ OH]L ILLU LMMLJ[LK 0U HKKP[PVU [OL MVSSV^PUN ZWLJPÄJ HJJV\U[PUN WVSPJPLZ OH]L ILLU MVSSV^LK MVY ZLNTLU[ YLWVY[PUN! :LNTLU[ YL]LU\L PUJS\KLZ ZHSLZ HUK V[OLY PUJVTL KPYLJ[S` PKLU[PÄHISL ^P[O HSSVJHISL [V [OL ZLNTLU[ PUJS\KPUN PU[LY ZLNTLU[ YL]LU\L ,_WLUZLZ [OH[ HYL KPYLJ[S` PKLU[PÄHISL ^P[O HSSVJHISL [V ZLNTLU[Z HYL JVUZPKLYLK MVY KL[LYTPUPUN [OL ZLNTLU[ YLZ\S[ ,_WLUZLZ ^OPJO YLSH[L [V [OL *VTWHU` HZ H ^OVSL HUK UV[ HSSVJHISL [V ZLNTLU[Z HYL PUJS\KLK \UKLY \UHSSVJHISL L_WLUKP[\YL 0UJVTL ^OPJO YLSH[LZ [V [OL *VTWHU` HZ H ^OVSL HUK UV[ HSSVJHISL [V ZLNTLU[Z PZ PUJS\KLK PU \UHSSVJHISL PUJVTL :LNTLU[ YLZ\S[ PUJS\KLZ THYNPUZ VU PU[LY ZLNTLU[ HUK ZHSLZ ^OPJO HYL YLK\JLK PU HYYP]PUN H[ [OL WYVÄ[ ILMVYL [H_ VM [OL *VTWHU` :LNTLU[ HZZL[Z HUK SPHIPSP[PLZ PUJS\KL [OVZL KPYLJ[S` PKLU[PÄHISL ^P[O [OL YLZWLJ[P]L ZLNTLU[Z <UHSSVJHISL HZZL[Z HUK SPHIPSP[PLZ YLWYLZLU[ [OL HZZL[Z HUK SPHIPSP[PLZ [OH[ YLSH[L [V [OL *VTWHU` HZ H ^OVSL HUK UV[ HSSVJHISL [V HU` ZLNTLU[ I 0U[LY ZLNTLU[ [YHUZMLY WYPJPUN! :LNTLU[ YL]LU\L YLZ\S[PUN MYVT [YHUZHJ[PVUZ ^P[O V[OLY I\ZPULZZ ZLNTLU[Z PZ HJJV\U[LK VU [OL IHZPZ VM [YHUZMLY WYPJL HNYLLK IL[^LLU [OL ZLNTLU[Z :\JO [YHUZMLY WYPJLZ HYL LP[OLY KL[LYTPULK [V `PLSK H KLZPYLK THYNPU VY HNYLLK VU H ULNV[PH[LK IHZPZ ;H_LZ VU PUJVTL! H ;H_ VU PUJVTL MVY [OL J\YYLU[ WLYPVK PZ KL[LYTPULK VU [OL IHZPZ VU LZ[PTH[LK [H_HISL PUJVTL HUK [H_ JYLKP[Z JVTW\[LK PU HJJVYKHUJL ^P[O [OL WYV]PZPVUZ VM [OL 0UJVTL ;H_ (J[ HUK IHZLK VU [OL L_WLJ[LK V\[JVTL VM HZZLZZTLU[Z HWWLHSZ I +LMLYYLK [H_ PZ YLJVNUPZLK VU [PTPUN KPMMLYLUJLZ IL[^LLU [OL HJJV\U[PUN PUJVTL HUK [OL [H_HISL PUJVTL MVY [OL `LHY HUK X\HU[PÄLK \ZPUN [OL [H_ YH[LZ HUK [H_ SH^Z LUHJ[LK VY Z\IZ[HU[P]LS` LUHJ[LK HZ VU [OL IHSHUJL ZOLL[ KH[L J +LMLYYLK [H_ HZZL[Z YLSH[PUN [V \UHIZVYILK KLWYLJPH[PVU I\ZPULZZ SVZZLZ HYL YLJVNUPZLK HUK JHYYPLK MVY^HYK [V [OL L_[LU[ [OLYL PZ ]PY[\HS JLY[HPU[` [OH[ Z\MÄJPLU[ M\[\YL [H_HISL PUJVTL ^PSS IL H]HPSHISL HNHPUZ[ ^OPJO Z\JO KLMLYYLK [H_ HZZL[Z JHU IL YLHSPZLK K 6[OLY KLMLYYLK [H_ HZZL[Z HYL YLJVNUPZLK HUK JHYYPLK MVY^HYK [V [OL L_[LU[ [OH[ [OLYL PZ H YLHZVUHISL JLY[HPU[` [OH[ Z\MÄJPLU[ M\[\YL [H_HISL PUJVTL ^PSS IL H]HPSHISL HNHPUZ[ ^OPJO Z\JO KLMLYYLK [H_ HZZL[Z JHU IL YLHSPZLK 7YV]PZPVUZ *VU[PUNLU[ SPHIPSP[PLZ *VU[PUNLU[ HZZL[Z HUK *VTTP[TLU[Z! H 7YV]PZPVUZ HYL YLJVNUPZLK MVY SPHIPSP[PLZ [OH[ JHU IL TLHZ\YLK VUS` I` \ZPUN H Z\IZ[HU[PHS KLNYLL VM LZ[PTH[PVU PM! [OL *VTWHU` OHZ H WYLZLU[ VISPNH[PVU HZ H YLZ\S[ VM H WHZ[ L]LU[" H WYVIHISL V\[ÅV^ VM YLZV\YJLZ PZ L_WLJ[LK [V ZL[[SL [OL VISPNH[PVU" HUK [OL HTV\U[ VM [OL VISPNH[PVU JHU IL YLSPHIS` LZ[PTH[LK I 9LPTI\YZLTLU[ I` HUV[OLY WHY[` L_WLJ[LK PU YLZWLJ[ VM L_WLUKP[\YL YLX\PYLK [V ZL[[SL H WYV]PZPVU PZ YLJVNUPZLK ^OLU P[ PZ ]PY[\HSS` JLY[HPU [OH[ YLPTI\YZLTLU[ ^PSS IL YLJLP]LK PM [OL VISPNH[PVU PZ ZL[[SLK J *VU[PUNLU[ SPHIPSP[` PZ KPZJSVZLK PU [OL JHZL VM! H WYLZLU[ VISPNH[PVU HYPZPUN MYVT WHZ[ L]LU[Z ^OLU P[ PZ UV[ WYVIHISL [OH[ HU V\[ÅV^ VM YLJV\YZLZ ^PSS IL YLX\PYLK [V ZL[[SL [OL VISPNH[PVU" H WYLZLU[ VISPNH[PVU HYPZPUN MYVT WHZ[ L]LU[Z ^OLU UV YLSPHISL LZ[PTH[L PZ WVZZPISL" H WVZZPISL VISPNH[PVU HYPZPUN MYVT WHZ[ L]LU[Z \USLZZ [OL WYVIHIPSP[` VM V\[ÅV^ VM YLZV\YJLZ PZ YLTV[L K *VU[PUNLU[ HZZL[Z HYL ULP[OLY YLJVNUPZLK UVY KPZJSVZLK L *VTTP[TLU[Z PUJS\KL [OL HTV\U[ VM W\YJOHZL VYKLY UL[ VM HK]HUJLZ PZZ\LK [V WHY[PLZ MVY JVTWSL[PVU VM HZZL[Z M 7YV]PZPVUZ JVU[PUNLU[ SPHIPSP[PLZ JVU[PUNLU[ HZZL[Z HUK JVTTP[TLU[Z HYL YL]PL^LK H[ LHJO IHSHUJL ZOLL[ KH[L

FINANCIALS

85

` crore

N OT E S

2.

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

(Z H[

(Z H[

361.00

128.30

128.30

SHARE CAPITAL Authorised: ,X\P[` :OHYLZ VM ` LHJO Issued: ,X\P[` :OHYLZ VM ` LHJO :\IZJYPILK HUK WHPK \W! ,X\P[` :OHYLZ VM ` LHJO Forfeited shares: (TV\U[ WHPK \W VU ,X\P[` :OHYLZ VM ` LHJO (TV\U[ WHPK \W `

0.00

128.30

Notes: H 9LJVUJPSPH[PVU VM [OL U\TILY VM [OL ZOHYLZ V\[Z[HUKPUN H[ [OL ILNPUUPUN HUK H[ [OL LUK VM [OL `LHY! (\[OVYPZLK ZOHYL JHWP[HS

)HSHUJL H[ [OL ILNPUUPUN VM [OL `LHY (THSNTH[PVU VM ^OVSS` V^ULK Z\IZPKPHY` ^P[O [OL *VTWHU` )HSHUJL H[ [OL LUK VM [OL `LHY

(Z H[

(Z H[

No. of Shares

` crore

5V VM :OHYLZ

` crore

1805000000

361.00

-

-

1805000000

361.00

;OL *VTWHU` OHZ UV[ PZZ\LK HU` LX\P[` ZOHYLZ K\YPUN [OL J\YYLU[ HUK PU [OL WYL]PV\Z `LHY I ;LYTZ YPNO[Z H[[HJOLK [V LX\P[` ZOHYLZ!

;OL *VTWHU` OHZ VUS` VUL JSHZZ VM ZOHYL JHWP[HS P L LX\P[` ZOHYLZ OH]PUN MHJL ]HS\L VM ` WLY ZOHYL ,HJO OVSKLY VM LX\P[` ZOHYL PZ LU[P[SLK [V VUL ]V[L WLY ZOHYL +\YPUN [OL `LHY [OL *VTWHU` OHZ KLJSHYLK HUK WHPK PU[LYPT KP]PKLUK VM ` WLY ZOHYL ;OL *VTWHU` OHZ YLJVTTLUKLK H ÄUHS KP]PKLUK VM ` WLY ZOHYL Z\IQLJ[ [V HWWYV]HS VM ZOHYLOVSKLYZ H[ [OL LUZ\PUN (UU\HS .LULYHS 4LL[PUN

0U [OL L]LU[ VM SPX\KH[PVU [OL LX\P[` ZOHYLOVSKLYZ HYL LSPNPISL [V YLJLP]L [OL YLTHPUPUN HZZL[Z VM [OL *VTWHU` HM[LY KPZ[YPI\[PVU VM HSS WYLMLYLU[PHS HTV\U[Z PU WYVWVY[PVU [V [OLPY ZOHYLOVSKPUN

(c) Details of shareholders holding more than 5 % shares in the Company: (Z H[

(Z H[

% No. of Shares

(]HU[OH /VSKPUNZ 3PTP[LK

39.90

255937034

%

5V VM :OHYLZ

/+-* ;Y\Z[LL *VTWHU` 3PTP[LK

9.05

58069500

3PML 0UZ\YHUJL *VYWVYH[PVU VM 0UKPH

5.46

35043515

(Z H[

(Z H[

No. of Shares

5V VM :OHYLZ

274924944

(d) There are no shares reserved for issue under options and contracts / commitments for the sale of shares / disinvestment. L (NNYLNH[L U\TILY VM IVU\Z ZOHYLZ PZZ\LK K\YPUN [OL WLYPVK VM Ä]L `LHYZ PTTLKPH[LS` WYLJLKPUN [OL YLWVY[PUN KH[L!

:OHYLZ PZZ\LK HZ M\SS` WHPK \W IVU\Z ZOHYLZ M (NNYLNH[L U\TILY VM ZOHYLZ PZZ\LK HZ .+9Z! (Z H[ % No. of Shares ;OL )HUR VM 5L^ @VYR

86

0.23

1474294

(Z H[ %

5V VM :OHYLZ

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

(Z H[ 3.

(Z H[

RESERVES AND SURPLUS Capital reserve

19.12

Capital redemption reserve: (Z WLY SHZ[ IHSHUJL ZOLL[ (KK! ;YHUZMLYYLK VU HTHSNTH[PVU VM H Z\IZPKPHY`

10.00

-

-

Securities premium account

10.00

151.84

Revaluation reserve: (Z WLY SHZ[ IHSHUJL ZOLL[

14.02

Less: ;YHUZMLYYLK [V :[H[LTLU[ VM WYVÄ[ HUK SVZZ b9LMLY 5V[L H ILSV^d

(0.20)

13.82 General reserve: (Z WLY SHZ[ IHSHUJL ZOLL[

318.39

(KK! ;YHUZMLYYLK MYVT :[H[LTLU[ VM WYVÄ[ HUK SVZZ b9LMLY 5V[L I ILSV^d

45.00

363.39 )HSHUJL PU :[H[LTLU[ VM WYVÄ[ HUK SVZZ! (Z WLY SHZ[ IHSHUJL ZOLL[

2059.21

445.84

(KK! 7YVÄ[ MVY [OL `LHY (KK! ;YHUZMLYYLK VU HTHSNHTH[PVU VM H Z\IZPKPHY`

)HSHUJL VM :[H[LTLU[ VM WYVÄ[ HUK SVZZ HZ H[ Z[ (WYPS

-

7YVÄ[ HM[LY [H_ MVY ÄUHUJPHS `LHY

-

7YVÄ[ H]HPSHISL MVY HWWYVWYPH[PVU ;YHUZMLY [V .LULYHS YLZLY]L b9LMLY 5V[L I ILSV^d 7YVÄ[ H]HPSHISL MVY KPZ[YPI\[PVU!

2505.05

45.00

2460.05

Z[ 0U[LYPT KP]PKLUK

25.66

UK 0U[LYPT KP]PKLUK

25.66

-

7YVWVZLK KP]PKLUK

25.66

-

(KKP[PVUHS [H_ VU KP]PKLUK

12.69

YK 0U[LYPT KP]PKLUK

2370.38

2928.55

Notes: H +LWYLJPH[PVU VU YL]HS\LK HTV\U[ VM Ä_LK HZZL[Z YLJV\WLK MYVT 9L]HS\H[PVU YLZLY]L ` JYVYL

I ;YHUZMLY [V .LULYHS 9LZLY]L YLWYLZLU[Z [YHUZMLYYLK MYVT :[H[LTLU[ VM WYVÄ[ HUK SVZZ PU JVTWSPHUJL ^P[O WYV]PZPVUZ VM [OL *VTWHUPLZ ;YHUZMLY VM 7YVÄ[Z [V 9LZLY]LZ 9\SLZ

FINANCIALS

87

` crore

N OT E S

4.

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

(Z H[

(Z H[

0.75

0.75

LONG-TERM BORROWINGS Unsecured loans 0U[LYLZ[ MYLL ZHSLZ [H_ KLMLYYHS SVHUZ MYVT :[H[L .V]LYUTLU[ 9LMLY 5V[L ILSV^

Note: ;OL *VTWHU` OHZ VW[LK MVY [OL KLMLYYHS :JOLTL VM ZHSLZ [H_ ^OPJO PZ WH`HISL HZ WLY [OL :JOLTL MYHTLK I` :[H[L .V]LYTLU[

(Z H[ 5.

(Z H[

DEFERRED TAX Deferred [H_ assets +PMMLYLUJL IL[^LLU IVVR HUK [H_ KLWYLJPH[PVU 15.07

6[OLY P[LTZ NP]PUN YPZL [V [PTPUN KPMMLYLUJLZ

28.80 43.87

93.70

49.83

6U HTHSNTH[PVU VM H Z\IZPKPHY`

6.

+LMLYYLK [H_ SPHIPSP[PLZ

+LMLYYLK [H_ SPHIPSP[` HZZL[

+LMLYYLK [H_ SPHIPSP[` HZZL[ JOHYNLK [V :[H[LTLU[ VM WYVÄ[ HUK SVZZ

+LMLYYLK [H_ HZZL[Z

93.70

,_WLUZLZ HSSV^HISL MVY [H_ W\YWVZLZ ^OLU WHPK VU WH`TLU[ VM ;+:

5L[ KLMLYYLK [H_ SPHIPSP[`

Deferred [H_ SPHIPSP[PLZ

6.60

(Z H[

(Z H[

OTHER LONG-TERM LIABILITIES 6[OLY WH`HISLZ! +LWVZP[Z

7.

(Z H[

(Z H[

38.09

38.09

(Z H[

(Z H[

12.93

12.93

LONG-TERM PROVISIONS ,TWSV`LL ILULÄ[Z 9LMLY 5V[L infra)

8.

27.33 27.33

SHORT-TERM BORROWINGS Secured loans >VYRPUN JHWP[HS KLTHUK SVHU -YVT IHUR 9LMLY 5V[L ILSV^

Note: >VYRPUN JHWP[HS KLTHUK SVHU MYVT IHUR PZ ZLJ\YLK I` O`WV[OLJH[PVU VM PU]LU[VYPLZ IVVR KLI[Z HUK [YHKL YLJLP]HISLZ IV[O WYLZLU[ HUK M\[\YL

88

` crore

N OT E S

9.

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

(Z H[

(Z H[

124.96

41.71

1240.86

85.15

TRADE PAYABLES (JJLW[HUJLZ Sundry creditors +\L [V TPJYV HUK ZTHSS LU[LYWYPZLZ 9LMLY 5V[L ILSV^ +\L [V V[OLY [OHU TPJYV HUK ZTHSS LU[LYWYPZLZ +\L [V Z\IZPKPHYPLZ +\L [V HZZVJPH[LZ

21.63

1514.31

1171.03

Note: ;OL *VTWHU` OHZ HTV\U[Z K\L [V Z\WWSPLYZ \UKLY ;OL 4PJYV :THSS HUK 4LKP\T ,U[LYWYPZLZ +L]LSVWTLU[ (J[ 4:4,+ (J[ HZ H[ Z[ 4HYJO ;OL KPZJSVZ\YL W\YZ\HU[ [V [OL ZHPK (J[ PZ HZ \UKLY!

41.71

0.27

159.09

-

-

(e) 0U[LYLZ[ WHPK [V Z\WWSPLYZ \UKLY 4:4,+ (J[ :LJ[PVU

0.01

-

M 0U[LYLZ[ K\L HUK WH`HISL [V^HYKZ Z\WWSPLYZ \UKLY 4:4,+ (J[ MVY WH`TLU[Z HSYLHK` THKL

0.06

-

(g) 0U[LYLZ[ HJJY\LK HUK YLTHPUPUN \UWHPK H[ [OL LUK VM LHJO VM [OL `LHY [V Z\WWSPLYZ \UKLY 4:4,+ (J[

0.21

(a) 7YPUJPWHS HTV\U[ K\L [V Z\WWSPLYZ \UKLY 4:4,+ (J[ I 0U[LYLZ[ HJJY\LK HUK K\L [V Z\WWSPLYZ \UKLY 4:4,+ (J[ VU [OL HIV]L HTV\U[ \UWHPK (c) 7H`TLU[ THKL [V Z\WWSPLYZ V[OLY [OHU PU[LYLZ[ IL`VUK [OL HWWVPU[LK KH` K\YPUN [OL `LHY (d) 0U[LYLZ[ WHPK [V Z\WWSPLYZ \UKLY 4:4,+ (J[ V[OLY [OHU :LJ[PVU

;OL PUMVYTH[PVU OHZ ILLU NP]LU PU YLZWLJ[ VM Z\JO ]LUKVYZ [V [OL L_[LU[ [OL` JV\SK IL PKLU[PÄLK HZ TPJYV HUK ZTHSS LU[LYWYPZLZ VU [OL IHZPZ VM PUMVYTH[PVU H]HPSHISL ^P[O [OL *VTWHU`

FINANCIALS

89

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

(Z H[

(Z H[

10. OTHER CURRENT LIABILITIES Current maturities: 3VUN [LYT IVYYV^PUNZ! -YVT ÄUHUJPHS PUZ[P[\[PVU 0U[LYLZ[ MYLL ZHSLZ [H_ KLMLYYHS SVHUZ MYVT :[H[L .V]LYUTLU[ 0U[LYLZ[ HJJY\LK I\[ UV[ K\L VU IVYYV^PUNZ (K]HUJLZ MYVT J\Z[VTLYZ

-

0.38

-

283.36

0U]LZ[VY ,K\JH[PVU HUK 7YV[LJ[PVU -\UK! b9LMLY 5V[L H ILSV^d <UJSHPTLK KP]PKLUK

1.85

<UJSHPTLK TH[\YLK Ä_LK KLWVZP[Z

0.00

+\L [V KPYLJ[VYZ

1.85

10.03

Due to customers: 7YVNYLZZ IPSSZ YHPZLK Less: *VUZ[Y\J[PVU HUK WYVQLJ[ YLSH[LK ^VYR H[ YLHSPZHISL ]HS\L

1609.58

1594.40

15.18

27.56

Due to related parties: +\L [V Z\IZPKPHYPLZ 6[OLY WH`HISLZ! 0.73

:[H[\[VY` K\LZ

:LJ\YP[` KLWVZP[Z

33.66

,TWSV`LL K\LZ

9.26

6[OLYZ b9LMLY 5V[L I ILSV^d

39.65 83.30

421.66

477.86

Notes: H ;OLYL HYL UV HTV\U[Z K\L HUK V\[Z[HUKPUN [V IL JYLKP[LK [V [OL 0U]LZ[VY ,K\JH[PVU HUK 7YV[LJ[PVU -\UK HZ H[ Z[ 4HYJO I 6[OLY WH`HISLZ PUJS\KL ` JYVYL 7YL]PV\Z `LHY ` JYVYL YLJLP]LK HZ HK]HUJL HNHPUZ[ ZHSL VM HU PTTV]HISL WYVWLY[` VM [OL *VTWHU` (Z WLY [OL HNYLLTLU[Z ^P[O [OL I\`LYZ [OL *VTWHU` PZ LU[P[SLK [V MVYMLP[ [OL ZHPK HTV\U[Z PM [OL I\`LYZ KV UV[ JVTWS` ^P[O [OL JVUKP[PVUZ VM ZHSL ^P[OPU [OL Z[PW\SH[LK [PTL :PUJL [OL I\`LYZ OH]L MHPSLK [V JVTWS` ^P[O [OL JVUKP[PVUZ [OL *VTWHU` OHZ MVYMLP[LK [OLZL HTV\U[Z PU HJJVYKHUJL ^P[O [OL [LYTZ VM [OL HNYLLTLU[Z ;OL I\`LYZ OH]L ÄSLK Z\P[Z PU [OL *V\Y[Z MVY YLJV]LY` VM [OL HK]HUJLZ WHPK I` [OLT ;OL *VTWHU` JVU[LUKZ [OH[ HZ WLY [OL MVYJL THQL\YL JSH\ZL PU [OL HNYLLTLU[Z [OLZL HTV\U[Z HYL UV[ YLX\PYLK [V IL YLM\UKLK 7LUKPUN KPZWVZHS VM [OL JHZLZ I` [OL *V\Y[Z [OL *VTWHU` HZ H TLHZ\YL VM WY\KLUJL OHZ UV[ YLJVNUPZLK [OL ZHPK HTV\U[ PU [OL :[H[LTLU[ VM WYVÄ[ HUK SVZZ ;OL I\`LY OHZ LUJHZOLK [OL IHUR N\HYHU[LL HZ WLY [OL KPYLJ[PVU I` [OL *V\Y[ (Z H[

(Z H[

28.47

-

11. SHORT-TERM PROVISIONS ;H_LZ 5L[ VM HK]HUJL [H_ 0U[LYPT KP]PKLUK

-

25.66

-

(KKP[PVUHS [H_ VU KP]PKLUK

4.36

,TWSV`LL ILULÄ[Z

3.18

86.20

147.87

7YVWVZLK KP]PKLUK

6[OLYZ WYV]PZPVUZ 9LMLY 5V[L ILSV^

90

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

Note: +PZJSVZ\YLZ HZ YLX\PYLK I` (JJV\U[PUN :[HUKHYK (: 7YV]PZPVUZ *VU[PUNLU[ 3PHIPSP[PLZ HUK *VU[PUNLU[ (ZZL[Z! (1) Movement in provisions:

5H[\YL VM WYV]PZPVUZ

>HYYHU[PLZ

:HSLZ [H_ =(;

*HYY`PUN HTV\U[ H[ [OL ILNPUUPUN VM [OL `LHY

44.79

(KKP[PVUHS WYV]PZPVU THKL K\YPUN [OL `LHY

,_JPZL K\[` :LY]PJL [H_

20.66

7.46

17.61

1.71

1.39

(TV\U[Z \ZLK K\YPUN [OL `LHY

5.24

1.31

-

-

<U\ZLK HTV\U[Z YL]LYZLK K\YPUN [OL `LHY

7.81

1.96

0.09

49.35

19.10

.

8.76

*HYY`PUN HTV\U[ H[ [OL LUK VM [OL `LHY

5H[\YL VM WYV]PZPVUZ

3PX\PKH[LK KHTHNLZ

6[OLY SP[PNH[PVU JSHPTZ

;V[HS

9.62

3.59

86.12

(KKP[PVUHS WYV]PZPVU THKL K\YPUN [OL `LHY

-

0.78

21.49

(TV\U[Z \ZLK K\YPUN [OL `LHY

-

-

-

-

6.55

14.86

86.20

*HYY`PUN HTV\U[ H[ [OL ILNPUUPUN VM [OL `LHY

<U\ZLK HTV\U[Z YL]LYZLK K\YPUN [OL `LHY

5.00

-

-

*HYY`PUN HTV\U[ H[ [OL LUK VM [OL `LHY

4.62

4.37

(KKP[PVUHS WYV]PZPVU THKL K\YPUN [OL `LHY HUK YL]LYZHS VM \U\ZLK HTV\U[ HYL PUJS\KLK PU [OL YLZWLJ[P]L OLHK VM HJJV\U[Z (2) Nature of provisions: H 7YVK\J[ ^HYYHU[PLZ! ;OL *VTWHU` NP]LZ ^HYYHU[PLZ VU JLY[HPU WYVK\J[Z HUK ZLY]PJLZ PU [OL UH[\YL VM YLWHPYZ YLWSHJLTLU[ ^OPJO MHPS [V WLYMVYT ZH[PZMHJ[VYPS` K\YPUN [OL ^HYYHU[` WLYPVK 7YV]PZPVU THKL YLWYLZLU[Z [OL HTV\U[ VM [OL L_WLJ[LK JVZ[ VM TLL[PUN Z\JO VISPNH[PVU VU HJJV\U[ VM YLJ[PÄJH[PVU YLWSHJLTLU[ ;OL [PTPUN VM V\[ÅV^Z PZ L_WLJ[LK [V IL ^P[OPU H WLYPVK VM [^V `LHYZ I 7YV]PZPVU MVY ZHSLZ [H_ =(; YLWYLZLU[Z SPHIPSP[` VU HJJV\U[ VM UVU JVSSLJ[PVU VM KLJSHYH[PVU MVYTZ HUK V[OLY SLNHS TH[[LYZ ^OPJO HYL PU HWWLHS \UKLY [OL (J[ 9\SLZ J 7YV]PZPVU MVY L_JPZL K\[` ZLY]PJL [H_ YLWYLZLU[Z [OL KPMMLYLU[PHS K\[` SPHIPSP[` [OH[ PZ L_WLJ[LK [V TH[LYPHSPZL PU YLZWLJ[ VM TH[[LYZ PU HWWLHS K 7YV]PZPVU MVY SPX\PKH[LK KHTHNLZ OHZ ILLU THKL VU JVU[YHJ[Z MVY ^OPJO KLSP]LY` KH[LZ HYL L_JLLKLK HUK JVTW\[LK PU YLHZVUHISL HUK WY\KLU[ THUULY L 7YV]PZPVU MVY SP[PNH[PVU YLSH[LK VISPNH[PVUZ YLWYLZLU[Z SPHIPSP[PLZ [OH[ HYL L_WLJ[LK [V TH[LYPHSPZL PU YLZWLJ[ VM TH[[LYZ PU HWWLHS

FINANCIALS

91

92

=LOPJSLZ

140.92

1344.58

Total (i+ii)

7YL]PV\Z `LHY

72.06

15.69

35.83

0.18

J (KKP[PVUZ K\YPUN [OL `LHY PUJS\KL ` JYVYL" 7YL]PV\Z `LHY ` JYVYL YLSH[PUN [V YLZLHYJO HUK KL]LSVWTLU[

784.65

49.77

4.55

16.93

11.66

16.63

734.88

1.23

9.25

39.35

53.10

-

536.92

92.00

3.03

-

Upto

I *VZ[ VM 3HUK PUJS\KL ` JYVYL" 7YL]PV\Z `LHY ` JYVYL HUK )\PSKPUNZ PUJS\KL ` JYVYL" 7YL]PV\Z `LHY ` JYVYL HKKLK VU YL]HS\H[PVU VU [O 1\UL

PP PU JV VWLYH[P]L ZVJPL[` ` JYVYL" 7YL]PV\Z `LHY ` JYVYL WLUKPUN MVY HSSV[TLU[ VM ZOHYLZ

748.42

34.26

-

-

-

35.65

-

-

-

+LK\J[PVUZ

P PU ]HYPV\Z JV VWLYH[P]L ZVJPL[PLZ HUK HWHY[TLU[Z! ` JYVYL" 7YL]PV\Z `LHY ` JYVYL PUJS\KPUN ZOHYLZ VM ` LHJO HUK ZOHYLZ VM ` LHJO

1445.14

105.94

56.37

-

-

For the year

40.36

0.18

714.16

-

Upto

+LWYLJPH[PVU (TVY[PZH[PVU

H *VZ[ =HS\H[PVU VM )\PSKPUNZ PUJS\KLZ V^ULYZOPW HJJVTTVKH[PVU!

Notes:

6.59

99.53

16.40

:\I [V[HS PP

43.52

-

19.27

-

-

9LZLHYJO HUK KL]LSVWTLU[

;LJOUPJHS RUV^ OV^

26.75

1339.20

4.86

15.28

49.17

77.23

40.18

-

-

862.58

296.93

17.31

15.84

(Z H[

134.33

-

-

-

+LK\J[PVUZ

-

(KKP[PVUZ

.YVZZ ISVJR *VZ[ =HS\H[PVU

*VTTLYJPHS YPNO[Z

1245.05

*VTW\[LY ZVM[^HYL

PP 0U[HUNPISL (ZZL[Z

:\I [V[HS P

)\PSKPUNZ

6MÄJL LX\PWTLU[Z

6^ULK HZZL[Z SLHZLK V\[!

-\YUP[\YL HUK Ä_[\YLZ

7SHU[ HUK LX\PWTLU[Z

9HPS^H` ZPKPUNZ

)\PSKPUNZ

-YLLOVSK SHUK

3LHZLOVSK SHUK

6^ULK HZZL[Z!

P ;HUNPISL HZZL[Z

(Z H[

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

12. FIXED ASSETS

N OT E S

56.17

11.85

26.59

7.61

10.12

604.32

3.63

6.03

9.82

24.13

-

325.66

204.93

14.28

15.84

(Z H[

65.27

530.89

(Z H[

5L[ ISVJR

` crore

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

(Z H[

(Z H[

13. NON-CURRENT INVESTMENTS Quoted investments 0U]LZ[TLU[ PU .V]LYUTLU[ VY [Y\Z[ ZLJ\YP[PLZ

0.46

0.46

Unquoted investments Investments in equity instruments :\IZPKPHY` JVTWHUPLZ

308.49

(ZZVJPH[L JVTWHUPLZ

227.60

8.01

6[OLYZ 0U]LZ[TLU[ PU KLILU[\YLZ :\IZPKPHY` JVTWHUPLZ

9.92

6[OLYZ

0.05

0.05

554.12

554.58

)VVR ]HS\L

0.46

4HYRL[ ]HS\L

0.46

Others

Notes: Quoted investments

Unquoted investments )VVR ]HS\L

554.12

9LMLY HJJV\U[PUN WVSPJ` 5V[L VU ]HS\H[PVU VM PU]LZ[TLU[Z Z\WYH

FINANCIALS

93

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

-HJL ]HS\L per unit in ` \USLZZ V[OLY^PZL ZWLJPMPLK

5V VM ZOHYLZ \UP[Z (Z H[

(Z H[

39000

0.46

0.46

(Z H[

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

Quoted investments Government and trust securities

*LU[YHS .V]LYUTLU[ :LJ\YP[PLZ

.60 VM ` LHJO

b+PT\UP[PVU PU ]HS\L WYV]PKLK K\YPUN [OL `LHY ` JYVYL"7YL]PV\Z `LHY ` 5PSd

Total (A)

B)

Unquoted investments Investments in equity instruments 0U]LZ[TLU[ PU Z\IZPKPHY` JVTWHUPLZ Fully paid equity shares *. ,ULYN` 4HUHNLTLU[ 3PTP[LK

*. 0U[LYUH[PVUHS ) =

*YVTW[VU .YLH]LZ /VSKPUNZ 4H\YP[P\Z 3PTP[LK

*. A0= 7V^LY (\[VTH[PVU :VS\[PVUZ 3PTP[LK ZOHYLZ HJX\PYLK K\YPUN [OL `LHY

0.74

180000

101.33

42134142

194.34

10.02

2.01

1600000

,<9 <:+

10000000

*.770 (KOLZP]L 7YVK\J[Z 3PTP[LK

2005520

*. 7V^LY :VS\[PVUZ 3PTP[LK

50000

0.05

308.49

Investment in associate companies Fully paid equity shares *. 3\J` :^P[JONLHY 3PTP[LK 7V^LY ,X\PWTLU[ 3PTP[LK *HYYPLK H[ UVTPUHS ]HS\L VM ` (]HU[OH 7V^LY 0UMYHZ[Y\J[\YL 3PTP[LK

599993

0.60

<:+

20600

0.00

213300228

227.00

227.60

Others (]HU[OH /VSKPUNZ 3PTP[LK

800000

8.00

+PUL[[L ,_JS\ZP]L *S\I 7YP]H[L 3PTP[LK

500

0.01

9HKPHU[ ,SLJ[YVUPJZ 3PTP[LK *HYYPLK H[ UVTPUHS ]HS\L VM `

190000

0.00

8.01

6W[PVUHSS` *VU]LY[PISL ALYV *V\WVU 5VU THYRL[HISL [YHUZMLYHISL +LILU[\YLZ

0U]LZ[TLU[Z PU KLILU[\YLZ 0U]LZ[TLU[Z PU Z\IZPKPHY` JVTWHU` *. ,ULYN` 4HUHNLTLU[ 3PTP[LK

9918000

9.92

5000

0.05

9.97

0.05

<UZLJ\YLK 0YYLKLLTHISL 5VU JVU]LY[PISL +LILU[\YLZ VM ` LHJO Others +PUL[[L ,_JS\ZP]L *S\I 7YP]H[L 3PTP[LK <UZLJ\YLK 0YYLKLLTHISL 5VU JVU]LY[PISL +LILU[\YLZ VM ` LHJO

Other investments <;0 )HSHUJLK -\UK +P]PKLUK 7SHU 7H`V\[

94

55909

0.05

Total (B)

554.12

Total (A+B)

554.58

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

(Z H[

(Z H[

6.72

14. LONG-TERM LOANS AND ADVANCES <UZLJ\YLK JVUZPKLYLK NVVK \USLZZ V[OLY^PZL Z[H[LK *HWP[HS HK]HUJLZ 6[OLY KLWVZP[Z

11.38

18.10

(Z H[

(Z H[

15. CURRENT INVESTMENTS Quoted investments 0U]LZ[TLU[Z PU LX\P[` PUZ[Y\TLU[Z 0U]LZ[TLU[Z PU T\[\HS M\UKZ Notes: Quoted investments )VVR ]HS\L 4HYRL[ ]HS\L 9LMLY HJJV\U[PUN WVSPJ` 5V[L VU ]HS\H[PVU VM PU]LZ[TLU[Z Z\WYH

Details of investments: Investments in equity instruments 5PJJV *VYWVYH[PVU 3PTP[LK 0+)0 )HUR 3PTP[LK 1*; ,SLJ[YVUPJZ 3PTP[LK b+PT\UP[PVU PU ]HS\L WYV]PKLK K\YPUN [OL `LHY ` JYVYL" 7YL]PV\Z `LHY ` JYVYLd Investments in mutual funds :\UKHYHT <S[YH :OVY[ ;LYT -\UK 9LN\SHY +HPS` +P]PKLUK 9L PU]LZ[TLU[ ) ++ )PYSH :\U 3PML *HZO 7S\Z +HPS` +P]PKLUK 9LN\SHY 7SHU 9LPU]LZ[TLU[ 9LSPNHYL <S[YH :OVY[ ;LYT -\UK 0UZ[P[\[PVUHS +HPS` +P]PKLUK )HYVKH 7PVULLY 3PX\PK -\UK 7SHU ( +HPS` +P]PKLUK 9L PU]LZ[TLU[ <;0 -SVH[PUN 9H[L -\UK :OVY[ ;LYT 7SHU 9LN\SHY 7SHU +HPS` +P]PKLUK 9LPU]LZ[TLU[ /+-* -SVH[PUN 9H[L 0UJVTL -\UK :OVY[ ;LYT 7SHU >OVSLZHSL 6W[PVU +P]PKLUK 9LPU]LZ[TLU[ 7YPUJPWHS 0UJVTL -\UK :OVY[ ;LYT 7SHU 9LN\SHY 7SHU +P]PKLUK 6W[PVU 4VU[OS` 9LPU]LZ[TLU[ 05- 2 *9 0*0*0 7Y\KLU[PHS <S[YH :OVY[ ;LYT 9LN\SHY 7SHU +HPS` +P]PKLUK *HUHYH 9VILJV ;YLHZ\Y` (K]HU[HNL -\UK 9LN\SHY +HPS` +P]PKLUK 4VYNHU :[HUSL` (J[P]L )VUK -\UK 9LN\SHY 8\HY[LYS` +P]PKLUK 7LLYSLZZ <S[YH :OVY[ ;LYT -\UK :\WLY 0UZ[P[\[PVUHS +HPS` +P]PKLUK 9LPU]LZ[TLU[ )57 7HYPIHZ -SL_P +LI[ -\UK +HPS` +P]PKLUK 3++9 <UPVU 2)* 3PX\PK -\UK +HPS` +P]PKLUK 9LPU]LZ[TLU[ 9LSPHUJL 3PX\PK -\UK ;YLHZ\Y` 7SHU 0UZ[P[\[PVUHS 6W[PVU +HPS` +P]PKLUK 6W[PVU :\UKHYHT 4VUL` -\UK :\WLY 0UZ[P[\[PVUHS +HPS` +P]PKLUK 9LPU]LZ[TLU[ ) ++ )PYSH :\U 3PML *HZO 7S\Z 0UZ[P[\[PVUHS +HPS` +P]PKLUK 9LPU]LZ[TLU[ ) 4+ )PYSH :\U 3PML +`UHTPJ )VUK -\UK 9L[HPS 7SHU 4VU[OS` +P]PKLUK 9LPU]LZ[TLU[ ;3:+ ;(;( 3PX\PK :\WLY /PNO 0U]LZ[TLU[ -\UK +HPS` +P]PKLUK )HYVKH 7PVULLY 3PX\PK -\UK 0UZ[P[\[PVUHS +HPS` +P]PKLUK 7SHU <;0 3PX\PK *HZO 7SHU 0UZ[P[\[PVUHS +HPS` 0UJVTL 6W[PVU 9L PU]LZ[TLU[ 3 ++ :)0 4HNU\T 0UZ[H *HZO -\UK -SVH[LY 7SHU +HPS` +P]PKLUK (0. :OVY[ ;LYT -\UK 9L[HPS >LLRS` +P]PKLUK 7YPUJPWHS *HZO 4HUHNLTLU[ -\UK +P]PKLUK 7SHU +HPS` 0*0*0 7Y\KLU[PHS -SL_PISL 0UJVTL 7SHU 7YLTP\T +HPS` +P]PKLUK * 3 3 ; 3PX\PK :\WLY 0UZ[P[\[PVUHS +HPS` +P]PKLUK 9LPU]LZ[TLU[ 7SHU 4VYNHU :[HUSL` 3PX\PK -\UK +HPS` +P]PKLUK 7LLYSLZZ 3PX\PK -\UK :\WLY 0UZ[P[\[PVUHS +HPS` +P]PKLUK 9LPU]LZ[TLU[

0.77

499.69

500.46

500.46 500.46

-HJL ]HS\L per unit in ` \USLZZ V[OLY^PZL ZWLJPMPLK

5V VM ZOHYLZ \UP[Z (Z H[

(Z H[

(Z H[

330390 127720 250000

0.02 0.74 0.01

0.77

70.17 16.00 5.02 30.01 6.04 5.02 15.78 70.02 70.21 20.08 70.08 51.22 70.04 -

499.69

500.46

69914716 1597230 50135 299879 56069 4982999 12740705 69561715 565902 16869735 69751551 50703044 699930 18000986 5946074 402611 47680229 89767 742081 98138 297176 310233 741450 2837282 734994 740057 4500376

FINANCIALS

95

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

(Z H[

(Z H[

16. INVENTORIES 9H^ TH[LYPHSZ (KK! .VVKZ PU [YHUZP[

(KK! ,_JPZL K\[` VU ÄUPZOLK NVVKZ

46.28

>VYR PU WYVNYLZZ THU\MHJ[\YPUN -PUPZOLK NVVKZ THU\MHJ[\YPUN

177.49 223.77

173.40

61.85

7.09

:[VJR PU [YHKL :[VYLZ ZWHYLZ HUK WHJRPUN TH[LYPHSZ

77.85

3.66

3VVZL [VVSZ

68.94

0.88 548.50

5V[L! 9LMLY HJJV\U[PUN WVSPJ` 5V[L VU ]HS\H[PVU VM PU]LU[VYPLZ Z\WYH

(Z H[

(Z H[

17. TRADE RECEIVABLES Unsecured +LI[Z V]LYK\L MVY ZP_ TVU[OZ *VUZPKLYLK NVVK *VUZPKLYLK KV\I[M\S Less: (SSV^HUJL MVY KV\I[M\S KLI[Z

230.49 72.36

302.85

72.36 230.49

1610.13

1840.62

6[OLY KLI[Z *VUZPKLYLK NVVK

(Z H[

(Z H[

18. CASH AND BANK BALANCES Cash and cash equivalents: )HSHUJLZ ^P[O IHURZ! b9LMLY 5V[L H ILSV^d 6U J\YYLU[ HJJV\U[Z 6U KLWVZP[ HJJV\U[Z b^P[O SLZZ [OHU TVU[OZ TH[\YP[` 9LMLY 5V[L J ILSV^d *HZO VU OHUK

243.99

41.40

285.39

0.13

285.52 6[OLY IHSHUJLZ! ,HYTHYRLK IHSHUJLZ ^P[O IHURZ! b9LMLY 5V[L I ILSV^d <UWHPK KP]PKLUKZ

1.86

<UWHPK TH[\YLK Ä_LK KLWVZP[Z HUK PU[LYLZ[ HJJY\LK [OLYLVU

0.01

1.87 Other 6U KLWVZP[ HJJV\U[Z b>P[O TVYL [OHU TVU[OZ TH[\YP[` 9LMLY 5V[L J ILSV^d

1.40 3.27 288.79

Notes: H ;OLYL HYL UV IHSHUJLZ ^P[O IHURZ OLSK HZ THYNPU TVUL` VY ZLJ\YP[` HNHPUZ[ [OL IVYYV^PUNZ N\HYHU[LLZ HUK V[OLY JVTTP[TLU[Z I ;OLYL HYL UV HTV\U[Z K\L HUK V\[Z[HUKPUN [V IL JYLKP[LK [V [OL 0U]LZ[VY ,K\JH[PVU HUK 7YV[LJ[PVU -\UK HZ H[ Z[ 4HYJO J +LWVZP[Z PUJS\KLZ ` JYVYL! 7YL]PV\Z `LHY ` JYVYL \UKLY SPLU ^P[O IHURZ

96

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

(Z H[

(Z H[

19. SHORT-TERM LOANS AND ADVANCES <UZLJ\YLK JVUZPKLYLK NVVK \USLZZ V[OLY^PZL Z[H[LK Security deposits: *VUZPKLYLK NVVK *VUZPKLYLK KV\I[M\S Less: (SSV^HUJL MVY IHK HUK KV\I[M\S HK]HUJLZ

29.80 1.47

31.27

1.47

29.80 Loans and advances to related parties: :\IZPKPHYPLZ (ZZVJPH[LZ 6[OLY YLSH[LK WHY[`

509.38

0.00

10.45

519.83 (K]HUJLZ YLJV]LYHISL PU JHZO VY PU RPUK VY MVY ]HS\L [V IL YLJLP]LK! *VUZPKLYLK NVVK *VUZPKLYLK KV\I[M\S Less: (SSV^HUJL MVY IHK HUK KV\I[M\S HK]HUJLZ

86.97 4.59

91.56

4.59

86.97 )HSHUJLZ ^P[O L_JPZL J\Z[VTZ ZLY]PJL [H_ HUK ]HS\L HKKLK [H_ L[J

56.97

693.57

(Z H[

(Z H[

20. OTHER CURRENT ASSETS 0U[LYLZ[ HJJY\LK VU PU]LZ[TLU[Z HUK KLWVZP[Z 6[OLY YLJLP]HISLZ

0.07

49.67

49.74

FINANCIALS

97

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

21. REVENUE FROM OPERATIONS :HSL VM WYVK\J[Z :HSL VM ZLY]PJLZ

7534.18

36.89

7571.07 Less: ,_JPZL K\[`

435.77

7135.30

Note: :HSLZ =HS\L

:HSLZ =HS\L

1815.44

DISCLOSURE OF SALE OF PRODUCTS (i)

;YHUZMVYTLYZ 9LHJ[VYZ HUK (JJLZZVYPLZ [OLYLVM

(ii)

:^P[JONLHYZ *VU[YVS ,X\PWTLU[Z HUK (JJLZZVYPLZ [OLYLVM

743.14

(iii)

;YHJ[PVU ,SLJ[YVUPJ 0UK\Z[YPHS +YP]LZ HUK :*(+(

147.99

1333.06

586.88

(iv) ,SLJ[YPJ 4V[VYZ (S[LYUH[VYZ HUK +YP]LZ 7HULSZ (v)

7V^LY KYP]LU 7\TWZ

(vi) ,SLJ[YPJ :[LLS :[HTWPUN HUK 3HTPUH[LZ (vii) ,SLJ[YPJ -HUZ =LU[PSH[PVU HUK 7VSS\[PVU *VU[YVS :`Z[LTZ

67.36 1113.78

(viii) ,SLJ[YPJ 3HTWZ

768.90

P_ (WWSPHUJLZ

212.02

_

745.61

7534.18

45.61

:\IZPKPHYPLZ

0.30

6[OLYZ

0.02

23.45

6[OLYZ

22. OTHER INCOME 0U[LYLZ[ PUJVTL Dividend income:

.HPU VU ZHSL VM PU]LZ[TLU[Z UL[ ,_JOHUNL NHPU UL[

-

6[OLY UVU VWLYH[PUN PUJVTL UL[ VM L_WLUZLZ ! 0UJVTL MYVT SLHZL VM WYLTPZLZ I\ZPULZZ ZLY]PJL JLU[LYZ 4PZJLSSHULV\Z PUJVTL

21.49 7.81 98.68

98

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

23. COST OF RAW MATERIALS AND COMPONENTS CONSUMED AND CONSTRUCTION MATERIALS 6WLUPUN Z[VJR (KK! 7\YJOHZLZ Less: *SVZPUN Z[VJR Less: :JYHW ZHSLZ

167.39 3487.95 223.77 3431.57 93.17

(KK! :\I JVU[YHJ[PUN JOHYNLZ

3338.40 226.88

3565.28

Note:

DISCLOSURE OF RAW MATERIALS AND COMPONENTS CONSUMED AND CONSTRUCTION MATERIALS (i) -LYYV\Z TH[LYPHSZ (ii) 5VU MLYYV\Z TH[LYPHSZ (iii) *OLTPJHSZ 6PSZ HUK 7HPU[Z (iv) >PYLZ 7PWLZ ;\ILZ HUK *HISLZ (v) *VTWVULU[Z (vi) 6[OLYZ

630.13 710.21 161.06 44.44 1230.03 655.70

3431.57

24. PURCHASES OF STOCK-IN-TRADE 7\YJOHZLZ VM Z[VJR PU [YHKL

1811.80

1811.80

352.68 399.02 432.98 172.74 454.38

1811.80

Note:

DETAILS OF PURCHASES OF STOCK-IN-TRADE (i) 7V^LY KYP]LU 7\TWZ (ii) ,SLJ[YPJ -HUZ =LU[PSH[PVU *VU[YVS :`Z[LTZ HUK 7VSS\[PVU *VU[YVS :`Z[LTZ (iii) ,SLJ[YPJ 3HTWZ (iv) (WWSPHUJLZ (v) 6[OLYZ

25. CHANGES IN INVENTORIES OF FINISHED GOODS, WORK-IN-PROGRESS AND STOCK-IN-TRADE *OHUNLZ PU PU]LU[VYPLZ VM ÄUPZOLK NVVKZ HUK ^VYR PU WYVNYLZZ! *SVZPUN Z[VJR -PUPZOLK NVVKZ >VYR PU WYVNYLZZ 6WLUPUN Z[VJR -PUPZOLK NVVKZ >VYR PU WYVNYLZZ

68.94 173.40 242.34

37.48 201.37 238.85

(3.49) *OHUNLZ PU PU]LU[VYPLZ VM Z[VJR PU [YHKL *SVZPUN Z[VJR :[VJR PU [YHKL 6WLUPUN Z[VJR :[VJR PU [YHKL

77.85

38.35 (39.50)

(42.99)

FINANCIALS

99

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

351.80

22.71

26. EMPLOYEE BENEFITS :HSHYPLZ ^HNLZ HUK IVU\Z *VU[YPI\[PVU [V WYV]PKLU[ HUK V[OLY M\UKZ 7VZ[ YL[PYLTLU[ TLKPJHS ILULÄ[Z >VYRTLU HUK Z[HMM ^LSMHYL

8.13

28.53

411.17

25.35

27. FINANCE COSTS 0U[LYLZ[ VU SVHUZ 3VZZ VU MVYLPNU J\YYLUJ` [YHUZHJ[PVUZ HUK [YHUZSH[PVU

0.06

25.41

72.06

28. DEPRECIATION AND AMORTISATION +LWYLJPH[PVU HUK HTVY[PZH[PVU Less: 9LJV\WTLU[ MYVT YL]HS\H[PVU YLZLY]L b9LMLY UV[L H Z\WYHd

0.20

71.86

29. OTHER EXPENSES *VUZ\TW[PVU VM Z[VYLZ HUK ZWHYLZ

43.74

7V^LY HUK M\LS

47.30

9LU[

11.86

9LWHPYZ [V I\PSKPUNZ

6.76

9LWHPYZ [V THJOPULY`

28.04

0UZ\YHUJL

11.41

9H[LZ HUK [H_LZ

42.27

149.63

7HJRPUN TH[LYPHSZ

75.43

(M[LY ZHSLZ ZLY]PJLZ PUJS\KPUN ^HYYHU[PLZ

47.95

-YLPNO[ HUK MVY^HYKPUN

:HSLZ WYVTV[PVU

69.09

261.95

795.43

(\KP[ MLLZ

0.78

;H_ H\KP[ MLLZ

0.14

*LY[PÄJH[PVU ^VYR

0.27

6[OLY ZLY]PJLZ

0.08

,_WLUZLZ YLPTI\YZLK

0.30

1.57

4PZJLSSHULV\Z L_WLUZLZ 9LMLY 5V[L ILSV^

Note:

MISCELLANEOUS EXPENSES INCLUDES AUDITORS’ REMUNERATION (\KP[VYZ YLT\ULYH[PVU L_JS\KPUN ZLY]PJL [H_

100

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

(Z H[

(Z H[

30. CONTINGENT LIABILITIES AND COMMITMENTS (

*VU[PUNLU[ 3PHIPSP[PLZ!

[V [OL L_[LU[ UV[ WYV]PKLK MVY

(a) *SHPTZ HNHPUZ[ [OL *VTWHU` UV[ HJRUV^SLKNLK HZ KLI[Z

9.37

13.15

(c) ,_JPZL K\[` ZLY]PJL [H_ SPHIPSP[` [OH[ TH` HYPZL PU YLZWLJ[ VM TH[[LYZ PU HWWLHS

5.35

(d) 0UJVTL [H_ SPHIPSP[` [OH[ TH` HYPZL PU YLZWLJ[ VM TH[[LYZ PU HWWLHS WYLMLYYLK I` [OL department

1.03

1267.94

79.89

45.86

I :HSLZ [H_ =(; SPHIPSP[` [OH[ TH` HYPZL PU YLZWLJ[ VM TH[[LYZ PU HWWLHS

(e) .\HYHU[LLZ ZLJ\YP[PLZ NP]LU VU ILOHSM VM Z\IZPKPHY` JVTWHUPLZ M B

)PSSZ KPZJV\U[LK

Commitments: ,Z[PTH[LK HTV\U[ VM JVU[YHJ[Z YLTHPUPUN [V IL L_LJ\[LK VU JHWP[HS HJJV\U[ HUK UV[ WYV]PKLK MVY UL[ VM HK]HUJLZ

FINANCIALS

101

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

31. +\YPUN [OL `LHY [OL *VTWHU` OHZ LU[LYLK PU[V H KLÄUP[L HNYLLTLU[ KH[LK [O 1HU\HY` MVY HJX\PZP[PVU VM *VTWHJ[ -S\VYLZJLU[ 3HTWZ *-3 I\ZPULZZ VM 2HYTH 0UK\Z[YPLZ SVJH[LK H[ )HKKP /PTHJOHS 7YHKLZO

(a) 9H^ TH[LYPHSZ JVUZ\TLK

8.92

I ,TWSV`LL ILULÄ[Z

6.40

(c) 6[OLY L_WLUZLZ

0.18

(a) 9H^ TH[LYPHSZ

598.14

I ;YHKPUN NVVKZ

130.33

32. ,_WLUZLZ JHWP[HSPZLK K\YPUN [OL `LHY!

33. =HS\L VM PTWVY[Z VU * 0 - IHZPZ !

(c) :WHYL WHY[Z (d) *HWP[HS NVVKZ

2.88

28.85

34. ,_WLUKP[\YL PU MVYLPNU J\YYLUJ`! (a) ;LJOUPJHS RUV^ OV^ MLLZ

5.63

I 7YVMLZZPVUHS JOHYNLZ

6.60

(c) 0U[LYLZ[ (d) *VTTPZZPVU [YH]LSSPUN HUK V[OLYZ

1.23

53.03

35. Remittance in foreign currency on account of dividend: YK 0U[LYPT KP]PKLUK MVY `LHY LUKLK Z[ 4HYJO (a) 5\TILY VM UVU YLZPKLU[ ZOHYLOVSKLYZ I 5\TILY VM ZOHYLZ OLSK (c) (TV\U[ VM KP]PKLUK

365

19970828

0.80

Z[ 0U[LYPT KP]PKLUK MVY `LHY LUKPUN Z[ 4HYJO (a) 5\TILY VM UVU YLZPKLU[ ZOHYLOVSKLYZ I 5\TILY VM ZOHYLZ OLSK (c) (TV\U[ VM KP]PKLUK

249

19856686

0.79

UK 0U[LYPT KP]PKLUK MVY `LHY LUKPUN Z[ 4HYJO (a) 5\TILY VM UVU YLZPKLU[ ZOHYLOVSKLYZ I 5\TILY VM ZOHYLZ OLSK (c) (TV\U[ VM KP]PKLUK

250 19131125

0.77

850.12

5.77

21.27

36. ,HYUPUNZ PU MVYLPNU L_JOHUNL! (a) ,_WVY[ VM NVVKZ VU - 6 ) IHZPZ PUJS\KPUN KLLTLK L_WVY[Z ` JYVYL" 7YL]PV\Z `LHY ` JYVYL I :LY]PJL PUJVTL (c) 0U[LYLZ[

102

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

)\PSKPUN

0.42

7SHU[ HUK LX\PWTLU[Z

9.95

-\YUP[\YL HUK Ä_[\YLZ

0.14

=LOPJSLZ

0.06

0U[HUNPISL HZZL[Z

0.47

37. EXPENDITURE ON RESEARCH AND DEVELOPMENT H *HWP[HS L_WLUKP[\YL

*HWP[HS ^VYR PU WYVNYLZZ

13.31

0U[HUNPISL HZZL[Z \UKLY KL]LSVWTLU[

20.03

:\I [V[HS H

44.38

I 9L]LU\L L_WLUKP[\YL 9H^ TH[LYPHSZ JVUZ\TLK ,TWSV`LL ILULÄ[Z +LWYLJPH[PVU HUK HTVY[PZH[PVU

1.13

24.86

1.78

6[OLY L_WLUZLZ *VUZ\TW[PVU VM Z[VYLZ HUK ZWHYLZ

3.01

7V^LY HUK M\LS

0.95

9LU[

0.17

9LWHPYZ [V I\PSKPUNZ

0.22

9LWHPYZ [V THJOPULY`

0.24

0UZ\YHUJL

0.18

9H[LZ HUK [H_LZ

0.33

8.69

:\I [V[HS I

4PZJLSSHULV\Z L_WLUZLZ

41.56

;V[HS H I

85.94

98.22

38. CONSUMPTION OF RAW MATERIALS, AND COMPONENT CONSUMED AND CONSTRUCTION MATERIALS Percentage of total Consumption

` crore

7LYJLU[HNL VM [V[HS *VUZ\TW[PVU

` crore

9H^ TH[LYPHSZ HUK JVUZ[Y\J[PVU TH[LYPHSZ! 0TWVY[LK

16.77

575.41

0UKPNLUV\Z

83.23

2856.16

100.00

3431.57

:WHYL WHY[Z! 0TWVY[LK 0UKPNLUV\Z

5.53

2.37

94.47

40.50

100.00

42.87

100.00

0.88

100.00

0.88

3VVZL [VVSZ! 0UKPNLUV\Z

39. DISCLOSURES UNDER ACCOUNTING STANDARD (AS) 7 CONSTRUCTION CONTRACTS (a) *VU[YHJ[ YL]LU\L YLJVNUPZLK MVY [OL ÄUHUJPHS `LHY

497.65

1594.40

I (NNYLNH[L HTV\U[ VM JVU[YHJ[ JVZ[Z PUJ\YYLK HUK YLJVNUPZLK WYVÄ[Z SLZZ YLJVNUPZLK SVZZLZ MVY HSS JVU[YHJ[Z PU WYVNYLZZ \W [V [OL YLWVY[PUN KH[L (c) (TV\U[ VM J\Z[VTLY HK]HUJLZ V\[Z[HUKPUN MVY JVU[YHJ[Z PU WYVNYLZZ HZ H[ YLWVY[PUN KH[L (d) 9L[LU[PVU HTV\U[ K\L MYVT J\Z[VTLY MVY JVU[YHJ[ PU WYVNYLZZ HZ H[ [OL YLWVY[PUN KH[L

65.53

144.25

FINANCIALS

103

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

40. DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS) 15 EMPLOYEE BENEFITS H +LÄULK JVU[YPI\[PVU WSHUZ B9LMLY WVSPJ` 5V[L I Z\WYH] (TV\U[ VM ` JYVYL 7YL]PV\Z `LHY ` JYVYL PZ YLJVNUPZLK HZ HU L_WLUZL HUK PUJS\KLK PU ,TWSV`LL ILULÄ[Z B9LMLY 5V[L Z\WYH] I +LÄULK )LULÄ[ 7SHUZ B9LMLY WVSPJ` 5V[L I Z\WYHD HZ WLY (J[\HYPHS =HS\H[PVU HYL HZ \UKLY! .YH[\P[`

I

7VZ[ 9L[PYLTLU[ 4LKPJHS )LULMP[Z

3LH]L ,UJHZOTLU[

(Funded)

(Funded)

5VU M\UKLK

5VU M\UKLK (Non-funded) (Non-funded)

*OHUNL PU VISPNH[PVU K\YPUN [OL `LHY

3PHIPSP[` H[ [OL ILNPUUPUN VM [OL `LHY

47.51

21.51

12.83

0U[LYLZ[ JVZ[

3.92

1.78

0.91

*\YYLU[ ZLY]PJL JVZ[

2.78

1.81

0.40

7HZ[ ZLY]PJL JVZ[

-

-

-

-

-

-

3PHIPSP[` [YHUZMLY MYVT V[OLY *VTWHU`

-

-

-

-

(4.85)

(3.28)

(4.49)

3.00

2.98

6.82

52.36

24.80

16.47

)LULÄ[Z WHPK

(J[\HYPHS NHPUZ SVZZLZ

3PHIPSP[` H[ [OL LUK VM [OL `LHY

II

Change in fair value of plan assets during the year

-HPY ]HS\L VM WSHU HZZL[Z H[ [OL ILNPUUPUN VM [OL `LHY

47.51

-

-

-

-

,_WLJ[LK YL[\YU VU WSHU HZZL[Z

3.81

-

-

-

-

6.03

3.28

4.49

-

-

-

-

-

(3.28)

(4.49)

*VU[YPI\[PVUZ

;YHUZMLY MYVT V[OLY JVTWHU`

)LULÄ[Z WHPK

(4.85)

(J[\HYPHS NHPU SVZZ

(0.14)

-

-

-

-

-HPY ]HS\L VM WSHU HZZL[Z H[ [OL LUK VM [OL `LHY

52.36

-

-

-

-

;V[HS HJ[\HYPHS NHPU SVZZ [V IL YLJVNUPZLK

(3.14)

(2.98)

(6.82)

III

Actual return on plan assets

,_WLJ[LK YL[\YU VU WSHU HZZL[Z

(J[\HYPHS NHPU SVZZ

(J[\HS YL[\YU VU WSHU HZZL[Z

3.81

-

-

-

-

(0.14)

-

-

-

-

3.67

-

-

-

-

(52.36)

(24.80)

(16.47)

52.36

-

-

-

-

-

-

(24.80)

(16.47)

0= 5L[ HZZL[ SPHIPSP[` YLJVNUPZLK PU [OL IHSHUJL ZOLL[

3PHIPSP[` H[ [OL LUK VM [OL `LHY

-HPY ]HS\L VM WSHU HZZL[Z H[ [OL LUK VM [OL `LHY

(TV\U[ YLJVNUPZLK PU [OL IHSHUJL ZOLL[

=

,_WLUZLZ YLJVNUPZLK PU [OL Z[H[LTLU[ VM WYVÄ[ HUK SVZZ for the year

*\YYLU[ ZLY]PJL JVZ[

2.78

1.81

0.40

0U[LYLZ[ JVZ[

3.92

1.78

0.91

(3.81)

-

3.14

2.98

,_WLJ[LK YL[\YU VU WSHU HZZL[Z

(J[\HYPHS NHPUZ SVZZLZ

-

-

6.82

;V[HS L_WLUZLZ HZ WLY HJ[\HYPHS ]HS\H[PVU

6.03

6.57

8.13

6W[PVUHS WH`TLU[

0.67

-

-

-

;V[HS L_WLUZLZ PUJS\KLK PU LTWSV`LL ILULÄ[Z

6.70

6.57

8.13

VI

Balance sheet reconciliation

6WLUPUN UL[ SPHIPSP[`

-

21.51

12.83

,_WLUZLZ HZ HIV]L

6.03

6.57

8.13

,TWSV`LY Z JVU[YPI\[PVU

(6.03)

(3.28)

(4.49)

3PHIPSP[` [YHUZMLY MYVT V[OLY *VTWHU`

-

-

-

-

-

(TV\U[ YLJVNUPZLK PU [OL IHSHUJL ZOLL[

-

-

24.80

16.47

100%

-

-

-

-

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

104

-

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

40. DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS) 15 EMPLOYEE BENEFITS (Contd.) .YH[\P[`

7VZ[ 9L[PYLTLU[ 4LKPJHS )LULMP[Z

3LH]L ,UJHZOTLU[

(Funded)

(Funded)

5VU M\UKLK

-

-

-

-

-

-

-

-

5VU M\UKLK (Non-funded) (Non-funded)

VIII Effect of one percent point change in the assumed TLKPJHS PUÅH[PVU YH[L 0UJYLHZL KLJYLHZL VU HNNYLNH[L ZLY]PJL HUK PU[LYLZ[ JVZ[ VM 7VZ[ 9L[PYLTLU[ 4LKPJHS )LULÄ[Z P

6UL WLYJLU[HNL WVPU[ PUJYLHZL PU KPZJV\U[ YH[L

PP 6UL WLYJLU[HNL WVPU[ KLJYLHZL PU KPZJV\U[ YH[L

0.10

(0.09)

0UJYLHZL KLJYLHZL VU WYLZLU[ ]HS\L VM KLÄULK ILULÄ[Z VISPNH[PVU HZ H[ Z[ 4HYJO P

6UL WLYJLU[HNL WVPU[ PUJYLHZL PU 4LKPJHS 0UÃ…H[PVU YH[L

PP 6UL WLYJLU[HNL WVPU[ KLJYLHZL PU 4LKPJHS 0UÃ…H[PVU YH[L IX

-

-

-

-

1.55

-

-

-

-

(1.27)

Actuarial assumptions

+PZJV\U[ YH[L

8.00% p.a.

W H

8.00% p.a.

W H

8.25% p.a.

9H[L VM YL[\YU VU WSHU HZZL[Z

8.70% p.a.

W H

-

-

-

W H -

:HSHY` LZJHSH[PVU

5.00% p.a.

W H

5.00% p.a.

W H

-

-

4VY[HSP[` WYL YL[PYLTLU[ YH[L

30* 30* LIC LIC (1994-96) (1994-96) <S[PTH[L ;HISL <S[PTH[L ;HISL <S[PTH[L ;HISL <S[PTH[L ;HISL

-

-

4VY[HSP[` WVZ[ YL[PYLTLU[ YH[L

-

-

-

-

4LKPJHS WYLTP\T PUÃ…H[PVU YH[L

-

-

-

-

30* LIC (1996-98) <S[PTH[L ;HISL <S[PTH[L ;HISL 4.00 % p.a.

W H

J ;OL *VTWHU` THRLZ JVU[YPI\[PVU [V^HYKZ Z\WLYHUU\H[PVU M\UK HZ H KLÄULK JVU[YPI\[PVU YL[PYLTLU[ ILULÄ[ WSHU MVY X\HSPM`PUN LTWSV`LLZ ;V M\UK [OL ILULÄ[Z [OL *VTWHU` PZ YLX\PYLK [V JVU[YPI\[L H ZWLJPÄLK WLYJLU[HNL VM ZHSHY` [V [OL YLZWLJ[P]L ;Y\Z[Z ^OPJO HKTPUPZ[LY [OL YL[PYLTLU[ ILULÄ[ ZJOLTLZ K ;OL *VTWHU` THRLZ HUU\HS JVU[YPI\[PVUZ [V [OL *YVTW[VU .YLH]LZ 3PTP[LK .YH[\P[` ;Y\Z[ ^OPJO PZ M\UKLK KLÄULK ILULÄ[ WSHU MVY X\HSPM`PUN LTWSV`LLZ ;OL :JOLTL WYV]PKLZ MVY S\TW Z\T WH`TLU[ [V ]LZ[LK LTWSV`LLZ H[ YL[PYLTLU[ KLH[O ^OPSL PU LTWSV`TLU[ VY VU [LYTPUH[PVU VM LTWSV`TLU[ HZ WLY [OL *VTWHU`»Z .YH[\P[` :JOLTL =LZ[PUN VJJ\YZ \WVU JVTWSL[PVU VM Ä]L `LHYZ VM ZLY]PJL L ;OL *VTWHU` WYV]PKLZ WVZ[ YL[PYLTLU[ TLKPJHS ILULÄ[Z [V X\HSPM`PUN LTWSV`LLZ M ;OL HJ[\HYPHS ]HS\H[PVU VM WSHU HZZL[Z HUK [OL WYLZLU[ ]HS\L VM [OL KLÄULK ILULÄ[ VISPNH[PVU ^LYL JHYYPLK V\[ H[ Z[ 4HYJO ;OL WYLZLU[ ]HS\L VM [OL KLÄULK ILULÄ[ VISPNH[PVU HUK [OL YLSH[LK J\YYLU[ ZLY]PJL JVZ[ HUK WHZ[ ZLY]PJL JVZ[ ^LYL TLHZ\YLK \ZPUN [OL 7YVQLJ[LK <UP[ *YLKP[ 4L[OVK N +PZJV\U[ YH[L PZ IHZLK VU [OL WYL]HPSPUN THYRL[ `PLSKZ VM 0UKPHU .V]LYUTLU[ ZLJ\YP[PLZ HZ H[ [OL IHSHUJL ZOLL[ KH[L MVY [OL LZ[PTH[LK [LYT VM [OL VISPNH[PVUZ O ,_WLJ[LK YH[L VM YL[\YU VU [OL WSHU HZZL[Z PZ IHZLK VU [OL H]LYHNL SVUN [LYT YH[L VM YL[\YU L_WLJ[LK VU PU]LZ[TLU[Z VM [OL -\UK K\YPUN [OL LZ[PTH[LK [LYT VM [OL VISPNH[PVUZ P

;OL ZHSHY` LZJHSH[PVU YH[L PZ HYYP]LK HM[LY [HRPUN PU[V JVUZPKLYH[PVU [OL ZLUPVYP[` [OL WYVTV[PVU HUK V[OLY YLSL]HU[ MHJ[VYZ Z\JO HZ KLTHUK HUK Z\WWS` PU LTWSV`TLU[ THYRL[

FINANCIALS

105

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

41. DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS) 17 SEGMENT REPORTING I

Primary Segments (Business Segments)

7HY[PJ\SHYZ

,SPTPUH[PVUZ Unallocable Expenditure / Assets*

;V[HS

7135.30

7V^LY :`Z[LTZ

*VUZ\TLY 7YVK\J[Z

0UK\Z[YPHS :`Z[LTZ

6[OLYZ

2717.13

2591.47

1449.91

376.79

-

7.58

1.24

49.53

-

(58.35)

-

2724.71

2592.71

1499.44

376.79

(58.35)

7135.30

230.61

278.07

213.00

10.62

-

Revenue ,_[LYUHS ZHSLZ UL[ VM L_JPZL K\[` 0U[LY ZLNTLU[ ZHSLZ Total :LNTLU[ YLZ\S[Z

732.30

Less: -PUHUJL JVZ[Z

(20.20)

Less: 6[OLY \UHSSVJHISL L_WLUKP[\YL UL[ VM \UHSSVJHISL PUJVTL

156.48

7YVÄ[ ILMVYL [H_

596.02

;H_ L_WLUZL

150.18

7YVÄ[ HM[LY [H_

445.84

Capital Employed: :LNTLU[ HZZL[Z

1770.89

585.26

713.12

132.19

2068.16

5269.62

:LNTLU[ SPHIPSP[PLZ

990.44

474.93

321.29

64.70

297.52

2148.88

Net Assets

780.45

110.33

391.83

67.49

1770.64

3120.74

*HWP[HS L_WLUKP[\YL

69.11

18.43

58.33

12.50

18.00

176.37

+LWYLJPH[PVU HUK HTVY[PZH[PVU

29.27

7.85

21.07

0.60

13.07

71.86

9.81

2.52

6.26

0.33

-

18.92

,SPTPUH[PVUZ Unallocable Expenditure / Assets*

;V[HS

5VU JHZO L_WLUZLZ V[OLY [OHU KLWYLJPH[PVU

7HY[PJ\SHYZ

7V^LY :`Z[LTZ

*VUZ\TLY 7YVK\J[Z

0UK\Z[YPHS :`Z[LTZ

6[OLYZ

-

-

-

-

Revenue ,_[LYUHS ZHSLZ UL[ VM L_JPZL K\[` 0U[LY ZLNTLU[ ZHSLZ Total :LNTLU[ YLZ\S[Z

Less: -PUHUJL JVZ[Z Less: 6[OLY \UHSSVJHISL L_WLUKP[\YL UL[ VM \UHSSVJHISL PUJVTL

7YVÄ[ ILMVYL [H_

;H_ L_WLUZL

7YVÄ[ HM[LY [H_

Capital Employed: :LNTLU[ HZZL[Z

:LNTLU[ SPHIPSP[PLZ

Net Assets

*HWP[HS L_WLUKP[\YL

+LWYLJPH[PVU HUK HTVY[PZH[PVU

-

-

5VU JHZO L_WLUZLZ V[OLY [OHU KLWYLJPH[PVU

<UHSSVJHISL HZZL[Z JVTWYPZL HZZL[Z HUK SPHIPSP[PLZ ^OPJO JHUUV[ IL HSSVJH[LK [V [OL ZLNTLU[Z ;H_ JYLKP[ HZZL[Z SPHIPSP[PLZ HYL UV[ JVUZPKLYLK PU JHWP[HS LTWSV`LK

106

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

41. DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS) 17 SEGMENT REPORTING (Contd.) II

Secondary Segments (Geographical Segments) H ;OL KPZ[YPI\[PVU VM *VTWHU`»Z ZHSLZ I` NLVNYHWOPJHS THYRL[ PZ HZ \UKLY!

6371.04

(ZPH

256.22

(MYPJH

191.99

Sales and service revenue: +VTLZ[PJ 6]LYZLHZ!

5VY[O (TLYPJH

97.47

:V\[O (TLYPJH

167.59

42.55

,\YVWL (\Z[YHSPH Total

8.44

7135.30

I ;OL *VTWHU`»Z [HUNPISL Ä_LK HZZL[Z HYL SVJH[LK LU[PYLS` PU 0UKPH 000 :LNTLU[ 0KLU[PÄJH[PVU 9LWVY[HISL :LNTLU[ HUK KLÄUP[PVU VM LHJO 9LWVY[HISL :LNTLU[! H 7YPTHY` ZLNTLU[! 0U [OL VWPUPVU VM [OL THUHNLTLU[ [OL I\ZPULZZ ZLNTLU[ JVTWYPZLZ [OL MVSSV^PUN ! P

7V^LY :`Z[LTZ

! ;YHUZMVYTLY :^P[JONLHY ;\YURL` 7YVQLJ[Z HUK 7V^LY :*(+( :\WLY]PZVY` JVU[YVS HUK KH[H HJX\PZP[PVU Z`Z[LTZ

PP *VUZ\TLY 7YVK\J[Z

! -HUZ (WWSPHUJLZ 3\TPUHPYLZ 3PNO[ :V\YJLZ HUK 7\TWZ

PPP 0UK\Z[YPHS :`Z[LTZ

! ,SLJ[YPJ 4V[VYZ (S[LYUH[VYZ +YP]LZ ;YHJ[PVU ,SLJ[YVUPJZ HUK :*(+(

P] 6[OLY

! 7V^LY +PZ[YPI\[PVU

I 7YPTHY` :LJVUKHY` ZLNTLU[ YLWVY[PUN MVYTH[! P

;OL YPZR YL[\YU WYVÄSL VM [OL *VTWHU`»Z I\ZPULZZ PZ KL[LYTPULK WYLKVTPUHU[S` I` [OL UH[\YL VM P[Z WYVK\J[Z HUK ZLY]PJLZ (JJVYKPUNS` [OL I\ZPULZZ ZLNTLU[ JVUZ[P[\[LZ [OL WYPTHY` ZLNTLU[ MVY KPZJSVZ\YL VM ZLNTLU[ PUMVYTH[PVU

PP 0U YLZWLJ[ VM ZLJVUKHY` ZLNTLU[ PUMVYTH[PVU [OL THUHNLTLU[ OHZ PKLU[PÄLK P[Z NLVNYHWOPJHS ZLNTLU[Z HZ H +VTLZ[PJ HUK I 6]LYZLHZ ;OL ZLJVUKHY` ZLNTLU[ PUMVYTH[PVU OHZ ILLU KPZJSVZLK HJJVYKPUNS` J :LNTLU[ PKLU[PÄJH[PVU!

)\ZPULZZ ZLNTLU[Z OH]L ILLU PKLU[PÄLK VU [OL IHZPZ VM [OL UH[\YL VM WYVK\J[Z ZLY]PJLZ [OL YPZR YL[\YU WYVÄSL VM PUKP]PK\HS I\ZPULZZLZ [OL VYNHUPaH[PVUHS Z[Y\J[\YL HUK [OL PU[LYUHS YLWVY[PUN Z`Z[LT VM [OL *VTWHU`

K 9LWVY[HISL ZLNTLU[Z! 9LWVY[HISL ZLNTLU[Z OH]L ILLU PKLU[PÄLK HZ WLY [OL X\HU[P[H[P]L JYP[LYPH ZWLJPÄLK PU [OL (JJV\U[PUN :[HUKHYK L :LNTLU[ YL]LU\L HUK YLZ\S[Z! ;OL L_WLUZLZ HUK PUJVTLZ ^OPJO HYL UV[ KPYLJ[S` H[[YPI\[HISL [V HU` I\ZPULZZ ZLNTLU[ HYL ZOV^U HZ \UHSSVJHISL L_WLUKP[\YL UL[ VM \UHSSVJH[LK PUJVTL M :LNTLU[ HZZL[Z HUK SPHIPSP[PLZ!

:LNTLU[ HZZL[Z PUJS\KL HSS VWLYH[PUN HZZL[Z \ZLK I` [OL I\ZPULZZ ZLNTLU[ HUK THPUS` JVUZPZ[ VM Ä_LK HZZL[Z [YHKL YLJLP]HISLZ HUK PU]LU[VYPLZ :LNTLU[ SPHIPSP[PLZ WYPTHYPS` PUJS\KL [YHKL WH`HISLZ HUK V[OLY SPHIPSP[PLZ *VTTVU HZZL[Z HUK SPHIPSP[PLZ ^OPJO JHUUV[ IL HSSVJH[LK [V HU` VM [OL ZLNTLU[Z HYL ZOV^U HZ H WHY[ VM \UHSSVJHISL HZZL[Z SPHIPSP[PLZ

N 0U[LY ZLNTLU[ [YHUZMLY!

0U[LY ZLNTLU[ WYPJLZ HYL UVYTHSS` ULNV[PH[LK HTVUNZ[ ZLNTLU[Z ^P[O YLMLYLUJL [V [OL JVZ[Z THYRL[ WYPJL HUK I\ZPULZZ YPZRZ 7YVÄ[ VY SVZZ VU PU[LY ZLNTLU[ [YHUZMLYZ HYL LSPTPUH[LK H[ [OL *VTWHU` SL]LS

FINANCIALS

107

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

42. DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS) 18 RELATED PARTY DISCLOSURES :Y 5V 5HTL VM [OL 9LSH[LK 7HY[` P

9LSH[PVUZOPW

3PZ[ VM YLSH[LK WHY[PLZ V]LY ^OPJO JVU[YVS L_PZ[Z!

:\IZPKPHYPLZ!

*. ,ULYN` 4HUHNLTLU[ 3PTP[LK

*. 770 (KOLZP]L 7YVK\J[Z 3PTP[LK

:\IZPKPHY` VM [OL *VTWHU`

*. A0= 7V^LY (\[VTH[PVU :VS\[PVUZ 3PTP[LK

>OVSS` V^ULK :\IZPKPHY`

*. 7V^LY :VS\[PVUZ 3PTP[LK

>OVSS` V^ULK :\IZPKPHY`

*. 0U[LYUH[PVUHS ) =

:\IZPKPHY` VM *. 0U[LYUH[PVUHS /VSKPUNZ :PUNHWVYL 7;, 3PTP[LK

*. /VSKPUNZ )LSNP\T 5 =

>OVSS` V^ULK Z\IZPKPHY` VM *. 0U[LYUH[PVUHS ) =

*. 7V^LY :`Z[LTZ )LSNP\T 5 =

:\IZPKPHY` VM *. /VSKPUNZ )LSNP\T 5 =

7H\^LSZ ;YHMV .LU[ 5 = ^ L M [O 5V]LTILY

:\IZPKPHY` VM *. /VSKPUNZ )LSNP\T 5 =

*. 7V^LY :`Z[LTZ 0YLSHUK 3PTP[LK

>OVSS` V^ULK Z\IZPKPHY` VM *. 7V^LY :`Z[LTZ )LSNP\T 5 =

*. :HSLZ 5L[^VYRZ -YHUJL :(

:\IZPKPHY` VM *. 7V^LY :`Z[LTZ )LSNP\T 5 =

*. 7V^LY :`Z[LTZ <:( 0UJ

>OVSS` V^ULK Z\IZPKPHY` VM *. 7V^LY :`Z[LTZ )LSNP\T 5 =

*. :HSLZ 5L[^VYRZ (TLYPJHZ 0UJ

>OVSS` V^ULK Z\IZPKPHY` VM *. /VSKPUNZ )LSNP\T 5 =

*. 7V^LY :`Z[LTZ *HUHKH 0UJ

>OVSS` V^ULK Z\IZPKPHY` VM *. 7V^LY :`Z[LTZ )LSNP\T 5 =

*. :LY]PJL :`Z[LTZ *\YHJHV 5 =

:\IZPKPHY` VM *. 0U[LYUH[PVUHS ) =

7; *. 7V^LY :`Z[LTZ 0UKVULZPH

:\IZPKPHY` VM *. 7V^LY :`Z[LTZ )LSNP\T 5 =

*. /VSKPUNZ /\UNHY` 2M[

:\IZPKPHY` VM *. 7V^LY :`Z[LTZ )LSNP\T 5 =

*. ,SLJ[YPJ :`Z[LTZ /\UNHY` AY[

>OVSS` V^ULK Z\IZPKPHY` VM *. 7V^LY :`Z[LTZ )LSNP\T 5 =

*. 7V^LY /VSKPUNZ 0YLSHUK 3PTP[LK

>OVSS` V^ULK Z\IZPKPHY` VM *. 0U[LYUH[PVUHS ) =

>OVSS` V^ULK Z\IZPKPHY` VM *. 7V^LY /VSKPUNZ 0YLSHUK 3PTP[LK

4PJYVZVS 3PTP[LK

*. (\[VTH[PVU :`Z[LTZ <2 3PTP[LK

:\IZPKPHY` VM *. 7V^LY :`Z[LTZ )LSNP\T 5 =

=PZLYNL 3PTP[LK

:\IZPKPHY` VM *. 7V^LY /VSKPUNZ 0YLSHUK 3PTP[LK

*. :LY]PJL :`Z[LTZ -YHUJL :(:

>OVSS` V^ULK Z\IZPKPHY` VM *. 0U[LYUH[PVUHS ) =

*. 7V^LY :VS\[PVUZ <:( 0UJ

:\IZPKPHY` VM *. 0U[LYUH[PVUHS ) =

*. /VSKPUNZ .LYTHU` .TI/

>OVSS` V^ULK Z\IZPKPHY` VM *. 0U[LYUH[PVUHS ) =

*. 7V^LY :VS\[PVUZ <2 3PTP[LK

>OVSS` V^ULK Z\IZPKPHY` VM *. (\[VTH[PVU :`Z[LTZ <2 3PTP[LK

*. /VSKPUNZ <:( 0UJ

>OVSS` V^ULK Z\IZPKPHY` VM *. 7V^LY :`Z[LTZ )LSNP\T 5 =

*. 7V^LY *V\U[` 33*

>OVSS` V^ULK Z\IZPKPHY` VM *. /VSKPUNZ <:( 0UJ

*. 7V^LY :`Z[LTZ )YHaPS 3;+(

>OVSS` V^ULK Z\IZPKPHY` VM *. 7V^LY :`Z[LTZ )LSNP\T 5 =

:\IZPKPHY` VM *. /VSKPUNZ )LSNP\T 5 =

*. 7V^LY :VS\[PVUZ :H\KP (YHIPH 3[K

*. :HSLZ 5L[^VYRZ :PUNHWVYL 7;, 3PTP[LK

>OVSS` V^ULK Z\IZPKPHY` VM *. /VSKPUNZ )LSNP\T 5 =

*YVTW[VU .YLH]LZ /VSKPUNZ 4H\YP[P\Z 3PTP[LK

>OVSS` V^ULK Z\IZPKPHY`

*. 0U[LYUH[PVUHS /VSKPUNZ :PUNHWVYL 7;, 3PTP[LK

>OVSS` V^ULK Z\IZPKPHY` VM *YVTW[VU .YLH]LZ /VSKPUNZ 4H\YP[P\Z 3PTP[LK

*. 0UK\Z[YPHS /VSKPUNZ :^LKLU ()

>OVSS` V^ULK Z\IZPKPHY` VM *. 0U[LYUH[PVUHS ) =

7 ,4 ( : ^ L M [O (WYPS

>OVSS` V^ULK Z\IZPKPHY` VM *. 0UK\Z[YPHS /VSKPUNZ :^LKLU ()

*YVTW[VU .YLH]LZ /VSKPUNZ :^LKLU ()

>OVSS` V^ULK Z\IZPKPHY` VM 7,4 +LUTHYR

,TV[YVU /VSKPUNZ () TLYNLK ^ L M [O 1\UL

>OVSS` V^ULK Z\IZPKPHY` VM *YVTW[VU .YLH]LZ /VSKPUNZ :^LKLU ()

*. +YP]LZ HUK (\[VTH[PVU :^LKLU ()

>OVSS` V^ULK Z\IZPKPHY` VM ,TV[YVU /VSKPUNZ :^LKLU ()

*. +YP]LZ HUK (\[VTH[PVU 5L[OLYSHUKZ ) =

>OVSS` V^ULK Z\IZPKPHY` VM *. +YP]LZ HUK (\[VTH[PVU :^LKLU ()

>OVSS` V^ULK Z\IZPKPHY` VM *. +YP]LZ HUK (\[VTH[PVU :^LKLU ()

,TV[YVU +YP]LZ <2 3PTP[LK

,TV[YVU ,S -P <2 3PTP[LK

>OVSS` V^ULK Z\IZPKPHY` VM *. +YP]LZ HUK (\[VTH[PVU :^LKLU ()

*. +YP]LZ HUK (\[VTH[PVUZ .LYTHU` .TI/

>OVSS` V^ULK Z\IZPKPHY` VM *. +YP]LZ HUK (\[VTH[PVU :^LKLU ()

:JHUKPHSVNPJ ()

>OVSS` V^ULK Z\IZPKPHY` VM *. +YP]LZ HUK (\[VTH[PVU :^LKLU ()

,TV[YVU +YP]LZ ()

>OVSS` V^ULK Z\IZPKPHY` VM *. +YP]LZ HUK (\[VTH[PVU :^LKLU ()

,TV[YVU ,S -P ()

>OVSS` V^ULK Z\IZPKPHY` VM *. +YP]LZ HUK (\[VTH[PVU :^LKLU ()

,TV[YVU 3H[PU (TLYPJH 0UJ

>OVSS` V^ULK Z\IZPKPHY` VM *. +YP]LZ HUK (\[VTH[PVU :^LKLU ()

*. (\[VTH[PVU :VS\[PVUZ <:( 0UJ

>OVSS` V^ULK Z\IZPKPHY` VM *. /VSKPUNZ <:( 0UJ

A0= (WSPJHJPVULZ ` ;LJUVSVNPH : 3

>OVSS` V^ULK Z\IZPKPHY` VM *. 0U[LYUH[PVUHS ) =

A0= 4L[LYPUN :VS\[PVUZ : 3

>OVSS` V^ULK Z\IZPKPHY` VM A0= (WSPJHJPVULZ ` ;LJUVSVNPH : 3

>OVSS` V^ULK Z\IZPKPHY` VM A0= (WSPJHJPVULZ ` ;LJUVSVNPH : 3

A0= .YPK (\[VTH[PVU : 3

A0= *VTT\UPJH[PVUZ : (

108

>OVSS` V^ULK :\IZPKPHY`

>OVSS` V^ULK Z\IZPKPHY` VM A0= (WSPJHJPVULZ ` ;LJUVSVNPH : 3

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

42. DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS) 18 RELATED PARTY DISCLOSURES (Contd.) :Y 5V 5HTL VM [OL 9LSH[LK 7HY[`

9LSH[PVUZOPW

A0= <:( 05*

>OVSS` V^ULK Z\IZPKPHY` VM A0= (WSPJHJPVULZ ` ;LJUVSVNPH : 3

A0= +V )YHaPS 3;+(

:\IZPKPHY` VM A0= (WSPJHJPVULZ ` ;LJUVSVNPH

A0= 0 + :THY[ ,ULYN` 5L[^VYRZ

:\IZPKPHY` VM A0= 4L[LYPUN :VS\[PVUZ : 3

:LYPHS 5VZ HUK HYL SPX\PKH[LK K\YPUN [OL `LHY :LYPHS 5VZ HUK HYL SPX\PKH[LK ^ L M [O -LIY\HY` :LYPHS 5VZ [V HYL TLYNLK ^ L M [O 4H` :LYPHS 5VZ [V HYL HJX\PYLK ^ L M [O 1\S` PP 3PZ[ VM YLSH[LK WHY[PLZ ^P[O ^OVT [YHUZHJ[PVUZ ^LYL JHYYPLK V\[ K\YPUN [OL `LHY HUK KLZJYPW[PVU VM YLSH[PVUZOPW! :\IZPKPHYPLZ!

*. ,ULYN` 4HUHNLTLU[ 3PTP[LK

*. 770 (KOLZP]L 7YVK\J[Z 3PTP[LK

*. A0= 7V^LY (\[VTH[PVU :VS\[PVUZ 3PTP[LK

*. 0U[LYUH[PVUHS ) =

*. 7V^LY :`Z[LTZ <:( 0UJ

*. :HSLZ 5L[^VYRZ (TLYPJHZ 0UJ

*. :HSLZ 5L[^VYRZ -YHUJL :(

*. 7V^LY :`Z[LTZ )LSNP\T 5 = *. 7V^LY :`Z[LTZ *HUHKH 0UJ

*. /VSKPUNZ )LSNP\T 5 = *. ,SLJ[YPJ :`Z[LTZ /\UNHY` AY[ *. (\[VTH[PVU :`Z[LTZ <2 3PTP[LK 7; *. 7V^LY :`Z[LTZ 0UKVULZPH *. 7V^LY :`Z[LTZ 0YLSHUK 3PTP[LK *. 7V^LY :VS\[PVUZ <:( 0UJ *. 7V^LY :`Z[LTZ )YHaPS 3;+( *. +YP]LZ HUK (\[VTH[PVU :^LKLU () *. +YP]LZ HUK (\[VTH[PVUZ .LYTHU` .TI/

*. +YP]LZ HUK (\[VTH[PVU 5L[OLYSHUKZ ) =

*YVTW[VU .YLH]LZ /VSKPUNZ 4H\YP[P\Z 3PTP[LK *. 7V^LY :VS\[PVUZ 3PTP[LK A0= *VTT\UPJH[PVUZ : ( A0= (WSPJHJPVULZ ` ;LJUVSVNPH : 3 Associates:

*. 3\J` :^P[JONLHY 3PTP[LK

(]HU[OH 7V^LY 0UMYHZ[Y\J[\YL 3PTP[LK

Key Management Personnel:

.H\[HT ;OHWHY *OHPYTHU HUK 7YVTV[LY +PYLJ[VY

3H\YLU[ +LTVY[PLY *,6 4HUHNPUN +PYLJ[VY

6[OLY YLSH[LK WHY[PLZ PU ^OPJO KPYLJ[VYZ HYL PU[LYLZ[LK!

)HSSHYW\Y 0UK\Z[YPLZ 3PTP[LK

:VSHYPZ *OLT;LJO 0UK\Z[YPLZ 3PTP[LK

)03; .YHWOPJ 7HWLY 7YVK\J[Z 3PTP[LK

(]HU[OH ;LJOUVSVNPLZ 3PTP[LK

(]HU[OH /VSKPUNZ 3PTP[LK

:HSPLU[ )\ZPULZZ :VS\[PVUZ 3PTP[LK

(]HU[OH 9LHS[` 3PTP[LK

2VYIH >LZ[ 7V^LY *VTWHU` 3PTP[LK :HIHO -VYLZ[ 0UK\Z[YPLZ :KU )OK

4HSHUW\Y *HW[P]L 7V^LY 3PTP[LK *VYLSSH 0U]LZ[TLU[Z 3PTP[LK 3\Z[YL 0U[LYUH[PVUHS 3PTP[LK =HY\U 7YHRHZOHU 7YP]H[L 3PTP[LK 1OHI\H 7V^LY 3PTP[LK

FINANCIALS

109

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

42. DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS) 18 RELATED PARTY DISCLOSURES (Contd.) PPP ;OL MVSSV^PUN [YHUZHJ[PVUZ ^LYL JHYYPLK V\[ ^P[O [OL YLSH[LK WHY[PLZ PU [OL VYKPUHY` JV\YZL VM I\ZPULZZ! :Y 5V 5H[\YL VM [YHUZHJ[PVU YLSH[PVUZOPW 1 Purchase of goods and services :\IZPKPHYPLZ *. /VSKPUNZ )LSNP\T 5 = *. 770 (KOLZP]L 7YVK\J[Z 3PTP[LK *. 7V^LY :`Z[LTZ <:( 0UJ *. :HSLZ 5L[^VYRZ (TLYPJHZ 0UJ *. ,SLJ[YPJ :`Z[LTZ /\UNHY` AY[ *. (\[VTH[PVU :`Z[LTZ <2 3PTP[LK *. A0= 7V^LY (\[VTH[PVU :VS\[PVUZ 3PTP[LK *. 7V^LY :`Z[LT 0YLSHUK 3PTP[LK *. +YP]LZ HUK (\[VTH[PVU .LYTHU` .TI/ *. +YP]LZ HUK (\[VTH[PVU :^LKLU () A0= *VTT\UPJH[PVUZ : ( Associate *. 3\J` :^P[JONLHY 3PTP[LK Other Related Parties )03; .YHWOPJ 7HWLY 7YVK\J[Z 3PTP[LK )HSSHYW\Y 0UK\Z[YPLZ 3PTP[LK Total 2

3

110

Sales of goods and services :\IZPKPHYPLZ *. A0= 7V^LY (\[VTH[PVU :VS\[PVUZ 3PTP[LK 7; *. 7V^LY :`Z[LTZ 0UKVULZPH *. 7V^LY :`Z[LTZ *HUHKH 0UJ *. 7V^LY :`Z[LTZ <:( 0UJ *. :HSLZ 5L[^VYRZ (TLYPJHZ 0UJ *. :HSLZ 5L[^VYRZ -YHUJL :( *. 7V^LY :`Z[LTZ )LSNP\T 5 = *. ,SLJ[YPJ :`Z[LTZ /\UNHY` AY[ *. (\[VTH[PVU :`Z[LTZ <2 3PTP[LK *. 7V^LY :`Z[LTZ 0YLSHUK 3PTP[LK *. 770 (KOLZP]L 7YVK\J[Z 3PTP[LK *. /VSKPUNZ )LSNP\T 5 = *. 7V^LY :VS\[PVUZ <:( 0UJ *. 7V^LY :`Z[LT )YHaPS 3;+( *. +YP]LZ HUK (\[VTH[PVUZ .LYTHU` .TI/ *. +YP]LZ (\[VTH[PVU 5L[OLYSHUKZ ) = *. +YP]LZ (\[VTH[PVU :^LKLU () *. ,ULYN` 4HUHNLTLU[ 3PTP[LK Associates *. 3\J` :^P[JONLHY 3PTP[LK (]HU[OH 7V^LY 0UMYHZ[Y\J[\YL 3PTP[LK Other Related Parties )HSSHYW\Y 0UK\Z[YPLZ 3PTP[LK :VSHYPZ *OLT;LJO 0UK\Z[YPLZ 3PTP[LK )03; .YHWOPJ 7HWLY 7YVK\J[Z 3PTP[LK 2VYIH >LZ[ 7V^LY *VTWHU` 3PTP[LK (]HU[OH /VSKPUNZ 3PTP[LK :HIHO -VYLZ[ 0UK\Z[YPLZ :KU )OK 1OHI\H 7V^LY 3PTP[LK Total :HSL VM MP_LK HZZL[Z :\IZPKPHYPLZ *. A0= 7V^LY (\[VTH[PVU :VS\[PVUZ 3PTP[LK *. 7V^LY :`Z[LTZ )LSNP\T 5 = Other Related Parties (ZPH (]PH[PVU 3PTP[LK (]HU[OH /VSKPUNZ 3PTP[LK Total

0.03 2.44 0.21 0.02 37.42 2.96 11.41 0.09 0.01 3.55 1.19

-

58.99

0.79 119.11

8.15 0.06 63.18 1.30 0.75 4.91 0.00 0.01 14.87 5.23 0.23 0.00 -

7.23 0.22

0.75 0.24 4.81 13.85 0.02 0.34 12.47 138.62

0.31

-

0.01

0.32

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

42. DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS) 18 RELATED PARTY DISCLOSURES (Contd.) PPP ;OL MVSSV^PUN [YHUZHJ[PVUZ ^LYL JHYYPLK V\[ ^P[O [OL YLSH[LK WHY[PLZ PU [OL VYKPUHY` JV\YZL VM I\ZPULZZ *VU[K :Y 5V 5H[\YL VM [YHUZHJ[PVU YLSH[PVUZOPW 4 7\YJOHZL VM MP_LK HZZL[Z

7.59

-

:\IZPKPHY` *. ,SLJ[YPJ :`Z[LTZ /\UNHY` AY[ Other Related Party (ZPH (]PH[PVU 3PTP[LK Total 5

-

7.59

3.02 -

3.02

*. 770 (KOLZP]L 7YVK\J[Z 3PTP[LK

0.29

*. ,SLJ[YPJ :`Z[LTZ /\UNHY` AY[

1.77

0.56

2.62

0.30

0.30

19.00

-

19.00

-

0.50

)HSSHYW\Y 0UK\Z[YPLZ 3PTP[LK

2.05

:VSHYPZ *OLT;LJO 0UK\Z[YPLZ 3PTP[LK

0.53

3.08

21.27 0.11

-

0.14

-

0.86

22.38

4.50

-

:\IZJYPW[PVU [V LX\P[` ZOHYLZ :\IZPKPHYPLZ *. A0= 7V^LY (\[VTH[PVU :VS\[PVUZ 3PTP[LK *YVTW[VU .YLH]LZ /VSKPUNZ 4H\YP[P\Z 3PTP[LK *. 7V^LY :VS\[PVUZ 3PTP[LK Total

6

0U[LYLZ[ L_WLUZLZ :\IZPKPHYPLZ

Associate *. 3\J` :^P[JONLHY 3PTP[LK Total 7

Dividend received :\IZPKPHY` *. 770 (KOLZP]L 7YVK\J[Z 3PTP[LK Total

8

)HUR JOHYNLZ YLJV]LYLK :\IZPKPHY` *. 0U[LYUH[PVUHS ) = Total

9

Rental income :\IZPKPHY` *. A0= 7V^LY (\[VTH[PVU :VS\[PVUZ 3PTP[LK Other Related Parties

Total 10 Interest income :\IZPKPHYPLZ *. 0U[LYUH[PVUHS ) = *. A0= 7V^LY (\[VTH[PVU :VS\[PVUZ 3PTP[LK *. 7V^LY :VS\[PVUZ 3PTP[LK Other Related Party 4HSHUW\Y *HW[P]L 7V^LY 3PTP[LK Total 11 Payment of salaries, commission and perquisites Key Management PersonneS .H\[HT ;OHWHY :\KOPY ;YLOHU 3H\YLU[ +LTVY[PLY Total

9.00

13.50

FINANCIALS

111

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

42. DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS) 18 RELATED PARTY DISCLOSURES (Contd.) PPP ;OL MVSSV^PUN [YHUZHJ[PVUZ ^LYL JHYYPLK V\[ ^P[O [OL YLSH[LK WHY[PLZ PU [OL VYKPUHY` JV\YZL VM I\ZPULZZ *VU[K :Y 5V 5H[\YL VM [YHUZHJ[PVU YLSH[PVUZOPW

*VYLSSH 0U]LZ[TLU[Z 3PTP[LK

0.87

3\Z[YL 0U[LYUH[PVUHS 3PTP[LK

0.52

12 Dividend paid Other Related Parties

(]HU[OH /VSKPUNZ 3PTP[LK

30.71

(]HU[OH 9LHS[` 3PTP[LK

0.00

=HY\U 7YHRHZOHU 7YP]H[L 3PTP[LK

0.00

32.10

Total

13 Commission paid :\IZPKPHYPLZ *. ,ULYN` 4HUHNLTLU[ 3PTP[LK

-

2.07

2.07

2.04

2.04

7; *. 7V^LY :`Z[LTZ 0UKVULZPH

0.02

-

*. :HSLZ 5L[^VYRZ (TLYPJHZ 0UJ

0.42

-

*. 7V^LY :`Z[LTZ )LSNP\T 5 =

0.18

-

*. /VSKPUNZ )LSNP\T 5 =

0.87

-

38.83

*. :HSLZ 5L[^VYRZ (TLYPJHZ 0UJ Total 14 Rent paid Other Related Party (]HU[OH 9LHS[` 3PTP[LK Total 15 6[OLY L_WLUZLZ :\IZPKPHYPLZ

*. +YP]LZ HUK (\[VTH[PVU :^LKLU () Other Related Parties (]HU[OH /VSKPUNZ 3PTP[LK

78.42

(]HU[OH 9LHS[` 3PTP[LK

0.67

(]HU[OH ;LJOUVSVNPLZ 3PTP[LK

0.01

:HSPLU[ )\ZPULZZ :VS\[PVUZ 3PTP[LK

0.88

120.30

27.06

27.06

Total 16 9LJV]LY` L_WLUZLZ :\IZPKPHY` *. 0U[LYUH[PVUHS ) = Total

112

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

42. DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS) 18 RELATED PARTY DISCLOSURES (Contd.) iv) Amount due to / from related parties :Y 5V 5H[\YL VM [YHUZHJ[PVU YLSH[PVUZOPW 1

(Z H[

(Z H[

(JJV\U[Z WH`HISL :\IZPKPHYPLZ *. 770 (KOLZP]L 7YVK\J[Z 3PTP[LK

0.57

7; *. 7V^LY :`Z[LTZ 0UKVULZPH

0.02

-

*. 7V^LY :`Z[LT <:( 0UJ

0.19

*. :HSLZ 5L[^VYRZ (TLYPJHZ 0UJ

3.76

*. 7V^LY :`Z[LTZ )LSNP\T 5 = *. ,SLJ[YPJ :`Z[LTZ /\UNHY` AY[

0.18

-

36.49

*. /VSKPUNZ )LSNP\T 5 =

0.24

-

*. (\[VTH[PVU :`Z[LTZ <2 3PTP[LK

1.51

3.33

37.68

*. A0= 7V^LY (\[VTH[PVU :VS\[PVUZ 3PTP[LK *. +YP]LZ HUK (\[VTH[PVU :^LKLU ()

1.18

-

21.63

0.01

-

(]HU[OH /VSKPUNZ 3PTP[LK

3.60

-

:HSPLU[ )\ZPULZZ :VS\[PVUZ 3PTP[LK

0.08

-

110.47

A0= *VTT\UPJH[PVU : ( Associate *. 3\J` :^P[JONLHY 3PTP[LK Other Related Parties )HSSHYW\Y 0UK\Z[YPLZ 3PTP[LK :HIHO -VYLZ[ 0UK\Z[YPLZ :KU )OK

Total 2

(JJV\U[Z YLJLP]HISL :\IZPKPHYPLZ *. 770 (KOLZP]L 7YVK\J[Z 3PTP[LK

0.00

-

7; *. 7V^LY :`Z[LTZ 0UKVULZPH

7.94

*. 7V^LY :`Z[LTZ <:( 0UJ

0.13

*. :HSLZ 5L[^VYRZ (TLYPJHZ 0UJ

10.62

*. 7V^LY :`Z[LTZ )LSNP\T 5 =

1.06

-

*. 7V^LY :`Z[LTZ *HUHKH 0UJ

0.00

*. /VSKPUNZ )LSNP\T 5 =

-

5.69

-

*. 7V^LY :`Z[LTZ )YHaPS 3;+(

7.70

*. ,ULYN` 4HUHNLTLU[ 3PTP[LK

1.10

*. +YP]LZ HUK (\[VTH[PVU .LYTHU` .TI/

3.84

-

*. +YP]LZ HUK (\[VTH[PVU 5L[OLYSHUKZ ) =

0.23

-

*. +YP]LZ HUK (\[VTH[PVU :^LKLU ()

0.00

-

*. 7V^LY :`Z[LT 0YLSHUK 3PTP[LK

0.00

-

*. 3\J` :^P[JONLHY 3PTP[LK

1.65

(]HU[OH 7V^LY 0UMYHZ[Y\J[\YL 3PTP[LK

0.00

)03; .YHWOPJ 7HWLY 7YVK\J[Z 3PTP[LK

1.03

)HSSHYW\Y 0UK\Z[YPLZ 3PTP[LK

0.24

:VSHYPZ *OLT;LJO 0UK\Z[YPLZ 3PTP[LK

0.24

2VYIH >LZ[ 7V^LY *VTWHU` 3PTP[LK

4.89

*. ,SLJ[YPJ :`Z[LTZ /\UNHY` AY[ *. :HSLZ 5L[^VYRZ -YHUJL

Associates

Other Related Parties

:HIHO -VYLZ[ 0UK\Z[YPLZ :KU )OK

-

(]HU[OH /VSKPUNZ 3PTP[LK

0.01

1OHI\H 7V^LY 3PTP[LK

4.87

-

51.24

FINANCIALS

113

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

42. DISCLOSURES AS REQUIRED BY ACCOUNTING STANDARD (AS) 18 RELATED PARTY DISCLOSURES (Contd.) iv) Amount due to / from related parties (Contd.) :Y 5V 5H[\YL VM [YHUZHJ[PVU YLSH[PVUZOPW 3

(Z H[

(Z H[

3VHUZ HUK HK]HUJLZ YLJLP]HISL :\IZPKPHYPLZ *. 0U[LYUH[PVUHS ) =

469.89

*. 7V^LY :`Z[LTZ )LSNP\T 5 =

2.99

*. ,ULYN` 4HUHNLTLU[ 3PTP[LK

0.01

*. 770 (KOLZP]L 7YVK\J[Z 3PTP[LK

0.08

*. (\[VTH[PVU :`Z[LTZ <2 3PTP[LK

-

*YVTW[VU .YLH]LZ /VSKPUNZ 4H\YP[P\Z 3PTP[LK

-

*. A0= 7V^LY (\[VTH[PVU :VS\[PVUZ 3PTP[LK *. 7V^LY :VS\[PVUZ 3PTP[LK

4.54

31.87

0.00

Associate *. 3\J` :^P[JONLHY 3PTP[LK Other Related Party 4HSHUW\Y *HW[P]L 7V^LY 3PTP[LK Total 4

10.45 519.83

3VHUZ HUK HK]HUJLZ WH`HISL :\IZPKPHYPLZ 7; *. 7V^LY :`Z[LTZ 0UKVULZPH

0.16

*. :HSLZ 5L[^VYRZ (TLYPJHZ 0UJ

3.85

20.48

*. ,SLJ[YPJ :`Z[LTZ /\UNHY` AY[

0.03

A0= (WSPJHJPVULZ ` ;LJUVSVNPH : 3

3.02

-

*. ,ULYN` 4HUHNLTLU[ 3PTP[LK

0.02

*. +YP]LZ HUK (\[VTH[PVU :^LKLU ()

Other Related Parties :VSHYPZ *OLT;LJO 0UK\Z[YPLZ 3PTP[LK

0.10

)HSSHYW\Y 0UK\Z[YPLZ 3PTP[LK

-

(]HU[OH /VSKPUNZ 3PTP[LK

-

:HSPLU[ )\ZPULZZ :VS\[PVUZ 3PTP[LK

-

2VYIH >LZ[ 7V^LY *VTWHU` 3PTP[LK Total 5

0.07

27.73

+P]PKLUK WH`HISL Other Related Parties *VYLSSH 0U]LZ[TLU[Z 3PTP[LK

0.29

10.24

3\Z[YL 0U[LYUH[PVUHS 3PTP[LK

0.17

(]HU[OH 9LHS[` 3PTP[LK

0.00

=HY\U 7YHRHZOHU 7YP]H[L 3PTP[LK

0.00

10.70

4.50

4.01

8.51

(]HU[OH /VSKPUNZ 3PTP[LK

Total 6

Due to Key Management Personnel .H\[HT ;OHWHY 3H\YLU[ +LTVY[PLY Total

5V[L! 5V HTV\U[Z OH]L ILLU ^YP[[LU VMM VY ^YP[[LU IHJR K\YPUN [OL `LHY 43. H ;OL *VTWHU` OHZ UV[ LU[LYLK PU[V HU` ÄUHUJL SLHZL HZ ZWLJPÄLK PU (JJV\U[PUN :[HUKHYK (: 3LHZLZ ;OL *VTWHU` OHZ OV^L]LY [HRLU ]HYPV\Z YLZPKLU[PHS JVTTLYJPHS WYLTPZLZ HUK WSHU[ HUK LX\PWTLU[Z \UKLY JHUJLSSHISL VWLYH[PUN SLHZL ;OLZL SLHZL HNYLLTLU[Z HYL UVYTHSS` YLUL^LK VU L_WPY` ^OLYL]LY YLX\PYLK

114

I ;OLYL HYL UV L_JLW[PVUHS YLZ[YPJ[P]L JV]LUHU[Z PU [OL SLHZL HNYLLTLU[Z

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

44. DISCLOSURE AS REQUIRED BY ACCOUNTING STANDARD (AS) 20 EARNINGS PER SHARE 7HY[PJ\SHYZ 7YVÄ[ MVY [OL `LHY 5\TILY VM LX\P[` ZOHYLZ V\[Z[HUKPUN -HJL ]HS\L VM LX\P[` ZOHYL ,HYUPUNZ WLY ZOHYL IHZPJ HUK KPS\[LK

` crore

445.84

5VZ

641491536

` ZOHYL `

2.00

6.95

(Z H[

(Z H[

USD million

<:+ TPSSPVU

37.50

-

EURO million

,<96 TPSSPVU

22.50

-

45. FOREIGN CURRENCY TRANSACTIONS, FORWARD CONTRACTS AND DERIVATIVES :Y 5V *H[LNVY` VM +LYP]H[P]L 0UZ[Y\TLU[Z

;OL WHY[PJ\SHYZ VM KLYP]H[P]L JVU[YHJ[Z LU[LYLK PU[V MVY OLKNPUN W\YWVZLZ V\[Z[HUKPUN HZ H[ Z[ 4HYJO HYL HZ \UKLY

1

-VY OLKNPUN MVYLPNU J\YYLUJ` YPZRZ! (a) -VY^HYK JVU[YHJ[Z MVY YLJLP]HISLZ PUJS\KPUN ÄYT JVTTP[TLU[Z HUK OPNOS` WYVIHISL MVYLJHZ[LK [YHUZHJ[PVUZ I -VY^HYK JVU[YHJ[Z MVY SVHU

(c) -VY^HYK JVU[YHJ[Z MVY SVHU 2

7HY[PJ\SHYZ VM <UOLKNLK MVYLPNU J\YYLUJ` L_WVZ\YL HZ H[ [OL IHSHUJL ZOLL[ KH[L! (a)

;YHKL WH`HISLZ

I 3VHUZ YLJLP]LK (c)

3VHUZ HUK V[OLY YLJLP]HISL

(d) )HUR IHSHUJL PU J\YYLU[ HJJV\U[Z HUK [LYT KLWVZP[ HJJV\U[Z (e)

0U]LZ[TLU[Z PU V]LYZLHZ Z\IZPKPHYPLZ

` crore

` crore

192.80

-

313.53

0.02

295.67

FINANCIALS

115

` crore

N OT E S

ACCOMPANYING TO THE FINANCIAL STATEMENTS (Contd.)

46. PARTICULARS IN RESPECT OF LOANS AND ADVANCES IN THE NATURE OF LOANS AS REQUIRED BY THE CLAUSE 32 OF LISTING AGREEMENT 4H_PT\T V\[Z[HUKPUN K\YPUN

Balance as at 5HTL VM [OL *VTWHU`

31-03-2013

31-03-2012

2012-13

635.47

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Madhav Acharya

Laurent Demortier

CHARTERED ACCOUNTANTS

CHIEF FINANCIAL OFFICER

CEO & MANAGING DIRECTOR

L. Vaidyanathan

Wilton Henriques

Gautam Thapar

PARTNER

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Total revenues

5L[ JHZO Ã…V^Z

-

` crore

Net carrying cost of investment

Current year share of WYVÄ[ VY SVZZ

0UKPHU HZZVJPH[LZ -VYLPNU HZZVJPH[LZ

-\Y[OLY ^L KPK UV[ H\KP[ [OL ÄUHUJPHS Z[H[LTLU[Z VM JLY[HPU Z\IZPKPHYPLZ ^OVZL ÄUHUJPHS Z[H[LTLU[Z OH]L ILLU JLY[PÄLK I` THUHNLTLU[ HUK OH]L ILLU M\YUPZOLK [V \Z HUK PUZVMHY HZ P[ YLSH[LZ [V [OL HTV\U[Z PUJS\KLK PU YLZWLJ[ VM [OL Z\IZPKPHYPLZ PZ IHZLK ZVSLS` VU [OLZL JLY[PÄLK ÄUHUJPHS Z[H[LTLU[Z ;OL KL[HPSZ VM [V[HS HZZL[Z [V[HS YL]LU\LZ HUK UL[ JHZO ÅV^Z PU YLZWLJ[ VM [OLZL Z\IZPKPHYPLZ [V [OL L_[LU[ [V ^OPJO [OL` HYL YLÅLJ[LK PU [OL JVUZVSPKH[LK ÄUHUJPHS Z[H[LTLU[Z HYL NP]LU ILSV^! *LY[PÄLK I` THUHNLTLU[! ` crore

-VYLPNU Z\IZPKPHYPLZ

Total assets

Total revenues

5L[ JHZO Ã…V^Z

>L ILSPL]L [OH[ [OL H\KP[ L]PKLUJL ^L OH]L VI[HPULK PZ Z\MÄJPLU[ HUK HWWYVWYPH[L [V WYV]PKL H IHZPZ MVY V\Y H\KP[ VWPUPVU

:PUJL [OL ÄUHUJPHS Z[H[LTLU[Z VM [OLZL Z\IZPKPHYPLZ ^LYL JVTWPSLK I` THUHNLTLU[ VM [OVZL JVTWHUPLZ HUK ^LYL UV[ H\KP[LK HU` HKQ\Z[TLU[Z [V [OLPY IHSHUJLZ JV\SK OH]L JVUZLX\LU[PHS LMMLJ[Z VU [OL JVUZVSPKH[LK ÄUHUJPHS Z[H[LTLU[Z /V^L]LY [OL ZPaL VM [OLZL Z\IZPKPHYPLZ PU [OL JVUZVSPKH[LK WVZP[PVU PZ UV[ ZPNUPÄJHU[ PU YLSH[P]L [LYTZ

Opinion

6\Y VWPUPVU PZ UV[ X\HSPÄLK PU YLZWLJ[ VM [OLZL TH[[LYZ

>L YLWVY[ [OH[ VU [OL IHZPZ VM [OL PUMVYTH[PVU HUK HJJVYKPUN [V [OL L_WSHUH[PVUZ NP]LU [V \Z HUK IHZLK VU [OL JVUZPKLYH[PVU VM [OL YLWVY[Z VM [OL V[OLY H\KP[VYZ VU [OL ÄUHUJPHS Z[H[LTLU[Z HUK [OL ÄUHUJPHS Z[H[LTLU[Z JLY[PÄLK I` [OL THUHNLTLU[ VM JLY[HPU Z\IZPKPHYPLZ HUK HZZVJPH[LZ HZ UV[LK ILSV^ [OL JVUZVSPKH[LK ÄUHUJPHS Z[H[LTLU[Z NP]L H [Y\L HUK MHPY ]PL^ PU JVUMVYTP[` ^P[O [OL HJJV\U[PUN WYPUJPWSLZ NLULYHSS` HJJLW[LK PU 0UKPH! H PU [OL JHZL VM [OL *VUZVSPKH[LK )HSHUJL :OLL[ VM [OL Z[H[L VM HMMHPYZ VM [OL *YVTW[VU .YLH]LZ .YV\W HZ H[ Z[ 4HYJO "

For SHARP & TANNAN CHARTERED ACCOUNTANTS

I PU [OL JHZL VM [OL *VUZVSPKH[LK :[H[LTLU[ VM 7YVÄ[ HUK 3VZZ VM [OL JVUZVSPKH[LK YLZ\S[Z VM VWLYH[PVUZ VM [OL *YVTW[VU .YLH]LZ .YV\W MVY [OL `LHY LUKLK VU [OH[ KH[L" HUK J PU [OL JHZL VM [OL *VUZVSPKH[LK *HZO -SV^ :[H[LTLU[ VM [OL JVUZVSPKH[LK JHZO ÅV^Z VM [OL *YVTW[VU .YLH]LZ .YV\W MVY [OL `LHY LUKLK VU [OH[ KH[L

9LNPZ[YH[PVU 5V

>

L. Vaidyanathan 7SHJL! 4\TIHP +H[L! [O 4H`

PARTNER 4LTILYZOPW 5V

FINANCIALS

121

` crore

C O N S O L I DAT E D BA L A N C E S H E E T

AS AT 31ST MARCH, 2013

5V[L 5V

(Z H[

(Z H[

EQUITY AND LIABILITIES 1.

SHAREHOLDERS’ FUNDS: H :OHYL JHWP[HS

128.30

I 9LZLY]LZ HUK Z\YWS\Z

3433.22

2.

MINORITY INTEREST

3.

NON-CURRENT LIABILITIES: H 3VUN [LYT IVYYV^PUNZ

1555.01

I +LMLYYLK [H_ SPHIPSP[PLZ

146.86

J 6[OLY SVUN [LYT SPHIPSP[PLZ

144.59

K 3VUN [LYT WYV]PZPVUZ

73.78

3561.52

9.48

1920.24 4.

CURRENT LIABILITIES: H :OVY[ [LYT IVYYV^PUNZ

296.47

2461.83

J 6[OLY J\YYLU[ SPHIPSP[PLZ

1554.78

K :OVY[ [LYT WYV]PZPVUZ

348.46

I ;YHKL WH`HISLZ

TOTAL

4661.54

10152.78

ASSETS 1.

NON-CURRENT ASSETS: H -P_LK HZZL[Z P ;HUNPISL HZZL[Z

1400.10

PP 0U[HUNPISL HZZL[Z

1469.75

127.06

PPP *HWP[HS ^VYR PU WYVNYLZZ P] 0U[HUNPISL HZZL[Z \UKLY KL]LSVWTLU[

69.40

290.08

J +LMLYYLK [H_ HZZL[Z

314.95

K 3VUN [LYT SVHUZ HUK HK]HUJLZ

24.62

I 5VU J\YYLU[ PU]LZ[TLU[Z

3695.96 2.

CURRENT ASSETS: H *\YYLU[ PU]LZ[TLU[Z

500.71

I 0U]LU[VYPLZ

1636.72

J ;YHKL YLJLP]HISLZ

3160.47

K *HZO HUK IHUR IHSHUJLZ

583.36

L :OVY[ [LYT SVHUZ HUK HK]HUJLZ

357.13

M 6[OLY J\YYLU[ HZZL[Z

218.43

TOTAL CONTINGENT LIABILITIES AND COMMITMENTS

SIGNIFICANT ACCOUNTING POLICIES

6456.82

10152.78

TOL HJJVTWHU`PUN UV[LZ MVYT HU PU[LNYHS WHY[ VM JVUZVSPKH[LK ÄUHUJPHS Z[H[LTLU[Z

(Z WLY V\Y YLWVY[ H[[HJOLK For SHARP & TANNAN

Madhav Acharya

Laurent Demortier

CHARTERED ACCOUNTANTS

CHIEF FINANCIAL OFFICER

CEO & MANAGING DIRECTOR

L. Vaidyanathan

Wilton Henriques

Gautam Thapar

PARTNER

COMPANY SECRETARY

CHAIRMAN

9LNPZ[YH[PVU 5V

>

4LTILYZOPW 5V 4\TIHP [O 4H`

122

4\TIHP [O 4H`

` crore

C O N S O L I DAT E D S TAT E M E N T O F P RO F I T A N D L O S S

FOR THE YEAR ENDED 31ST MARCH, 2013

5V[L 5V

INCOME: :HSLZ HUK ZLY]PJLZ

12533.41

Less: ,_JPZL K\[`

438.97

9L]LU\L MYVT VWLYH[PVUZ

12094.44

Other income

100.00

12194.44

TOTAL REVENUE

EXPENSES: *VZ[ VM YH^ TH[LYPHSZ HUK JVTWVULU[Z JVUZ\TLK HUK JVUZ[Y\J[PVU TH[LYPHSZ

6785.53

7\YJOHZLZ VM Z[VJR PU [YHKL

1811.80

*OHUNLZ PU PU]LU[VYPLZ VM ÄUPZOLK NVVKZ ^VYR PU WYVNYLZZ HUK Z[VJR PU [YHKL

(251.26)

,TWSV`LL ILULÄ[Z

1740.49

-PUHUJL JVZ[Z

95.49

+LWYLJPH[PVU HUK HTVY[PZH[PVU

202.92

6[OLY L_WLUZLZ

1624.72

TOTAL EXPENSES PROFIT BEFORE EXCEPTIONAL ITEM AND TAX ,_JLW[PVUHS P[LT

12009.69

184.75

(120.71)

-

64.04

PROFIT BEFORE TAX TAX EXPENSES: *\YYLU[ [H_ +LMLYYLK [H_

PROFIT AFTER TAX

184.45

(83.54)

100.91

(36.87)

4PUVYP[` PU[LYLZ[ PU SVZZ :OHYL VM WYVÄ[ SVZZ VM HZZVJPH[L JVTWHUPLZ UL[

1.12

(0.39)

(36.14)

PROFIT / (LOSS) FOR THE YEAR ,HYUPUNZ WLY ZOHYL IHZPJ HUK KPS\[LK `)

(0.56)

-HJL ]HS\L VM LX\P[` ZOHYL VM ` LHJO

SIGNIFICANT ACCOUNTING POLICIES

TOL HJJVTWHU`PUN UV[LZ MVYT HU PU[LNYHS WHY[ VM JVUZVSPKH[LK ÄUHUJPHS Z[H[LTLU[Z

(Z WLY V\Y YLWVY[ H[[HJOLK For SHARP & TANNAN

Madhav Acharya

Laurent Demortier

CHARTERED ACCOUNTANTS

CHIEF FINANCIAL OFFICER

CEO & MANAGING DIRECTOR

L. Vaidyanathan

Wilton Henriques

Gautam Thapar

PARTNER

COMPANY SECRETARY

CHAIRMAN

9LNPZ[YH[PVU 5V

>

4LTILYZOPW 5V 4\TIHP [O 4H`

4\TIHP [O 4H`

FINANCIALS

123

` crore

C O N S O L I DAT E D C A S H F L OW S TAT E M E N T

FOR THE YEAR ENDED 31ST MARCH, 2013

64.04

[A] CASH FLOWS FROM OPERATING ACTIVITIES 7YVÄ[ ILMVYL [H_LZ (KQ\Z[TLU[Z MVY! +LWYLJPH[PVU HUK HTVY[PZH[PVU

202.92

(SSV^HUJL MVY KV\I[M\S KLI[Z HUK HK]HUJLZ

44.05

0U[LYLZ[ L_WLUZLZ

95.43

(24.56)

0U[LYLZ[ PUJVTL 0UJVTL MYVT PU]LZ[TLU[Z UL[

(0.02)

7YVÄ[ VU ZHSL VM PU]LZ[TLU[Z UL[

(23.45)

<UYLHSPZLK L_JOHUNL NHPU SVZZ UL[

(12.30)

<UYLHSPZLK L_JOHUNL NHPU VU JVUZVSPKH[PVU UL[ 7YVÄ[ SVZZ VU ZHSL VM Ä_LK HZZL[Z UL[

6WLYH[PUN WYVÄ[ ILMVYL ^VYRPUN JHWP[HS JOHUNLZ

2.66

(0.55)

284.18

348.22

239.26

(KQ\Z[TLU[Z MVY! 0UJYLHZL +LJYLHZL PU [YHKL HUK V[OLY YLJLP]HISLZ 0UJYLHZL +LJYLHZL PU PU]LU[VYPLZ 0UJYLHZL +LJYLHZL PU [YHKL HUK V[OLY WH`HISLZ 0UJYLHZL +LJYLHZL PU WYV]PZPVUZ

(283.19)

277.64

14.26

247.97

*HZO \ZLK PU MYVT VWLYH[PVUZ

596.19

+PYLJ[ [H_LZ WHPK UL[ VM YLM\UKZ

(151.99)

4PUVYP[` PU[LYLZ[ PU SVZZ :OHYL VM WYVÄ[ SVZZ VM HZZVJPH[L JVTWHUPLZ UL[ Net cash (used in) / from operating activities

[A]

1.12

(0.39)

444.93

3.97

[B] CASH FLOWS FROM INVESTING ACTIVITIES (KK! 0UÅV^Z MYVT PU]LZ[PUN HJ[P]P[PLZ :HSL VM Ä_LK HZZL[Z :HSL VM PU]LZ[TLU[Z UL[ *HZO HUK JHZO LX\P]HSLU[Z HJX\PYLK W\YZ\HU[ [V HJX\PZP[PVU VM Z\IZPKPHYPLZ 0U[LYLZ[ YLJLP]LK

23.90

-

8.92

24.68

0.02

0UJVTL YLJLP]LK MYVT PU]LZ[TLU[Z UL[

61.49

Less: 6\[ÅV^Z MYVT PU]LZ[PUN HJ[P]P[PLZ 7\YJOHZL VM Ä_LK HZZL[Z 7\YJOHZL VM PU]LZ[TLU[Z UL[ *OHUNLZ PU PU]LZ[TLU[ PU HZZVJPH[L JVTWHUPLZ UL[ (JX\PZP[PVU VM Z\IZPKPHYPLZ HUK HZZVJPH[LZ

Net cash (used in ) / from investing activities

124

[B]

(220.37)

-

0.39

(978.23)

(1198.21)

(1136.72)

` crore

C O N S O L I DAT E D C A S H F L OW S TAT E M E N T

FOR THE YEAR ENDED 31ST MARCH, 2013 (Contd.)

[C] CASH FLOWS FROM FINANCING ACTIVITIES (KK! 0UÅV^Z MYVT ÄUHUJPUN HJ[P]P[PLZ 7YVJLLKZ MYVT SVUN [LYT IVYYV^PUNZ 7YVJLLKZ MYVT ZOVY[ [LYT IVYYV^PUNZ UL[

1012.75

32.90

1045.65

(78.81)

Less: 6\[ÅV^Z MYVT ÄUHUJPUN HJ[P]P[PLZ 9LWH`TLU[Z VM SVUN [LYT IVYYV^PUNZ 0U[LYPT KP]PKLUK WHPK

(76.94)

(KKP[PVUHS [H_ VU KP]PKLUK

(12.56)

0U[LYLZ[ WHPK

(93.60)

*OHUNLZ PU TPUVYP[` PU[LYLZ[

5L[ JHZO \ZLK PU MYVT ÄUHUJPUN HJ[P]P[PLZ

B*D

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

(6.18)

(268.09)

777.56

85.77

*HZO HUK IHUR IHSHUJLZ H[ ILNPUUPUN VM [OL `LHY

497.59

*HZO HUK IHUR IHSHUJLZ H[ LUK VM [OL `LHY

583.36

9LMLY 5V[L infra

Notes:

;OL JVUZVSPKH[LK JHZO ÅV^ Z[H[LTLU[ OHZ ILLU WYLWHYLK \UKLY [OL PUKPYLJ[ TL[OVK HZ ZL[ V\[ PU (JJV\U[PUN :[HUKHYK (: *HZO -SV^ :[H[LTLU[Z HZ ZWLJPÄLK PU [OL *VTWHUPLZ (JJV\U[PUN :[HUKHYKZ 9\SLZ

(KKP[PVUZ [V Ä_LK HZZL[Z PUJS\KL TV]LTLU[Z VM JHWP[HS ^VYR PU WYVNYLZZ K\YPUN [OL `LHY

*HZO HUK IHUR IHSHUJLZ H[ [OL LUK VM [OL `LHY YLWYLZLU[ JHZO HUK IHUR IHSHUJLZ HUK PUJS\KL \UYLHSPZLK NHPU VM ` JYVYL 7YL]PV\Z `LHY ` JYVYL VU HJJV\U[ VM [YHUZSH[PVU VM MVYLPNU J\YYLUJ` IHUR IHSHUJLZ

-PN\YLZ MVY [OL WYL]PV\Z `LHY OH]L ILLU YL NYV\WLK YL JSHZZPÄLK ^OLYL]LY ULJLZZHY`

(Z WLY V\Y YLWVY[ H[[HJOLK For SHARP & TANNAN

Madhav Acharya

Laurent Demortier

CHARTERED ACCOUNTANTS

CHIEF FINANCIAL OFFICER

CEO & MANAGING DIRECTOR

L. Vaidyanathan

Wilton Henriques

Gautam Thapar

PARTNER

COMPANY SECRETARY

CHAIRMAN

9LNPZ[YH[PVU 5V

>

4LTILYZOPW 5V 4\TIHP [O 4H`

4\TIHP [O 4H`

FINANCIALS

125

N OT E S

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. SIGNIFICANT ACCOUNTING POLICIES

)HZPZ VM WYLWHYH[PVU HUK WYLZLU[H[PVU VM ÄUHUJPHS Z[H[LTLU[Z! ;OL JVUZVSPKH[LK ÄUHUJPHS Z[H[LTLU[Z YLSH[L [V *YVTW[VU .YLH]LZ 3PTP[LK [OL 7HYLU[ *VTWHU` P[Z Z\IZPKPHY` JVTWHUPLZ HUK HZZVJPH[LZ ;OL 7HYLU[ *VTWHU` ^P[O P[Z Z\IZPKPHYPLZ HUK HZZVJPH[LZ JVUZ[P[\[L [OL .YV\W H ;OL ÄUHUJPHS Z[H[LTLU[Z VM [OL .YV\W OH]L ILLU WYLWHYLK PU HJJVYKHUJL ^P[O [OL .LULYHSS` (JJLW[LK (JJV\U[PUN 7YPUJPWSLZ PU 0UKPH 0UKPHU .((7 \UKLY [OL OPZ[VYPJHS JVZ[ JVU]LU[PVU L_JLW[ MVY [OL YL]HS\H[PVU VM JLY[HPU Ä_LK HZZL[Z VU HJJY\HS IHZPZ ;OL ÄUHUJPHS Z[H[LTLU[Z VM [OL *VTWHU` OH]L ILLU WYLWHYLK [V JVTWS` ^P[O [OL (JJV\U[PUN :[HUKHYKZ UV[PÄLK \UKLY [OL *VTWHUPLZ (JJV\U[PUN :[HUKHYKZ 9\SLZ HZ HTLUKLK HUK [OL YLSL]HU[ WYV]PZPVUZ VM [OL *VTWHUPLZ (J[ *LY[HPU LZJHSH[PVU HUK V[OLY JSHPTZ HYL HJJV\U[LK MVY PU [LYTZ VM JVU[YHJ[Z ^P[O [OL J\Z[VTLYZ HKTP[[LK I` [OL HWWYVWYPH[L H\[OVYP[PLZ I ;OL ÄUHUJPHS Z[H[LTLU[Z VM [OL Z\IZPKPHY` JVTWHUPLZ \ZLK PU [OL JVUZVSPKH[PVU HYL KYH^U \W[V [OL ZHTL YLWVY[PUN KH[L HZ [OH[ VM [OL 7HYLU[ *VTWHU` P L `LHY LUKLK Z[ 4HYJO L_JLW[ HZ Z[H[LK PU 5V[L I J ;OL ÄUHUJPHS Z[H[LTLU[Z VM HSS 0UKPHU Z\IZPKPHYPLZ HUK HZZVJPH[LZ HYL WYLWHYLK PU JVTWSPHUJL ^P[O [OL (JJV\U[PUN :[HUKHYKZ ZWLJPÄLK PU [OL *VTWHUPLZ (JJV\U[PUN :[HUKHYKZ 9\SLZ HZ HTLUKLK HUK V[OLY WYV]PZPVUZ VM [OL *VTWHUPLZ (J[ HUK [OVZL VM [OL MVYLPNU Z\IZPKPHYPLZ HUK HZZVJPH[LZ OH]L ILLU WYLWHYLK PU JVTWSPHUJL ^P[O [OL SVJHS SH^Z HUK HWWSPJHISL HJJV\U[PUN Z[HUKHYKZ ;OL HJJV\U[PUN WVSPJPLZ HKVW[LK PU [OL WYLWHYH[PVU VM [OL ÄUHUJPHS Z[H[LTLU[Z HYL JVUZPZ[LU[ ^P[O [OVZL MVSSV^LK PU [OL WYL]PV\Z `LHY L_JLW[ HZ Z[H[LK PU 5V[L

2.

Use of estimates:

;OL WYLWHYH[PVU VM ÄUHUJPHS Z[H[LTLU[Z PU JVUMVYTP[` ^P[O .((7 YLX\PYLZ [OL THUHNLTLU[ [V THRL LZ[PTH[LZ HUK HZZ\TW[PVUZ [OH[ HMMLJ[ [OL YLWVY[LK HTV\U[Z VM HZZL[Z SPHIPSP[PLZ YL]LU\L HUK L_WLUZLZ HUK KPZJSVZ\YL VM JVU[PUNLU[ SPHIPSP[PLZ HUK HZZL[Z ;OL LZ[PTH[LZ HUK HZZ\TW[PVUZ \ZLK PU [OL HJJVTWHU`PUN ÄUHUJPHS Z[H[LTLU[Z HYL IHZLK \WVU THUHNLTLU[»Z L]HS\H[PVU VM [OL YLSL]HU[ MHJ[Z HUK JPYJ\TZ[HUJLZ HZ VM [OL KH[L VM [OL ÄUHUJPHS Z[H[LTLU[Z ;OL L_HTWSLZ VM Z\JO LZ[PTH[LZ PUJS\KL [OL \ZLM\S SPML VM [HUNPISL HUK PU[HUNPISL Ä_LK HZZL[Z HSSV^HUJLZ MVY KV\I[M\S KLI[Z HK]HUJLZ M\[\YL VISPNH[PVUZ PU YLZWLJ[ VM YL[PYLTLU[ ILULÄ[ WSHUZ L[J (J[\HS YLZ\S[Z TH` KPMMLY MYVT [OL LZ[PTH[LZ HUK HZZ\TW[PVUZ HUK PU Z\JO JHZL [OL KPMMLYLUJL PZ YLJVNUPZLK PU [OL WLYPVK PU ^OPJO [OL YLZ\S[Z HYL RUV^U

3.

Principles of consolidation: H ;OL ÄUHUJPHS Z[H[LTLU[Z VM [OL 7HYLU[ *VTWHU` HUK P[Z Z\IZPKPHYPLZ OH]L ILLU JVUZVSPKH[LK VU H SPUL I` SPUL IHZPZ I` HKKPUN [VNL[OLY [OL IVVR ]HS\LZ VM SPRL P[LTZ VM HZZL[Z SPHIPSP[PLZ PUJVTLZ HUK L_WLUZLZ HM[LY LSPTPUH[PUN PU[YH NYV\W IHSHUJLZ PU[YH NYV\W [YHUZHJ[PVUZ HUK \UYLHSPZLK WYVÄ[Z YLZ\S[PUN [OLYL MYVT HUK HYL WYLZLU[LK [V [OL L_[LU[ WVZZPISL PU [OL ZHTL THUULY HZ [OL *VTWHU`»Z PUKLWLUKLU[ ÄUHUJPHS Z[H[LTLU[Z I ;OL ÄUHUJPHS Z[H[LTLU[Z VM [OL 7HYLU[ *VTWHU` HUK P[Z Z\IZPKPHYPLZ OH]L ILLU JVUZVSPKH[LK \ZPUN \UPMVYT HJJV\U[PUN WVSPJPLZ MVY SPRL [YHUZHJ[PVUZ HUK V[OLY L]LU[Z PU ZPTPSHY JPYJ\TZ[HUJLZ J ;OL L_JLZZ VM JVZ[ [V [OL 7HYLU[ *VTWHU` VM P[Z PU]LZ[TLU[ PU LHJO VM [OL Z\IZPKPHYPLZ V]LY P[Z ZOHYL VM LX\P[` PU [OL YLZWLJ[P]L Z\IZPKPHY` VU [OL HJX\PZP[PVU KH[L PZ YLJVNUPZLK PU [OL JVUZVSPKH[LK ÄUHUJPHS Z[H[LTLU[Z HZ ºNVVK^PSS VU JVUZVSPKH[PVU» HUK JHYYPLK PU [OL IHSHUJL ZOLL[ HZ HU HZZL[ >OLYL [OL ZOHYL VM LX\P[` PU [OL Z\IZPKPHY` JVTWHUPLZ HZ VU [OL KH[L VM PU]LZ[TLU[ PZ PU L_JLZZ VM JVZ[ VM PU]LZ[TLU[ VM [OL JVTWHU` P[ PZ YLJVNUPZLK HZ ºJHWP[HS YLZLY]L» HUK ZOV^U \UKLY [OL OLHK 9LZLY]LZ HUK :\YWS\Z PU [OL JVUZVSPKH[LK ÄUHUJPHS Z[H[LTLU[Z K 4PUVYP[` PU[LYLZ[ PU [OL UL[ HZZL[Z VM JVUZVSPKH[LK Z\IZPKPHYPLZ JVUZPZ[Z VM [OL HTV\U[ VM LX\P[` H[[YPI\[HISL [V [OL TPUVYP[` ZOHYLOVSKLYZ H[ [OL KH[LZ VU ^OPJO PU]LZ[TLU[Z HYL THKL I` [OL JVTWHU` PU [OL Z\IZPKPHY` JVTWHUPLZ HUK M\Y[OLY TV]LTLU[Z PU [OLPY ZOHYL PU [OL LX\P[` Z\IZLX\LU[ [V [OL KH[LZ VM PU]LZ[TLU[Z L 0U]LZ[TLU[Z PU HZZVJPH[L JVTWHUPLZ OH]L ILLU HJJV\U[LK \UKLY [OL LX\P[` TL[OVK HZ WLY (JJV\U[PUN :[HUKHYK (: (JJV\U[PUN MVY 0U]LZ[TLU[Z PU (ZZVJPH[LZ PU *VUZVSPKH[LK -PUHUJPHS :[H[LTLU[Z <UKLY [OL LX\P[` TL[OVK VM HJJV\U[PUN [OL PU]LZ[TLU[ PZ PUP[PHSS` YLJVYKLK H[ JVZ[ PKLU[PM`PUN HU` NVVK^PSS JHWP[HS YLZLY]L HYPZPUN H[ [OL [PTL VM HJX\PZP[PVU ;OL JHYY`PUN HTV\U[ VM PU]LZ[TLU[ PZ HKQ\Z[LK [OLYLHM[LY MVY [OL WVZ[ HJX\PZP[PVU JOHUNL PU [OL PU]LZ[VY»Z ZOHYL VM UL[ HZZL[Z VM [OL PU]LZ[LL ;OL JVUZVSPKH[LK Z[H[LTLU[ VM WYVÄ[ HUK SVZZ YLÃ…LJ[Z [OL PU]LZ[VY»Z ZOHYL VM [OL YLZ\S[Z VM [OL VWLYH[PVUZ VM [OL PU]LZ[LL

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N -P_LK HZZL[Z HYL LSPTPUH[LK MYVT ÄUHUJPHS Z[H[LTLU[ LP[OLY VU KPZWVZHS VY ^OLU YL[PYLK MYVT HJ[P]L \ZL 3VZZLZ HYPZPUN PU JHZL YL[PYLTLU[ VM HZZL[Z HUK NHPUZ VY SVZZLZ HYPZPUN MYVT KPZWVZHS VM Ä_LK HZZL[Z HYL YLJVNUPZLK PU [OL Z[H[LTLU[ VM WYVÄ[ HUK SVZZ PU [OL `LHY VM VJJ\YYLUJL

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1. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

5.

Impairment of assets: (Z H[ LHJO IHSHUJL ZOLL[ KH[L [OL JHYY`PUN HTV\U[ VM HZZL[Z PZ [LZ[LK MVY PTWHPYTLU[ ZV HZ [V KL[LYTPUL! H [OL WYV]PZPVU MVY PTWHPYTLU[ SVZZ PM HU`" HUK I [OL YL]LYZHS VM PTWHPYTLU[ SVZZ YLJVNUPZLK PU WYL]PV\Z WLYPVKZ PM HU` .VVK^PSS HYPZPUN VU JVUZVSPKH[PVU PZ UV[ HTVY[PaLK I\[ [LZ[LK MVY PTWHPYTLU[ HUU\HSS`

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9LJV]LYHISL HTV\U[ PZ KL[LYTPULK! H 0U [OL JHZL VM HU PUKP]PK\HS HZZL[ H[ [OL OPNOLY VM [OL UL[ ZLSSPUN WYPJL HUK [OL ]HS\L PU \ZL" HUK I 0U [OL JHZL VM JHZO NLULYH[PUN \UP[ H NYV\W VM HZZL[Z [OH[ NLULYH[LZ PKLU[PÄLK PUKLWLUKLU[ JHZO Ã…V^Z H[ [OL OPNOLY VM [OL JHZO NLULYH[PUN \UP[»Z UL[ ZLSSPUN WYPJL HUK [OL ]HS\L PU \ZL

=HS\L PU \ZL PZ KL[LYTPULK HZ [OL WYLZLU[ ]HS\L VM LZ[PTH[LK M\[\YL JHZO ÅV^Z MYVT [OL JVU[PU\PUN \ZL VM HU HZZL[ HUK MYVT P[Z KPZWVZHS H[ [OL LUK VM P[Z \ZLM\S SPML 0U[HUNPISL HZZL[Z HUK HTVY[PZH[PVU! 0U[HUNPISL HZZL[Z HYL YLJVNUPZLK ^OLU P[ PZ WYVIHISL [OH[ [OL M\[\YL LJVUVTPJ ILULÄ[Z [OH[ HYL H[[YPI\[HISL [V [OL HZZL[Z ^PSS ÅV^ [V [OL *VTWHU` HUK [OL JVZ[ VM [OL HZZL[ JHU IL TLHZ\YLK YLSPHIS` 0U[HUNPISL HZZL[Z HYL HTVY[PZLK HZ MVSSV^Z! H 0U[HUNPISL HZZL[Z! :WLJPHSPZLK :VM[^HYL

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+L]LSVWTLU[ *VZ[!

+L]LSVWTLU[ L_WLUKP[\YL VU UL^ WYVK\J[ PZ JHWP[HSPZLK HZ PU[HUNPISL HZZL[ PM HSS VM [OL MVSSV^PUN JHU IL KLTVUZ[YH[LK P

[OL [LJOUPJHS MLHZPIPSP[` VM JVTWSL[PUN [OL PU[HUNPISL HZZL[ ZV [OH[ P[ ^PSS IL H]HPSHISL MVY \ZL VY ZHSL"

PP [OL *VTWHU` OHZ PU[LU[PVU [V JVTWSL[L [OL KL]LSVWTLU[ VM PU[HUNPISL HZZL[ HUK \ZL VY ZLSS P[" PPP [OL *VTWHU` OHZ HIPSP[` [V \ZL VY ZLSS [OL PU[HUNPISL HZZL[" P] [OL THUULY PU ^OPJO [OL WYVIHISL M\[\YL LJVUVTPJ ILULÄ[ ^PSS IL NLULYH[LK PUJS\KPUN [OL L_PZ[LUJL VM H THYRL[ MVY V\[W\[ VM [OL PU[HUNPISL HZZL[ VY [OL PU[HUNPISL HZZL[ P[ZLSM VY PM P[ PZ [V IL \ZLK PU[LYUHSS` [OL \ZLM\SULZZ VM [OL PU[HUNPISL HZZL[" ] [OL H]HPSHIPSP[` VM HKLX\H[L [LJOUPJHS ÄUHUJPHS HUK V[OLY YLZV\YJLZ [V JVTWSL[L [OL KL]LSVWTLU[ HUK [V \ZL VY ZLSS [OL PU[HUNPISL HZZL[" HUK ]P [OL *VTWHU` OHZ HIPSP[` [V TLHZ\YL [OL L_WLUKP[\YL H[[YPI\[HISL [V [OL PU[HUNPISL HZZL[ K\YPUN [OL KL]LSVWTLU[ YLSPHIS` 7.

+L]LSVWTLU[ JVZ[Z VU [OL 0U[HUNPISL HZZL[Z M\SÄSSPUN [OL JYP[LYPH HYL HTVY[PZLK V]LY H WLYPVK VM Ä]L `LHYZ V[OLY^PZL HYL L_WLUZLK PU [OL WLYPVK PU ^OPJO [OL` HYL PUJ\YYLK

Investments: Long- term investments:

3VUN [LYT PU]LZ[TLU[Z HYL JHYYPLK H[ JVZ[ /V^L]LY WYV]PZPVU MVY KPTPU\[PVU PZ THKL [V YLJVNUPZL H KLJSPUL PU [OL WLYTHULU[ UH[\YL PU [OL ]HS\L VM PU]LZ[TLU[Z Current investments:

0U]LZ[TLU[Z [OH[ HYL YLHKPS` YLHSPZHISL HUK HYL PU[LUKLK [V IL OLSK MVY UV[ TVYL [OHU VUL `LHY MYVT [OL KH[L VU ^OPJO Z\JO PU]LZ[TLU[Z HYL THKL HYL JSHZZPÄLK HZ J\YYLU[ PU]LZ[TLU[Z HUK HYL JHYYPLK H[ JVZ[ VY MHPY ]HS\L ^OPJOL]LY PZ SV^LY ;OL KL[LYTPUH[PVU VM JHYY`PUN HTV\U[ VM Z\JO PU]LZ[TLU[Z PZ KVUL VU [OL IHZPZ VM ^LPNO[LK H]LYHNL JVZ[ VM LHJO PUKP]PK\HS PU]LZ[TLU[

FINANCIALS

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1. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

8.

Inventories: H 9H^ TH[LYPHSZ WHJRPUN TH[LYPHSZ *VUZ[Y\J[PVU TH[LYPHSZ Z[VYLZ HUK ZWHYLZ

! ([ SV^LY VM JVZ[ VU ^LPNO[LK H]LYHNL IHZPZ HUK UL[ YLHSPZHISL ]HS\L

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! ([ SV^LY VM JVZ[ VM TH[LYPHS WS\Z HWWYVWYPH[L WYVK\J[PVU V]LYOLHKZ HUK UL[ YLHSPZHISL ]HS\L

J -PUPZOLK NVVKZ ¶ 4HU\MHJ[\YPUN

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K -PUPZOLK NVVKZ ¶ ;YHKPUN

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;OL JVZ[ VM PU]LU[VYPLZ OH]L ILLU JVTW\[LK [V PUJS\KL HSS JVZ[ VM W\YJOHZLZ JVZ[ VM JVU]LYZPVU HUK V[OLY YLSH[LK JVZ[Z PUJ\YYLK PU IYPUNPUN [OL PU]LU[VYPLZ [V [OLPY WYLZLU[ SVJH[PVU HUK JVUKP[PVU :SV^ HUK UVU TV]PUN TH[LYPHS VIZVSLZJLZ KLMLJ[P]L PU]LU[VYPLZ HYL K\S` WYV]PKLK MVY HUK ]HS\LK H[ UL[ YLHSPZHISL ]HS\L .VVKZ HUK TH[LYPHSZ PU [YHUZP[ HYL ]HS\LK H[ HJ[\HS JVZ[ PUJ\YYLK \W[V [OL KH[L VM )HSHUJL :OLL[

9.

Cash and cash equivalents: H *HZO JVTWYPZLZ JHZO VU OHUK HUK KLTHUK KLWVZP[Z ^P[O IHURZ I *HZO LX\P]HSLU[Z HYL ZOVY[ [LYT OPNOS` SPX\PK PU]LZ[TLU[Z [OH[ HYL YLHKPS` JVU]LY[PISL PU[V RUV^U HTV\U[Z VM JHZO HUK ^OPJO HYL Z\IQLJ[ [V PUZPNUPÄJHU[ YPZR VM JOHUNLZ PU ]HS\L

10. Foreign currency transaction and foreign operation: H ;OL YLWVY[PUN J\YYLUJ` PZ 0UKPHU 9\WLL I -VYLPNU J\YYLUJ` [YHUZHJ[PVUZ HYL YLJVYKLK VU PUP[PHS YLJVNUP[PVU PU [OL YLWVY[PUN J\YYLUJ` \ZPUN [OL L_JOHUNL YH[L H[ [OL KH[L VM [OL [YHUZHJ[PVU ([ LHJO IHSHUJL ZOLL[ KH[L MVYLPNU J\YYLUJ` TVUL[HY` P[LTZ HYL YLWVY[LK \ZPUN [OL JSVZPUN YH[L 5VU TVUL[HY` P[LTZ ^OPJO HYL JHYYPLK H[ OPZ[VYPJHS JVZ[ KLUVTPUH[LK PU H MVYLPNU J\YYLUJ` HYL YLWVY[LK \ZPUN [OL L_JOHUNL YH[L H[ [OL KH[L VM [OL [YHUZHJ[PVU J ,_JOHUNL KPMMLYLUJLZ [OH[ HYPZL VU ZL[[SLTLU[ VM TVUL[HY` P[LTZ VY VU YLWVY[PUN H[ LHJO IHSHUJL ZOLL[ KH[L VM [OL JVTWHU`»Z TVUL[HY` P[LTZ H[ [OL JSVZPUN YH[L HYL YLJVNUPZLK HZ PUJVTL VY L_WLUZLZ PU [OL WLYPVK PU ^OPJO [OL` HYPZL K -PUHUJPHS Z[H[LTLU[Z VM MVYLPNU VWLYH[PVUZ [OVZL HYL [YLH[LK HZ PU[LNYHS VWLYH[PVUZ HUK [YHUZSH[LK PU [OL ZHTL THUULY HZ MVYLPNU J\YYLUJ` [YHUZHJ[PVUZ HZ KLZJYPILK HIV]L ,_JOHUNL KPMMLYLUJLZ HYPZPUN VU Z\JO [YHUZSH[PVUZ HYL YLJVNUPaLK HZ PUJVTL VY L_WLUZLZ VM [OL WLYPVK PU ^OPJO [OL` HYPZL L -PUHUJPHS Z[H[LTLU[Z VM MVYLPNU Z\IZPKPHYPLZ [OVZL HYL [YLH[LK HZ UVU PU[LNYHS VWLYH[PVUZ [OLPY ÄUHUJPHS Z[H[LTLU[Z HYL [YHUZSH[LK H[ [OL MVSSV^PUN L_JOHUNL YH[LZ! :OHYL JHWP[HS

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1. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

12. Revenue Recognition: (a) Sale of goods:

9L]LU\L MYVT ZHSL VM NVVKZ PZ YLJVNUPZLK ^OLU HSS [OL ZPNUPÄJHU[ YPZRZ HUK YL^HYKZ VM V^ULYZOPW HYL [YHUZMLYYLK [V [OL I\`LY HZ WLY [OL [LYTZ VM JVU[YHJ[Z HUK UV ZPNUPÄJHU[ \UJLY[HPU[` L_PZ[Z YLNHYKPUN [OL HTV\U[ VM [OL JVUZPKLYH[PVU [OH[ ^PSS IL KLYP]LK MYVT ZHSL VM [OL NVVKZ 0[ HSZV PUJS\KLZ L_JPZL K\[` HUK WYPJL ]HYPH[PVU PM HU` HUK L_JS\KLZ ]HS\L HKKLK [H_ ZHSLZ [H_ IYVRLYHNL HUK JVTTPZZPVU

I :HSL VM ZLY]PJLZ!

:LY]PJL PUJVTL PZ YLJVNUPZLK HZ WLY [OL [LYTZ VM [OL JVU[YHJ[Z ^P[O [OL J\Z[VTLYZ VU WYVWVY[PVUH[L JVTWSL[PVU TL[OVK

(c) Revenue from contracts:

9L]LU\L MYVT JVU[YHJ[Z PZ YLJVNUPZLK I` HWWS`PUN WLYJLU[HNL VM JVTWSL[PVU TL[OVK HM[LY WYV]PKPUN MVY MVYLZLLHISL SVZZLZ PM HU` 7LYJLU[HNL VM JVTWSL[PVU PZ KL[LYTPULK HZ H WYVWVY[PVU VM [OL JVZ[Z PUJ\YYLK \W[V [OL YLWVY[PUN KH[L [V [OL [V[HS LZ[PTH[LK JVZ[ [V JVTWSL[L -VYLZLLHISL SVZZ PM HU` VU [OL JVU[YHJ[Z PZ YLJVNUPZLK HZ HU L_WLUZL PU [OL WLYPVK PU ^OPJO P[ PZ MVYLZLLU PYYLZWLJ[P]L VM [OL Z[HNL VM JVTWSL[PVU VM [OL JVU[YHJ[ >OPSL KL[LYTPUPUN [OL HTV\U[ VM MVYLZLLHISL SVZZ HSS LSLTLU[Z VM JVZ[Z HUK YLSH[LK PUJPKLU[HS PUJVTL UV[ PUJS\KLK PU JVU[YHJ[ YL]LU\L PZ [HRLU PU[V JVUZPKLYH[PVU *VU[YHJ[ PZ YLÃ…LJ[LK H[ JVZ[ [PSS Z\JO [PTL [OL V\[JVTL VM [OL JVU[YHJ[ JHUUV[ IL HZJLY[HPULK YLSPHIS` HUK H[ YLHSPZHISL ]HS\L [OLYLHM[LY

K 9L]LU\LZ MYVT WV^LY KPZ[YPI\[PVU I\ZPULZZ!

9L]LU\L MYVT WV^LY KPZ[YPI\[PVU I\ZPULZZ PZ HJJV\U[LK VU [OL IHZPZ VM IPSSPUNZ [V [OL J\Z[VTLYZ HUK PUJS\KLZ \UIPSSLK YL]LU\LZ HJJY\LK \W[V [OL LUK VM HJJV\U[PUN `LHY *\Z[VTLYZ HYL IPSSLK HZ WLY [OL [HYPMM YH[LZ PZZ\LK I` ,SLJ[YPJP[` 9LN\SH[VY` *VTTPZZPVU 0U[LYLZ[ PZ HJJV\U[LK VU HJJY\HS IHZPZ VU V]LYK\L IPSSZ

(e) Interest income:

0U[LYLZ[ PUJVTL VU KLWVZP[Z ZLJ\YP[PLZ HUK SVHUZ PZ YLJVNUPZLK H[ [OL HNYLLK YH[L VU [PTL WYVWVY[PVUH[L IHZPZ

(f)

Dividend income:

+P]PKLUK PUJVTL PZ HJJV\U[LK MVY ^OLU [OL YPNO[ [V YLJLP]L [OL ZHTL PZ LZ[HISPZOLK

(g) Lease income:

3LHZL HNYLLTLU[Z ^OLYL [OL YPZRZ HUK YL^HYKZ PUJPKLU[HS [V [OL V^ULYZOPW VM HU HZZL[ Z\IZ[HU[PHSS` ]LZ[ ^P[O [OL SLZZVY HYL YLJVNUPZLK HZ VWLYH[PUN SLHZLZ 3LHZL YLU[HSZ HYL YLJVNUPZLK VU Z[YHPNO[ SPUL IHZPZ HZ WLY [OL [LYTZ VM [OL HNYLLTLU[Z PU [OL Z[H[LTLU[ VM WYVÄ[ VY SVZZ

,TWSV`LL ILULÄ[Z !

,TWSV`LL ILULÄ[Z PUJS\KPUN JVU[YPI\[PVUZ [V^HYKZ ZVJPHS ZLJ\YP[` HUK YL[PYLTLU[ ILULÄ[ ZJOLTLZ HYL HJJV\U[LK MVY IHZLK VU [OL YLN\SH[VY` MYHTL^VYR PU [OL YLZWLJ[P]L JV\U[YPLZ HUK LTWSV`TLU[ Y\SLZ JVU[YHJ[Z HWWSPJHISL [V [OL ZWLJPÄJ JVTWHUPLZ

14. Depreciation: H 0UKPHU JVTWHUPLZ 6^ULK HZZL[Z H 9L]HS\LK HZZL[Z

+LWYLJPH[PVU VU YL]HS\LK I\PSKPUN VM 7HYLU[ *VTWHU` PZ WYV]PKLK VU Z[YHPNO[ SPUL TL[OVK VU [OL ]HS\LZ HUK H[ [OL YH[LZ ZWLJPÄLK PU :JOLK\SL ?0= [V [OL *VTWHUPLZ (J[ ;OL KPMMLYLUJL IL[^LLU KLWYLJPH[PVU WYV]PKLK VU YL]HS\LK HTV\U[ HUK VU OPZ[VYPJHS JVZ[ PZ YLJV\WLK V\[ VM YL]HS\H[PVU YLZLY]L

I (ZZL[Z JHYYPLK H[ OPZ[VYPJHS JVZ[

+LWYLJPH[PVU VU [OL Ä_LK HZZL[Z JHYYPLK H[ OPZ[VYPJHS JVZ[ PZ WYV]PKLK H[ [OL YH[LZ HUK PU [OL THUULY ZWLJPÄLK PU :JOLK\SL ?0= [V [OL *VTWHUPLZ (J[ VU ^YP[[LU KV^U ]HS\L TL[OVK V[OLY [OHU VU I\PSKPUNZ HUK WSHU[ HUK LX\PWTLU[Z ^OPJO HYL KLWYLJPH[LK VU Z[YHPNO[ SPUL TL[OVK

3LHZLK HZZL[Z H 3LHZLOVSK SHUKZ HYL HTVY[PZLK V]LY [OL WLYPVK VM SLHZL I )\PSKPUNZ JVUZ[Y\J[LK VU SLHZLOVSK SHUK HYL KLWYLJPH[LK H[ UVYTHS YH[L HZ WYLZJYPILK PU :JOLK\SL ?0= [V [OL *VTWHUPLZ (J[ ^OLYL [OL SLHZL WLYPVK VM SHUK PZ IL`VUK [OL SPML VM [OL I\PSKPUN J 0U V[OLY JHZLZ I\PSKPUNZ JVUZ[Y\J[LK VU SLHZLOVSK SHUKZ HYL HTVY[PZLK V]LY [OL WYPTHY` SLHZL WLYPVK VM [OL SHUKZ I -VYLPNU JVTWHUPLZ H +LWYLJPH[PVU VU Ä_LK HZZL[Z OHZ ILLU WYV]PKLK H[ [OL YH[LZ YLX\PYLK WLYTPZZPISL I` [OL .((7Z VM [OL YLZWLJ[P]L JV\U[YPLZ /V^L]LY [OL KLWYLJPH[PVU YH[LZ HYL OPNOLY [OHU [OL YH[LZ ZWLJPÄLK PU [OL :JOLK\SL ?0= [V [OL *VTWHUPLZ (J[ I =LOPJSLZ HJX\PYLK VU ÄUHUJL SLHZLZ HYL KLWYLJPH[LK V]LY [OL WLYPVK VM SLHZL HNYLLTLU[ VY [OL \ZLM\S SPML ^OPJOL]LY PZ ZOVY[LY )VYYV^PUN JVZ[Z! H )VYYV^PUN JVZ[Z [OH[ HYL H[[YPI\[HISL [V [OL HJX\PZP[PVU JVUZ[Y\J[PVU VY WYVK\J[PVU VM H X\HSPM`PUN HZZL[ HYL JHWP[HSPZLK HZ H WHY[ VM [OL JVZ[ VM Z\JO HZZL[ [PSS Z\JO [PTL [OL HZZL[ PZ YLHK` MVY P[Z PU[LUKLK \ZL VY ZHSL ( X\HSPM`PUN HZZL[ PZ HU HZZL[ [OH[ ULJLZZHYPS` YLX\PYLZ H Z\IZ[HU[PHS WLYPVK VM [PTL NLULYHSS` V]LY [^LS]L TVU[OZ [V NL[ YLHK` MVY P[Z PU[LUKLK \ZL VY ZHSL I (SS V[OLY IVYYV^PUN JVZ[Z HYL YLJVNUPZLK HZ L_WLUZL PU [OL WLYPVK PU ^OPJO [OL` HYL PUJ\YYLK

FINANCIALS

129

N OT E S

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

1. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

16. Segment accounting: (a) Segment accounting policies:

:LNTLU[ HJJV\U[PUN WVSPJPLZ HYL PU SPUL ^P[O [OL HJJV\U[PUN WVSPJPLZ VM [OL *VTWHU` ;OL JVTWHU` PKLU[PÄLZ WYPTHY` I\ZPULZZ ZLNTLU[ IHZLK VU [OL KPMMLYLU[ YPZRZ HUK YL[\YUZ [OL VYNHUPZH[PVU Z[Y\J[\YL HUK [OL PU[LYUHS YLWVY[PUN Z`Z[LTZ :LJVUKHY` ZLNTLU[Z HYL PKLU[PÄLK VU [OL IHZPZ VM NLVNYHWO` PU ^OPJO ZHSLZ OH]L ILLU LMMLJ[LK 0U HKKP[PVU [OL MVSSV^PUN ZWLJPÄJ HJJV\U[PUN WVSPJPLZ OH]L ILLU MVSSV^LK MVY ZLNTLU[ YLWVY[PUN! :LNTLU[ YL]LU\L PUJS\KLZ ZHSLZ HUK V[OLY PUJVTL KPYLJ[S` PKLU[PÄHISL ^P[O HSSVJHISL [V [OL ZLNTLU[ PUJS\KPUN PU[LY ZLNTLU[ YL]LU\L ,_WLUZLZ [OH[ HYL KPYLJ[S` PKLU[PÄHISL ^P[O HSSVJHISL [V ZLNTLU[Z HYL JVUZPKLYLK MVY KL[LYTPUPUN [OL ZLNTLU[ YLZ\S[ ,_WLUZLZ ^OPJO YLSH[L [V [OL *VTWHU` HZ H ^OVSL HUK UV[ HSSVJHISL [V ZLNTLU[Z HYL PUJS\KLK \UKLY \UHSSVJHISL L_WLUKP[\YL 0UJVTL ^OPJO YLSH[LZ [V [OL *VTWHU` HZ H ^OVSL HUK UV[ HSSVJHISL [V ZLNTLU[Z PZ PUJS\KLK PU \UHSSVJHISL PUJVTL :LNTLU[ YLZ\S[ PUJS\KLZ THYNPUZ VU PU[LY ZLNTLU[ HUK ZHSLZ ^OPJO HYL YLK\JLK PU HYYP]PUN H[ [OL WYVÄ[ ILMVYL [H_ VM [OL *VTWHU` :LNTLU[ HZZL[Z HUK SPHIPSP[PLZ PUJS\KL [OVZL KPYLJ[S` PKLU[PÄHISL ^P[O [OL YLZWLJ[P]L ZLNTLU[Z <UHSSVJHISL HZZL[Z HUK SPHIPSP[PLZ YLWYLZLU[ [OL HZZL[Z HUK SPHIPSP[PLZ [OH[ YLSH[L [V [OL *VTWHU` HZ H ^OVSL HUK UV[ HSSVJHISL [V HU` ZLNTLU[

I 0U[LY :LNTLU[ [YHUZMLY WYPJPUN!

:LNTLU[ YL]LU\L YLZ\S[PUN MYVT [YHUZHJ[PVUZ ^P[O V[OLY I\ZPULZZ ZLNTLU[Z PZ HJJV\U[LK VU [OL IHZPZ VM [YHUZMLY WYPJL HNYLLK IL[^LLU [OL ZLNTLU[Z :\JO [YHUZMLY WYPJLZ HYL LP[OLY KL[LYTPULK [V `PLSK H KLZPYLK THYNPU VY HNYLLK VU H ULNV[PH[LK IHZPZ

17. Leases: H (ZZL[Z HJX\PYLK \UKLY SLHZLZ ^OLYL [OL .YV\W OHZ Z\IZ[HU[PHSS` HSS [OL YPZRZ HUK YL^HYKZ VM V^ULYZOPW HYL JSHZZPÄLK HZ ÄUHUJL SLHZLZ :\JO HZZL[Z HYL JHWP[HSPZLK H[ [OL PUJLW[PVU VM [OL SLHZL H[ [OL SV^LY VM [OL MHPY ]HS\L HUK [OL WYLZLU[ ]HS\L VM TPUPT\T SLHZL WH`TLU[Z HUK [OL SPHIPSP[` PZ JYLH[LK MVY HU LX\P]HSLU[ HTV\U[ ,HJO SLHZL YLU[HS WHPK PZ HSSVJH[LK IL[^LLU [OL SPHIPSP[` HUK [OL PU[LYLZ[ JVZ[ ZV HZ [V VI[HPU H JVUZ[HU[ WLYPVKPJ YH[L VM PU[LYLZ[ VU [OL V\[Z[HUKPUN SPHIPSP[` MVY LHJO WLYPVK I (ZZL[Z HJX\PYLK VU SLHZLZ ^OLYL H ZPNUPÄJHU[ WVY[PVU VM [OL YPZRZ HUK YL^HYKZ VM V^ULYZOPW HYL YL[HPULK I` SLZZVY HYL JSHZZPÄLK HZ VWLYH[PUN SLHZLZ 3LHZL YLU[HSZ HYL JOHYNLK [V [OL Z[H[LTLU[ VM WYVÄ[ HUK SVZZ VU HJJY\HS IHZPZ ;H_LZ VU PUJVTL! H ;H_ VU PUJVTL MVY [OL J\YYLU[ WLYPVK PZ KL[LYTPULK VU [OL IHZPZ VU LZ[PTH[LK [H_HISL PUJVTL HUK [H_ JYLKP[Z JVTW\[LK PU HJJVYKHUJL ^P[O [OL WYV]PZPVUZ VM [OL YLSL]HU[ [H_ SH^Z HUK IHZLK VU [OL L_WLJ[LK V\[JVTL VM HZZLZZTLU[Z HWWLHSZ I +LMLYYLK [H_ PZ YLJVNUPZLK VU [PTPUN KPMMLYLUJLZ IL[^LLU [OL HJJV\U[PUN PUJVTL HUK [OL [H_HISL PUJVTL MVY [OL `LHY HUK X\HU[PÄLK \ZPUN [OL [H_ YH[LZ HUK [H_ SH^Z LUHJ[LK VY Z\IZ[HU[P]LS` LUHJ[LK HZ VU [OL IHSHUJL ZOLL[ KH[L J +LMLYYLK [H_ HZZL[Z YLSH[PUN [V \UHIZVYILK KLWYLJPH[PVU I\ZPULZZ SVZZLZ HYL YLJVNUPZLK HUK JHYYPLK MVY^HYK [V [OL L_[LU[ [OLYL PZ ]PY[\HS JLY[HPU[` [OH[ Z\MÄJPLU[ M\[\YL [H_HISL PUJVTL ^PSS IL H]HPSHISL HNHPUZ[ ^OPJO Z\JO KLMLYYLK [H_ HZZL[Z JHU IL YLHSPZLK K 6[OLY KLMLYYLK [H_ HZZL[Z HYL YLJVNUPZLK HUK JHYYPLK MVY^HYK [V [OL L_[LU[ [OH[ [OLYL PZ H YLHZVUHISL JLY[HPU[` [OH[ Z\MÄJPLU[ M\[\YL [H_HISL PUJVTL ^PSS IL H]HPSHISL HNHPUZ[ ^OPJO Z\JO KLMLYYLK [H_ HZZL[Z JHU IL YLHSPZLK L ;OL IYLHR \W VM [OL THQVY JVTWVULU[Z VM [OL KLMLYYLK [H_ HZZL[Z HUK SPHIPSP[PLZ HZ H[ IHSHUJL ZOLL[ KH[L OHZ ILLU HYYP]LK H[ HM[LY ZL[[PUN VMM KLMLYYLK [H_ HZZL[Z HUK SPHIPSP[PLZ ^OLYL [OL YLZWLJ[P]L JVTWHUPLZ OH]L H SLNHSS` LUMVYJLHISL YPNO[ [V ZL[ VMM HZZL[Z HNHPUZ[ SPHIPSP[PLZ HUK ^OLYL Z\JO HZZL[Z HUK SPHIPSP[PLZ YLSH[L [V [H_LZ VU PUJVTL SL]PLK I` [OL ZHTL NV]LYUPUN [H_H[PVU SH^Z 7YV]PZPVUZ *VU[PUNLU[ SPHIPSP[PLZ *VU[PUNLU[ HZZL[Z HUK *VTTP[TLU[Z! H 7YV]PZPVUZ HYL YLJVNUPZLK MVY SPHIPSP[PLZ [OH[ JHU IL TLHZ\YLK VUS` I` \ZPUN H Z\IZ[HU[PHS KLNYLL VM LZ[PTH[PVU PM! [OL *VTWHU` OHZ H WYLZLU[ VISPNH[PVU HZ H YLZ\S[ VM H WHZ[ L]LU[" H WYVIHISL V\[ÅV^ VM YLZV\YJLZ PZ L_WLJ[LK [V ZL[[SL [OL VISPNH[PVU" HUK [OL HTV\U[ VM [OL VISPNH[PVU JHU IL YLSPHIS` LZ[PTH[LK I 9LPTI\YZLTLU[ I` HUV[OLY WHY[` L_WLJ[LK PU YLZWLJ[ VM L_WLUKP[\YL YLX\PYLK [V ZL[[SL H WYV]PZPVU PZ YLJVNUPZLK ^OLU P[ PZ ]PY[\HSS` JLY[HPU [OH[ YLPTI\YZLTLU[ ^PSS IL YLJLP]LK PM VISPNH[PVU PZ ZL[[SLK J *VU[PUNLU[ SPHIPSP[` PZ KPZJSVZLK PU [OL JHZL VM! H WYLZLU[ VISPNH[PVU HYPZPUN MYVT WHZ[ L]LU[Z ^OLU P[ PZ UV[ WYVIHISL [OH[ HU V\[ÅV^ VM YLJV\YZLZ ^PSS IL YLX\PYLK [V ZL[[SL [OL VISPNH[PVU" H WYLZLU[ VISPNH[PVU HYPZPUN MYVT WHZ[ L]LU[Z ^OLU UV YLSPHISL LZ[PTH[L PZ WVZZPISL" H WVZZPISL VISPNH[PVU HYPZPUN MYVT WHZ[ L]LU[Z \USLZZ [OL WYVIHIPSP[` VM V\[ÅV^ VM YLZV\YJLZ PZ YLTV[L K *VU[PUNLU[ HZZL[Z HYL ULP[OLY YLJVNUPZLK UVY KPZJSVZLK L *VTTP[TLU[Z PUJS\KL [OL HTV\U[ VM W\YJOHZL VYKLY UL[ VM HK]HUJLZ PZZ\LK [V WHY[PLZ MVY JVTWSL[PVU VM HZZL[Z M

130

7YV]PZPVUZ JVU[PUNLU[ SPHIPSP[PLZ JVU[PUNLU[ HZZL[Z HUK JVTTP[TLU[Z HYL YL]PL^LK H[ LHJO IHSHUJL ZOLL[ KH[L

N OT E S

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

1. SIGNIFICANT ACCOUNTING POLICIES (Contd.)

.V]LYUTLU[ NYHU[Z Z\IZPK`! H *HWP[HS NYHU[Z PU JHZL VM KLWYLJPHISL HZZL[Z" [OL JVZ[ VM [OL HZZL[ PZ ZOV^U H[ NYVZZ ]HS\L HUK NYHU[ [OLYLVU PZ [YLH[LK HZ JHWP[HS NYHU[ ^OPJO PZ YLJVNUPZLK HZ PUJVTL PU [OL Z[H[LTLU[ VM WYVÄ[ HUK SVZZ V]LY [OL WLYPVK HUK PU WYVWVY[PVU PU ^OPJO KLWYLJPH[PVU PZ JOHYNLK I 9L]LU\L NYHU[Z HYL YLJVNUPZLK PU [OL Z[H[LTLU[ VM WYVÄ[ HUK SVZZ PU [OL ZHTL WLYPVK HZ [OL YLSH[LK JVZ[ ^OPJO [OL` HYL PU[LUKLK [V JVTWLUZH[L HYL HJJV\U[LK MVY ,_[YHVYKPUHY` HUK L_JLW[PVUHS P[LTZ!

0UJVTL VY L_WLUZLZ [OH[ HYPZL MYVT L]LU[Z VY [YHUZHJ[PVUZ [OH[ HYL JSLHYS` KPZ[PUJ[ MYVT VYKPUHY` HJ[P]P[PLZ VM [OL JVTWHU` HYL JSHZZPÄLK HZ L_[YHVYKPUHY` P[LTZ :WLJPÄJ KPZJSVZ\YLZ VM Z\JO L]LU[Z [YHUZHJ[PVUZ HYL THKL PU [OL ÄUHUJPHS Z[H[LTLU[Z :PTPSHYS` HU` L_[LYUHS L]LU[ IL`VUK [OL JVU[YVS VM [OL JVTWHU` ZPNUPÄJHU[S` PTWHJ[PUN PUJVTL VY L_WLUZLZ PZ HSZV [YLH[LK HZ L_[YHVYKPUHY` P[LT HUK KPZJSVZLK HZ Z\JO *LY[HPU VJJHZPVUZ [OL ZPaL [`WL VY PUJPKLUJL VM HU P[LT VM PUJVTL VY L_WLUZL WLY[HPUPUN [V [OL VYKPUHY` HJ[P]P[PLZ VM [OL JVTWHU` PZ Z\JO [OH[ P[Z KPZJSVZ\YL PTWYV]LZ [OL \UKLYZ[HUKPUN VM [OL WLYMVYTHUJL VM [OL JVTWHU` Z\JO PUJVTL VY L_WLUZL PZ JSHZZPÄLK HZ HU L_JLW[PVUHS P[LT HUK HJJVYKPUNS` KPZJSVZLK PU [OL UV[LZ HJJVTWHU`PUN [V [OL ÄUHUJPHS Z[H[LTLU[Z

FINANCIALS

131

` crore

N OT E S

2.

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

(Z H[

(Z H[

361.00

128.30

128.30

8

SHARE CAPITAL Authorised: ,X\P[` :OHYLZ VM ` LHJO Issued: ,X\P[` :OHYLZ VM ` LHJO :\IZJYPILK HUK WHPK \W! ,X\P[` :OHYLZ VM ` LHJO Forfeited shares: (TV\U[ WHPK \W VU ,X\P[` :OHYLZ VM ` LHJO (TV\U[ WHPK \W `

0.00

128.30

Notes: H 9LJVUJPSPH[PVU VM [OL U\TILY VM [OL ZOHYLZ V\[Z[HUKPUN H[ [OL ILNPUUPUN HUK H[ [OL LUK VM [OL `LHY! (\[OVYPZLK ZOHYL JHWP[HS

)HSHUJL H[ [OL ILNPUUPUN VM [OL `LHY (THSNTH[PVU VM ^OVSS` V^ULK Z\IZPKPHY` ^P[O [OL *VTWHU` )HSHUJL H[ [OL LUK VM [OL `LHY

(Z H[

(Z H[

No. of Shares

` crore

5V VM :OHYLZ

` crore

1805000000

361.00

-

-

1805000000

361.00

;OL *VTWHU` OHZ UV[ PZZ\LK HU` LX\P[` ZOHYLZ K\YPUN [OL J\YYLU[ HUK PU [OL WYL]PV\Z `LHY I ;LYTZ YPNO[Z H[[HJOLK [V LX\P[` ZOHYLZ!

;OL *VTWHU` OHZ VUS` VUL JSHZZ VM ZOHYL JHWP[HS P L LX\P[` ZOHYLZ OH]PUN MHJL ]HS\L VM ` WLY ZOHYL ,HJO OVSKLY VM LX\P[` ZOHYL PZ LU[P[SLK [V VUL ]V[L WLY ZOHYL

+\YPUN [OL `LHY [OL *VTWHU` OHZ KLJSHYLK HUK WHPK PU[LYPT KP]PKLUK VM ` WLY ZOHYL ;OL *VTWHU` OHZ YLJVTTLUKLK H ÄUHS KP]PKLUK VM ` WLY ZOHYL Z\IQLJ[ [V HWWYV]HS VM ZOHYLOVSKLYZ H[ [OL LUZ\PUN (UU\HS .LULYHS 4LL[PUN

0U [OL L]LU[ VM SPX\KH[PVU [OL LX\P[` ZOHYLOVSKLYZ HYL LSPNPISL [V YLJLP]L [OL YLTHPUPUN HZZL[Z VM [OL *VTWHU` HM[LY KPZ[YPI\[PVU VM HSS WYLMLYLU[PHS HTV\U[Z PU WYVWVY[PVU [V [OLPY ZOHYLOVSKPUN

(c) Details of shareholders holding more than 5 % shares in the Company: (Z H[

(Z H[ %

5V VM :OHYLZ

39.90

255937034

/+-* ;Y\Z[LL *VTWHU` 3PTP[LK

9.05

58069500

3PML 0UZ\YHUJL *VYWVYH[PVU VM 0UKPH

5.46

35043515

(Z H[

(Z H[

No. of Shares

5V VM :OHYLZ

274924944

% No. of Shares

(]HU[OH /VSKPUNZ 3PTP[LK

(d) There are no shares reserved for issue under options and contracts / commitments for the sale of shares / disinvestment. L (NNYLNH[L U\TILY VM IVU\Z ZOHYLZ PZZ\LK K\YPUN [OL WLYPVK VM Ä]L `LHYZ PTTLKPH[LS` WYLJLKPUN [OL YLWVY[PUN KH[L!

:OHYLZ PZZ\LK HZ M\SS` WHPK \W IVU\Z ZOHYLZ M (NNYLNH[L U\TILY VM ZOHYLZ PZZ\LK HZ .+9Z! (Z H[ % No. of Shares ;OL )HUR VM 5L^ @VYR

132

0.23

1474294

(Z H[ %

5V VM :OHYLZ

` crore

N OT E S

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

(Z H[ 3.

(Z H[

RESERVES AND SURPLUS Capital reserve on consolidation (Z WLY SHZ[ IHSHUJL ZOLL[

158.10

19.12

10.00

151.84

Capital reserve (Z WLY SHZ[ IHSHUJL ZOLL[ Capital redemption reserve (Z WLY SHZ[ IHSHUJL ZOLL[ Securities premium account (Z WLY SHZ[ IHSHUJL ZOLL[ Revaluation reserve: (Z WLY SHZ[ IHSHUJL ZOLL[

14.02

(KK! (KKP[PVU K\YPUN [OL `LHY b9LMLY 5V[L H ILSV^d

18.51

-

Less: ;YHUZMLYYLK [V :[H[LTLU[ VM WYVÄ[ HUK SVZZ b9LMLY 5V[L H ILSV^d

(1.60)

30.93 Statutory reserve: (Z WLY SHZ[ IHSHUJL ZOLL[ b9LMLY 5V[L I ILSV^ d

63.02

(KKP[PVU KLK\J[PVU K\YPUN [OL `LHY

-

63.02 Government grant: (Z WLY SHZ[ IHSHUJL ZOLL[

-

-

(KKP[PVU KLK\J[PVU K\YPUN [OL `LHY

-

0.10

-

0.10 Foreign currency transalation reserve: (Z WLY SHZ[ IHSHUJL ZOLL[

80.71

(KKP[PVU KLK\J[PVU K\YPUN [OL `LHY

58.58

139.29 Hedge reserve: (Z WLY SHZ[ IHSHUJL ZOLL[ (KKP[PVU KLK\J[PVU K\YPUN [OL `LHY b9LMLY 5V[L J ILSV^d

(5.02)

-

0.87

(4.15) )HSHUJL PU :[H[LTLU[ VM WYVÄ[ HUK SVZZ! (Z WLY SHZ[ IHSHUJL ZOLL[ (KK! 7YVÄ[ SVZZ MVY [OL `LHY

2990.85

(36.14)

Less: ;YHUZMLYYLK [V Z[H[\[VY` YLZLY]L

-

Less: ,TWSV`LL ILULÄ[Z

-

2954.71

Z[ 0U[LYPT KP]PKLUK

25.66

UK 0U[LYPT KP]PKLUK

25.66

YK 0U[LYPT KP]PKLUK

-

7YVWVZLK KP]PKLUK

25.66

-

(KKP[PVUHS [H_ VU KP]PKLUK

12.76

7YVÄ[ H]HPSHISL MVY KPZ[YPI\[PVU!

2864.97

3433.22

Notes: H +LWYLJPH[PVU VU YL]HS\LK HTV\U[ VM Ä_LK HZZL[Z YLJV\WLK MYVT 9L]HS\H[PVU YLZLY]L ` JYVYL b(SZV YLMLY 5V[L I infrad I :[H[\[VY` YLZLY]LZ YLWYLZLU[Z WYVÄ[Z ZL[ HZPKL HZ WLY [OL SVJHS Z[H[\[VY` YLX\PYLTLU[ VM V]LYZLHZ Z\IZPKPHYPLZ HUK [OL ZHTL PZ UV[ H]HPSHISL MVY KPZ[YPI\[PVU J /LKNL YLZLY]L YLWYLZLU[Z UL[ THYR [V THYRL[ SVZZ VU MVY^HYK JVU[YHJ[Z VWLU HZ H[ [OL LUK VM [OL ÄUHUJPHS `LHY MVY ^OPJO [OL OLKNLK [YHUZHJ[PVU OH]L UV[ VJJ\YYLK

FINANCIALS

133

` crore

N OT E S

4.

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

(Z H[

(Z H[

6WLUPUN IHSHUJL

15.66

(KKP[PVU KLSL[PVU K\YPUN [OL `LHY

(2.43)

MINORITY INTEREST

:OHYL VM SVZZ WYVÄ[ MVY [OL `LHY

(1.12)

+P]PKLUK [V TPUVYP[` ZOHYLOVSKLYZ

(2.63)

9.48

(Z H[

(Z H[

1482.87

66.61

0.75

*SVZPUN IHSHUJL

5.

LONG-TERM BORROWINGS Secured loans ;LYT SVHUZ MYVT IHURZ b9LMLY 5V[L H ILSV^d )VUKZ b9LMLY 5V[L H ILSV^d Unsecured loans 0U[LYLZ[ MYLL ZHSLZ [H_ KLMLYYHS SVHUZ MYVT :[H[L .V]LYUTLU[ b9LMLY 5V[L J ILSV^d 3LHZL ÄUHUJL b9LMLY 5V[L K ILSV^d

4.78

1555.01

Notes: H ;LYT SVHUZ MYVT IHURZ! P

;OL SVUN [LYT SVHU VM ` JYVYL 7YL]PV\Z `LHY ` JYVYL PZ ZLJ\YLK I` ^H` VM Ä_LK HUK ÅVH[PUN JOHYNL VU HSS HZZL[Z VM *. 7V^LY :`Z[LTZ 0YLSHUK 3PTP[LK ;OPZ SVHU PZ YLWH`HISL PU LPNO[` LX\HS X\HY[LYS` PUZ[HSSTLU[Z MYVT [OL KYH^KV^U PU -LIY\HY`

PP ;OL SVUN [LYT SVHU VM ` JYVYL 7YL]PV\Z `LHY ` JYVYL PZ ZLJ\YLK I` ^H` VM Ä_LK HUK ÅVH[PUN JOHYNL VU HSS HZZL[Z VM *. (\[VTH[PVU :VS\[PVU <:( 0UJ HUK *. /VSKPUNZ <:( 0UJ ;OPZ SVHU PZ YLWH`HISL PU [LU LX\HS OHSM `LHYS` PUZ[HSSTLU[Z MYVT KYH^KV^U PU 1\UL PPP ;OL SVUN [LYT SVHU VM ` JYVYL 7YL]PV\Z `LHY ` JYVYL PZ ZLJ\YLK I` ^H` VM Ä_LK HUK ÅVH[PUN JOHYNL VU HSS HZZL[Z VM *. ,SLJ[YPJ :`Z[LTZ /\UNHY` AY[ 9LWH`TLU[ VM [OL SVHU ^PSS JVTTLUJL MYVT +LJLTILY HUK ^PSS IL YLWH`HISL PU MV\Y LX\HS HUU\HS PUZ[HSSTLU[Z P] ;OL SVUN [LYT SVHU VM ` JYVYL 7YL]PV\Z `LHY ` JYVYL PZ ZLJ\YYLK I` ^H` VM Ä_LK HUK ÅVH[PUN JOHYNL VU HSS HZZL[Z VM *. ,SLJ[YPJ :`Z[LTZ /\UNHY` AY[ HUK PZ HSZV N\HYHU[LLK I` [OL 7HYLU[ *VTWHU` ;OPZ SVHU ^PSS IL WH`HISL I` H ZPUNSL PUZ[HSSTLU[ PU :LW[LTILY ] ;OL SVUN [LYT SVHU VM ` JYVYL 7YL]PV\Z `LHY ` JYVYL PZ ZLJ\YLK I` ÄYZ[ YHURPUN WSLHNL V]LY VM [OL ZOHYLZ VM *YVTW[VU .YLH]LZ /VSKPUNZ :^LKLU () OLSK I` *. 0UK\Z[YPHS /VSKPUNZ () HUK TVY[NHNL VM Ä_LK HZZL[Z VM *. +YP]LZ HUK (\[VTH[PVU .YV\W :^LKLU 9LWH`TLU[ VM SVHU ^PSS JVTTLUJL MYVT +LJLTILY HUK ^PSS IL YLWH`HISL PU Ä]L LX\HS HUU\HS PUZ[HSSTLU[Z ]P ;OL .YV\W OHZ H]HPSLK ]HYPV\Z M\UK IHZLK MHJPSP[PLZ MYVT [OL JVUZVY[P\T [V TLL[ P[Z ^VYRPUN JHWP[HS YLX\PYLTLU[Z ;OLZL MHJPSP[PLZ HYL ZLJ\YLK I` ^H` VM TVY[NHNL VU I\PSKPUN WSHU[ HUK THJOPULY` HUK O`WV[OLJH[PVU JOHYNL VU PU]LU[VYPLZ HUK [YHKL YLJLP]HISLZ VM *. 7V^LY :`Z[LTZ )LSNP\T 5 = HUK *. /VSKPUNZ )LSNP\T 5 = ;OLZL MHJPSP[PLZ HSZV PUJS\KL SVUN [LYT SVHU VM ` JYVYL 7YL]PV\Z `LHY ` JYVYL ;OPZ SVUN [LYT SVHU PZ YL WH`HISL PU MV\Y LX\HS `LHYS` PUZ[HSSTLU[Z MYVT KYH^KV^U PU 4H` ]PP ;OL SVUN [LYT SVHU VM ` JYVYL 7YL]PV\Z `LHY 5PS PZ ZLJ\YLK I` WSLKNL V]LY ZOHYLZ VM A0= .YV\W TVY[NHNL VM Ä_LK HZZL[Z SVJH[LK H[ :WHPU HUK N\HYHU[LLK I` [OL 7HYLU[ *VTWHU` 9LWH`TLU[ VM SVHU ^PSS JVTTLUJL MYVT 1HU\HY` HUK ^PSS IL YLWH`HISL PU \ULX\HS HUU\HS HUK OHSM `LHYS` PUZ[HSSTLU[Z ]PPP ;OL SVUN [LYT SVHU VM ` JYVYL 7YL]PV\Z `LHY 5PS PZ ZLJ\YLK I` ÄYZ[ WYPVYP[` VU HSS HJJV\U[Z YLJLP]HISLZ VM [OL *. 7V^LY :`Z[LTZ <:( HUK H SPLU ZLUPVY PU WYPVYP[` [V HSS SPLUZ V[OLY [OHU SPLUZ NYHU[LK PU MH]V\Y VM SLHZLK LX\PWTLU[Z I )VYYV^PUNZ I` ^H` IVUKZ! P

)<03+ 4PZZV\YP 9L]LU\L )VUKZ :LYPLZ ^P[O PU[LYLZ[ WH`HISL ZLTP HUU\HS H[ H Ä_LK YH[L HUK WYPUJPWHS WH`TLU[Z YHUNPUN MYVT ` JYVYL [V ` JYVYL [OYV\NO TH[\YP[` VU Z[ +LJLTILY

PP 0UK\Z[YPHS +L]LSVWTLU[ 9L]LU\L )VUKZ :LYPLZ ^P[O PU[LYLZ[ WH`HISL TVU[OS` H[ [OL ^LLRS` HKQ\Z[LK 30)69 YH[L HUK HUU\HS WYPUJPWHS WH`TLU[ YHUNPUN MYVT ` JYVYL [V ` JYVYL [OYV\NO TH[\YP[` PU +LJLTILY PPP 0UK\Z[YPHS +L]LSVWTLU[ 9L]LU\L )VUKZ :LYPLZ ^P[O PU[LYLZ[ WH`HISL TVU[OS` H[ [OL ^LLRS` HKQ\Z[LK 30)69 YH[L HUK HUU\HS WYPUJPWHS WH`TLU[Z YHUNPUN MYVT ` JYVYL [V ` JYVYL [OYV\NO TH[\YP[` PU +LJLTILY P] 0UK\Z[YPHS +L]LSVWTLU[ 9L]LU\L )VUKZ :LYPLZ ^P[O PU[LYLZ[ WH`HISL TVU[OS` H[ [OL ^LLRS` HKQ\Z[LK 30)69 YH[L HUK HUU\HS WYPUJPWHS WH`TLU[ YHUNPUN MYVT ` JYVYL [V ` JYVYL [OYV\NO TH[\YP[` PU 1\UL (v)

:VM[ SVHUZ VM ` JYVYL 7YL]PV\Z `LHY 5PS MYVT .V]LYUTLU[ 4PUPZ[Y` VM :WHPU ^OPJO HYL YLWH`HISL PU WLYPVKPJHS PUZ[HSSTLU[Z MYVT [OL `LHY [V

J ;OL *VTWHU` OHZ VW[LK MVY [OL KLMLYYHS ZJOLTL VM ZHSLZ [H_ ^OPJO PZ WH`HISL HZ WLY [OL ZJOLTL MYHTLK I` :[H[L .V]LYUTLU[

134

` crore

N OT E S

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

(d) Finance lease: -PUHUJL SLHZL VISPNH[PVUZ HYL YLWH`HISL PU LX\H[LK TVU[OS` PUZ[HSSTLU[Z ;OL HZZL[Z HJX\PYLK VU ÄUHUJL SLHZL THPUS` JVTWYPZL JHYZ HUK LX\PWTLU[Z ;OL SLHZL OHZ H WYPTHY` WLYPVK ^OPJO PZ Ä_LK HUK UVU JHUJLSSHISL ;OL .YV\W OHZ HU VW[PVU [V YLUL^ [OL SLHZL MVY H ZLJVUKHY` WLYPVK ;OL TPUPT\T SLHZL YLU[HSZ HZ H[ Z[ 4HYJO HUK [OL WYLZLU[ ]HS\L HZ H[ Z[ 4HYJO VM TPUPT\T SLHZL WH`TLU[Z PU YLZWLJ[ VM HZZL[Z HJX\PYLK \UKLY ÄUHUJL SLHZLZ HYL HZ MVSSV^Z! 4PUPT\T SLHZL WH`TLU[Z

7YLZLU[ ]HS\L VM TPUPT\T SLHZL WH`TLU[Z

+\L ^P[OPU VUL `LHY

2.62

1.97

+\L VUL [V Ä]L `LHYZ

5.35

4.78

-

-

Total

+\L IL`VUK Ä]L `LHYZ

7.97

6.75

Less: -\[\YL ÄUHUJL JOHYNLZ

1.22

7YLZLU[ ]HS\L VM TPUPT\T SLHZL WH`HISL

6.75

8.29

;OL .YV\W OHZ UV[ LU[LYLK PU[V HU` VWLYH[PUN SLHZL HZ ZWLJPÄLK PU (JJV\U[PUN :[HUKHYK (: 3LHZLZ ;OL .YV\W OHZ OV^L]LY [HRLU ]HYPV\Z YLZPKLU[PHS JVTTLYJPHS WYLTPZLZ HUK WSHU[ HUK LX\PWTLU[Z \UKLY JHUJLSSHISL VWLYH[PUN SLHZL ;OLZL SLHZL HNYLLTLU[Z HYL UVYTHSS` YLUL^LK VU L_WPY` ^OLYL]LY YLX\PYLK

;OLYL HYL UV L_JLW[PVUHS YLZ[YPJ[P]L JV]LUHU[Z PU [OL SLHZL HNYLLTLU[Z

6.

DEFERRED TAX

(Z H[

Deferred [H_ assets

Deferred [H_ SPHIPSP[PLZ

+PMMLYLUJL IL[^LLU IVVR HUK [H_ KLWYLJPH[PVU ,_WLUZLZ HSSV^HISL MVY [H_ W\YWVZLZ ^OLU WHPK VU WH`TLU[ VM ;+: <UHIZVYILK JHYYPLK MVY^HYK [H_ SVZZLZ KLWYLJPH[PVU 6[OLY P[LTZ NP]PUN YPZL [V [PTPUN KPMMLYLUJLZ

(Z H[

+LMLYYLK [H_ SPHIPSP[PLZ

138.41

51.95

203.94 59.06

8.45

314.95

146.86

168.09

+LMLYYLK [H_ HZZL[Z VU HJX\PZP[PVU VM Z\IZPKPHYPLZ

30.57

+LMLYYLK [H_ HZZL[Z HZ WLY *HUHKPHU .((7 0-9:

-

5L[ KLMLYYLK [H_ SPHIPSP[` HZZL[

,MMLJ[ VM [YHUZSH[PVU NHPU SVZZ 5L[ HZZL[ SPHIPSP[` JYLKP[LK JOHYNLK [V :[H[LTLU[ VM WYVÄ[ HUK SVZZ 5L[ PUJYLTLU[HS HZZL[

2.68

83.54

116.79

116.79

(Z H[ 7.

+LMLYYLK [H_ HZZL[Z

(Z H[

OTHER LONG-TERM LIABILITIES 6[OLY WH`HISLZ! +LWVZP[Z

27.33

6[OLYZ

52.13

79.46 +\L [V LYZ[^OPSL ZOHYLOVSKLYZ VM HJX\PYLK Z\IZPKPHYPLZ

8.

(Z H[

(Z H[

73.78

73.78

LONG-TERM PROVISIONS ,TWSV`LLZ ILULÄ[Z 9LMLY 5V[L ILSV^

65.13 144.59

;OL .YV\W OHZ YLJVNUPZLK SPHIPSP[PLZ [V^HYKZ ,TWSV`LL ILULÄ[Z HZ WLY [OL HWWSPJHISL .((7 PU [OL JV\U[Y` VM KVTPJPSL

FINANCIALS

135

` crore

N OT E S

9.

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

(Z H[

(Z H[

254.05

42.42

-YVT IHURZ

-

-YVT HZZVJPH[L

-

SHORT-TERM BORROWINGS Secured loans Term loans -YVT IHURZ 9LMLY 5V[L ILSV^ >VYRPUN JHWP[HS KLTHUK SVHU -YVT IHURZ 9LMLY 5V[L ILSV^ Unsecured loans

296.47

Note :

;OL .YV\W OHZ H]HPSLK ]HYPV\Z ZOVY[ [LYT IVYYV^PUNZ HUK ^VYRPUN JHWP[HS KLTHUK SVHU ;OLZL SVHUZ HYL ZLJ\YLK I` O`WV[OLJH[PVU VM PU]LU[VYPLZ IVVR KLI[Z HUK [YHKL YLJLP]HISLZ IV[O WYLZLU[ HUK M\[\YL (Z H[

(Z H[

257.32

10. TRADE PAYABLES (JJLW[HUJLZ Sundry creditors +\L [V HZZVJPH[LZ +\L [V V[OLYZ

(Z H[

22.07

2182.44

2461.83

(Z H[

11. OTHER CURRENT LIABILITIES Current maturities: 3VUN [LYT IVYYV^PUNZ! -YVT IHURZ b9LMLY 5V[L H Z\WYHd -YVT ÄUHUJPHS PUZ[P[\[PVUZ b9LMLY 5V[L H HUK 5V[L Z\WYHd

171.15

4.37

175.52 3LHZL ÄUHUJL b9LMLY 5V[L J Z\WYHd

1.97

0U[LYLZ[ MYLL KLMLYYHS SVHUZ MYVT :[H[L .V]LYUTLU[ b9LMLY 5V[L I Z\WYHd

0.38

0U[LYLZ[ HJJY\LK I\[ UV[ K\L VU IVYYV^PUNZ

4.26

(K]HUJLZ MYVT J\Z[VTLYZ

918.11

Investor Education and Protection Fund: <UJSHPTLK KP]PKLUK

1.90

<UJSHPTLK TH[\YLK Ä_LK KLWVZP[Z

0.00

+\L [V KPYLJ[VYZ

1.90

10.03

Due to customers: 7YVNYLZZ IPSSZ YHPZLK Less: *VUZ[Y\J[PVU H[ JVZ[ Less: *VUZ[Y\J[PVU HUK WYVQLJ[ YLSH[LK ^VYR H[ YLHSPZHISL ]HS\L

2089.92 6.77

2016.82

66.33 6[OLY WH`HISLZ! :LJ\YP[` KLWVZP[Z

0.73

59.84

,TWSV`LL K\LZ

146.83

6[OLYZ

168.88

:[H[\[VY` K\LZ

136

376.28

1554.78

` crore

N OT E S

ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

(Z H[

(Z H[

12. SHORT-TERM PROVISIONS ;H_LZ UL[ VM HK]HUJL [H_ 0U[LYPT KP]PKLUK 7YVWVZLK KP]PKLUK (KKP[PVUHS [H_ VU KP]PKLUK ,TWSV`LL ILULÄ[Z

49.54

-

25.66

-

4.36

3.19

6[OLYZ WYV]PZPVUZ 9LMLY 5V[L ILSV^

265.71

348.46

+PZJSVZ\YLZ HZ YLX\PYLK I` (JJV\U[PUN :[HUKHYK (: 7YV]PZPVUZ *VU[PUNLU[ 3PHIPSP[PLZ HUK *VU[PUNLU[ (ZZL[Z! Note: (1) Movement in provisions: >HYYHU[PLZ 5H[\YL VM WYV]PZPVUZ *HYY`PUN HTV\U[ H[ [OL ILNPUUPUN VM [OL `LHY (KKP[PVU VU HJX\PZP[PVU VM Z\IZPKPHYPLZ K\YPUN [OL `LHY (KKP[PVUHS WYV]PZPVU THKL K\YPUN [OL `LHY

:HSLZ [H_ =(;

20.66

7.46

0.03

-

-

-

-

39.37

1.71

1.39

104.02

,_JPZL K\[` :LY]PJL [H_

(TV\U[Z \ZLK K\YPUN [OL `LHY

42.35

1.31

-

-

<U\ZLK HTV\U[Z YL]LYZLK K\YPUN [OL `LHY

26.47

1.96

0.09

;YHUZSH[PVU HKQ\Z[TLU[ *HYY`PUN HTV\U[ H[ [OL LUK VM [OL `LHY

6.57

-

-

-

-

81.17

19.10

8.76

3PX\PKH[LK KHTHNLZ 5H[\YL VM WYV]PZPVUZ *HYY`PUN HTV\U[ H[ [OL ILNPUUPUN VM [OL `LHY (KKP[PVU VU HJX\PZP[PVU VM Z\IZPKPHYPLZ K\YPUN [OL `LHY (KKP[PVUHS WYV]PZPVU THKL K\YPUN [OL `LHY

6[OLY SP[PNH[PVU JSHPTZ

,U]PYVUTLU[HS VISPNH[PVUZ

33.81

47.37

-

-

-

-

-

-

84.32

1.34

2.13

17.83

(TV\U[Z \ZLK K\YPUN [OL `LHY

12.88

0.83

-

2.13

<U\ZLK HTV\U[Z YL]LYZLK K\YPUN [OL `LHY

29.24

-

5.10

;YHUZSH[PVU HKQ\Z[TLU[ *HYY`PUN HTV\U[ H[ [OL LUK VM [OL `LHY

0.31

1.10

4.26

76.32

48.98

16.99

6ULYV\Z JVU[YHJ[Z 5H[\YL VM WYV]PZPVUZ *HYY`PUN HTV\U[ H[ [OL ILNPUUPUN VM [OL `LHY (KKP[PVU VU HJX\PZP[PVU VM Z\IZPKPHYPLZ K\YPUN [OL `LHY (KKP[PVUHS WYV]PZPVU THKL K\YPUN [OL `LHY

(TV\U[Z \ZLK K\YPUN [OL `LHY <U\ZLK HTV\U[Z YL]LYZLK K\YPUN [OL `LHY

;YHUZSH[PVU HKQ\Z[TLU[ *HYY`PUN HTV\U[ H[ [OL LUK VM [OL `LHY

;V[HS

8.44

239.59

-

-

0.03

10.51

140.77

-

-

59.50

4.59

67.45

0.03

12.27

14.39

265.71

(KKP[PVUHS WYV]PZPVU THKL K\YPUN [OL `LHY HUK YL]LYZHS VM \U\ZLK HTV\U[ HYL PUJS\KLK PU [OL YLZWLJ[P]L OLHK VM HJJV\U[Z (2) Nature of provisions: H 7YVK\J[ ^HYYHU[PLZ! ;OL *VTWHU` NP]LZ ^HYYHU[PLZ VU JLY[HPU WYVK\J[Z HUK ZLY]PJLZ PU [OL UH[\YL VM YLWHPYZ YLWSHJLTLU[ ^OPJO MHPS [V WLYMVYT ZH[PZMHJ[VYPS` K\YPUN [OL ^HYYHU[` WLYPVK 7YV]PZPVU THKL YLWYLZLU[Z [OL HTV\U[ VM [OL L_WLJ[LK JVZ[ VM TLL[PUN Z\JO VISPNH[PVU VU HJJV\U[ VM YLJ[PÄJH[PVU YLWSHJLTLU[ ;OL [PTPUN VM V\[ÅV^Z PZ L_WLJ[LK [V IL ^P[OPU H WLYPVK VM [^V `LHYZ I 7YV]PZPVU MVY ZHSLZ [H_ =(; YLWYLZLU[Z SPHIPSP[` VU HJJV\U[ VM UVU JVSSLJ[PVU VM KLJSHYH[PVU MVYTZ HUK V[OLY SLNHS TH[[LYZ ^OPJO HYL PU HWWLHS \UKLY [OL (J[ 9\SLZ J 7YV]PZPVU MVY L_JPZL K\[` ZLY]PJL [H_ YLWYLZLU[Z [OL KPMMLYLU[PHS K\[` SPHIPSP[` [OH[ PZ L_WLJ[LK [V TH[LYPHSPZL PU YLZWLJ[ VM TH[[LYZ PU HWWLHS K 7YV]PZPVU MVY SPX\PKH[LK KHTHNLZ OHZ ILLU THKL VU JVU[YHJ[Z MVY ^OPJO KLSP]LY` KH[LZ HYL L_JLLKLK HUK JVTW\[LK PU YLHZVUHISL HUK WY\KLU[ THUULY L 7YV]PZPVU MVY SP[PNH[PVU YLSH[LK VISPNH[PVUZ YLWYLZLU[Z SPHIPSP[PLZ [OH[ HYL L_WLJ[LK [V TH[LYPHSPZL PU YLZWLJ[ VM TH[[LYZ PU HWWLHS

M 7YV]PZPVU MVY LU]PYVUTLU[HS VISPNH[PVUZ YLWYLZLU[Z SPHIPSP[PLZ [V^HYKZ [OL JVZ[Z L_WLJ[LK [V IL PUJ\YYLK [V [YLH[ JVU[HTPUH[LK ZVPS LMÃ…\LU[Z H[ P[Z THU\MHJ[\YPUN SVJH[PVUZ ^OLYL]LY YLX\PYLK I` SVJHS SH^ N 7YV]PZPVU MVY VULYV\Z JVU[YHJ[Z OH]L ILLU THKL VU JVU[YHJ[Z ^OLU P[ PZ WYVIHISL [OH[ [OL LZ[PTH[LK JVZ[ ^PSS L_JLLK [OL [V[HS JVU[YHJ[ YL]LU\L

FINANCIALS

137

138 -

4408.73

Total (i+ii)

7YL]PV\Z `LHY

1383.36

)YHUK UHTLZ HUK J\Z[VTLY SPZ[Z

:\I [V[HS PP

856.29

648.07

9LZLHYJO HUK KL]LSVWTLU[ -

292.63

18.51

-

52.17

-

-

-

-

;LJOUPJHS RUV^ OV^

-

240.46

.VVK^PSS

*VTTLYJPHS YPNO[Z

346.99

72.99

-

-

274.00

-

-

-

113.25

42.58

-

70.67

-

-

-

5342.42

2053.19

299.57

250.32

43.52

60.66

176.57

1222.55

3289.23

21.49

4.86

42.20

119.31

128.57

-

1850.44

1008.98

17.46

95.92

;YHUZSH[PVU (Z H[ +LK\J[PVUZ HKQ\Z[TLU[Z

2300.47

456.98

1843.49

-

137.64

53.35

-

-

-

84.29

-

-

-

-

-

204.52

62.09

142.43

-

-

Upto 6U HJX\PZP[PVU VM Z\IZPKPHYPLZ For the year

224.12

1.01

-

-

-

-

223.11

-

-

-

54.06

12.03

-

42.03

-

-

-

-

2472.57

583.44

46.39

134.39

16.93

19.49

122.86

243.38

1889.13

10.24

1.23

28.90

94.10

87.88

-

1201.73

461.91

3.14

-

1469.75

253.18

115.93

26.59

41.17

53.71

979.17

1400.10

11.25

3.63

13.30

25.21

40.69

-

648.71

547.07

14.32

95.92

926.38

1181.88

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208.22

3025.37

18.51

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-

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ACCOMPANYING TO THE CONSOLIDATED FINANCIAL STATEMENTS (Contd.)

13. FIXED ASSETS