CONTENTS
02
Highlights
2008-09
04
Chairman’s
Letter
08
Corporate
Information
12
Management
Discussion
And Analysis
34
ten yearS'
Financial
Highlights
36
Directors’
Report
50
Corporate
Governance
56
additional
shareholder
information
62
Financials
CG stand-alone
CG consolidated
144 Products
& Services
148 Establishments
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CONSOLIDATED F INANCIAL H IG H LIG H TS
CHAIRMAN’S
LETTER
2008-09 began with
continuing global
inflation, and ended with
the sharpest decline
in trade and GDP that
the world has ever
seen since the Great
Depression of the 1930s.
In the first week of July 2008 the spot price for
crude oil was being quoted at over US$ 145
per barrel, with everyone predicting it would
cross the US$ 200 mark. Oil was not the only
commodity whose price was going through
the roof. The prices of gas, coal, steel, copper,
zinc, other metals and all key minerals were
rising with every passing day.
The bankruptcy of Lehman Brothers on 14
September 2008 caused the meltdown of the
entire financial system that continued right up
to December 2008.
This has been followed by the economic
crisis of the real sectors: sharp drop in demand,
GDP and world trade, followed by recession
and rising unemployment in all developed
economies. Today, the financial crisis is a
thing of the past because of massive and
unprecedented interventions by governments
and central banks across the world. But the
recession and economic slowdown continues.
Every country is either suffering from shrinking
GDP or sharply reduced growth.
As I write to you, the global situation
continues to be quite bleak:
● Although most experts believe that the
US economy will bottom out by the end of
the third quarter of 2009, the estimated GDP
growth for the year will be -2.9%. In April 2009,
unemployment was ruling at 8.9%, and rising.
The first four months of 2009 has seen 2.7
million net job losses, in addition to 1.7 million
in the last quarter of 2008.
● The Euro area is in a deep recession. GDP
growth for 2009 is estimated at -3.7%. The UK’s
GDP growth for 2009 is just as bad: -3.7%.
● Japan may be heading towards yet another
long term crisis. Industrial output has been
falling by more than 30%; and GDP growth for
2009 being estimated at -6.4%.
● With an estimated 11% to 12% fall in the real
value of world trade in 2009, China’s growth is
expected to reduce to 6.5%.
● India’s growth is down from the 9% plus
range of the last three years to 6.7% in 2008-09,
with the chances of it being the same in
2009-10.
In such difficult times, your Company
has performed extraordinarily well. It has
significantly grown consolidated revenues
and profits; acquired new businesses; and has
successfully positioned itself as an integrated
products, systems and solutions provider
across all its businesses — both in India and
overseas. If anything, your Company has
accelerated in its journey to be a globally
significant player in the spaces that it operates.
Let me share with you some key financial
facts about your Company for FY2009.
Net sales and services grew by 28% to
Rs.8,737 crore in FY2009, which was a 7 per
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
Your Company has
accelerated in its journey
to be a globally significant
player in the spaces that it
operates.
cent point increase in the growth rate over the
previous year.
● Earnings before interest, depreciation, taxes,
and amortisation (EBIDTA) increased by 30%
to Rs.1,054 crore — and grew faster than the
top-line.
● Earnings before interest and taxes (EBIT) rose
by 36% to Rs.933 crore in FY2009 — and grew
faster than EBIDTA.
● Profit before taxes (PBT) grew by 41% to
Rs.867 crore — with PBT rising faster than EBIT.
● Return on capital employed (ROCE)
increased to 36.4% — up by 460 basis points
from FY2008.
● Earnings per share (EPS) were up 38% to
Rs.15.27 in FY2009.
These numbers highlight an outstanding
performance for which all credit goes to your
Company’s management. Given the peoplestrength of Crompton Greaves throughout the
world, I have every reason to believe that we
will continue to see robust profitable growth
in the future.
This brings me to the subject of
opportunities. Companies grow by identifying
opportunities earlier than others, and seizing
them before their competitors. While we
continue to grow and look for opportunities
globally, we should not neglect our home
market, the source of our strength and stability.
C H AIRMAN ' S LETTER
We believe that the
profitability of generating
power in India would not
only be substantial, but
also be more long lasting
than from being a supplier
of transmission and
distribution equipment.
We see several growth opportunities, of which
I shall share three.
The first has to do with power generation.
Given the huge shortfall in power demand
in India — the average nation-wide gap
between peak demand and supply was 13% in
2008-09 — there is massive scope for creating
long term income streams through power
generation. We believe that the profitability
of generating power in India would not only
be substantial, but also be more long lasting
than from being a supplier of transmission and
distribution equipment.
You may recall that, to gain experience in
power generation and distribution, Crompton
Greaves had acquired a 59% shareholding in
the Malanpur Captive Power Limited, which
now successfully operates a 26 MW gas based
group captive power plant at Malanpur,
Madhya Pradesh. We had also successfully bid
for power distribution across the city of Nagpur
— which, unfortunately, has not taken off due
to regulatory and other local level hurdles. We,
however, continue to try and resolve the issues
with the concerned authorities.
In keeping with the strategic need to be in
power generation, the Board of Directors of
your Company has unanimously approved a
strategic investment of up to Rs.227 crore to
purchase 41% of the shares in Avantha Power
and Infrastructure Limited (APIL) at a book
value, estimated at approximately Rs.11 per
share. APIL, an Avantha Group company, is
engaged in the generation, transmission and
distribution of electricity. Today, it operates
four captive power plants with an aggregate
capacity of 95 MW, which is being expanded
to 165 MW. In addition, it is establishing two
new independent power producer (IPP) plants,
each with a capacity to generate 600 MW in
Chhattisgarh and in Madhya Pradesh. APIL
has already purchased most of the required
land, obtained the required environmental
clearances and coal linkages, as well as ancillary
support infrastructure like water supply. It has
also finalised debt financing of the projects
through reputed banks. It is in discussion with
various power traders for tying up long term
power purchase agreements. Sudhir Trehan,
the Managing Director of your Company is the
non-executive Chairman of APIL. Moreover,
two independent Directors of your Company
are being nominated to sit on the APIL Board.
We believe this will be a significant opportunity
for Crompton Greaves to expand its footprint
into the business of power generation.
The second strategic issue relates to India.
Most commentators will agree that it is
eminently possible for the country to achieve
a long term GDP growth of 7.5% per annum
on a sustained basis. Indeed, many believe
that it could be better still. Even at 7.5% CAGR,
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
India will be the second fastest growing large
economy of the world — second only to China.
That makes the country a very attractive place
to expand businesses.
Your Company and the name ‘Crompton
Greaves’ enjoys a great reputation and
considerable franchise throughout India. It is
our strategic intent to leverage this reputation
and bring about quantum leaps in our Indian
businesses. By that I mean all our three key
businesses:
● The power sector — from smart solutions
and services to design, engineering,
equipment supply and erection in power
generation, transmission and distribution.
● The industrial sector — across all our
current plays in motors, alternators, railway
transportation and signalling equipment
— unified by drives, instrumentation, control
panels and end-to-end solutions.
● The consumer business — fans, lighting,
luminaires, pumps and appliances — with a
major focus on leveraging the ever-increasing
potential of up-country and rural markets. We
want our revolutionary, power savings 5 watt
LED lamp ‘Pharox’, which has a luminosity of 40
watts, to create waves in India; just as we want
Crompton Greaves to be the brand of choice in
every area that it operates, not just in India but
throughout the sub-continent.
The third strategic mission is to create a
global mindset for all our businesses. By that I
mean a mindset that creates one-world quality;
shares best practices across all locations and
businesses; recognises that customers want
smart solutions, not just equipment; and
through internal efforts as well as strategic
acquisitions, becomes a global player in
providing best-in-class end-to-end solutions.
This journey has begun in the Power Systems
business with the integration of our newer
service and solutions-based international
acquisitions — Microsol in the UK and Ireland,
MSE in the USA, and Sonomatra in France. It is
also coming into play with Pauwels, Ganz and
the Power Systems business in India working
in close coordination. I am seeing it happen in
Industrial Systems. And with our new products
and offerings in the Consumer business, I am
sure you will see a rapid growth in solution
centric approaches there as well.
Finally, your Company must grow through
its own Intellectual Property. We have made a
beginning here as well and I hope to be able to
come back to you with more substantial details
in the coming years.
This has been yet another excellent year for
your Company. But it is just the beginning.
We have to fuse our excellence in execution
with major strategic plays to become game
changers in all our businesses. Given the
capability of your Company’s management
and all its employees, I have no doubt that we
will get there. Sooner than we think.
Thank you for your support.
Gautam Thapar
Chairman
This has been yet another
excellent year for your
Company. But it is just the
beginning. We have to fuse
our excellence in execution
with major strategic plays
to become game changers
in all our businesses.
C H AIRMAN ' S LETTER
CORPORATE
INFORMATION
Board of Directors
Chairman Managing Direc tor Non-Executive, Independent Chief Financial Officer Company Secre tary Auditors Solicitors G Thapar
SM Trehan
S Bayman
O Goswami
S Labroo
M Pudumjee
SP Talwar
V von Massow
BR Jaju
W Henriques
Sharp & Tannan
Crawford Bayley & Co.
Bankers
Union Bank of India State Bank of India
Corporation Bank
Bank of Maharashtra
Canara Bank IDBI Bank Ltd
ICICI Bank Ltd
ABN Amro Bank NV
Standard Chartered Bank
Calyon Bank
Registered Office 6th Floor, CG House, Dr. Annie Besant
Road, Worli, Mumbai 400 030.
fold out | left to right M Schillebeeckx, VP-CG Power (Americas); DS Patil, CEO-CG Power;
AK Raina, VP-Large & Traction Machines & Stampings; W Henriques, Company Secretary, Legal Counsel
& Global Head- Human Resources; JJ Patel, VP-Global R&D; BR Jaju, CFO; SM Trehan, Managing Director;
M Verma, VP-Lighting & International; M Acharya, VP-Finance & Administration; JG Kulkarni, VP-CG
Power (Asia); F Robberechts, VP-CG Power (Europe, Middle East & Africa); M Kelly, CFO-CG Power.
The story of Crompton Greaves for FY2009
has been of accelerated profitable growth.
We have grown revenues in difficult times,
and profits at even higher rates — thus
creating greater shareholder value.
Gautam Thapar, Chairman (Right) and
Sudhir Trehan, Managing Director (Left)
MANAGEMENT
DISCUSSION
AND ANALYSIS
Overview: Global and
Crompton Greaves
For a global electrical products and solutions
company operating in intensely competitive
markets, it is always creditable to maintain
consistent growth of revenues and profits. To
accelerate growth, improve performance and
deliver even better shareholder value in a year
of extreme financial and business turmoil is
especially remarkable.
The story of Crompton Greaves for FY2009
has been of accelerated profitable growth. We
have grown revenues in difficult times, and
profits at even higher rates — thus creating
greater shareholder value.
On the macro front, FY2009 was a
tumultuous year. The first five months
saw continuing astronomical increases in
all commodity prices including steel and
copper — the key raw materials for Crompton
Greaves Limited (or ‘Crompton Greaves’
or ‘the Company’). Then came the global
financial crisis in September 2008. Conditions
deteriorated rapidly to set-off the worst
recession since the Great Depression of the
1930s. At the time of writing this Management
Discussion and Analysis, the recession and
Rs.1 crore is Rs.10 million.
All figures in US$ for 2007-08 (FY2008) are at US$ 1 = Rs.40.1238;
for FY2009 at US$ 1 = Rs.46.5363.
FY2009 stands for fiscal year 2008-09, i.e. 1 April 2008 to 31
March 2009. Analogously, FY2008.
de-growth continues. India’s growth has
decelerated from 9% in FY2008 to 6.8% in
FY2009 to about the same growth rate in
FY2010. The real volume of world trade is
estimated to shrink by a significant 12% in 2009
as compared to 2008.
In such extraordinarily difficult times,
Crompton Greaves has acquired businesses;
systematically grown consolidated revenues
and profits; and has successfully positioned
itself as an integrated products, systems and
smart solutions provider, across all its key
activities and overseas locations. Instead
of shedding growth, the Company has
accelerated in its quest to be a major global
player in the spaces that it operates. And done
so profitably.
In May 2008, the Company acquired Société
Nouvelle de Maintenance Transformateurs
(Sonomatra), based in northern France at an
approximate value of US$ 2 million. Sonomatra
is engaged in the servicing of power systems
such as providing on-site maintenance,
repairing of power transformers & on-load tap
changers, oil analysis, oil treatment and retrofilling solutions. This acquisition has widened
the Company’s solutions providing capabilities
beyond Belgium, to France.
September 2008 witnessed another
acquisition— that of MSE Power Systems
and its subsidiary in the USA for an enterprise
value of US$ 16 million. MSE Power is actively
engaged in engineering, procurement and
construction (EPC) of high voltage electrical
power transformer systems. This acquisition
will increase the Company's strength as a
systems integrator in the EPC arena, particularly
in renewable energy with a focus on the wind
segment.
Both acquisitions have widened the
Company’s base for accelerating from a
Company supplying products to offering endto-end smart power solutions.
The Board of Directors and the management
of Crompton Greaves have always felt
that power generation in India is, and will
be increasingly, a high growth sector.
Shareholders will recall that, to gain experience
in the business of power generation and
distribution, the Company in 2006, had
acquired a 59% shareholding in the Malanpur
Captive Power Limited — which now
successfully operates a 26 MW gas based
group captive power plant at Malanpur,
Madhya Pradesh.
Viewing power generation as a strategic
opportunity to ensure higher and more
sustainable rates of future growth, the Board
of Directors on 24 March 2009 approved a
strategic investment of up to Rs.227 crore to
purchase 41% of the shares in Avantha Power
and Infrastructure Limited (APIL) at a book
value, estimated at approximately Rs.11 per
share. This investment is well within the limits
12
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
In such extraordinarily
difficult times, Crompton
Greaves has acquired
businesses; systematically
grown consolidated
revenues and profits;
and has successfully
positioned itself as an
integrated products,
systems and smart
solutions provider.
First, since APIL is a group company —the
Board referred the proposal to a Committee
of Independent Directors for evaluation.
The Committee met twice to review all
operational and business details and then
examined a valuation report prepared by
an independent agency. After reviewing
the facts and subjecting the key operational
data to various stress tests, the Committee
unanimously recommended to the Board of
Directors of Crompton Greaves the purchase of
41% of APIL’s shares at a book value, estimated
at approximately Rs.11 per share. Since the
above was a Related Party transaction, the
Audit Committee also reviewed and thereafter
recommended the investment proposal for
consideration by the Company’s Board of
Directors.
● Second, given Crompton Greaves present
reserves and its future cash flows, the
acquisition price of Rs.227 crore was eminently
affordable. Moreover, it will in no way impact
the Company’s ability to acquire other assets —
both in India and elsewhere in the world — in
line with its strategy of becoming an integrated
product, systems and solutions provider.
● Third, with the advent of other outside
investors in the near future, the Company’s
shareholding in APIL will necessarily reduce
— but not below 26%, so as to give Crompton
Greaves a strategic stake in APIL.
●
Plants at Belgium, Ireland, Canada and Hungary are being overhauled
The Power Transformer factory at Mechelen, Belgium
prescribed by Section 372A of the Companies
Act, 1956.
APIL, an Avantha Group company, is
engaged in the generation, transmission
and distribution of electricity. At present,
APIL operates four captive power plants with
an aggregate capacity of 95 MW, which it is
expanding to 165 MW. In addition, it is in the
process of establishing two new independent
power producer (IPP) plants, each with a
capacity to generate 600 MW — at Korba
(near Raigarh in Chhattisgarh) and at Jhabua
(near Seoni in Madhya Pradesh). APIL has
already purchased most of the required land,
obtained requisite environmental clearances
and coal linkages, as well as ancillary support
infrastructure like water supply. It has also
finalised debt financing of the projects through
reputed banks. At the time of Crompton
Greaves considering the investment proposal,
APIL was in discussions with various power
traders for tying up long term power purchase
agreements to significantly de-risk its business.
Given the positives, the Board of Directors of
Crompton Greaves unanimously felt that an
investment in APIL, especially at book value,
would provide the Company an important
entry into the high growth power generation
sector and, simultaneously, increase long
term shareholder value. Three aspects of this
transaction need to be emphasised:
13
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
Accelerating Growth – Consolidated Financial Highlights for FY2009
Net sales and services
EBIDTA
EBIT
ROCE
Rs.8,737 crore
Rs.1,054 crore
Rs.933 crore
36.4%
28%
36%
30%
Net sales and services grew
by 28% — from Rs.6,832 crore
in FY2008 to Rs.8,737 crore
in FY2009. This translates to
a 700 basis points increase
in the growth rate over the
previous fiscal year.
Earnings before interest,
depreciation, taxes, and
amortisation (EBIDTA)
increased by 30% — from
Rs.811 crore in FY2008 to
Rs.1,054 crore in FY2009. Note
that EBIDTA grew faster than
revenue.
Earnings before interest
and taxes (EBIT) rose by
36% from Rs.685 crore in
FY2008 to Rs.933 crore in
FY2009. Consequently, the
ratio of EBIT to net sales
and operating income has
increased by 70 basis points
to 10.7%.
460bps
Return on capital employed
(ROCE) increased to 36.4%
in FY2009 — up by 460 basis
points from FY2008.
NoteS: For FY2009 US$ 1 = Rs.46.5363; for FY2008, it is US$ 1 = Rs.40.1238. Figures for FY2008 have been regrouped wherever necessary in order to make them
comparable with those of FY2009.
Detailed information on the investment in
APIL was provided to the shareholders, by the
Company’s communication dated 2 April 2009.
The Board of Directors of Crompton Greaves
also approved a proposal to buy-back equity
shares of the Company at its meeting held
on 24 March 2009, which was approved
through postal ballot by an overwhelming
majority of shareholders on 20 May 2009. This
buy-back will take place through the open
market mechanism of the stock exchanges.
The proposed maximum price of the buy-back
is Rs.170 per equity share, and the maximum
7
amount to be spent will be Rs.224.15 crore.
The Company will be commencing buy-back
shortly at an appropriate time, provided the
prevailing share price is not above Rs.170 per
equity share. Detailed information on the buyback was provided to the shareholders by the
Company’s postal ballot notice of 2 April 2009.
Even after the investment in APIL and the
buy-back, the Company will have adequate
financial resources to fund its expansion plans
and also actively pursue inorganic growth
opportunities through acquisitions.
The key performance highlights of Crompton
Greaves for FY2009 is given in the above
graphs.
Strategic Business Units
Crompton Greaves has three strategic business
units (SBUs) : (i) Power Systems called CG
Power, (ii) Industrial Systems and (iii) Consumer
Products. Chart A gives the comparative shares
of business of the three SBUs on a consolidated
global basis for FY2008 and FY2009.
CG Power’s net revenues grew by 32% from
Rs.4,667 crore in FY2008 to Rs.6,174 crore in
9 E D I E B ? :7J ; : D ; J H ; L ; D K ; I
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122
1,322
109
1,150
1,118
965
6,174
4,667
Unipower PROJECT for Power Transformer design is progressing well
Winding process at the Power Transformer factory at Mechelen, Belgium
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14
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
PBT
PAT
ORDER INTAKE
UEOB
EPS
Rs.867 crore
Rs.560 crore
Rs.9,799 crore
Rs.6,568 crore
RS.15.27
38%
41%
Profit before taxes (PBT) grew
by 41% to Rs.867 crore in
FY2009. Thus PBT increased
faster than EBIT, which grew
faster than EBIDTA, which
grew more than the top line.
20%
Profit after taxes net of
minority interests and share
of associate companies (PAT)
rose by 38% to Rs.560 crore
in FY2009.
FY2009. At the average exchange rate, CG
Power’s top line was US$ 1.33 billion.
Net revenue from Industrial Systems
increased by 19% from Rs.965 crore in FY2008
to Rs.1,150 crore in FY2009.
Net revenue from Consumer Products
rose by 18% from Rs.1,118 crore in FY2008 to
Rs.1,322 crore in FY2009.
Today CG Power accounts for 71% of
Crompton Greaves’ consolidated net revenues;
followed by 15% for Consumer Products; and
13% for Industrial Systems. Chart B shows this.
CG Power: Consolidated
Performance
CG Power includes the consolidated global
transmission and distribution businesses, and is
the largest SBU of Crompton Greaves. This SBU
manufactures power transformers, distribution
transformers, extra high voltage (EHV) and
medium voltage (MV) circuit breakers, gas
insulated switchgear (GIS), EHV instrument
transformers, lightning arrestors, isolators,
vacuum interrupters and electronic energy
meters. Increasingly, it has been moving
into providing smart end-to-end turnkey
solutions for transmission and distribution
(T&D) through customised sub-station projects
and other integrated end-to-end contracts
that encompass solutions, design, products,
procurement and erection.
Given below are the facilities of CG Power in
India and overseas.
The order intake increased by
20% to Rs.9,799 crore.
20%
In India
●
K anjur Marg (Mumbai), Malanpur and
Mandideep (Madhya Pradesh) power and
distribution transformers.
●
38%
The unexecuted order book
(UEOB) as on 31 March 2009
stood at Rs.6,568 crore. This
was up by 20% over the
previous year, and represents
9 months of sales going
forward.
Nasik and Aurangabad
Earnings per share (EPS) was
up 38% to Rs.15.27 in FY2009,
versus Rs.11.10 in FY2008.
● Tapioszele (Hungary) The Ganz plant
manufactures transformers, gas insulated
switchgears (GIS), and engages in contracting
and services. It also manufactures traction
motors (see section on Industrial Systems).
(Maharashtra), Bangalore (K arnatak a)
●
EHV and MV circuit breakers, EHV and MV
instrument transformers, vacuum interrupters,
isolators, lightning arrestors, power quality
products and solutions and electronic energy
meters.
● Gurgaon (Haryana) Engineering Projects
Division (EPD).
Seymour (Connec ticut, USA) and Eagle
Overseas
● Mechelen (Belgium) The biggest plant
of Pauwels. It manufactures custom-made
medium and large power transformers, large
distribution transformers, mobile sub-stations,
and is engaged in contracting.
● Cavan (Ireland) Smaller single-phase
and three-phase distribution transformers and
micro-substations.
● Charleroi (Belgium) The services division
of Pauwels.
● Washington (Missouri, USA) Threephase and pad-mounted transformers, unitised
sub-stations and small power transformers.
● Winnipeg (Canada) Medium and large
power transformers up to 575 MVA, mobile
sub-stations and high voltage direct current
(HVDC) converter transformers.
● Bogor (Indonesia) Power transformers
from 10 MVA to 260 MVA.
Dublin (Ireland), Jarrow (UK),
(Idaho, USA) These Microsol facilities focus
on the manufacture of sub-station and
distribution automation products and systems;
and project delivery and sales management for
Europe, the Middle East and the US markets.
● Nor thern France Sonomatra facilities
for servicing of power systems like providing
on-site maintenance, repairing of power
8
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1%
15
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
MSE has the capability to execute an order-to-commission of a sub-station in 16 weeks
MSE’s sub-station at the Cohocton Wind power project in USA
transformers and offering oil analysis, oil
treatment and retro-filling solutions.
● Albany (USA) Headquarters of MSE. It
operates throughout the USA and other
parts of the world as a key EPC player of high
voltage power transformer systems, especially
in renewable energy, sub-stations, aerial
9
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6,174
lines and smart wind-plant information and
communications systems.
The key performance indicators of CG Power
are given in Table 1 below. This includes the
performance of CG Power’s Indian operations,
as well as that of the overseas divisions:
Pauwels, Ganz (excluding rotating motors),
Microsol, Sonomatra and MSE.
CG Power is well placed to leverage a
significant increase in power demand. In
the developed countries, especially Europe
and the USA, there is a growing demand for
creating renewable energy, especially through
solar and wind. With its leadership position in
SLIM® transformers for windmills and its ability
to implement integrated solutions to connect
wind farms to transmission grids via smart sub-
stations, CG Power is well positioned to garner
an increasing share of these businesses.
The short term outlook for distribution
transformers (DT) is not as good as it was in
FY2008, especially in the developed countries.
Acute recession in the USA and Europe has
sharply reduced new housing starts — which is
the key driver for the international DT business.
Utilities too, have been postponing purchases
of DT. Presently, it is difficult to predict the
point of time, when there will be an upsurge
in demand for DT in North America and
Western Europe. Crompton Greaves is carefully
monitoring the scenario and has taken various
mitigating measures — such cost control
and creating flexibility in its plants to produce
any type of DT according to demand. In the
near term, specifically FY2010, this cut-back
4,667
1
Consolida te d fi n a nc ial p erf orma nce o f CG Po w er
Year ended 31 March, in Rs. crore
Net Sales
EBIDTA
EBIT
Capital Employed
ROCE
Unexecuted Order Book
FY2008
4,667
507
437
1,396
31.3%
5,004
FY2009
6,174
713
625
1,533
40.8%
6,163
Growth
32%
41%
43%
10%
9.5% pts
23%
Notes: Microsol was acquired on 28 May 2007. Therefore, the consolidated figures for FY 2008 is including 10 months for
Microsol. The data for FY2009 include financial data for part of the year of MSE and Sonomatra. Figures have been regrouped
wherever necessary to make them comparable.
( &&.
( &&/
16
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
Key Performance Indicators
of CG Power : Consolidated
N et s a l es of CG Power increased from
Rs.4,667 crore in FY2008 to Rs.6,174 crore
in FY2009 — a growth of over 32% during
the year, on the back of a 21% growth in
the previous year.
E BID T A grew by 41% from Rs.507 crore in
FY2008 to Rs.713 crore in FY2009.
E BI T rose by 43% from Rs.437 crore in
FY2008 to Rs.625 crore in FY2009.
R O C E Despite a 10% growth in capital
employed, CG Power’s return on capital
employed grew from 31.3% in FY2008 to
40.8% in FY2009.
u ne x ec u te d o r d e r b ook ( U E O B )
increased by over 23%, from Rs.5,004
crore as on 31 March 2008 to Rs.6,163
crore in FY2009. This represents net sales
of twelve months going forward.
in demand may partly dampen CG Power’s
international growth.
The medium and longer term outlook for
CG Power remains robust. Between 2008 and
2030, world demand for primary energy will
rise from 11.4 billion metric tons to about
17.7 billion metric tons of oil equivalent; and
almost three-quarters of this increase would
be accounted for by India and China. In the
electrical energy space, there will be a steady
increase in global demand for transmission
and distribution equipment and solutions
— both for replacement and, in Asia, for new
projects. Nearer home, the per capita electricity
consumption in India is at 625 kWh, versus
12,200 kWh in the USA and 2,150 kWh in
China. Given that the peak shortage of power
in India stood at over 13% in FY2009, there is
considerable scope for growth in the power
sector — be it in transmission and distribution
2
Creating flexibility to produce any type of Distribution Transformer
A Distribution Transformer production hall at Mechelen, Belgium
equipment as well as in providing end-to-end
solutions. With its synergies of size, scale, scope
and global reach, CG Power is well placed
to exploit these various opportunities and
continue with its double-digit growth in the
future.
CG Power in India: financial
performance
CG Power (India) has performed excellently
in FY2009. Table 2 gives the key performance
indicators for FY2008 and FY2009.
Net sales of CG Power (India) grew by 23%
over last year to reach Rs.2,224 crore. This
translates to a 3-year CAGR of 18%. EBIDTA
increased by 34% to Rs.370 crore. EBIT rose by
35% to Rs.349 crore. Return on year-end capital
employed (ROCE) was at 81.2% — an 18.3 per
cent point jump over last year’s figure of 62.9%.
S tan d - a lone p e r f or m a nce of C G Po we r ( Ind i a )
Year ended 31 March, in Rs. crore
Net Sales
EBIDTA
EBIT
Capital Employed
ROCE
Unexecuted Order Book
FY 2008
1,806
277
258
410
62.9%
1,709
FY2009
2,224
370
349
430
81.2%
2,431
Growth
23%
34%
35%
5%
18.3% pts
42%
The unexecuted order book (UEOB) grew by
42% to Rs.2,431 crore.
CG Power (Overseas): financial
performance
The financial performance of the CG Power
(Overseas) is given in Table 3.
The overseas Power Systems business has
showed a 36% top-line growth in FY2009 to
reach Rs.4,034 crore (US$ 867 million). EBIDTA
increased by 49% to Rs.342 crore (US$ 74
million). EBIT grew by 54% to reach Rs.276 crore
(US$ 59 million). ROCE rose by 7.3 per cent
points to 25%. And the unexecuted order book
(UEOB) as on 31 March 2009 grew by 13% to
Rs.3,732 crore (US$ 802 million) — or over 11
months of sales.
Key Developments in CG Power
Crompton Greaves looks at the CG Power
business as an integrated and seamless whole.
FY2009 saw several significant developments
in CG Power, some of which are outlined
below:
● Pauwels remains global number one for
SLIM® transformers and wind farm installations.
Major long term contracts spanning three to
five years have been received in this area from
17
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
global majors such as Siemens, Enercon and
Multibrid.
● MSE has interconnected over 23% of all
wind power in the USA to the grid. This is a
technologically demanding task — that of
matching the variable frequency of wind
power with the constant frequencies of the
grid. In the process, MSE has proven itself to be
a leader in this business. Today, it can execute
an order-to-commission of a sub-station in
16 weeks. Going forward, MSE will be the key
organisation for smart grids in the USA.
● CG Power was awarded its first contract for a
build-operate sub-station — thus opening the
area of integrating solution with equipment
and service income streams. This is a 2 x 40 MVA
150/33 kV sub-station at Ghlin in Belgium, and
CG Power’s first in offering integrated solutions.
● New turnkey contracts for building
sub-stations won for the first time in Western
Europe: Belgium, Holland and France.
● Developed the first off-shore wind
transformers: 4 MVA, 33 kV-690V BioSlim®.
Trackside transformers for railways application
have been developed at the Company’s power
transformer plant at Mechelen, Belgium.
● The transmission and distribution (T&D)
business of Europe, Middle East and Africa
(EMEA) filed for a European patent to connect
off-shore wind farms to mainland transmission
grids though smart, low maintenance offshore sub-stations. T&D EMEA and Canada are
considered as world leaders in the design and
sales of mobile sub-stations up to 220 kV.
● The services business in EMEA is doing
well, with a solid reputation in key markets. It
can repair transformers of any make and any
vintage. In this, Sonomatra is a big help, by
widening the service footprint to customers in
northern France.
● The Unipower (power transformer
unification) initiative is progressing well.
Through this programme CG Power is on
target to achieve technology leadership in
the transformer business. Power transformer
plants at Kanjur Marg and Mandideep in
India, Belgium, Canada, Indonesia, and Ganz
in Hungary are increasingly operating as a
seamless whole, in matters of technology and
design.
● The plants at Belgium, Ireland and Canada
as well as the Ganz facility in Hungary are being
completely overhauled. The operations of MSE
and Sonomatra have been integrated with CG
Power. Work is progressing rapidly to make all
distribution transformer plants flexible, to deal
with any product mix — similar to the USA
facility at Missouri.
● Ganz has yielded a major success. In March
2009, CG Power was awarded an order to
supply 14 units of 500 MVA, 765 kV autotransformers for the Power Grid Corporation of
India Limited (PGCIL) for a total of Rs.324 crore
— the largest single order for CG Power. Ganz
is producing 11 of these 14 transformers, while
CG Power (India) is building the remaining
three. This order has established Ganz and CG
Power (India) as one of the leading players in
ultra high voltage (UHV) power transformers.
Ganz will become the hub for designing,
technology sharing and producing UHV
transformers — the Company’s future for big
ticket power transformers. Ganz is also capable
of making mobile transformers, and has found
new markets in UK, Congo, Iraq and Libya. Its
gas insulated switchgear (GIS) achieved KEMA
certification for short circuit performance
and switching performance. Ganz has also
produced 220 kV and 145 kV GIS for the Bhilai
Steel Plant (order value of €4.9 million), which
was supplied in June-July 2008, and the
installation was completed in January 2009. It
also supplied a second order to Torrent Power,
Surat (value of €3.5 million), whose installation
was completed in April 2009.
● Microsol’s strengths in automation solutions
and delivery for power utilities has also
delivered results; backed up by strong design
and development capabilities for automation
products. It launched IEC 61850 connectivity
on the XCell automation platform and
executed the first installation in a
sub-station in Qatar. This has secured Microsol’s
position as the supplier of choice by Scottish
Power, with Microsol’s offerings to be used as
Scottish Power’s IEC61850 integration platform
globally and in the UK. Microsol has also
begun to supply protection relays and other
third party products to offer more complete
solutions to customers. This has resulted in
a successful partnership between Microsol
3
and the T&D EMEA business for the delivery of
the automation system for a major project in
Kenya. Integration between Microsol and MSE
has resulted in enlarging the scope for both
companies — with MSE assisting Microsol in
the wind energy sector, and Microsol assisting
MSE in the utility sector. Microsol is also
working closely with EMEA to offer automation
solutions to customers and to assist EMEA
entering into the UK markets. In this, Microsol
with MSE and EMEA have begun to develop
a Smart Grid Identity along with a strategy for
the entire organisation in the smart grid space
— an area that promises explosive growth in
the near future.
● CG Power (India) will be producing three of
the 14 units of 765 kV power transformers for
PGCIL. Its plant at Kanjur Marg has successfully
conducted short circuit testing of 102 MVA,
400 kV single phase generator transformer for
NHPC’s Subansiri Project in Arunachal Pradesh
at KEMA in Holland. The Mandideep plant also
successfully conducted short circuit testing of
25 MVA, 400 kV single phase and 32 MVA, 220 kV
single phase generator transformer for NHPC’s
Uri and Chamera projects at Central Power
Research Institute , Bangalore.
● CG Power (India) also developed a 1200
kV capacitive voltage transformer (CVT) — a
first of its kind in India. It produced a 550 kV
capacitive voltage transformer (CVT) for
Malaysia, which was a first for Crompton
Greaves in India. It also produced 550 kV
current transformer (CT) for Malaysia. CG
Power (India) also developed a 72 kV SF6
circuit breaker through arc assist technology;
the capability was enhanced from 31 kA to 40
kA; the product was successfully tested, and
orders supplied. In addition, it developed 420
kV, 50 kA SF6 Circuit breaker — enhanced its
capability from 40 kA to 50 kA — and secured
an order from a multinational power major for
60 units. CG Power (India) also developed and
successfully type tested 800 kV, 50 kA SF6 gas
circuit breaker.
Per f orma nce of CG Po w e r (Ov e rse as)
Year ended 31 March, in Rs. crore
Net Sales
EBIDTA
EBIT
Capital Employed
ROCE
Unexecuted Order Book
FY 2008
2,960
230
179
1,014
17.7%
3,295
FY2009
4,034
342
276
1,103
25.0%
3,732
Growth
36%
49%
54%
9%
7.3% pts
13%
Note: Year-on-year figures are not strictly comparable, since FY2008 did not have MSE and Sonomatra performance figures.
18
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
CG Power (India) bagged a major order
from Peru to supply 11 units of 200 MVA, single
phase, 500/220 kV (3 x 600 MVA banks with two
spare units) auto transformers valued at US$ 19
million (Rs.92 crore). This order marks CG Power
(India)'s foray in the Latin American market for
500 kV transformers.
● The medium voltage switchgear division
of CG Power (India) launched a new family
of vacuum circuit breakers called ‘Felix’ — a
highly flexible vacuum circuit breaker which
brings in standardisation and improved
electrical performance. The switchgear division
introduced intelligent electronic devices (IED)
for its products and started the manufacture of
electronic relays.
●
Since CG Power is managerially treated at
as a unified entity operating in North America,
Europe, India and South East Asia, the term
‘exports’ has little or no relevance. Even so, it
needs to be stated that CG Power (India) has
achieved an impressive growth in exports
— 68% growth in actual exports in FY2009,
amounting to Rs.1,104 crore; and 46% growth
in export order input, which stood at Rs.1,093
crore. The major markets for transformers and
switchgear supplied by CG Power (India) were
Malaysia, Syria, Qatar and Vietnam in Asia; Chile
and Peru in Latin America; and Nigeria, Kenya
and Namibia in Africa.
●
CG Power is well placed
to leverage a significant
increase in power demand.
In the developed countries,
especially Europe and the
USA, there is a growing
demand for creating
renewable energy,
especially through solar
and wind.
CG OFFERS TOTAL INTEGRATED SOLUTIONS TO CUSTOMERS WORLDWIDE
Pauwels Contracting erecting a wind sub-station at a customer location in Germany
19
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
Industrial Systems
Key Performance Indicators
of Industrial Systems Business
N E T S AL E S increased by 19% over the
previous year to reach Rs.1,150 crore.
E BI T grew by 9% to Rs.213 crore.
R O C E stood at 88.8%.
Crompton Greaves’ Industrial Systems SBU
manufactures the following types of products:
● High tension (HT) motors
● Railway transportation equipment
● Low tension (LT) motors
● Direct current (DC) motors
● AC drives
● Railway signalling equipment
● Fractional horse power (FHP) motors
● Alternators
● Stampings
Its facilities are located at:
● Madhya Pradesh Mandideep (HT motors
and rail transportation equipment) and
Pithampur (railway signalling equipment).
● Maharashtra Kanjur Marg (stampings)
and Ahmednagar (LT motors, alternators, AC
drives and stampings).
● Goa Bardez (LT motors) and Kundaim (FHP
motors).
● Hungary Tapioszele (rotating machines).
Table 4 gives the financial performance of the
Industrial Systems Group over the last two
years.
Industrial Systems’ net sales increased by
19% over the previous year to reach Rs.1,150
crore. EBIT grew by 9% to Rs.213 crore. ROCE
stood at 88.8%.
There have been some growth slowdown
in parts of the Industrial Systems business —
driven by overall reduction in industrial growth
and the deferment of capital outlays by major
clients. This has been the case particularly for
LT Motors. It explains the marginal decline
in the SBU’s unexecuted order book as on
31 March 2009, compared to a year earlier.
Despite this development the Company’s LT
Motors division still occupies the No.1 position
in AC motors; the No.2 position in alternators,
and No.1 position in the growing telecom
segment; and the No.1 position in DC motors.
The LT Motors division has increased its sales
of alternators by over 50% in value and, in the
process, gained 10 per cent points of market
share in numbers.
M7 DIVISION HAS MAINTAINED ITS PROFITABILITY IN ADVERSE CONDITIONS
The Vacuum Pressure Impregnation process plant at M7, Mandideep
20
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
A key feature of FY2009
has been the marked
improvement in the
performance of Ganz’
rotating machines. Gross
sales was up by 75% from
¤8 million in FY2008 to ¤14
million in FY2009.
CG occupies the No.1 position in AC Motors in India
The Automated Winding Machine for AC Motors at LT Motors, Ahmednagar
A key feature of FY2009 has been the marked
improvement in the performance of Ganz
rotating machines. Gross sales was up by 75%
from €8 million in FY2008 to €14 million in
FY2009. Inventory turnover ratio was up from
2.6 to 12.5, leading to substantial improvement
in cash management. Productivity was
improved; cycle times reduced; manpower
costs were brought down from 27.5% of net
sales in FY2008 to 19.3% in FY2009; and debtor
days came down from 74 to 62. The rotating
machines division of Ganz executed major
orders for marquee customers in the cement
industry and the power sector, in Hungary and
abroad.
The M7 Division, which makes HT motors,
rail transportation equipment and railways
signalling equipment, has also performed well
in FY2009. Net sales increased by 26% to Rs.280
4
crore; and the unexecuted order book as on 31
March 2009 was up by 13% to Rs.271 crore.
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965
Pe r fo r m ance o f the In d u str i a l S y stem s b us i ness
Year ended 31 March, in Rs. crore
Net Sales
EBIDTA
EBIT
Capital Employed
ROCE
Unexecuted Order Book
FY 2008
965
213
196
162
121.0%
425
FY 2009
1,150
230
213
240
88.8%
403
Growth
19%
8%
9%
48%
-32.2% pts
-5%
(&&.
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21
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
C0nsumer Products
Key performance indicators of
Consumer Products Business
Crompton Greaves’ Consumer Products
business supplies fans, lighting equipment
(light sources and luminaires), pumps,
integrated security systems, home automation
and a range of electrical household appliances.
The SBU has the following facilities:
● Goa Bethora and Kundaim (fans and
appliances)
● Himachal Pr adesh Baddi (fans)
● Mahar ashtr a Kanjur Marg (luminaires)
and Ahmednagar (pumps)
● Gujar at Vadodara (light sources)
The financial performance of the SBU is given
in Table 5.
Crompton Greaves’ fans and lighting were
accredited with the ‘Superbrand’ status for
FY2009 — the third time in succession for fans,
and the second consecutive time for lighting.
Thus, we can use the ‘Superbrand’ logo for
2009 and 2010.
The domestic market’s growth for fans had
slowed down to 8% in FY2009. However,
our fans grew at 23%, and we are the fastest
growing fans brand of India. The organised
segment accounts for an estimated 33 million
fans. With a 23% market share, Crompton
Greaves is a clear leader in this segment — and
the only fan manufacturer that enjoys the
‘Superbrand’ status. We sold over 5 million
fans in FY2009, a first for any company in India.
Our fans have the widest reach in terms of
retail outlets; and we dominate in the north,
west and south of India. We are progressing
on manufacturing energy saving models and
obtaining Star Ratings in the 4-Star and 5-Star
category.
Crompton Greaves’ market share for lighting,
in India stands at 12%. We are the clear leader
in the higher value sodium vapour segment
— where we have grown at 17% versus an
industry growth of 10%. The growth has
been even more pronounced in street and
high mast lighting, where we have grown at
35% compared to a market growth of 11%.
Crompton Greaves has secured an order for
5
The Consumer Products business — the
second largest SBU of Crompton Greaves
in terms of revenues and the Company’s
most significant cash generator — grew
net sales by 18% to Rs.1,322 crore in
FY2009; EBIT by 21% to Rs.146 crore;
and generated a 123.2 per cent points
increase in ROCE, bringing it up to 260.7%,
which is the highest for the Company as
a whole.
140,000 street lights in Mumbai and Delhi,
valued at Rs.15 crore. This is the single largest
order that any brand has executed in street
lighting. The Company has also supplied the
lighting equipment for the Delhi Metro under
Phase II. The SBU has been awarded an end-toend supply-installation order of Rs.4.4 crore for
street lighting in Pune.
The lighting divisions’ proudest achievement
is to be the first in India to indigenously
produce a highly energy efficient light emitting
diode (LED) lamp. It consumes just 5 watts
of power, has light equivalent of a 40 watt
bulb, and an average life of 50,000 burning
hours. It also has wide voltage compatibility
— from 160V to 280V. Priced at Rs.1,100 for the
consumer, here is the economics: Even if one
were to use the LED for 4.1 hours per day, the
payback period is 2.25 years. Cost savings at 4.1
hours per day equals Rs.330 per year.
The domestic market for pumps was around
Rs.3,700 crore in 2008, and grew at around 6%.
The organised sector accounts for 64% of the
market. Crompton Greaves’ market share is
12%, placing it in the No.3 position. We have
been gaining market share in pumps — our
products grew at 13% versus market growth
of 6%. We are also the clear market leaders
in the domestic (i.e. home) pumps segment,
and enjoy a very strong quality reputation.
We intend to move more aggressively in the
industrial and agricultural pumps segments in
the near future.
Pe r fo r m ance o f the Consu m er P r od u cts b u s iness
Year ended 31 March, in Rs. crore
Net Sales
EBIDTA
EBIT
Capital Employed
ROCE
FY 2008
1,118
128
121
88
137.5%
FY 2009
1,322
153
146
56
260.7%
Growth
18%
20%
21%
-36%
123.2% pts
energy efficient appliances
Wide range of CG home appliances
22
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
The lighting divisions’
proudest achievement is
to be the first in India to
indigenously produce a
highly energy efficient
light emitting diode (LED)
lamp. It consumes just 5
watts of power, has light
equivalent of a 40 watt
bulb, and an average life of
50,000 burning hours.
In the home appliances segment, we are
in small appliances (such as geysers, mixers,
grinders, toasters, electric irons and emergency
lanterns) and home UPS. Today, it is a Rs.70
crore business for the Consumer Products SBU.
We want to grow it to Rs.350 crore in the next
four years by establishing Crompton Greaves
as a reliable brand, and leveraging this through
rapid network expansion.
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1,322
1,118
CG’s Consumer Products business outperformed the market growth rate
Mumbai's iconic CST station illuminated with CG's ‘Volumina’ lamps
(&&.
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23
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
Human Resources (HR)
Crompton Greaves has always viewed HR in
an integrated manner — that of aligning all
facets of its human capital with business and
organisational transformation. Hence, HR
plays the role of a strategic influencer of the
Company’s various businesses.
An important reason for the success of HR
in Crompton Greaves, has been the formal
integration of business leadership in deciding
the HR initiatives. This has been achieved
through an HR Council consisting of business
heads and corporate HR. Having experienced
the benefits of this model, FY2009 saw a Global
HR Council being formed — consisting of the
business heads of each of foreign locations and
corporate HR from Crompton Greaves, India.
India has been chosen as the hub for its Global
HR initiatives.
During FY2009, the HR structure and
processes were re-modelled to encourage
even greater participation of the employees
in shaping both business and HR priorities. A
quarterly HR Summit programme has been
initiated, which involves participation of the
business leadership as well as HR professionals.
Through these Summits, several HR themes
have evolved, which have then become the
drivers for initiatives during the year. This
process has resulted in creating sharper
metrics and more focused action plans. In the
course of FY2009, the different HR Summits led
to formulating strategies to achieve a higher
platform for recruitment, retention, talent
management, career progression, succession
planning, leadership development, rewards
and incentives and welfare of employees. One
of the major outcomes of the HR Summits
was the creation of an integrated Talent
Management Model at all levels, with a thrust
on executive development.
FY2009 also saw the creation of a formal
HR coalition at the global level between
the Company in India and all the foreign
companies under the Crompton Greaves
fold. A Global HR Conclave was held, where
HR professionals across all group companies,
worldwide, shared their best practices. Based
on this, common frameworks have been
created. Simultaneously, themes and action
plans have been designed in performance
management systems, training and
development, talent management, diversity,
corporate social responsibility, employee
engagement and corporate branding for
the entire group. To foster better global
integration, a Global Deputation and Mobility
Policy has been put in place, which has led to
cross-border movements of many executives
within the group.
At the leadership level, the HR focus has
been to create a global mindset among
the Company’s senior management. This
pursuit has already shown results, in creating
fundamentally new initiatives of providing
end-to-end solutions for customers, in One
World Quality, in operational excellence,
and in exploring new growth areas and
diversification.
In addition to all these, a focus of HR is to
consistently raise productivity through the
implementation of the Crompton Greaves
Production System (CGPS). Having achieved
133% of work content/CGPS norms at all
its manufacturing units across India, the
Company’s emphasis has been to further
increase productivity abroad. We have
succeeded implementing CGPS at Indonesia,
Hungary (rotating machines plant) and at
Canada. To further increase labour productivity
and reduce work content, Crompton Greaves
has initiated ‘Breakthrough Engineering
Improvement Projects’ to achieve an additional
20% improvement in overall productivity
at the workstations, and a minimum 2%
improvement at unit or the Company level.
Pressing this point yet further, an initiative
has been launched called the ‘Accelerated
Improvement Projects (AIP), which can lead to
at least a 40% improvement in productivity in
specific projects. At present, the AIP initiative
covers over 100 such projects.
The Company has successfully aligned
its performance appraisal outcomes with
a market benchmarking mechanism to set
the remuneration of all executives. The goal
setting process was revisited and strengthened
to achieving more robust performance
objectives. Meritocracy and differentiation,
based on consistency of performance and
future potential, continue to be the guiding
force for deciding remuneration. The
variable pay scheme for the leadership level
management is based on Economic Value
Added (EVA), with a difference. It is linked with
competitor performance — where businesses
have to perform better than their competitors
to get access to a larger EVA-based variable
pay pool.
As with companies elsewhere, talent
retention is a challenge. Crompton Greaves’
Having achieved 133% of
work content/CGPS norms
at all its manufacturing
units across India, the
Company’s emphasis has
been to further increase
productivity abroad.
We have succeeded
implementing CGPS at
Indonesia, Hungary
(rotating machines plant)
and at Canada.
Creating cross-cultural bonding and strengthenING common values
Celebrating CG World Day at Pauwels, Indonesia
24
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
The variable pay scheme
for the leadership level
management based on
Economic Value Added
(EVA), with a difference. It
is linked with competitor
performance — where
businesses have to
perform better than their
competitors to get access
to a larger EVA-based
variable pay pool.
CG is strengthening the talent pipeline at the managerial levels
Business Leadership Programme conducted at the CGMDC, Mulshi
efforts in this area include mentoring,
coaching, providing challenging projects,
creating cross-functional teams, giving
primacy to professionalism, and fostering
a culture of openness that encourages
the freedom to innovate with minimum
hierarchical intervention. We believe that with
our continuous improvement of processes and
benchmarking with leading global practices,
our talent pipeline will not be a cause for
concern.
Towards long term leadership development,
Crompton Greaves has started its Global
Leadership Programme (GLP) for executives
at the level of unit heads. It has also relaunched its Business Leadership Program
(BLP) to strengthen the talent pipeline at
the managerial levels. Both programmes
have best-in-class content, and are delivered
by specially chosen faculty from the best
management schools abroad and in India.
Employee engagement is a key metric for
the Company’s HR initiatives. This is achieved
through a variety of mechanisms, such as
‘open houses’ with senior management and
the performance management system. During
FY2009, Crompton Greaves’ senior leadership
volunteered and participated in a 360-degree
feedback programme.
CGHR4U, the Company’s HR portal, continues
to grow in strength and has truly become an
HR Life Cycle Management System. Existing
modules are being further strengthened
for content and user-friendliness, and new
modules added. The CGHR4U systems were
validated by two phased audits to further
strengthen internal controls, processes and
procedures.
Training and development continues to
receive serious attention. A corporate training
calendar ensures regular programmes at the
units, as well as at the Company’s top class
Management Development Centre at Mulshi,
near Pune. These actions are supplemented
by sponsoring high performing–high
potential executives for training at reputed
management and engineering institutes in
India and abroad.
As a regular practice, Crompton Greaves
visits various reputed engineering colleges for
campus recruitments. We continue to be one
of the most favoured engineering companies ,
and recruited over 130 engineering graduates
on-campus during the year.
We have successfully concluded seven wage
settlements during FY2009 — these being
carried out in a multi-trade union environment.
The settlements have resulted in the higher
productivity, contact time and plant utilisation.
We celebrated the Crompton Greaves World
Day on 15 October 2008. This was meant to
rejoice at our creating cross-cultural bonding
and to strengthen common values and beliefs
among our various locations. Hereafter, 15
October will be celebrated as the CG World
Day across all locations worldwide.
25
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
Corporate Social
Responsibility (CSR)
Crompton Greaves commitment to CSR
grows with every passing year. During FY2009,
considerable strides were made in community
development by way of infrastructure, health,
education and upgrading of facilities; in
HIV/AIDS awareness; in affirmative action; and
in industry-academia interface.
To ensure a buy-in to CSR at the highest
level, Crompton Greaves has a CSR Council
comprising all business heads. This Council
meets once a quarter with the corporate CSR
Team to create new initiatives and review the
progress of CSR across the various projects.
The areas emphasised by the Council for
FY2009 have been: (i) raising the health and
safety bar for the employees, (ii) community
development efforts, (iii) upgrading facilities
in neighbouring villages, (iv) improving the
industry-academia interface, (v) nurturing
volunteerism, and (vi) committing firm
resources for CSR activities. Corporate HR
facilitates the Company’s CSR focus by assisting
all the 22 locations in India to achieve the
objectives established by the CSR Council.
Environment
Our manufacturing processes are reviewed
for their social and environmental impact,
especially in areas such as energy savings,
waste reduction, re-cycling and minimising
pollution.
All manufacturing divisions of the Company
in India have demonstrated their commitment
to the environment by being awarded
international accreditations — both ISO
14001 and OHSAS 18001. These certifications
enhance adherence levels, achieve higher
environmental standards and craft a path
towards creating a pollution free and healthy
environment at our workplaces.
Many of the Company’s locations have
established bio-gas plants and vermiculture
facilities for efficient conversion of all bio-waste
into compost. They have also been converting
waste water for better utilisation, and have
invested in rainwater harvesting.
This year, as earlier, employees across the
Company came together to demonstrate
their environment commitment on World
Environment Day (5 June 2008). Many activities
were undertaken at each divisions such as
substantial increase in tree planting, screening
of videos that create greater environmental
As in previous years, 1 October, was
dedicated as the Blood Donation Day.
Concerted efforts are made by all employees
to donate blood across all locations. This
movement has been gaining impetus year-onyear. This time around, we witnessed many of
the Company’s CSR community beneficiaries,
visitors and employees from neighbouring
industries also donating blood.
Many of the Company’s
locations have established
bio-gas plants and
vermiculture facilities for
efficient conversion of all
bio-waste into compost.
They have also been
converting waste water
for better utilisation, and
have invested in rainwater
harvesting.
Community Projects
All the Company’s divisions continue to
intensify their CSR efforts in identified
communities, through projects decided
according to various Needs Surveys. Some of
these projects are highlighted below:
consciousness, and having several events with
environment as the key theme.
HIV / AIDS
Our pledge to creating greater HIV/AIDS
awareness continues. In FY2009, we extended
our coverage of the HIV/AIDS awareness
programmes to members of Crompton
Greaves’ supply chain — clearing and
forwarding agents, truck drivers, suppliers,
vendors and communities in the vicinity of our
plants. This initiative has received a positive
response: some 4,000 people were covered
during the year.
●
Switchgear Complex at Ambad, Nasik
(Maharashtra) Upgrading the village of
Nandurvaidya. Continuing project. This has
involved renovating the primary and middle
school, creating a well-equipped library for the
village children, upgrading the village public
health centre, and building additional toilets
and sanitation throughout the entire village.
Several women’s self help groups have been set
up to gain additional income by making papad,
pickles, candles and stuffed toys — with the
Company’s premises being offered to sell their
products.
●
M7 division at Mandideep, near Bhopal
(Madhya Pradesh) Adopted the Ratanpur
CG is committed to the cause of environment
CG employees planting trees on World Environment Day
26
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
village over the last few years. Ratanpur, like
most villages in the interior of India, earlier
suffered from long and frequent power cuts.
This year, based on the village’s needs, the
division set up LED solar street-lighting; and
provided the village school children with light
based on solar power for their studies.
● M4 division (Goa) The village of Kunkoliem
in the vicinity of the division suffered from the
lack of a health centre and paucity of a nearby
pharmacy — forcing the villagers to trudge
almost six kilometres to the nearest medical
service. In FY2009, the division built a public
health centre for the village and its surrounding
areas; and has made arrangements for a doctor
to visit once a week. In addition, the division
has donated computers to the local school.
●
S6 division at Aur angabad
(Mahar ashtr a) In a collaboration with the
Indian Army, the division has converted a
large stretch of barren land into a green belt
including arrangements for water harvesting
together with a bore well and pump.
●
LT Motors division at Ahmednagar
(Mahar ashtr a) The entire village of
Hingangaon has been provided toilets, which
has helped minimise a water-borne, mosquito
carrying vector disease called chikungunia. The
village also now has full-fledged drinking water
facilities.
● Nor thern Region office Has
collaborated with an NGO running a hospital in
Sunder Nagri, East Delhi, and in establishing a
multi-media institute, where computer classes
are conducted for the local youth at very
nominal fees.
There are many more such initiatives: Kanjur
village (by our Kanjur complex at Mumbai),
Gurari village (by T3 division at Mandideep),
Nimgaon village (by the M6 division at
Ahmednagar), Shevta village (by the S6 division
at Aurangabad), Kasarwara village (by the fans
division at Goa), and Chitral and Gametha
villages (by the lighting division at Baroda).
Whenever a village or a community is
adopted, we focus on educational facilities,
and have contributed to rebuilding village
schools, upgrading educational facilities and
supporting better teachers and teaching aids.
We also sponsor coaching classes, personality
development classes, libraries, self-help
groups and computer literacy — all aimed
at raising overall education standards and
creating employability. Equal emphasis is
given to establishing medical facilities, setting
up or upgrading public health centres, and
making essential medicines available to the
villages and their surrounding areas. These are
supplemented by regular health camps and
eye camps. The third thrust area is improving
Our pledge to creating
greater HIV/AIDS
awareness continues. In
FY2009, we extended our
coverage of the HIV/AIDS
awareness programmes
to members of Crompton
Greaves’ supply chain
— clearing and forwarding
agents, truck drivers,
suppliers, vendors and
communities in the
vicinity of our plants.
living conditions: drainage, sanitation,
electricity, street lighting and toilet facilities.
Affirmative Action (AA)
In November, 2006, Crompton Greaves
became a signatory to the Confederation of
Indian Industry’s Code on Affirmative Action,
thus declaring its public commitment to
promote the cause of Affirmative Action (AA).
Our AA initiatives during FY2009 have been as
follows:
●
Working with colleges and
universities in Nasik and Bhopal, in the
areas of classroom training, study missions,
developing course curriculum and relevant
industrial exposure.
●
Sponsoring coaching classes for the
Common Entrance Test examinations
to increase the participant’s probability of
succeeding in being admitted to the better
colleges.
● Upgrading ITI s Divisions of the Company
at Nasik, Gwalior and Ahmednagar have
collaborated with ITIs to design and implement
special courses, create apprenticeship
opportunities and offer financial sponsorships
with the aim of improving the chances of
employability of AA candidates.
● Finishing school sponsorships, that
focus on building soft skills and a general
confidence level of AA candidates.
●
CG FOCUSSES ON EDUCATIONAL FACILITIES THROUGH ITS COMMUNITY PROJECTS
Scholarships for AA candidates
in electronic, electrical, mechanical and
metallurgical engineering. This scheme has
been extended to 14 National Institutes of
Technology.
A classroom of the renovated BMC School at Kanjur Marg, Mumbai
27
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
The Six Sigma movement is central to CG, and is led from the top
The Vapour Phase Drying process for transformers being optimized by Six Sigma at T3, Mandideep
Industry-Academia Interface
Six Sigma and Quality
Crompton Greaves believes that a strong
industry-academia interface is an enabler of
business success. Here are some areas where
the Company has been involved in FY2009.
The Six Sigma movement is central to
Crompton Greaves, and is led from the top.
Quarterly reviews of Six Sigma projects are
conducted by the Managing Director with the
Six Sigma Core Committee. During FY2009, the
Company achieved the following milestones:
●
SIGMA (Stimulating Inspiration
Guidance and Mentorship Association)
involves five colleges in Mumbai with a focus
on underprivileged students. Among the
companies involved, Crompton Greaves
has been recognised as a prime-mover
for this initiative. It has involved shop
floor visits, sponsoring seminars, guest
lectures by our executives, and attending
training programmes at our Management
Development Centre.
● Plant visits Several divisions have an
organised approach by which students from
colleges and ITIs are given real life industry
exposure through regular plant visits.
●
Executed 98 Six Sigma Black Belt
projec ts, in addition to 170 projects last year,
across all divisions — with 26 Black Belts on the
various teams. Our methods and results were
appreciated by key customers like the Power
Grid Corporation of India and end-users of fans.
●
Supplier Qualit y Policy (SQP) has
reached maturit y. Any supplier to
Company’s critical-to-quality products is
passed only after a rigorous assessment of the
vendor’s design, manufacturing and quality
systems by auditors from Crompton Greaves.
SQP is being fully integrated with our SAP
system.
●
Launched an In-House Process
Qualit y (IPQ) drive. 200 IPQ green belt
projects have been initiated with the focus on
reducing process rejection and rework, and
improving manufacturing process capabilities,
housekeeping and documentation.
●
Knowledge Management for Six Sigma
The Six Sigma movement
is central to Crompton
Greaves, and is led from
the top. Quarterly reviews
of Six Sigma projects
are conducted by the
Managing Director with the
Six Sigma Core Committee.
the knowledge generated through various
Six Sigma projects which can then be used for
reviews and assessment during the project
cycle.
● Training The Six Sigma training centre
became fully functional in FY2009. 14 Black Belt
and three batches aggregating 130 Green Belts
were trained by Master Black Belt faculty. SQP
assessors are trained for auditing vendors. We
started a Statistical Tool Examination for Black
Belts which will be extended to Green belts
FY2010 onwards.
● Customer orientation The focus during
FY2009 was visiting key customers - to assess
impact of our Six Sigma projects; and to initiate
such projects which would improve customer
perception.
(KMSS) Software developed to accumulate
28
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
Information Technology (IT)
and E-Sourcing
Crompton Greaves has a robust IT network
spanning all locations in India and abroad with
high speed connectivity using multi-protocol
label switching technology. It has a well
equipped data centre at Kanjur Marg, which
houses all servers running critical applications
such as SAP, Business Warehouse, Dealer
Portal, After-Sales Service portal, CGHR4U
and Six Sigma. The Company has a disaster
recovery site at Chennai, with a full-fledged,
and frequently tested, disaster recovery plan.
Our new focus is on critical information
security. The Company has an IT policy that
covers all aspects of security: physical and
electronic access to information; access to
critical areas; electronic distribution and
sharing of information.
Crompton Greaves intends to standardise
business processes across all locations
— especially the facilities abroad — with
the focus on introducing common checks
and controls within the enterprise-wide SAP
framework. New SAP modules have been
rolled out such as the Transportation Module,
Inventory Module for Service Centres. All major
non-SAP applications are being fully integrated
with SAP to have master data consistency
and seamless data interchange between
the applications. An integrated SAP financial
accounts closure software has been deployed
to sharply reduce account closure time. On-
line systems have been introduced to enhance
the efficiency of the sales force and improve
the response time. The SAP-based Integrated
Dealer Portal has been expanded across
dealers and industrial customers. An After Sales
Service portal has been launched to service
customers and increase their satisfaction
index. Business Intelligence Warehouse tools
are being effectively used for different types
of analysis — which have been helping the
business heads in dynamic decision-making
and mid-stream corrections. E-Payments have
been successfully executed throughout the
Company.
E-sourcing has helped CG to implement an
effective company-wide purchasing process
that has significantly lowered total costs
by coordinating and leveraging common
purchases across all divisions.
The Company has completed over 300 eauctions; has built a team of more than 30 users
who regularly source at least 20% of their direct
spend through e-sourcing. During FY2009,
27% of the Company’s raw material spend was
covered through e-sourcing. Reverse auctions
have delivered cost savings of around Rs.51
crore.
Crompton Greaves intends
to standardise business
processes across all
locations — especially the
facilities abroad — with
the focus on introducing
common checks and
controls within the
enterprise-wide SAP
framework.
CG’s data centre houses all servers running critical applications
Servers at the data centre at Kanjur Marg, Mumbai
29
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
Financial Performance
We first highlight Crompton Greaves’
stand-alone results, after which we discuss
the financial performance of Pauwels, Ganz,
Microsol, Sonomatra and MSE and, finally, the
consolidated financials for the Company as a
whole.
Stand-alone Performance
The stand-alone results of Crompton Greaves
for the year ended 31 March 2009 is detailed
in Table 6. Table 7 gives the key ratios
(profitability, assets efficiency and leverage
ratios) of the stand-alone entity for FY2008 and
FY2009.
● Gross sales grew by over 16% to reach
Rs.4,904 crore. Net sales increased by 19% to
Rs.4,611 crore.
● Despite the pressure of rising input costs,
better supply chain efficiencies, intelligent
procurement management and vendor
development capped the growth of material,
manufacturing and operating costs to 14%.
Thus, materials, manufacturing and operating
expenses as a percentage to net sales have
dropped from 72.2% in FY2008 to 69.3% in
FY2009 — an improvement of 290 basis points
on net sales.
● Operating earnings before interest,
depreciation , amortisation and taxes
(operating EBIDTA) grew by 31% over the
previous year to Rs.638 crore. Consequently
operating EBIDTA to net sales margin increased
by 130 basis points, from 12.5% in FY2008 to
13.8% in FY2009.
● Other income (OI) fell from Rs.68 crore in
FY2008 to Rs.36 crore in FY2009. Because of
this, EBIDTA including OI as a percentage to
net sales grew by 30 basis points from 14.3% in
FY2008 to 14.6% in FY2009.
● Operating profit before taxes (operating
PBT) grew by 38% over last year to reach Rs.578
crore. PBT including OI increased by 26% to
Rs.614 crore.
● Despite a 26% increase in tax liabilities, profit
after tax (PAT) grew 26% to Rs.397 crore.
● Return on year end capital employed (ROCE)
was 46.3%; and return on net worth (RONW)
stood at 32%. Earnings per share increased
from Rs.8.6 for each Rs.2 share to Rs.10.8 in
FY2009.
● As a stand-alone entity, Crompton Greaves
is effectively a debt free company, with an
interest coverage ratio that now exceeds 46.
6
S t a nd-al one Pe rfo rma nce o f Cromp ton Gre aves
FY2008
4,223
347
FY2009
4,904
293
3,876
2,799
201
390
4,611
3,196
227
549
Operating EBIDTA
Other Income (OI)
486
68
638
36
EBIDTA Including OI
Interest And Commitment Charges (Net)
Depreciation, Amortisation And Impairment
554
27
41
674
15
45
Operating PBT
PBT Including OI
Less: Provision For Taxes
Current Tax
Deferred Tax
Fringe Benefit Tax
418
486
578
614
152
15
5
200
12
5
PAT
Transfer From Doubtful Debts Reserve
Balance Brought Forward From Previous Year
Transfer To General Reserve
Interim Dividend (Including Corporate Dividend Tax)
314
16
310
(31)
(69)
397
540
(40)
(86)
Balance Carried Forward To The Balance Sheet
Basic And Diluted EPS Per Share Of Face Value Of Rs.2 (In Rs.)
540
8.6
811
10.8
Year ended 31 March (in Rs. Crore, except EPS)
Gross Sales And Services
Less: Excise Duty
Net Sales And Services
Material, Manufacturing And Operating Expenses
Staff Expenses
Selling And Administration Expenses
7
S t a nd-al one Pe rfo rma nce o f Cromp ton Gre aves — Ke y Rati os
FY 2008
FY 2009
12.5%
14.3%
12.5%
33.7%
47.9%
51.7%
8.6
10.1
13.8%
14.6%
13.3%
32.0%
46.3%
49.6%
10.8
12.4
Assets Efficiency
Net Sales To Gross Working Capital (Times)
Net Sales To Net Working Capital (Times)
2.3
10.7
2.2
8.1
Leverage Ratios
Total Debt To Equity
Interest Coverage Ratio
0.1
20.4
0.0
46.1
Year ended 31 March
Profitability Ratios
Operating EBIDTA(W/O OI) / Net Sales
EBIDTA With OI / Net Sales
PBT / Net Sales
RONW
ROCE (At Year-End Capital Employed)
Cash ROCE
EPS (In Rs. Per Share)
Cash EPS (In Rs. Per Share)
30
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
CG'S SWITCHGEAR BUSINESS IS EXPLORING NEW MARKETS IN EUROPE
High Voltage Instrument Transformer assembly in progress at S6, Aurangabad
8
C onsol i d ated F i na nci a l Pe r fo r m ance of the O ve rse as Ent it ies
FY2008
Year ended 31 March
FY2009
Rs. crore
US$ Million
Rs. crore
US$ Million
Gross Sales & Services
3,006
749
4,128
887
Net Sales & Services
3,006
749
4,128
887
225
56
334
72
22
6
22
4
76
Operating EBIDTA
Other Income(OI)
247
62
356
Interest & Commitment Charges
38
10
43
9
Depreciation, Amortisation & Impairment
82
20
71
15
Operating PBT
105
26
220
48
PBT Including OI
127
32
242
52
EBIDTA Including OI
Less: Provision For Taxes
Current Tax
43
11
59
13
Deferred Tax
(11)
(3)
24
5
-
0
-
0
PAT
95
24
159
34
Minority Interest
Fringe Benefit Tax
Pauwels, Ganz, Microsol, Sonomatra
and MSE
The consolidated financial performance of all
our overseas entities is given in Table 8.
For the overseas entities:
● Net sales increased by 37% in rupee terms to
reach Rs.4,128 crore in FY2009. In US$ terms,
it grew by 18% to reach US$ 887 million.
● Operating EBIDTA grew by 48% in rupees to
reach Rs.334 crore; and by 29% in US$ to US$
72 million.
● PBT grew by 91% in rupees to Rs.242 crore;
and by 63% in terms of US$ to US$ 52 million.
● PAT increased by 67% to Rs.159 crore; and by
42% to US$ 34 million.
( 5)
(2)
1
0
Consolidated Performance
Share Of Profit/(Loss) Of Associates
0
0
0
0
Transferred From Investment Grant
0
0
0
0
22
160
Table 9 gives the consolidated performance of
Crompton Greaves, while Table 10 sets out the
key ratios of the consolidated entity.
Key financial achievements of Crompton
Greaves as a consolidated entity were:
Balance Carried Forward To
The Balance Sheet
90
Foreign Exchange Rate For US$ 1
40.1238
34
46.5363
Note: Since MSE and Sonomatra were acquired in the course of FY2009 and their performance incorporated in the financial
data, the figures for FY2009 are not exactly comparable with FY2008.
31
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
9
C onsol i d ated F i na nci a l Pe r fo r m ance of C r om pton Gre av es
Year ended 31 March
FY2009
FY2008
Rs. crore
US$ million
Rs. crore
US$ million
7,181
1,790
9,031
1,941
349
87
294
63
Net Sales & Services
6,832
1,703
8,737
1,878
Material, Manufacturing &
Operating Expenses
Gross Sales & Services
Less: Excise Duty
4,565
1,138
5,693
1,224
Staff Expenses
797
199
1,063
228
Selling & Administration Expenses
725
180
985
212
Operating EBIDTA
745
186
996
214
Other Income
EBIDTA Including OI
Interest & Commitment Charges (Net)
66
16
59
12
811
202
1,054
226
70
17
66
14
Depreciation, Amortisation &
Impairment
126
32
122
26
Operating PBT
549
137
808
174
PBT Including OI
615
153
867
186
Crompton Greaves,
therefore, is a story of
accelerated profitable
growth despite difficult
times. Net sales grew
faster in FY2009 compared
to FY2008. So too the
unexecuted order book. So
too PBT. So too the ratio of
EBIDTA to net sales. So too
the ratio of PBT to net sales.
So too the ROCE. And so too
the EPS.
Less: Provision For Taxes
197
49
261
56
Deferred Tax
3
1
38
8
Fringe Benefit Tax
5
1
5
1
410
102
563
121
(5)
(1)
(2)
(0)
2
0
(1)
(0)
407
101
560
121
16
4
-
-
Dividend (Including CDT)
(69)
(17)
(86)
(18)
Balance Carried Forward to
the Balance Sheet
354
88
474
102
Current Tax
PAT
Minority Interest
Share Of Profit/(Loss) Of Associates
PAT After Minority Interest
& Share Of Associates
Transfer From Doubtful Debts Reserve
Note: Since MSE and Sonomatra were acquired in the course of FY2009 and their performance incorporated in the financial
data, the figures for FY2009 are not exactly comparable with FY2008.
10 C onsol i d ated F i n anci a l Per f or m a nce — K e y R at ios
Profitability Ratios
Operating EBIDTA (W/O OI) / Net Sales
EBIDTA With OI / Net Sales
PBT / Net Sales
RONW
ROCE (Terminal)
Cash ROCE (Terminal)
Per Share Ratios
EPS
Cash EPS
Assets Efficiency Ratios
Net Sales To Gross Working Capital (Times)
Net Sales To Net Working Capital (Times)
Leverage Ratios
Total Debt To Equity
Interest Coverage Ratio
FY 2008
FY 2009
10.9%
11.9%
9.0%
32.7%
31.8%
37.6%
11.4%
12.1%
9.9%
31.4%
36.4%
41.1%
11.1
14.6
15.3
19.6
2.0
9.0
2.1
9.0
0.7
11.6
0.4
16.1
Note: Since MSE and Sonomatra were acquired in the course of FY2009 and their performance incorporated in the financial
data, the figures for FY2009 are not exactly comparable with FY2008.
●
●
●
In terms of net sales and services, Crompton
Greaves was close to the US$ 1.9 billion mark
in FY2009 (Rs.8,737 crore).
Net sales and services grew by 28% in
FY2009; operating EBIDTA grew faster still
— at 34%; and operating PBT grew yet faster,
at 47%.
PAT (after accounting for minority interests
and share of associated companies)
increased by 38% to Rs.560 crore.
Crompton Greaves, therefore, is a story
of accelerated profitable growth despite
difficult times. Net sales grew faster in FY2009
compared to FY2008. So too the unexecuted
order book. So too PBT. So too the ratio of
EBIDTA to net sales. So too the ratio of PBT to
net sales. So too the ROCE. And so too the EPS.
Risk Management
Crompton Greaves has a robust and welldefined risk management policy for risk
assessment and mitigation across all divisions
and branches — both in India and abroad. We
treat risk management as a key value creating
function which is responsible for bringing
about a culture change and protecting the
organization from the impact of inadequate
controls.
The Risk Management Committee of the
Board of Directors conducts quarterly reviews
of major risks and their mitigation measures.
These risks relate to: (i) business, (ii) operations,
(iii) finance including treasury and financial
reporting systems, (iv) technology, (v) quality,
32
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
Cautionary Statement
Ganz GIS achieved KEMA certification for switching performance
Installing the speed earthing switches at Ganz in Hungary
(vi) competition, (vii) brands, (viii) IT systems,
data security and storage, (ix) warranties, (x)
assets, and (xi) regulatory matters.
For both the India and overseas operations,
there is pre-planned cycle of presenting risk
reports to the Risk Committee of the Board
— which are prepared by the business heads
and vetted by the independent internal
auditors of both Crompton Greaves India and
overseas.
Two Directors who are members of
Crompton Greaves’ Risk Committee, including
the Chairman, also conduct quarterly reviews
of the risks at the Company’s overseas
establishments.
Internal Controls and their
Adequacy
Both Crompton Greaves in India and overseas
have strong and independent internal audit
departments responsible for assessing and
improving the effectiveness of internal control
and governance. Through clearly specified
internal audit plans, vetted by the Audit and
Risk Committees of the Board of Directors,
these departments ensure strict adherence
to management rules and policies, as well as
ethical conduct within the organisation.
The internal audit teams continuously
review the authorization matrix for the
segregation of duties in the SAP system.
Extensive programmes of risk-based as well
as transactions-based internal audits cover
all businesses, divisions, plants, branches and
the different areas of operations. These are
first reviewed by management. Thereafter,
the key issues are flagged every quarter to the
Audit Committee of the Board of Directors.
As mentioned earlier, the Chairman of Risk
Committee of the Board along with the
Managing Director also conduct quarterly
reviews of internal audits and risks for the
overseas establishments. The internal audit
departments also extensively interact with the
external auditors.
The management of Crompton Greaves has
prepared and is responsible for the financial
statements that appear in this report. These are in
conformity with accounting principles generally
accepted in India and, therefore, include amounts
based on informed judgements and estimates.
The management also accepts responsibility for
the preparation of other financial information
that is included in this report. Statements in this
Management Discussion and Analysis describing
the Company’s objectives, projections, estimates
and expectations may be ‘forward looking
statements’ within the meaning of applicable
laws and regulations. The management has
based these forward looking statements on its
current expectations and projections about
future events. Such statements involve known
and unknown risks, significant changes in
political and economic environment in India or
key markets abroad, tax laws, litigation, labour
relations, exchange rate fluctuations, interest and
other costs and may cause actual results to differ
materially.
Outlook
FY2009 has been a good year for the Company.
As at date, it is fair to say that the businesses
in India will continue to show growth in
FY2010; although at declining rates. However,
as stated earlier, there are concerns about
global demand — especially for distribution
transformers manufactured at our facilities
abroad. There also seems to be a slowdown in
demand growth for LT Motors, and although
to a limited extent also for larger motors with
cutbacks in industrial investments.
Even considering the above, Crompton
Greaves is well set to achieve both its short
term and long term objectives through a
combination of organic and inorganic growth.
SM TREHAN
Managing Director
Mumbai, 20 May 2009
33
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
EARNINGS
2009
2009
2008
2008
2007
2007
2006
2006
2005
2005
2004
2003
2002
2001
2000
TEN YEARS'
FINANCIAL
HIGHLIGHTS
year ended 31 march, rs. crore
Total Income
1691
1383
1616
1740
1888
2180
2200
2771
4412
3695
6039
4290
7247
4940
9090
gross Sales and Ser viceS
1675
1378
1602
1726
1861
2153
2172
2739
4346
3660
5934
4223
7181
4904
9031
Ne t Sales and Ser viceS
1526
1254
1479
1587
1711
1973
1989
2521
4127
3368
5640
3876
6832
4611
8737
EBIDTA*
35
-44
157
170
185
190
194
265
390
377
588
553
811
674
1054
PBT
-15
-73
7
37
90
125
128
195
277
307
436
486
615
614
867
PAT**
-147
-73
4
28
71
115
120
163
233
192
282
314
407
397
560
Dividend per share in rs
-
-
-
-
1.40
1.40
1.40
1.40
1.40
1.40
1.40
1.60
1.60
2.00
2.00
Dividend Pay-out
-
-
-
-
37
37
37
37
37
47
47
59
59
73
73
WHAT THE COMPANY OWNED
year ended 31 march, rs. crore
Gross Block
Including Capital WIP
770
769
773
792
801
819
825
861
1733
959
2335
1078
2733
1124
3083
Ne t Block
Including Capital WIP
479
451
415
394
368
351
354
364
541
433
1087
515
1245
523
1379
Investments
117
120
95
74
70
77
83
102
65
135
65
195
93
266
167
Ne t Current Asse ts
621
323
298
282
246
295
297
331
571
414
708
361
759
570
969
Ne t Asse ts Employed
1217
894
808
750
684
723
734
797
1177
982
1860
1071
2097
1359
2515
*Earnings before Interest, Depreciation, Amortisation, Tax, and Exceptional Items
** Profit after tax, Minority Interest and Share of Associate Companies for Consolidated Profit and
Loss Account
consolidated
stand-alone
34
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
2009
2009
2008
2008
2007
2007
2006
2006
2005
2005
2004
2003
2002
2001
2000
WHAT THE COMPANY OWED
year ended 31 march, rs. crore
Borrowings
851
627
571
459
334
315
315
250
422
270
904
88
842
54
718
Total Liabilities
1447
1149
1127
1033
982
912
915
1052
1970
1317
3139
1383
3484
1570
3919
NET WORTH OF THE COMPANY
year ended 31 march, rs. crore
Share Capital
52
52
52
52
52
52
52
52
52
73
73
73
73
73
73
Reser ves & Surplus
411
411
404
403
288
356
367
484
733
601
896
858
1229
1169
1758
Shareholders' Funds
401
325
417
442
340
408
419
536
785
674
969
931
1302
1242
1831
Tangible Ne t Wor th*
366
266
238
291
340
408
419
536
742
674
927
931
1243
1242
1783
RATIOS
year ended 31 march
Book Value
Per Share in rs.
10.0
7.3
6.5
7.9
9.3
11.1
11.4
14.6
20.2
18.4
25.3
25.4
33.9
33.9
48.6
Earnings Per Share in rs.
-4.00
-2.00
0.11
0.77
1.92
3.13
3.27
4.45
6.35
5.25
7.69
8.56
11.10
10.83
15.27
Cash Earnings
Per Share in rs.
-2.12
-0.11
2.14
3.05
3.71
4.28
4.43
5.96
8.80
7.04
11.35
10.07
14.63
12.38
19.63
Current R atio
2.04:1
1.62:1
1.54:1
1.49:1
1.38:1
1.49:1
1.5:1
1.41:1
1.37:1
1.39:1
1.32:1
1.28:1
1.29:1
1.38:1
1.3:1
Debt Equit y R atio
2.33:1
2.36:1
2.40:1
1.58:1
0.98:1
0.77:1
0.75:1
0.47:1
0.57:1
0.4:1
0.98:1
0.09:1
0.68:1
0.04:1
0.4:1
EBIDTA / Ne t Sales %
2.3
-3.5
10.6
10.7
10.8
9.6
9.8
10.5
9.4
11.2
10.4
14.3
11.9
14.6
12.1
Re turn On Tangible
Ne t Wor th %
-40.2
-27.4
1.7
9.6
20.9
28.2
28.6
30.4
31.4
28.5
30.4
33.7
32.7
32.0
31.4
Fixed Asse ts
Turnover R atio times
3.2
2.8
3.6
4.0
4.6
5.6
5.6
6.9
7.6
7.8
5.2
7.5
5.5
8.8
6.3
number of
permanent employees
9395
7664
6058
5707
5470
5256
8174
4916
7801
4912
7972
5002
8307
5094
8564
*Tangible Net Worth = Shareholders’ Funds - Miscellaneous Expenditure (Unamortised) - Deferred Tax Asset
consolidated
stand-alone
35
TEN Y EARS' F INANCIAL H IG H LIG H TS
DIRECTORS'
REPORT
To,
The Members,
Your Directors are pleased to present their
Seventy Second Annual Report on the business
and operations of the Company and the
accounts for the Financial Year ended 31 March
2009.
OPERATIONS
The second half of the current year witnessed
a turbulent change in the macroeconomic
fundamentals of the global economy. High
international fuel and commodity prices at the
beginning of the year, resulted in unrealistic
increase in the raw material prices upto midSeptember 2008, which decreased rapidly,
as the global financial markets plunged into
turmoil from August 2008. There has been
a severe choking of credit since then and a
sudden crash of stock prices in both the global
and the Indian stock markets.
The consequent impact is visible both in
the financial markets and also in the real
economy all over the world, with an almost
nervous business sentiment weighing severely
on economic activities. The International
Monetary Fund has portrayed a grim outlook
for the global economy, with de-growth of
1.3% (-1.3%) in 2009. Governments around the
world have taken wide-ranging policy actions
to respond to the negative economic trends,
by announcing multi-dimensional stimulus
packages. Industry is optimistic that these
measures will have a positive impact on the
economy in the near future.
In India, economic growth in the first half
of the year averaged 7.8 per cent; a reduction
from the 9.3 per cent in the comparable period
of last year. However, conditions became much
worse from the middle of September 2008 as
commodities, led by crude oil, collapsed in
the face of the financial meltdown and greater
than anticipated intensity of recession in the
advanced economies. This phenomenon also
had its effect on the second half of the year.
Demand for the Company’s products is
substantially impacted by the government’s
planned power sector outlays and private
sector investments in the power sector.
The 11th Five Year Plan (2007-08 to 201112) has witnessed huge plan outlays for
power sector capacity addition; although
implementation is being achieved at a slower
pace. The Company’s domestic Power Systems
business has therefore been relatively less
affected by the slowdown. In the domestic
market, Industrial Systems is witnessing a
phenomenon of customers holding back
ongoing capacity expansion plans, further
intensified by pressure on margins due to a
weak pricing environment. The Consumer
Products Segment has performed better than
the market, overcoming stiff competition and a
slow down on account of lower demand from
the real estate and retail sectors.
To address the tough market conditions, the
Company has stepped up its marketing efforts
together with development of new product
ranges and type testing at International
Laboratories to facilitate export demand and
further enhance customer confidence. The
Company is also continuously expanding
its suite of products, systems, automation
and service capabilities to strengthen its
competitive positioning.
To strengthen its ’Solutions’ capabilities, two
more companies joined the CG Group in this
year.
On 30 May 2008, the Company, acquired
France based Société Nouvelle de
Maintenance Transformateurs (Sonomatra).
Sonomatra is engaged in providing services
of on-site maintenance/repair of power
transformers & on-load tap changers, oil
analysis, oil treatment and retro-filling. This
acquisition will enhance the Company’s
capabilities in the services segment of its
transmission and distribution business.
On 12 September 2008, the Company
acquired USA based MSE Power Systems
Inc and its subsidiary company –MSE West
LLC (MSE Group). MSE Group is engaged in
Engineering, Procurement and Construction
(EPC) of High Voltage Electric Power Systems.
Its capabilities include conceptual engineering,
36
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
system studies and also complete EPC
engineering, spanning Relay/Control, SCADA
and Sub-station Automation. This acquisition
will increase the Company’s strength as a
Systems Integrator in the EPC International
business arena, particularly in the Renewable
Energy (wind) segment.
Further raising the bar, product quality
improvement has been a thrust area and an
important pillar of our operational excellence
initiatives; in our quest to achieve One World
Quality at all our manufacturing locations.
This is being achieved through systematic
deployment of the Six Sigma process and
an organised approach to standardization
of designs, manufacturing process and
quality parameters. As a part of this drive,
vendor supply quality has been identified
as a critical area and a long-term strategy of
procuring critical raw materials only from
vendors meeting decided threshold criteria
in Six Sigma framework has been adopted.
Enhanced robustness of designs with learnings
from Pauwels and Ganz, were channelized to
improve the quality quotient. The Company’s
’One World Quality’ Project is one more
important milestone, with the objective to
establishing uniform quality standards for all
power transformer plants across its worldwide
locations.
In our pursuit for worldwide integration,
the Company has undertaken projects
like worldwide standardization of designs
(Unipower Project), which will enable an
integrated design environment in which
designers can access, share and effectively
reuse the available knowledge base across
geographies.
Commencing this year, the Company
has initiated an ambitious project of
developing standards and benchmarks
for the manufacturing practices across the
globe (Manufacturing Excellence Project).
This project will develop standardized
processes with preferred parameters and will
be a significant driving force for increasing
productivity and capacity utilization.
The Company has responded to the wide
fluctuations in key commodity prices, by
entering into long term supply (frame)
contracts with vendors, as a part of its Global
Sourcing Strategy. Vendor development
for ancillaries through technical knowledge
sharing and sourcing from low cost countries,
has further contributed to achieving overall
cost effectiveness of products.
Focus on operational excellence through
effective implementation of benchmarked
best practices and better utilization of critical
capital assets, ensured conservation of working
capital requirements. Diligent and frequent
credit reviews have ensured quicker collection
of receivables, at the same time, preserving
credit quality of the Company’s sales in tough
credit times. The low level of production losses
has been further reduced, by the Company
addressing and minimizing issues related
to non-availability of materials, as well as,
reorganizing the manufacturing, purchase and
supply chain teams and methods.
The above initiatives have enabled the
Company to achieve a stand-alone net
turnover of Rs.4,611 crore, during the year
under review, as compared with Rs.3,876 crore
during the previous year 2007-08, a rise of 19%.
The synergy generated through the Pauwels,
Ganz and Microsol acquisitions, resulted in the
consolidated net turnover of the Company
increasing from Rs.6,832 crore to Rs.8,737 crore,
an increase of 28%.
The Company has recorded a noteworthy
stand-alone Profit Before Tax of Rs.614 crore, an
increase of 26% as compared with last year. The
consolidated Profit Before Tax increased from
Rs.615 crore to Rs.867 crore. The Company has
also recorded a significant stand-alone Profit
After Tax of Rs.397 crore, an increase of 26%
as compared with last year. The consolidated
Profit After Tax increased from Rs.410 crore to
Rs.563 crore.
Going forward, the National elections has
conferred a decisive mandate, raising hopes
of a stable government and progress on
economic reforms. A 100-day action plan
promised by the United Progressive Alliance
is expected to give renewed thrust to its
unfinished reforms agenda, especially in
the infrastructure and development sectors;
announcements of a fresh stimulus package
is anticipated to pull the economy out of its
present slowdown. These developments
have had a positive impact on the investor
sentiment which has been reflected in the
rally of the Indian stock markets, immediately
after declaration of the election results. Future
political stability will make India a more
attractive investment destination; an oasis of
relative stability in a reeling global economy.
Sonomatra widens CG’s capabilities in the Services segment
Transformer refurbished by Pauwels in co-operation with Sonomatra
37
DIRECTORS' REPORT
FINANCIAL HIGHLIGHTS
CG St a nd-al one
Particulars in Rs. crore
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)
(p)
(q)
(r)
(s)
(t)
(u)
(v)
(w)
(x)
(y)
Gross Sales
Less: Excise Duty
Net Sales
Less: Operating Expenses
Operating Profit
Add: Dividend and Other Income
Profit before Interest, Depreciation,
Amortisation and Taxes
Less: Interest (net)
Profit before Depreciation, Amortisation and Taxes
Less: Depreciation, Amortisation and Impairment
Profit Before Tax
Less: Provision for Current Year Tax
Less: Provision for Deferred Tax
Less: Provision for Fringe Benefit Tax
Profit After Tax
Minority Interest
Share of Profit/(Loss) of Associate Companies
Profit after tax, minority interest and share of
profit/(loss) of Associate Companies
Balance brought forward from previous years
Transferred from Associates
Transfer (to)/from Doubtful Debts Reserve
Transfer from Investment Grants
Appropriation/Distribution
Transfer to General Reserve
Interim Dividend
Corporate Tax on Dividend
BALANCE CARRIED TO BALANCE SHEET
CG IBV Conso lida te d*@
CG-Conso lida ted**
31.3.2009
4904
293
4611
3973
638
36
31.3.2008
4223
347
3876
3390
486
68
31.3.2009
4128
0
4128
3794
334
22
31.3.2008
3006
0
3006
2781
225
22
31.3.2009
9031
294
8737
7742
995
59
31.3.2008
7181
349
6832
6086
746
65
674
15
659
45
614
200
12
5
397
0
0
554
27
527
41
486
152
15
5
314
0
0
356
43
313
71
242
59
24
0
159
1
0
247
38
209
82
127
43
(11)
0
95
(5)
0
1054
65
989
122
867
261
38
5
563
(2)
(1)
811
70
741
126
615
197
3
5
410
(5)
2
397
540
0
0
0
314
310
0
16
0
160
0
0
0
0
90
0
0
0
0
560
0
0
0
0
407
0
0
16
0
(40)
(73)
(13)
811
(31)
(59)
(10)
540
0
0
0
160
0
0
0
90
0
(73)
(13)
474
0
(59)
(10)
354
NOTE: *Consolidated Accounts of CG International BV, the holding company for the Pauwels, Ganz, Microsol, Sonomatra and MSE Acquisitions.
** Includes results of Pauwels, Ganz, Microsol, Sonomatra, MSE, Indian Subsidiaries and Associates.
@ Figures have been regrouped for the purposes of consolidation.
The Profit Before Interest and Tax of the respective Business Groups, compared with last year is
given below:
SBU
in Rs. crore
2008-2009 2007-2008
349
258
204
195
146
121
Power Systems (including Pauwels, Ganz, Microsol, Sonomatra and MSE)
625
437
213
196
Industrial Systems (including Ganz Rotating Machines Business)
Power Systems (CG stand-alone)
Industrial Systems (CG stand-alone)
Consumer Products
A detailed review of the operations and
performance of each Business Group as well as
Pauwels, Ganz, Microsol, Sonomatra and MSE is
contained in the Management Discussion and
Analysis Report, which is given as a separate
chapter in the Annual Report.
INVESTMENT IN AVANTHA POWER
& INFRASTRUCTURE
In view of increased government spending on
generation and transmission infrastructure and
the projected increase in future demand, due
to growth in industrialisation and urbanization,
it was felt that the power sector has promising
potential for growth. To gain experience
in the power generation and distribution
business, in 2006, the Company acquired a
59% shareholding in Malanpur Captive Power
Limited (MCPL), which has developed and is
already successfully operating a 26 MW gas
based group captive power plant at Malanpur,
Madhya Pradesh and has, thus, gained valuable
experience in this business.
The Company views power generation,
transmission and distribution as a strategic
opportunity for future growth, since it is an
area which is germane to and has linkage with
its existing business. Hence, it was considered
desirable to expand its presence in this arena,
by acquiring a strategic stake in Avantha Power
& Infrastructure Limited (APIL).
APIL, an Avantha Group company, whose
current shareholders include Ballarpur
Industries Limited (BILT), is engaged in the
38
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
CG St an d-al one
Particulars IN Euro Million
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)
(p)
(q)
(r)
(s)
(t)
(u)
(v)
(w)
(x)
(y)
Gross Sales
Less: Excise Duty
Net Sales
Less: Operating Expenses
Operating Profit
Add: Dividend and Other Income
Profit before Interest, Depreciation,
Amortisation and Taxes
Less: Interest (net)
Profit before Depreciation, Amortisation and Taxes
Less: Depreciation, Amortisation and Impairment
Profit Before Tax
Less: Provision for Current Year Tax
Less: Provision for Deferred Tax
Less: Provision for Fringe Benefit Tax
Profit After Tax
Minority Interest
Share of Profit/(Loss) of Associate Companies
Profit after tax, minority interest and share of
profit/(loss)of Associate Companies
Balance brought forward from previous years
Transferred from Associates
Transfer (to)/from Doubtful Debts Reserve
Transfer from Investment Grants
Appropriation/Distribution
Transfer to General Reserve
Interim Dividend
Corporate Tax on Dividend
BALANCE CARRIED TO BALANCE SHEET
CGIBV Conso lida te d*@
CG-C onso lida ted**
31.3.2009
748
45
703
606
97
6
31.3.2008
735
60
675
591
84
12
31.3.2009
630
0
630
579
51
3
31.3.2008
523
0
523
484
39
4
31.3.2009
1378
45
1333
1181
152
9
31.3.2008
1250
61
1189
1059
130
11
103
2
101
7
94
31
2
1
60
0
0
96
5
91
7
84
26
3
1
54
0
0
54
6
48
11
37
9
4
0
24
0
0
43
7
36
14
22
8
(2)
0
16
(1)
0
161
10.
151
19
132
40
6
1
85
0
0
141
12
129
22
107
34
1
1
71
(1)
0
60
94
0
0
0
54
54
0
3
0
24
0
0
0
0
15
0
0
0
0
85
0
0
0
0
71
0
0
3
0
(6)
(11)
(2)
135
(5)
(10)
(2)
94
0
0
0
24
0
0
0
15
0
(11)
(2)
72
0
(10)
(2)
62
Note: Average exchange rate considered for 1 EURO in 2008-09 is Rs. 65.5385 and in 2007-08 is Rs.57.4556.
*Consolidated Accounts of CG International BV, the holding company for the Pauwels, Ganz, Microsol, Sonomatra and MSE Acquisitions.
** Includes results of Pauwels, Ganz, Microsol, Sonomatra, MSE, Indian Subsidiaries and Associates.
@ Figures have been regrouped for the purposes of consolidation.
business of generation, transmission and
distribution of electricity. Presently APIL
operates four Captive Power Plants with an
aggregate capacity of 95 MW, which it is
expanding to 165 MW. In addition, APIL is in the
process of establishing two new Independent
Power Producer (IPP) plants with a capacity
to generate 600 MW each - the Korba Project,
at Raigarh in Chhattisgarh and the Jhabua
Project, at Seoni in Madhya Pradesh, for which
APIL was seeking a strategic partner for its
expansion plans. APIL was willing to offer
shares to the Company at a book value, similar
to its offerings to existing promoters. APIL
had already arranged most of the required
land, obtained environmental clearances,
the requisite coal linkages, ancillary support
infrastructure like water etc. and also finalised
the debt financing for the project through
reputed banks. APIL is also in discussions with
various power traders, for tying up long term
Power Purchase Agreements, which would
significantly de-risk its business. Hence, it was
felt that the investment in APIL would provide
the Company a worthwhile avenue for its entry
into the power sector.
Since, APIL is a Group Company, the Board
referred the proposal to a Committee of
Independent Directors, for evaluation of
the investment proposal. The Committee of
Independent Directors held two meetings, to
deliberate on the various aspects of the above
proposal to invest in APIL. At the request of the
Committee, an external professional valuation
of APIL by KPMG India Pvt. Ltd. (KPMG) was
presented and appraised; which valuation was
significantly higher than the book value.
Being convinced about the attractiveness
of the future for the power sector and also
about the prospects and potential of APIL, the
Committee favourably recommended the
investment proposal. Since the above was a
Related Party transaction, the Audit Committee
also reviewed and thereafter recommended
the investment proposal for consideration by
the Company’s Board of Directors.
On evaluation of the investment proposal,
the Board of Directors believed that it is an
excellent economic and strategic opportunity,
particularly considering the fact that the
investment would be made at book value
of APIL, which, in its opinion would create
shareholder value for the Company’s
shareholders in the long run. The proposal also
posed minimum risks, since the major project
risks were already mitigated by APIL. The Board
39
DIRECTORS' REPORT
CG St a nd-al one
Particulars in USD Million
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(l)
(m)
(n)
(o)
(p)
(q)
(r)
(s)
(t)
(u)
(v)
(w)
(x)
(y)
Gross Sales
Less: Excise Duty
Net Sales
Less: Operating Expenses
Operating Profit
Add: Dividend and Other Income
Profit before Interest, Depreciation,
Amortisation and Taxes
Less: Interest (net)
Profit before Depreciation, Amortisation and Taxes
Less: Depreciation, Amortisation and Impairment
Profit Before Tax
Less: Provision for Current Year Tax
Less: Provision for Deferred Tax
Less: Provision for Fringe Benefit Tax
Profit After Tax
Minority Interest
Share of Profit/(Loss) of Associate Companies
Profit after tax, minority interest and share of
profit/(loss) of Associate Companies
Balance brought forward from previous years
Transferred from Associates
Transfer (to)/from Doubtful Debts Reserve
Transfer from Investment Grants
Appropriation/Distribution
Transfer to General Reserve
Interim Dividend
Corporate Tax on Dividend
BALANCE CARRIED TO BALANCE SHEET
CGIBV Conso lida te d*@
CG-C onso lida ted**
31.3.2009
1054
63
991
854
137
8
31.3.2008
1052
86
966
845
121
17
31.3.2009
887
0
887
815
72
4
31.3.2008
749
0
749
693
56
6
31.3.2009
1941
63
1878
1664
214
12
31.3.2008
1790
87
1703
1517
186
16
145
3
142
10
132
43
3
1
85
0
0
138
7
131
10
121
38
4
1
78
0
0
76
9
67
15
52
13
5
0
34
0
0
62
10
52
20
32
11
(3)
0
24
(2)
0
226
14
212
26
186
56
8
1
121
(0)
(0)
202
17
185
32
153
49
1
1
102
(1)
0
85
135
0
0
0
78
77
0
4
0
34
0
0
0
0
22
0
0
0
0
120
0
0
0
0
101
0
0
4
0
(9)
(16)
(2)
193
(8)
(15)
(2)
135
0
0
0
34
0
0
0
22
0
(16)
(2)
102
0
(15)
(2)
88
Note: Average exchange rate considered for 1 USD in 2008-09 is Rs. 46.5363 and in 2007-08 is Rs. 40.1238
*Consolidated Accounts of CG International BV, the holding company for the Pauwels, Ganz, Microsol, Sonomatra and MSE Acquisitions.
** Includes results of Pauwels, Ganz, Microsol, Sonomatra, MSE, Indian Subsidiaries and Associates.
@ Figures have been regrouped for the purposes of consolidation.
of Directors of the Company, at its meeting
held on 24 March 2009, approved investment
of upto Rs.227 crore in APIL.
This investment is well within the limits
prescribed by Section 372A of the Companies
Act, 1956. This investment will be made at
book value; estimated at approximately
Rs.11/- per share and would represent a
present shareholding of approximately 41%
in APIL. Once the residual equity requirements
are funded, the Company’s shareholding in
APIL would reduce; however, a minimum 26%
shareholding will be ensured.
To demonstrate its continuing philosophy of
transparency and high standards of Corporate
Governance, the Company through a detailed
communication to the Members, dated 2 April
2009 has already conveyed the rationale for
this investment.
DIVIDEND
The Company declared three interim dividends
during the year:
● Rs.0.70 per equity share (35%) aggregating to
a total dividend payout of Rs.30 crore (including
dividend tax) declared on 21 October 2008; the
Record Date for this purpose was 29 October
2008 and the Interim Dividend was paid on 12
November 2008.
● Rs.0.80 per equity share (40%) aggregating
to a total dividend payout of Rs.34 crore
(including dividend tax) declared on 23 January
2009; the Record Date for this purpose was 30
January 2009 and the Interim Dividend was
paid on 13 February 2009.
● Rs.0.50 per equity share (25%) aggregating
to a total dividend payout of Rs.22 crore
(including dividend tax) declared on 24 March
2009; the Record Date for this purpose was 31
March 2009 and the Interim Dividend was paid
on 13 April 2009.
The abovementioned dividend payout as a
percentage of the share capital works out to
100%.
RESERVES
The Reserves at the beginning of the year were
Rs.857 crore. The Reserves at the end of the
year are Rs.1,169 crore.
DIRECTORATE
Dr V von Massow and Mr S Labroo 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 re-appointment are
contained in the accompanying Notice of the
forthcoming Annual General Meeting.
40
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
BUY-BACK OF SHARES
To demonstrate its confidence with respect
to the Company’s future stability and growth
potential, as well as its willingness to expend
its cash flows to increase liquidity for its
shareholders, the Board of Directors of the
Company at its meeting held on 24 March
2009, approved a proposal to buy-back the
equity shares of the Company. The buy-back
will take place through the Open Market
mechanism on Stock Exchanges. The Equity
Shares of the Company are proposed to be
bought back at a maximum price of Rs.170/per Equity Share and the maximum amount
expended will be Rs.224.15 crore. Through
the postal ballot results announced today, the
members have approved the buy-back.
Even after the buy-back, the Company will
have adequate financial resources to fund
its expansion plans and also actively pursue
inorganic growth opportunities through
acquisitions.
Detailed information on the buy-back has
already been provided to the Members by the
Company’s postal ballot Notice dated 2 April
2009.
RESEARCH AND DEVELOPMENT
The Company’s Global R&D Centre has devised
certain parameters on which performance of
its R&D activities are monitored - time for New
Product Development, Revenue generation
from commercialization of R&D projects and
Intellectual Property Rights generation being
the most important ones. The efforts of the
R&D Centre has resulted in creation of three
breakthrough technologies during the year
and an increasing share of new products as
a proportion of the total product portfolio;
with a focus on developing knowledge based
products and solutions.
R&D has developed and implemented a New
Product Development System (NPD) across all
locations in India for monitoring the progress
of platform and breakthrough technologies
identified as future business drivers.
The Business Development Cell established
last year to enhance the convergence of
business priorities with R&D goals, achieved
a number of pilot orders for new platform
technologies. Greater interaction between
customers and marketing executives
enabled translation of customer expectations
into product features. The Company also
participated in 10 high visibility public
MSE increases CG's strength as systems integrator in EPC arena
MSE’s Windy Point Windpower Project in USA
CG’s Global R&D Centre is creating innovative transformer technologies
Receiving Golden Peacock Innovative Award-2008 at Mumbai
41
DIRECTORS' REPORT
exhibitions, to create an awareness of the new
product portfolio of the Company.
At the World Congress on Total Quality at
Mumbai on 17 January 2009, the Company
received the prestigious Golden Peacock
Award for innovative transformer technologies.
New products and processes developed are
detailed in the Annexure 2.
PROMOTER GROUP
The Avantha Group is the promoter of
the Company. For the purpose of the SEBI
(Substantial Acquisition of Shares And
Takeovers) Regulations, 1997, the names
of the Promoter entities and other entities
comprising the ’Group’ as defined under the
Monopolies and Restrictive Trade Practices Act,
1969, are detailed in Annexure 1 to this Report.
SUBSIDIARY COMPANIES
The Company has four Indian subsidiaries viz
CG Electricity Management Limited (CEM), CG
Capital & Investments Limited (CG Capital),
CG-PPI Adhesive Products Limited (CG PPI)
and Malanpur Captive Power Limited (MCPL).
CEM, CG Capital and MCPL are subsidiaries of
the Company, and CG PPI, being a subsidiary
of CG Capital, in terms of the provisions of the
Companies Act, 1956, is also the Company’s
subsidiary.
The Netherlands-based CG International
B.V., a 100% subsidiary of the Company, is the
ultimate holding company of the Pauwels,
Ganz, Microsol, Sonomatra and MSE Group,
comprising 22 downstream subsidiaries, as
under:
● Pauwels International N.V.
● Pauwels Americas Inc
● Pauwels Trafo Belgium N.V.
● PT Pauwels Trafo Asia
● Pauwels Trafo Gent N.V.
● Microsol Holdings Ltd
● Pauwels Trafo Ireland Ltd.
● Microsol (UK) Ltd
● Pauwels France S.A.
● Microsol Inc
● Pauwels Trafo Service N.V.
● Viserge Ltd
● Crompton Greaves Hungary Kft
● Microsol Ltd
● Ganz Transelektro Villamossagi Zrt
● Société Nouvelle de Maintenance
Transformateurs
● Transverticum Kft
● MSE Power Systems Inc
● Pauwels Transformers Inc
●
●
●
MSE West LLC
Pauwels Canada Inc
Crompton Greaves Germany GmbH
In totality, the Company has 27 subsidiaries, 4
Indian and 23 foreign.
The Company has obtained an exemption
under Section 212 of the Companies Act,
1956, from annexing to this Report, the Annual
Reports of the abovementioned 4 Indian
subsidiaries and 23 foreign subsidiaries, for the
year ended 31 March 2009. However, if any
Member of the Company or its subsidiaries so
desires, the Company will make available, the
Annual Accounts of the subsidiaries to them,
on request. The same will also be available
for inspection at the Registered Office of
the Company and of its subsidiaries, during
working hours upto 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
investment in subsidiaries), turnover, profit
before taxation, provision for taxation, profit
after taxation and proposed dividend are
detailed at Page 105 of the Annual Report.
CONSOLIDATION OF ACCOUNTS
As required by Accounting Standards AS-21
and AS-23 of the Institute of Chartered
Accountants of India, the financial statements
of the Company reflecting the consolidation
of the Accounts of the Company, its 27
subsidiaries mentioned above, and 5 Associate
Companies, are annexed to this Report. The
Associate Companies are Brook Crompton
Greaves Limited, CG Actaris Electricity
Management Pvt. Limited, CG Lucy Switchgear
Limited, International Components India
Limited and Pauwels Middle East Trading and
Contracting Limited.
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 an Annexure
2 to this Report.
Microsol’s strengths are in automation solutions for power utilities
Microsol launched IEC 61850 connectivity on the XCell automation platform
42
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
PARTICULARS OF EMPLOYEES
The statement of particulars required pursuant
to Section 217(2A) of the Companies Act,
1956 read with the Companies (Particulars of
Employees) (Amendment) Rules, 2002, 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 Secretary at the Registered
Office and the same will be sent by post. The
statement is also available for inspection at the
Registered Office, during working hours upto
the date of the Annual General Meeting.
DIRECTORS’ RESPONSIBILITY
STATEMENT
The Directors would like to assure the
Members that the financial statements for the
year under review conform in their entirety to
the requirements of the Companies Act, 1956.
The Directors confirm that:
● the Annual Accounts have been prepared
in conformity with the applicable Accounting
Standards;
● the Accounting Policies selected and
applied on a consistent basis, give a true and
fair view of the affairs of the Company and of
the profit for the financial year;
● sufficient care has been taken that adequate
accounting records have been maintained for
safeguarding the assets of the Company; and
for prevention and detection of fraud and other
irregularities;
● the Annual Accounts have been prepared on
a going concern basis.
CG is the fastest growing fans brand in India
Factory at Fans Divisions, Goa
claimed repayment of their matured deposits
amounting to Rs.0.17 crore as at 31 March
2009. At the date of this Report, an amount
of Rs.52,000 has been claimed and repaid
therefrom, or transferred to the Investor
Education Protection Fund, on 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
to the Company’s Fixed Deposit Scheme. The
contact details of Link Intime India Pvt. Ltd
are mentioned in the Report on Corporate
Governance.
AUDITORS
The Company's Auditors, Sharp & Tannan, hold
office upto the conclusion 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. They
have furnished the requisite certificate to the
effect that their re-appointment, if effected, will
be in accordance with Section 224(1B) of the
Companies Act, 1956.
FIXED DEPOSITS
Currently, the Company has discontinued
acceptance of fresh deposits and also renewal
of existing deposits. 140 persons have not
SHARE REGISTRAR & TRANSFER
AGENT
The Company’s Registrar & Transfer Agents is
Datamatics Financial Services Ltd (DFSL). DFSL
is a SEBI-registered Registrar & Transfer Agent.
The contact details of DFSL are mentioned in
the Report on Corporate Governance.
Investors are requested to address their
queries, if any to DFSL; however, in case of
difficulties, as always, they are welcome to
contact the Company’s Investor Services
Department, the contact particulars of which
are contained in the Report on Corporate
Governance.
ENVIRONMENT, HEALTH & SAFETY
The Company has a Health & Safety policy,
which has been implemented across all its
locations. The ’Health & Safety Committees’
at all locations ensure review and adequate
compliance of the Company’s Health & Safety
Policy. Our vision envisages ’zero accidents’ as
the only acceptable standard. Detailed Safety
audits are carried out and quarterly Health &
Safety Committee meetings are held. Proper
segregation of hazardous and non-hazardous
waste is being implemented on a regular
basis. The Company conducts mock/test
drills for improving overall awareness and
responsiveness towards emergency situations
and also imparts on-the-job training to
executives to handle emergency situations
independently.
Health check-ups for Executives, HIV/AIDS
awareness and voluntary blood donation
camps are some of the initiatives, which are
regularly undertaken.
All the manufacturing Units of the Company
have received ISO 14001 Environmental
Standards and Management Certification and
OHSAS 18001 Certification for Occupational
Health & Safety Assessment Systems. The
Company periodically conducts surveillance
audits of both ISO 14001 and OHSAS 18001,
43
DIRECTORS' REPORT
CG Lighting HAS BEEN awarded the ‘Superbrand’ status
Facade Lighting of Bhopal Museum with CG's Carona Floodlight
to ensure continued conformity with these
standards.
The Company actively propagates usage
of environmentally safe technologies in its
product design processes. The Company has
developed breakthrough products, which are
energy efficient and will reduce the usage of
electricity, such as energy efficient lamps using
LED technology (for consumer and industrial
usage) and energy saving motors of higher
rating. The Company is also increasing its focus
on developing transformers and power quality
products for usage in projects based on wind,
solar, renewable and other non-conventional
sources of energy.
The Company has identified Environment
Protection as an important area under its
Corporate Social Responsibility activities, and
has carried out initiatives such as rain water
harvesting to help recharge ground water and
waste management through vermiculture.
during the year under review and look forward
towards continued support from them.
The Directors also wish to convey their
appreciation and gratitude to the Company’s
employees, at all levels, for their continued
dedication, hard work and commitment which
has been a significant enabler in achieving the
Company’s performance.
On behalf of the Board of Directors
G THAPAR
Chairman
Mumbai, 20 May 2009
ACKNOWLEDGEMENTS
The Directors acknowledge and appreciate
the support and co-operation extended by
the Financial Institutions, Banks, Government
Authorities, Customers, Vendors and Members
44
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
ANNEXURE 1 TO DIRECTORS’
REPORT
●
●
●
List of Group Entities
The following entities and persons, along with
Crompton Greaves Limited constitute the
Group as defined under the Monopolies and
Restrictive Trade Practices Act, 1969:
● Bilt Graphic Paper Products Limited
● Ballarpur International Holdings B.V.
● Ballarpur Paper Holdings B.V.
● Ballarpur International Paper Holdings B.V.
● Ballarpur International Graphic Paper
Holdings B.V.
● Avantha International Holdings B.V.
● TAF Asset 2 B.V.
● Sabah Forest Industries Sdn. Bhd.
● Bilt Tree Tech Limited
● JG Containers (Malaysia) Sdn. Bhd.
● Mirabelle Holdings LLC
● Mirabelle Trading Pte. Limited
● MTP NEW Ocean (Mauritius) Limited
● Corella Investments Limited
● Lustre International Limited
● NewQuest Corporation Limited
● Bilt Paper Holdings Limited
● KCT Papers Limited
● KCT Chemicals & Electricals Limited
● APR Sacks Limited
● The Paperbase Company Limited
● Janpath Investments and Holdings Limited
● Bilt Industrial Packaging Company Limited
● Biltech Building Elements Limited
● UHL Power Limited
● Asia Aviation Limited
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
Toscana Lasts Limited
Toscana Footwear Components Limited
NQC Global (Mauritius) Limited
NQC International (Mauritius) Limited
NewQuest Services Private Limited
Avantha Technologies Limited
NewQuest Insurance Broking Services
Limited
Avantha Power & Infrastructure Limited
Korba West Power Company Ltd.
TKS Developers Ltd.
Jhabua Power Ltd.
Gleneagles Healthcare Holdings Private Ltd.
Prestige Wines and Spirits (P) Limited
Himalayan Hideaways (P) Limited
Global Green Company Limited
Global Green USA Limited
GG International N.V.
Intergarden N.V.
Intergarden (India) Private Limited
Dunakiliti Kanzervuzem Kft
Greenhouse Agraar Kft
Floragarden Tarim Gida Sanay ve Ticaret A.S.
Solaris Holdings Limited
Solaris Chemtech Industries Limited
Solaris Industrial Chemicals Limited
Salient Business Solutions Limited
Salient Knowledge Solutions Limited
Salient Financial Solutions Limited
Salient Business Solutions USA, Inc.
Sairam Infra Projects Private Limited
Vani Agencies Pvt Limited
Sohna Stud Farm Pvt. Limited
Imerys New Quest (India) Private Limited
Puszta Konserv Kft Hungary
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
●
CG Energy Management Limited
CG Capital & Investments Limited
CG-PPI Adhesive Products Limited
Malanpur Captive Power Limited
Brook Crompton Greaves Limited
CG Actaris Electricity Management Pvt.
Limited
CG Lucy Switchgear Limited
International Components India Limited
CG International B.V.
Pauwels International N.V.
Pauwels Americas Inc.
PT Pauwels Trafo Asia
Pauwels Trafo Gent N.V.
Pauwels Canada Inc.
Pauwels Transformers Inc.
Pauwels Trafo Ireland Limited
Pauwels France SA
Pauwels Trafo Belgium N.V.
Pauwels Trafo Service N.V.
Pauwels Middle East Trading and
Contracting Limited
Crompton Greaves Hungary Kft
Transverticum Kft
Ganz Transelektro Villamossagi Zrt.
Microsol Holdings Limited
Microsol Limited
Viserge Limited
Microsol UK Limited
Microsol Inc.
Société Nouvelle de Maintenance
Transformateurs
MSE Power Systems Inc.
MSE West LLC
Crompton Greaves Germany GmbH.
Ganz has yielded a major success, with the largest single order for CG Power
Setting the iron core of a transformer at Ganz, Hungary
45
DIRECTORS' REPORT
ANNEXURE 2 TO DIRECTORS’
REPORT
Information Under Section 217(1)(e) of the
Companies Act, 1956
CONSERVATION OF ENERGY
(A) Energy Conservation Measures
taken:
The Company has adopted modern
technologies in all production units leading to
efficient consumption of energy. In addition
to this, efforts are being made to conserve
energy to the maximum extent by, constant
monitoring of energy consumption figures,
reduction in cycle time of furnace related
processes, use of renewable energy sources
and adopting other progressive measures in
this direction.
The typical measures taken towards energy
conservation are:
● Usage of LED based Lighting system at
manufacturing locations and offices
● Installation of automated test set up for
Breaker testing
● Supply hot air to coating machine, from
sintering furnace to isolate the blower
● Installation and commissioning of pencil
burner system at fluorescent tube light
manufacturing plant, to reduce gas
consumption
● Implementation of modified coil clamping
process, for reduction of cycle time of the
process
● Implementation of continuous annealing
process instead of batch type annealing
process, which conserves furnace heating
CG has successfully conducted short circuit testing of new transformers
102MVA Transformer at KEMA Test Station in Holland
(c) Impac t of the measures at (a)
and (b) for reduc tion of energy
consumption and consequent
impac t on the cost of produc tion:
Through implementation of energy efficient
manufacturing processes, energy efficient
devices and power quality management, there
has been a reduction in energy consumption
and resultant cost savings. However, since the
Company’s manufacturing processes are not
energy intensive, the energy conservation
measures have a negligible impact on the
Company’s overall cost of production of goods.
Paper Bushing, and Arc assisted Interrupter
technology for Gas Circuit Breaker. The
Company also developed, for the first time
in India, the 1200 kV Capacitive Voltage
Transformer. The Business Development
Cell established last year to enhance the
convergence of business priorities with R&D
goals, achieved pilot orders for new platform
technologies.
2. Benefits derived as a result of the above
R&D:
New products developed
Power Systems
(b) Additional investments and
TECHNOLOGY ABSORPTION
proposals, if any, being implemented
Research and Development (R&D)
●
for reduc tion in consumption of
energy:
●
●
●
●
●
●
Installation of solar panels
Replacement of sodium vapour lamps by
LED
Installation of street light management
systems and web based technology for
lighting automation at factory locations for
efficient usage of electricity
Development of single stage contact
manufacturing process for vacuum
interrupters
Conversion of electrically heated ovens to
gas fired ovens
Development and usage of energy efficient
electronic devices in factories
●
1. Specific areas of significance in which R&D
is carried out by the Company:
Technology implementation and
commercialization of developed products was
the central theme around which R&D efforts
were mobilized during the year. A uniform
definition of ’New Products’ applicable across
the Company was evolved and targets were
established for revenue generation therefrom.
Targets set for this year have been substantially
achieved, setting the pace for shaping of the
future product portfolio of the Company
through R&D efforts.
Three major platform technologies were
developed during the year namely, Nano
materials technology, Resin Impregnated
●
●
●
●
●
●
●
●
●
1200 kV Capacitive Voltage Transformer,
developed for the first time in India
171 MVA Endesa Partial Discharge free
Transformer upto 1.3 pu
30 MVA Transformer
50 MVA Shunt Reactor
250 MVA Auto Transformer, with largest Auto
Taps on Low Voltage
200 MVA dual ratio Auto Transformer
SNC Lavelin 220 kV Delta Transformer with
Booster
102 MVA single phase Generating Station
Unit
260 MVA, 24/765 kV single phase Generator
Transformer
200 MVA, 230/115/13.8 kV Auto Transformer
315 MVA, 400kV Interconnecting
Transformer with Switching input level of
1180 kVp with L1 1300 kVp
46
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
●
●
●
●
●
●
●
●
●
●
●
●
●
●
20 MVA 33 kV Transformer with 3 pole OLTC
CGI I 14N Over Current & Earth Fault Relay
33 kV Outdoor Metal Clad Vacuum Circuit
Breaker useful for 33 kV rural feeders and
windmills - ’Kiosk’
11 kV Vacuum Circuit Breaker Series – ’Felix’
11 kV Unitized Sub-station
33 kV Indoor Vacuum Circuit Breaker
550 kV Capacitive Voltage Transformer
800 kV Coupling Capacitor
550 kV Current Transformer
245 kV , 1.9 VF - Inductive Voltage
Transformer
Range Extensions for 300 kV and 245 kV
Instrument Voltage Transformer
800 kV, 50 kA Gas Circuit Breaker
420 kV, 60 kA Gas Circuit Breaker
245 kV Gas Circuit Breaker for seismic level
0.5 as per Chill specifications
R&D from CG Power (overse as
loc atio ns)
The Company has also benefited from the
Research and Development work undertaken
at CG Power (Overseas locations) as under:
● Designing of Flitch plate for clamping under
the Unipower Project
● Cooling efficiency improvement through
thinner ducts
● Silicon fluid capabilities in conjunction with
NOMEX materials to serve the need for high
temperature Transformers
● Development of a new technology for
winding design, based on the usage of
transposed cables instead of foil
● Low temperature Generator Step-Up
Transformer design
● Large KVA Wound Core Transformers above
750 KVA, to allow conversion of stacked core
design to wound core
● Mechanism for connecting off-shore
windparks to the mainland transmission
grids by low-maintenance sub-station offshore plan
● Bay Control Unit (BCU), confirming to IEC
61850 protocol
● Pilot system for a smart distribution
automation network based on centralized
intelligence
CG is the first Indian Company to manufacture 1200 kV CVT
1200 kV CVT, after successful completion of test at CPRI, Hyderabad
●
●
●
●
●
●
●
Industr ial Systems
●
●
●
800 Frame HT Motor
4.55 MW 6 pole 6.6 kV closed air circuit air
cooled HT Motor
2.94 MW 6 pole 630 V variable frequency
drive fed LT Motor
●
●
●
●
1.4 MW 16 pole 6.6 kV vertical closed air
circuit water cooled HT Motor
1.91 MW 12 pole 6.6 kV vertical closed air
circuit air cooled HT Motor
3.75 MW 6 pole 6.6 kV Slip Ring HT Motor
Data Logger as per the latest RDSO
specification No. IRS 99/2006
2 HP and 3 HP high performance and low
cost Motors
2.5 KVA single phase Alternator
1 HP and 0.75 HP Fuel Dispenser Motors for
special applications
Motor for vacuum cleaner
15 & 20 HP AC Motor
NE Flame Proof 90 Frame Motor
NEMA premium efficiency 112 Frame 6 pole
Motor
Co nsum er Pro duc ts
●
●
●
●
●
●
●
●
●
●
Ceiling Fans - Briz Air, Triggger, Zephyr, Helios
Drift Air Plus Exhaust Fan
Moveair Pedestal and Wall Mounting Fan
Table Fans - Classic Antique, Nectar
Appliances - Hand Blender, Rice Cooker, Wet
Grinder, Lantern, Kettle
1400 VA Home UPS
Storage water heater – Sol Plus 715 & Sol
Plus 725
Energy efficient LED 5W Pharox lamp, first
LED lamp in India
CFL 11/15 W DF (3U with Edison Screw) &
85W Spiral (Baynot CAP)
LED Street Light - 32 W Mesopic & 48 W
Candy
47
DIRECTORS' REPORT
Focus on in-house technology development
Intelligent Electronic Device development at Global R&D
●
●
●
●
●
●
●
●
32W LED Lemnis Downlighter
Streetlight - IP66 -Top Maintenance
Various ranges of Industrial, Commercial and
Flood lights
Flame Proof Cut Reflector
Horizontal Split Case Pumps series
Low voltage application Monobloc Pumps
Wide variety of Monobloc series Pumps with
4 variations
Submersible Drainage Pump sets - 0.25 HP
to 0.5 HP
First Indian LED lamp
‘Pharox’ LED lamp
New Processes Implemented/Processes
Improved
● HT/LT coil manufacturing capacity increased
by commissioning of CNC coil taping &
stretching machine
● Continuous annealing process for stamping
● Introduction of welding process in High
Intensity Discharge ballast to ensure air gap
does not vary
● Introduction of automatic test bench for
ballast
● Commissioning of Capsule manufacturing
plant for Compact Fluorescent lamp
● Development of plastic technology in
engineering plastic with better consistency
in performance and lighter weight for
pumps
● Higher capacity Chilling plant for winding
autoclaves to reduce vacuum cycle time
Technology Competence Achieved
● Resin Impregnated Paper Technology for
72.5 kV Bushing KEMA certification achieved
● Development of 426 kV SF6 Current
Transformer
● Development of Synthetic Oil Capacitive
Voltage Transformer
● Development of 66kV Interrupter with ARC
assist Technology
●
●
●
●
●
●
●
●
Development of Nano coating for
Transformers
Electronically Controlled Brushless DC
Motors
Development of Nano material based
coating for Reflectors
Real time monitoring for machines
Design process for Superconductor
Transformer
Design process for Fault Current Limiter
Seismic analysis for Breakers
Thermal predictions for HT Motors
Patents
During the year the Company filed 103 patents
in India, which together with 129 patents
filed earlier, are pending for registration. Two
patents have been granted during the year.
3. Future Plan of Action
The Company has identified its desired
product portfolio upto the year 2010; CG
Global R&D Centre is working on developing
the technologies to meet the requirements of
the product portfolio. The Company has been
successful in integrating Technology Centres
through its New Product Development (NPD)
system in India, which has accelerated the
development of platform technologies. It is
planned to expand the NPD implementation
48
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
across Pauwels, Microsol and Ganz. The focus
for the future would be directed towards
development of customized solutions for
customers and integration of CG Global R&D
(India) with all the R&D Centres overseas.
2. Imported Technology:
Yea r of I mp o rt
P ro duct
Imp o rte d F rom
St a tu s of Ab so rption
2004-2005
800 kV Auto
Transformers,
Generator
Transformers and
Shunt Reactors
Toshiba Mitsubishi
Transmission
and Distribution
Corporation, Japan
Agreement Terminated
4. Expenditure on R&D
31 M a rch 2 0 0 9
(a) Capital
(b) Revenue
(c) Total (a + b)
(d) Total R&D expenditure:
● as a percentage of net
turnover
● as a percentage of profit
before tax
Rs . cr or e
11
27
38
0.82
6.15
Technology Absorption , Adaptation
FOREIGN EXCHANGE EARNINGS AND
OUTGO
(a) Ac tivities rel ating to exports;
initiatives taken to increase
exports; development of new
export markets for produc ts and
services; and export pl ans:
The Company’s activities and initiatives relating
to exports are contained in the Management
Discussion and Analysis Report.
and Innovation
1. Efforts and Benefits:
The Company has, during the year, focused
on in-house technology development to
establish a competitive edge in Indian as
well as overseas markets. The Company has
established strong technical collaboration
with technical experts across the world and
entered into MOUs with the different academic
research institutes for current and futuristic
research in various business areas. Technology
collaboration with institutes like IIT, IISC has
enabled the Company to build foundations for
platform technologies.
(B)Total Foreign Exchange Earned
and Used:
3 1 Ma r ch 2009
Rs. cro re
Total Foreign Exchange
Earned
Total Foreign Exchange Used
1,159
492
On behalf of the Board of Directors
G THAPAR
Chairman
Mumbai, 20 May 2009
49
DIRECTORS' REPORT
CORPORATE
GOVERNANCE
The Company ’s Philosophy on
Corporate Governance
At Crompton Greaves (‘Crompton Greaves’,
‘CG’ or ‘the Company’), all our systems
institutionalise our belief that Corporate
Governance protects the interests of all
the stakeholders by inculcating in all its
operations and processes, the principles of
transparency, integrity, professionalism and
accountability. The Company believes that a
strong system of corporate governance is an
essential pre-requisite for creating long-term
shareholder value. The Company’s Corporate
Governance initiatives establish and preserve
Management accountability through a
structure by which Management and the
Board set objectives, monitor performance,
safeguard and strengthen business integrity as
well as encourage the efficient use of resources
& accountability for stewardship of these
resources.
This philosophy has prompted the Company
to take a decision to return to its shareholders
a part of its equity through the buy-back
process. This buy-back demonstrates the
Management’s confidence in the Company’s
future stability and growth potential, as well
as its willingness to expend its cash flows to
increase liquidity for its shareholders. More
details on the buy-back are contained in the
Directors’ Report. Even after the buy-back,
the Company will have adequate financial
resources to fund its expansion plans and also
actively pursue inorganic growth opportunities
through Acquisitions.
The Company has also commenced an
important initiative for empowering investors
with adequate information regarding their
dividend payment and other holding details,
by launching the ‘CG Investor Access‘ Folio
access system in February, 2009. We believe
that the Company is the first in Corporate India
to provide such a service, which makes this
initiative very unique. It is our way of building
enduring relationships with our shareholders.
More details on this initiative are contained in
the ‘Communication to Shareholders‘ Section
of this Report.
As the Company’s foreign locations
progressively get integrated with CG, the
best practices of governance get extended
to these locations as well. CG has formulated
a ‘Transnational Governance Guidelines‘,
with a view to creating a common platform
for Board practices across the Company’s
Subsidiaries and Joint Ventures, and introduce
an effective governance framework. These
Guidelines outline an integrated approach
towards Governance, which includes the CG
Values; the Authority-Responsibility Matrix
for Management; the CG Code of Business
Practices; Compliance Certifications; Board
Compositions, Procedures, Information Flow,
and Reporting Formats for Board Reviews,
across the Group. The Board Structures in CG’s
overseas subsidiaries have been streamlined
to achieve Business and Governance
effectiveness, without creating hierarchies of
Boards which would possibly review the same
issues. Implementation of these Guidelines
form an integral part of the post-acquisition
process for new acquisitions.
Board of Directors
Composition
As on 31 March 2009, the Company had
an eight-member Board of Directors. The
Chairman, Mr Gautam Thapar is a NonExecutive Director and a member of the
Promoter Group. Six other Non-Executive
Directors – Mr Scott Bayman, Dr Omkar
Goswami, Mr Sanjay Labroo, Ms Meher
Pudumjee, Mr Satya Pal Talwar and Dr Valentin
von Massow - are independent in terms of
Clause 49 of the Listing Agreement with Stock
Exchanges. Mr Sudhir Trehan is the Managing
Director. Thus, the Board of Crompton Greaves
presently comprises of one Executive Director
and seven Non-Executive Directors, of whom
six 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.
50
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
Board Meetings
There were five Board Meetings held during
the year : on 23 May 2008, 23 July 2008, 21
October 2008, 23 January 2009 and 24 March
2009. The Company’s last Annual General
Meeting was held on 23 July 2008. Table 2
gives the attendance record of the Directors.
Directors’ Compensation
Managing Director’s Compensation
For the FY 2009, Mr Sudhir Trehan, Managing
Director received a remuneration package
comprising a fixed salary component and a
performance linked bonus, as approved by
the Remuneration Committee of the Board
on 21 October 2008, in terms of the powers
delegated by the shareholders at the Annual
General Meeting held on 23 July 2008. The
Remuneration Committee of the Board
is authorised to revise the compensation
package of Mr Trehan, upto a ceiling of 5% of
the Company’s net profits.
Mr Trehan’s remuneration package is as
follows:
● Salary Rs.96 lacs per annum.
● Perquisites A basket of allowances/
perquisites upto Rs.37 lacs per annum which
includes reimbursement of expenditure or
allowances in respect of house maintenance
1
and repairs, utilities such as gas, electricity,
water and furnishings; medical reimbursement,
medical insurance, hospital benefits, leave
travel concession and education, for himself
and his family; personal accident insurance,
club fees, and any other reimbursements,
allowances or perquisites in terms of the
Company’s Rules or as may be decided by the
Chairman of the Company.
●
Performance Incentive/ Commission
To be decided by the Board of Directors every
year.
The above does not include rent-free
furnished accommodation owned, leased
or rented by the Company or House Rent
Allowance in lieu thereof; company car, with
driver; company’s contribution to Provident
Fund, Superannuation Fund and Gratuity
pursuant to the Rules of the Company,
encashment of leave and Income-tax on
the perquisite value of Mr Trehan’s housing
accommodation in excess of the amount
earlier considered by the Remuneration
Committee whilst deciding on Mr Trehan’s
remuneration package in January, 2008.
These amounts will be in addition to the limits
provided above.
Non-Executive Directors’
Compensation
The shareholders, at the 68th Annual General
Meeting held on 22 July 2005 approved
payment of commission to the Company’s
Non-Executive Directors, collectively, not
exceeding 1% of net profits, computed in
the manner provided in Section 309(5) of the
Companies Act. The Board has formulated
Guidelines for distribution of commission
amongst the Non-Executive Directors, which
provide for a minimum fixed payment for
participation at Board Meetings and a variable
component for contributions as Chairmen
of Board Committees and/or for greater
involvement with company executives for
strengthening systems and processes or
contributing to the strategic direction of the
Company. Based on these Guidelines, the
commission payable to Mr G Thapar is higher
than the other Non-Executive 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 2009, Mr G Thapar held
2,20,715 equity shares, Mr SM Trehan held
1,03,040 equity shares and Dr von Massow held
C o m p osi t ion o f the Boa r d
Name
Particulars
Other Board Representations
Directorships (a) Committee Memberships (b)
Mr Gautam Thapar
Mr Sudhir Trehan
Mr Scott Bayman
Dr Omkar Goswami
Mr Sanjay Labroo
Ms Meher Pudumjee
Mr Satya Pal Talwar
Non-Executive Chairman;Promoter
Executive; Managing Director
Non-Executive; Independent
Non-Executive; Independent
Non-Executive; Independent
Non-Executive; Independent
Non-Executive; Independent
Dr Valentin von Massow Non-Executive; Independent
15
6
1
9
16
4
12
1
Committee Chairmanships (b)
4
1
0
8
2
1
9
0
1
1
0
2
0
0
3
0
Notes: (a)Includes private limited companies, but excludes alternate directorships and foreign bodies corporate. (b) Of only public limited companies.
2
Attend ance Recor d o f the D i r ector s , FY 2 0 0 9
Name
Mr Gautam Thapar
Mr Sudhir Trehan
Mr Scott Bayman
Dr Omkar Goswami
Mr Sanjay Labroo
Ms Meher Pudumjee
Mr Satya Pal Talwar
Dr Valentin von Massow
Board Meetings
5
5
3
4
4
4
4
4
Attendance
Last AGM
Yes
Yes
Yes
Yes
No
Yes
Yes
Yes
51
CORPORATE GOVERNANCE
1,250 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
Directors and Senior Management, that reflects
its high standards of integrity and ethics. The
Directors and Senior Management of the
Company have affirmed their adherence to
this Code of Conduct and to the absence of
any potential conflict with the interests of the
Company with reference to material, financial
and commercial transactions. As required
by Clause 49 of the Listing Agreement, the
Managing Director’s Declaration on adherence
to the Code of Conduct has been annexed to
this Report.
Committees of the Board
Audit Committee
The Audit Committee comprises four
Non-Executive Directors, of whom three are
independent. The composition is as under:
● Mr Sat ya Pal Talwar Chairman,
Independent Director
● Dr Omk ar Goswami Independent Director
● Mr Sanjay Labroo Independent Director
● Mr Gautam Thapar Non-Executive
Director
The Managing Director, Chief Financial
Officer, Chief of Internal Audit, and
representatives of the Statutory Auditors
attend the meetings of the Audit Committee.
The Company Secretary is the Secretary to the
Committee.
3
matrix as a prelude toward implementation
of this concept. RBIA would involve validation
of whether Internal Control processes were
operating as intended, whether these were
of sound design and whether Management’s
response to risk assessment was adequate.
As part of the new framework, progressively,
the Audit and Risk functions would converge
and work in a co-ordinated manner, to
implement the Risk Management policies of
the Company. Whilst the role of facilitating risk
identification, evaluation and reporting would
be undertaken by the Audit function, the role
of the Risk Management Department would
be to establish and monitor the Company’s risk
appetite, provide Management assurances on
risk as well as undertake risk responses.
During FY 2009, five Audit Committee
meetings were held: on 22 May 2008, 23 July
2008, 20 October 2008, 22 January 2009 and 24
March, 2009. 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.
Presently, the Committee comprises:
● Mr Sanjay Labroo Chairman,
Independent Director
● Dr Omk ar Goswami Independent Director
● Mr Gautam Thapar Non-Executive
Director
C om p ensa ti on o f the D i rector s , FY 2 0 0 9 ( in R u pees)
Mr Gautam Thapar
Mr Sudhir Trehan
Mr Scott Bayman
Dr Omkar Goswami
Mr Sanjay Labroo
Mr Satya Pal Talwar
Ms Meher Pudumjee
Dr Valentin von Massow
4
The Chairman of the Audit Committee briefs
the Board of Directors on the discussions at
the Audit Committee Meeting, at every Board
Meeting.
The Company has an independent internal
audit function with resources and skills
adapted to the Company's nature, size and
complexity of business. As a progressive
Corporate Governance practice and to provide
greater independence to the Internal Audit
function, the Head of the Internal Audit reports
directly to the Managing Director.
The Audit Committee monitors the integrity
of the financial information provided by the
Company, by reviewing the relevance and
consistency of the Accounting Standards used
by the Company.
The Audit Committee mainly addressed
the review of Business Process Cycles of
‘From Procurement to Payment‘ and ‘From
Order to Cash‘, to ascertain possible areas
for improvement and strengthening of
internal controls. In addition, review of Key
Transactional Areas such as Taxation Systems,
ERP Systems, IT Infrastructure, Six Sigma, Forex
performance were undertaken. During the
year, a commitment implementation tracking
system was implemented to ensure that audit
observations were adequately implemented
by the businesses.
During the year, the Audit processes in India
and those at its foreign subsidiaries were
benchmarked. This has resulted in universal
acceptance of ‘Risk Based Internal Auditing‘
(RBIA) as the Methodology for audit at all
locations. The Internal Audit Department is in
the process of developing its risk and control
Salary
Perquisites
96,00,000
58,00,000
Commission
3,18,00,000
1,04,00,000
5,00,000
15,00,000
5,00,000
15,00,000
5,00,000
23,45,000
Retirement Benefits
54,00,000
Sitting Fees
3,00,000
-1,00,000
3,20,000
1,80,000
2,20,000
1,20,000
80,000
Total
3,21,00,000
3,12,00,000
6,00,000
18,20,000
6,80,000
17,20,000
6,20,000
24,25,000
Au d it C o m m ittee Meeti ngs, FY 2 0 0 9
Director
Mr Satya Pal Talwar
Dr Omkar Goswami
Mr Sanjay Labroo
Mr Gautam Thapar
Status
Chairman, Independent Director
Member, Independent Director
Member, Independent Director
Member, Non-Executive Director
Meetings held
5
5
5
5
Meetings Attended
5
4
1
4
52
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
The Committee reviews the remuneration
paid to the Managing Director. The Committee
also reviews the Company’s HR processes
related to talent management, recruitment,
employee engagement, performance
management and compensation philosophy.
During FY 2009, two Remuneration
Committee meetings were held on 5 April
2008 and 21 October 2008. The attendance
record is given in Table 5.
Risk Management Committee
The Risk Management Committee comprises
four Directors, of whom three are independent.
The composition is as under:
● Dr Omk ar Goswami Chairman,
Independent Director
● Mr Scot t Bayman Independent Director
● Mr Sanjay Labroo Independent Director
● Mr Sudhir Trehan Executive Director
This Committee reviews the risks
experienced by the Company with respect
to its business areas, operations, as well as,
financials and validates the adequacy of
insurance and other risk mitigation measures
proposed by the Company’s businesses. It
ensures that the Company’s risk management
mechanisms provide an evaluation of the most
significant risks, relative to the strategy and
objectives. During FY 2009, a comprehensive
evaluation of the risks associated with
the various dimensions of the Company’s
businesses – operations, financial, insurance,
advance licences, spurious goods, information
security, record management systems, brand
risks and Directors'/Officers' liability were
evaluated. The Corporate Risk Management
Department also takes active interest in the
risk mitigation domain so as to ensure that
risk management remains a priority for the
businesses.
5
Shareholders’/Investors’ Grievance
Committee
The Company has a Shareholders’/Investors’
Grievance Committee, details of which are
given under the section “Shareholders” in this
Report.
Management
Management Discussion and Analysis
Report
This is given as a separate chapter in the
Annual Report.
Disclosure of Material Transactions
During the year, the Company took a decision
to invest in Avantha Power & Infrastructure
Limited, a Company within the Promoter
Group. Details of this investment are
given in the Directors’ Report. Besides this
investment, considering the size and nature
of its operations, there were no related party
transactions of a materially significant nature
in terms of the Listing Agreement with Stock
Exchanges that could have a potential conflict
with the interests of the Company at large.
Accounting Policies
The Company has adopted accounting
treatments which are in conformance with
those prescribed by the Accounting Standards.
Insider Trading
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.
These guidelines were modified during the
year, in terms of the SEBI Notification No. LADNRO/GN/2008/29/44801 dated 19 November
2008.
Shareholders
Disclosure regarding Appointment
and/or Re-appointment of Directors
Dr Valentin von Massow and Mr Sanjay
Labroo retire by rotation at the forthcoming
Annual General Meeting and are eligible for
re-appointment. Their brief profiles are given
below:
Dr Valentin von Massow is an eminent
professional who, for 19 years, was associated
with The Boston Consultancy Group (BCG).
During his association with BCG, he held
various senior positions, including that of
Managing Director for BCG, India and gained
rich global experience of business models,
governance, strategy and operations.
Since mid-2005, Dr von Massow works as
an Independent Director for a number of
companies and not-for-profit organizations,
in the renewable energy, agriculture and
environment sectors, in India, Germany and
UK. He serves on the Board of Trustees of the
Worldwide Fund for Nature.
Rem une r a t i on C o m m ittee Meeti ngS , FY 2 0 0 9
Director
Mr Sanjay Labroo
Dr Omkar Goswami
Mr Gautam Thapar
6
Risk management for the Company, is
rapidly moving towards an approach, which
is integrated with the business planning
methodology. It is felt that this approach of
risk identification will yield more structured
outcomes with respect to the impact of risks at
the macro as well as the internal environment
of the Company and their co-relation with
business goals.
During FY 2009, four Risk Management
Committee meetings were held: on 22 May
2008, 23 July 2008, 20 October 2008 and 22
January 2009. The attendance record is given
in Table 6.
Status
Chairman, Independent Director
Member, Independent Director
Member, Non-Executive Director
Meetings held
2
2
2
Meetings Attended
2
2
1
Meetings held
4
4
4
4
Meetings attended
4
2
0
4
R i sk Ma nagem ent Com m ittee Meetings , FY 2 0 0 9
Director
Dr Omkar Goswami
Mr Scott Bayman
Mr Sanjay Labroo
Mr Sudhir Trehan
Status
Chairman, Independent Director
Member, Independent Director
Member, Independent Director
Executive Director
53
CORPORATE GOVERNANCE
Dr von Massow currently serves on the Boards
of various companies and is a Chairman of the
Adas Group (United Kingdom).
●
●
●
R S Estates Pvt Ltd
Shield Autoglass Ltd
SKH Metals Ltd
INDIAN DIRECTORSHIPS
COMMITTEE POSITIONS
Thermax Limited
●
●
Asahi India Glass Ltd (1)
Mahindra First Choice Wheels Ltd (1)
DIRECTORSHIPS IN FOREIGN COMPANIES
Ritterschaftiches Kreditinstitut Stade (RKI)
Germany
● Agrosolar GmbH & Co KG, Germany
● Solarlite GmbH, Germany
● Pauwels International NV, Belgium
● Adas Group, United Kingdom
Dr von Massow does not have any relationship
with any of the other Directors on the Board.
Dr von Massow holds 1,250 Global
Depository Receipts in the Company. He does
not hold any shares in the Company either in
his individual capacity or beneficially for others.
Mr S Labroo holds a dual Degree in Finance
& Management from Wharton Business School,
USA. Mr Labroo is the founding Managing
Director & CEO of Asahi India Glass Limited
(AIS).
As the founding Managing Director & CEO
of AIS, Mr Labroo has been instrumental in
transforming AIS from being a supplier of one
product, automotive tempered glass, to one
customer, Maruti Udyog (Suzuki), when it
started in 1987, to its current position of India’s
largest integrated glass company.
Mr Labroo is a Director on the Boards of
various other companies. He is also a Director
on the Central Board of the Reserve Bank
of India. Mr Labroo is also associated with
various Trade Organisations and Chambers of
Commerce; Mr Labroo is currently a Member
of the Managing Committees of the Auto
Components Manufacturers’ Association and
the Indian Glass Manufacturers’ Association.
●
INDIAN DIRECTORSHIPS
●
●
●
●
●
●
●
●
●
●
●
●
●
Asahi India Glass Ltd
AIS Adhesives Ltd
AIS Glass Solutions Ltd
Allied Fincap Services Pvt Ltd
Asahi India Map Auto Glass Ltd
Ballarpur Industries Ltd
Essel Marketing Pvt Ltd
Flavours & Food (India) Pvt Ltd
Krishna Maruti Ltd
LAN Estates Pvt Ltd
Maltex Malsters Ltd
Mahindra First Choice Wheels Ltd
Nishi Electronics Pvt Ltd
Mr Labroo does not have any relationship
with any of the other Directors on the Board.
Mr Labroo does not hold any shares in the
Company either in his individual capacity or
beneficially 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
Full and complete disclosure of information
regarding the Company’s financial situation
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. For convenience of shareholders
and better information, the stand-alone and
consolidated balance sheet and profit and loss
account are also provided in USD and Euro in
the Annual Report.
The amended Clause 41 of the Listing
Agreement requires a company to only publish
stand-alone financial results and gave an
option to a company, having subsidiaries, not
to publish, but to only submit consolidated
results to Stock Exchanges. However, despite
this Regulatory exemption available, the
Company has continued its practice of
publishing quarterly as well as year to date
financial results in the newspapers, for both
consolidated and stand-alone financial results,
for better disclosures to its shareholders.
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 Economic Times, in English and the
Maharashtra Times, in vernacular, and are also
uploaded on the ‘Corporate Filing‘ website
sponsored jointly by the National and Bombay
Stock Exchanges, as required by the Listing
Agreement with Stock Exchanges. The
Company further files on-line information
on financial statements and other matters
specified, on the approved website of London
Stock Exchange.
Information about the Company in general,
its financial results, and other information,
including official press releases can also be
accessed at the Company’s website
www.cglonline.com.
Last year, the Company commenced an
e-service initiative of sending personalized
e-mails of important corporate actions to
shareholders. Inspired by the positive response
from shareholders, the Company commenced
yet another novel initiative – CG Investor
Access, an on-line, web-based folio access
system which enables shareholders to view
their shareholding information from anywhere
in the world. Traditionally, a shareholder needs
to approach the Registrar & Transfer Agent
(R&T) for information relating to payment of
dividends, share transfers, certificate holding,
duplicate issues etc. With CG Investor Access,
shareholders can access this information
directly from the website, at their convenience,
without having to depend on the R&T’s
working hours. Easily downloadable data
change forms are also provided. The systems
can be accessed from the Investors section at
the Company website www.cglonline.com.
Meetings are held with institutional investors
and research analysts, as necessary.
Information on General Body Meetings
The details of the last three Annual General
Meetings are as under:
F i n a nci a l Ye ar
Loc a t ion
2005-2006
2006-2007
2007-2008
Patkar Hall, Mumbai 400 020
Sunville Pavilion, Mumbai 400 018
Ravindra Natya Mandir, Mumbai 400 025
Da te
Tim e
18 July 2006
26 July 2007
23 July 2008
3.30 p.m.
3.30 p.m.
3.30 p.m.
54
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
Given below are the Special Resolutions that
were approved by shareholders at the last
three Annual General Meetings held on:
18 July 20 06
Sub-division of each fully paid equity share
of the Company having a face value of Rs.10/into 5 fully paid equity shares of the face value
of Rs.2/- each.
● Increase in Authorised Share Capital of the
Company from Rs.600,000,000/- divided into
60,000,000 equity shares of Rs.10/- each to
Rs.1,250,000,000/- divided into 625,000,000
equity shares of Rs.2/- each.
●
26 July 20 07
No Special Resolution was passed at the 70th
Annual General Meeting held on 26 July 2007.
●
23 July 20 08
No Special Resolution was passed at the 71st
Annual General Meeting held on 23 July 2008.
●
Since none of the Resolutions proposed at
any General Meetings in the last three years,
required a postal ballot, the Company has
not adopted postal ballot for passing any
Resolution.
20 May 20 09
On 20 May 2009, the shareholders
approved a resolution approving buy-back
of the Company’s Equity Shares at a price
not exceeding Rs.170/- per share and with a
maximum exposure of Rs.224.15 crore, through
postal ballot without convening any ExtraOrdinary General Meeting.
●
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 statutory authorities for noncompliance on any matter related to capital
markets, during the last three years.
Shareholders’/Investors’ Grievance
Committee
The Committee comprises Mr Gautam Thapar,
Chairman and Mr Sudhir Trehan, Managing
Director. Mr W Henriques, the Company
Secretary, has been designated by the Board
as the Compliance Officer. During FY 2009, the
Shareholders’/Investors’ Committee met on 23
January 2009 at which meeting both 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 share transfer process, statutory
certifications, 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 has received 6 shareholders’
complaints during the financial year under
review, which were satisfactorily resolved;
there are no outstanding complaints or shares
pending transfer as on 31 March 2009.
Unclaimed Shares
By a recent amendment to the Listing
Agreement with Stock Exchanges, dated 24
April 2009, a listed company needs to transfer
shares, which have remained unclaimed
pursuant to a public issue or any other
issue, to a demat suspense account with a
Depository Participant. The Company is in
the process of assessing the details of the
shareholders, whose shares are still unclaimed,
pursuant to the Company’s earlier public
issues, amalgamations, bonus issue and
sub-division of shares. The Company will start
sending reminders to all such shareholders,
to the addresses available in its database.
The Company will commence disclosing the
details of the shares transferred to the demat
suspense account, as applicable, in its future
annual reports.
resources, major financial decisions and similar
significant actions/decisions of all subsidiary
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 Management Committees of
the Board. This framework has been further
strengthened by the implementation of the
‘CG Transnational Governance Guidelines’.
CEO/CFO Certification
The Managing Director and Chief Financial
Officer have certified to the Board with respect
to the financial statements, internal controls
and other matters, as required by Clause 49 of
the Listing Agreement with Stock Exchanges,
and the said Certificate is contained in this
Annual Report.
Auditors' Certificate on
Corporate Governance
The Company has obtained a certificate
from the Auditors of the Company regarding
compliance with the provisions relating to
Corporate Governance 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 given in the chapter titled
’Additional Shareholder Information’,
constitute the compliance report on Corporate
Governance for FY 2009.
Governance of Subsidiaries
The subsidiaries of the Company function
independently, with an adequately
empowered Board of Directors and sufficient
resources. However for more effective
governance, 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 for review. The
Company has also established a mechanism
whereby material defaults, show cause notices,
dangerous occurrences, product liability
claims, significant developments in human
55
CORPORATE GOVERNANCE
ADDITIONAL
SHAREHOLDER
INFORMATION
Annual General Meeting
Unclaimed Dividends
Date Dividends pertaining to the financial years
2003-2004, 2004-2005, 2005-2006, 2006-2007,
2007-2008 and 2008-2009 which remain
unclaimed for a period of seven years, will
be transferred to the Investor Education and
Protection Fund. To enable the members to
claim their dividend before its transfer to the
above Fund, the proposed dates of transfer are
given below:
Time
Venue Friday, 17 July 2009
3.30 p.m.
Ravindra Natya Mandir, Prabhadevi
Mumbai 400 025.
Financial Calendar
First Quarter Results Second Quarter Results Third Quarter Results End July
End October
End January
Last Quarter Results and
Annual Audited Results May
Dates of Book Closure
11 July 2009 to 17 July 2009
The register of members and share transfer
books of the Company will remain closed from
Saturday, 11 July 2009 to Friday, 17 July 2009,
both days inclusive.
D a te of Dec l a r a tion
o f D i v i d end
D ue D a te fo r
T r a nsf e r to the
Inv estor E d u ca tion
a nd P r otection F u nd
28 October 2003
22 July 2004
25 November 2004
22 March 2005
14 October 2005
25 January 2006
29 March 2006
14 October 2006
25 January 2007
21 March 2007
30 October 2007
30 January 2008
28 March 2008
21 October 2008
23 January 2009
24 March 2009
27 November 2010
21 August 2011
24 December 2011
21 April 2012
13 November 2012
24 February 2013
28 April 2013
13 November 2013
24 February 2014
20 April 2014
29 November 2014
29 March 2015
27 April 2015
20 November 2015
22 February 2016
23 April 2016
Registrar and Agents
For Shares
The Company’s R&T Agent is Datamatics
Financial Services Limited . Datamatics
Financial Services Limited is a SEBI registered
Registrar and Transfer Agent, whose contact
details are:
Datamatics Financial Services
Limited
Unit: Crompton Greaves Limited
Plot No B-5, Part B Crosslane
MIDC Marol Andheri (East) Mumbai 400 093
Tel: + 91 (0) 22 66712151 to 66712160
Fax:+ 91 (0) 22 6671 2230
Email: cginvestors@dfssl.com
For Fixed Deposits
The Registrar details are as under:
Link Intime India Pv t. 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 25963838
Fax:+ 91 (0) 22 25962691
Email: fd@linkintime.co.in
Share Transfer System
The Company’s shares are compulsorily traded
in dematerialised form. In the case of transfers
56
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
in physical form which are lodged at the
Registrar and Transfer Agent’s office, these are
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.
Approvals are, generally, on a weekly basis.
During FY2009, 42 approvals were obtained.
The total number of shares in physical form
transferred during the year under review was
180,856 shares.
Dematerialisation of Shares
As on 31 March 2009, 98.3% of the total
shares of the Company were dematerialised,
compared with 97.9% last year.
Global Depository Receipts
(GDR s )
The Company’s payment of listing fees are up
to date.
Ma r ket Pri ce Da t a – The Stock Ex cha nge , Mumbai
Month
April 2008
May 2008
June 2008
July 2008
August 2008
September 2008
October 2008
November 2008
December 2008
January 2009
February 2009
March 2009
H ighest o f the
Month i n Rs.
Lo west o f the
Month in Rs.
279.75
258.45
271.00
268.00
277.25
277.90
264.00
189.95
159.95
152.70
141.55
142.90
232.00
221.50
215.00
195.40
232.00
200.00
139.00
106.50
106.25
125.15
120.00
99.70
As on 31 March 2009
C los ing ( 1 st
tr a d i ng d a y o f
the Month) i n Rs.
Sense x (1 st
t r a d ing day o f
the Month )
253.90
254.80
235.60
212.05
249.75
268.65
237.85
168.40
115.95
143.35
130.25
122.30
Share Price
15626.62
17600.12
16063.18
12961.68
14656.69
14498.51
13055.67
10337.68
8839.87
9903.46
9066.70
8607.08
Sensex
123.10
9708.50
The Company issued GDRs in 1996 and the
underlying shares for each GDR were issued
in the name of The Bank of New York, the
Depository : each GDR of the Company is
equivalent to 5 shares. As on 31 March 2009,
280,188 GDRs were outstanding, which
represented 1,404,441 underlying equity
shares.
Stock Codes
C OD E
1. BSE, Mumbai
2. National Stock Exchange
3. GDR
5. ISIN
6. Corporate Identification Number
500093
CROMPGREAV
5090318
INE067A01029 (NSDL & CDSL)
L99999MH1937PLC002641
Listing Details
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
the Company’s shares are listed are:
Name
A d d r ess
The Stock Exchange, Mumbai
Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001
National Stock Exchange of
India Ltd
Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai
400 051
57
ADDITIONAL S H ARE H OLDER IN F ORMATION
I>7H; F ; H < E H C 7 D 9 ; L I 8I ; I ; D I ; N
CROMPTON GREAVES SHARE PRICE AND BSE SENSEX = 100 ON 1 APRIL 2008
125
100
75
SENSEX
50
SHARE PRICE
25
'7FH?B(&&.
)'C7H9> (&&/
D i st r i b ut ion o f Sh ar eho ldi ng a s on 31 M arch 2009
No of Shares
Upto 500
501 - 1000
1001 - 2000
2001 - 3000
3001 - 4000
4001 - 5000
5001 - 10000
10001 and above
No of Shareholders
67044
4289
2928
1228
657
386
631
677
% of Shareholders
86.13
5.51
3.76
1.58
0.84
0.50
0.81
0.87
77840
100.00
C ategor i es of S har eho ld ers on 31 March 2009
Category
Promoters *
Indian Institutional Investors
Bodies Corporate
Foreign Institutional Investors
NRIs, OCBs, GDRs
Mutual Funds
General Public
Directors**
No of Shares of Rs.2/- each
150912616
22598936
30463053
34177580
12190695
80539425
35581247
103040
%
41.17
6.17
8.31
9.32
3.32
21.97
9.71
0.03
366,566,592
100.00
Note: *Mr G Thapar, a Non-Executive Promoter Director, holds 220,715 equity shares.
** Mr SM Trehan, Managing Director, holds 103,040 equity shares.
Plant Locations
Detailed information on Plant locations,
products, establishments and service centres
with their contact details, is provided at the
end of the Annual Report.
Address for Correspondence
Corporate Secretarial Department
The Corporate Secretarial Department is
located at the Company’s Registered Office
situated at 6th Floor, CG House, Dr Annie
Besant Road, Worli, Mumbai 400 030.
58
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
Investor Services Department
In addition to the Share Registrar and Transfer
Agent, our Investor Services Department,
which is located at the Company’s Registered
Office, will be happy to assist, in case investors
experience any difficulties in their interaction
with Datamatics Financial Services Limited.
Contact Person: Mr SK Athalekar, Senior
Executive - Corporate Secretarial
Time: 2.00 pm to 5.00 pm (Mondays to Fridays)
Tel: +91 (0)22 24237805
Fax: +91 (0)22 24237788
E-mail: shirish.athalekar@cgl.co.in
Non-Mandatory Requirements
The Company has implemented the following
non-mandatory requirements recommended
by Clause 49 of the Listing Agreement:
Chairman’s Office
A Chairman’s Office with requisite facilities is
provided and maintained at the Company’s
expense for use by its Non-Executive Chairman.
The Company also reimburses all expenses
incurred in his 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 Managing Director.
Financial Results
Financial results as published in the
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.
Certificate on Corporate
Governance
To
The Members
Crompton Greaves Limited
CG House,
Dr. Annie Besant Road, Worli,
Mumbai 400 030
Dear Sirs,
We have examined the compliance of
conditions of Corporate Governance by
Crompton Greaves Limited, for the year ended
31March 2009, 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 expression of opinion on the
financial statements of the Company.
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 the future viability
of the Company nor of the efficiency or
effectiveness with which the Management has
conducted the affairs of the Company.
On behalf of the Board of Directors
G THAPAR
Chairman
Mumbai, 20 May 2009
For SHARP & TANNAN
Chartered Accountants
L. VAIDYANATHAN
Partner
Membership No.16368
Mumbai, 20 May 2009
59
ADDITIONAL S H ARE H OLDER IN F ORMATION
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. Vice President level) of the Company, have
confirmed compliance with the Company’s
Code of Conduct during April 2008 to March
2009.
●
●
●
The Company’s Code requires every
Member of the Board and Senior
Management to:
●
●
●
●
●
●
●
●
●
●
●
Fulfill the functions of their office with
integrity as well as professionalism and
exercise the powers attached thereto, with
due care and diligence.
Act in the best interests of, and fulfill their
fiduciary obligations to the Company’s
shareholders, whilst also considering the
interests of other stakeholders.
Take informed business decisions based
on independent judgment and in the best
interests of the Company, not influenced by
personal interest or gain.
Respect the confidentiality of information
and use utmost discretion whilst deciding
its disclosure or dissemination, ensuring that
no personal advantage or detriment to the
Company results from the same.
Make available to, and share information
with fellow Directors/Executives when
considered expedient in the best interests of
the Company.
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.
Minimise any situation or action that can
create conflict of interests of the Company
vis-à-vis personal interest or interests of
associated persons, and make adequate
disclosures, where necessary.
Act in a manner that will protect the
Company’s reputation.
Encourage reporting of behaviour, which
is contrary to the Company’s ’Values’, and
ensure that the person reporting such
violation is not aggrieved in any manner.
Comply, in letter and spirit, with all
applicable laws, rules and regulations, and
also honour the philosophy of ’good faith’,
guided by one’s sense of right and wrong.
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.
Adhere to the terms of the powers delegated
by the Board.
Whilst entering into contracts with Service
Providers and Consultants, protect the
arrangement for disclosure or dissemination
of confidential information.
Establish processes and systems for storage,
retrieval and dissemination of documents,
both in physical and electronic form, so that
the obligations of this Code of Conduct are
fulfilled.
Raise concerns, if any, on the above issues, at
a Board Meeting.
SM Trehan
Managing Director
Mumbai, 20 May 2009
60
c r o m p t o n g r e av e s l i m i t e d a nn u a l r e p o r t 2 0 0 8 – 2 0 0 9
Managing Director's and Chief Financial Officer's
Certificate on Corporate GovernAnce
To
The Board of Directors
Crompton Greaves Limited
CERTIFICATE
We have reviewed the Stand-alone and Consolidated financial results and the cash flow statement
of Crompton Greaves Limited (the Company) for the financial year ended 31 March 2009, and
certify that:
(a) These results and statements, to the best of our knowledge and belief:
(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 Audit Committee, deficiencies in the design or operation
of internal controls of which we are aware, and the steps taken and proposed to be taken to
rectify these deficiencies.
(d) We have also indicated to the Auditors and the Audit Committee:
(i) significant changes in the internal controls with respect to financial reporting during
the year and the achievement of adequate internal controls within the Company’s ERP
systems;
(ii) significant changes in accounting policies during the year, and these have been disclosed
in the notes to the financial statements.
(e) To the best of our knowledge and belief, there are no instances of significant fraud involving
either the Management or employees having a significant Role in the Company’s internal
control systems with respect to financial reporting.
SM TREHAN
Managing Director
BR JAJU
Chief Financial Officer
Mumbai, 20 May 2009
61
ADDITIONAL S H ARE H OLDER IN F ORMATION
BALANCE SHEET A S
AT 3 1 S T M AR C H , 2 0 0 9
Schedule
SOURC ES OF F UNDS
Shareholders’ Funds:
Share capital
Reserves and surplus
1
2
As at 31-03-2009
Rs. crore
Rs. crore
73.32
1168.57
As at 31-03-2008
Rs. crore
Rs. crore
73.32
857.43
1241.89
LOAN FUNDS:
Secured loans
Unsecured loans
34.52
19.15
3
4
930.75
62.37
25.19
53.67
Deferred Tax:
Deferred tax liabilities
Less: Deferred tax assets
78.21
14.29
(Refer Note 32 of Schedule ‘B’)
APPLICATION OF FUNDS
Fixed Assets:
Gross block
Less : Depreciation, obsolescence, amortisation and impairment
Net block
Capital work-in-progress
Investments
Current Assets, Loans And Advances:
Inventories
Sundry debtors
Cash and bank balances
Loans and advances
Less: CURRENT LIABILITIES AND PROVISIONS:
Current liabilities
Provisions
67.00
14.75
63.92
52.25
1359.48
1070.56
5
1111.53
600.82
510.71
12.95
1055.51
562.80
492.71
22.59
523.66
265.52
6
515.30
194.33
7
8
9
10
281.32
1012.26
472.51
319.90
2085.99
262.96
956.22
157.65
279.40
1656.23
11
12
1187.67
328.02
1515.69
1041.20
254.10
1295.30
570.30
1359.48
Net current assets
CONTINGENT LIABILITIES
SIGNIFICANT ACCOUNTING POLICIES
NOTES ON THE BALANCE SHEET AND
PROFIT AND LOSS ACCOUNT
87.56
360.93
1070.56
19
A
B
The Schedules referred to above and the Notes attached, form an integral part of the Balance Sheet
As per our report attached
For SHARP & TANNAN
CHARTERED ACCOUNTANTS
L. Vaidyanathan
PARTNER
Membership No. 16368
Mumbai, 20th May, 2009
B. R. Jaju
CHIEF FINANCIAL OFFICER
S. M. Trehan
MANAGING DIRECTOR
W. Henriques
COMPANY SECRETARY
G. Thapar
CHAIRMAN
Mumbai, 20th May, 2009
66
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
PROFIT AND LOSS ACCOUNT F OR
T H E Y EAR EN D E D 3 1 S T M AR C H , 2 0 0 9
Schedule
INCOME:
Sales and services
Less: Excise duty
Sales and services (net)
Other income
13
EXPENDITURE:
Materials, manufacturing and operating expenses
Staff expenses
Selling and administration expenses
Interest and commitment charges
Depreciation, obsolescence, amortisation and impairment
14
15
16
17
18
2008-09
Rs. crore
Rs. crore
4903.72
293.06
2007-08
Rs. crore
4222.60
346.84
4610.66
49.99
4660.65
3196.42
227.23
548.97
28.55
45.21
3875.76
71.96
3947.72
2798.60
200.99
390.32
31.51
40.65
4046.38
614.27
PROFIT BEFORE TAX
Provision for :
Current tax
Deferred tax
Rs. crore
200.21
11.67
3462.07
485.65
152.06
14.67
(Refer Note 32 of Schedule ‘B’)
5.30
Fringe benefit tax
PROFIT AFTER TAX
Balance brought forward from previous year
Transfer from doubtful debts reserve
PROFIT AVAILABLE FOR APPROPRIATION
General reserve
PROFIT AVAILABLE FOR DISTRIBUTION
1st Interim dividend
2nd Interim dividend
3rd Interim dividend
Corporate dividend tax
BALANCE CARRIED TO BALANCE SHEET
Earnings per share (basic and diluted)
(Face value of equity share of Rs. 2 each)
Rs.
5.00
217.18
397.09
171.73
313.92
539.81
936.90
309.75
16.14
639.81
39.71
897.19
31.39
608.42
25.66
29.32
18.33
12.46
811.42
14.66
29.32
14.66
9.97
539.81
10.83
8.56
(Refer Note 31 of Schedule ‘B’)
SIGNIFICANT ACCOUNTING POLICIES
A
NOTES ON THE BALANCE SHEET AND
PROFIT AND LOSS ACCOUNT
B
The Schedules referred to above and the Notes attached, form an integral part of the Profit and Loss Account
As per our report attached
For SHARP & TANNAN
CHARTERED ACCOUNTANTS
L. Vaidyanathan
PARTNER
Membership No. 16368
Mumbai, 20th May, 2009
B. R. Jaju
CHIEF FINANCIAL OFFICER
S. M. Trehan
MANAGING DIRECTOR
W. Henriques
COMPANY SECRETARY
G. Thapar
CHAIRMAN
Mumbai, 20th May, 2009
67
financials
CASH FLOW STATEMENT F OR
T H E Y EAR EN D E D 3 1 S T M AR C H , 2 0 0 9
(A) CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxes
Adjustments for :
Depreciation, obsolescence, amortisation and impairment
Provision for doubtful debts and advances
Interest expenses
Interest income
Income from investments
Profit on sale of investments (net)
Unrealised exchange (gain) / loss (net)
(Profit) / Loss on sale of fixed assets (net)
Provision for diminution in value of investments
Operating profit before working capital changes
Adjustments for :
(Increase) / Decrease in trade and other receivables
(Increase) / Decrease in inventories
Increase / (Decrease) in trade and other payables
Increase / (Decrease) in provisions
Cash generated from operations
Direct taxes and fringe benefit tax paid (net of refunds)
Cash generated from / (used in) operations
(A )
(B) CASH FLOW FROM INVESTING ACTIVITIES
Add: Inflows from investing activities
Sale of fixed assets
Sale of investments
Income from investents (net)
Less: Outflows from investing activities
Purchase of fixed assets
Purchase of investments
Net Cash (used in) / from investing activities
(B)
2008-09
Rs. crore
2007-08
Rs. crore
614.27
485.65
45.21
18.28
28.55
(13.93)
(1.35)
(3.73)
29.52
0.14
0.17
102.86
717.13
40.65
18.00
31.51
(4.39)
(0.22)
(1.73)
(0.37)
(0.71)
82.74
568.39
(123.23)
(18.36)
145.29
22.73
26.43
743.56
(171.12)
572.44
(143.60)
(15.94)
146.54
29.51
16.51
584.90
(141.67)
443.23
1.56
2023.00
1.35
2025.91
4.79
1629.83
0.22
1634.84
(55.45)
(2090.63)
(2146.08)
(120.17)
(126.86)
(1687.32)
(1814.18)
(179.34)
68
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
CASH FLOW STATEMENT F OR
T H E Y EAR EN D E D 3 1 S T M AR C H , 2 0 0 9
2008-09
Rs. crore
2007-08
Rs. crore
11.36
11.36
4.25
4.25
(32.32)
(6.13)
(69.45)
(11.84)
(29.03)
(148.77)
(137.41)
(178.98)
(3.74)
(62.04)
(7.48)
(31.83)
(284.07)
(279.82)
NET CHANGES IN CASH AND CASH EQUIVALENTS (A+B+C)
314.86
(15.93)
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
157.65
472.51
173.58
157.65
( C ) CASH FLOW FROM FINANCING ACTIVITIES
Add: Inflows from financing activities
Interest income
Less: Outflows from financing activities
Secured loans
Unsecured loans
Interim dividend paid
Corporate dividend tax
Interest expenses
Cash generated from / (used in) financing activities
(C)
Notes :
1 The cash flow statement has been prepared under the indirect method as set out in Accounting Standard (AS) 3 Cash Flow Statements, as specified in the
Companies (Accounting Standards) Rules, 2006.
2 Additions to fixed assets include movements of capital work-in-progress during the year.
3 Cash and cash equivalents at the end of the year represent cash and bank balances and include unrealised gain of Rs. 0.19 crore (Previous year Rs. nil) on
account of translation of foreign currency bank balances.
4 Figures for the previous year have been re-grouped / re-classified wherever necessary.
As per our report attached
For SHARP & TANNAN
CHARTERED ACCOUNTANTS
L. Vaidyanathan
PARTNER
Membership No. 16368
Mumbai, 20th May, 2009
B. R. Jaju
CHIEF FINANCIAL OFFICER
S. M. Trehan
MANAGING DIRECTOR
W. Henriques
COMPANY SECRETARY
G. Thapar
CHAIRMAN
Mumbai, 20th May, 2009
69
financials
SCHEDULES F OR M I N G
PART O F T H E B ALAN C E S H EET
SCHEDULE : 1
SHARE CAPITAL
Authorised
62,50,00,000 Equity shares of Rs. 2 each
Issued and subscribed
36,66,08,892 Equity shares of Rs. 2 each
As at
31-03-2009
Rs. crore
As at
31-03-2008
Rs. crore
125.00
125.00
73.32
73.32
73.32
0.00
73.32
0.00
73.32
73.32
(Refer Note 1 of Schedule ‘B’)
Paid-up
36,65,66,592 Equity shares of Rs. 2 each
Add: Forfeited shares 42,300 equity shares of Rs. 2 each
(amount paid-up Rs. 32,175)
As at
SCHEDULE : 2
RESERVES AND SURPLUS
Capital reserve
Additions
Deductions
01-04-2008
As at
31-03-2009
Rs. crore
Rs. crore
Rs. crore
Rs. crore
19.12
-
-
19.12
206.82
-
-
206.82
General reserve
76.34
40.04 (a)
-
116.38
Revaluation reserve
14.76
-
0.18 (b)
14.58
Government subsidy
0.25
-
-
0.25
Securities premium account
Investment allowance (utilised) reserve
0.33
-
317.62
40.04
Profit and loss account
539.81
Total
857.43
Previous year
600.98
0.33 (a)
0.51
357.15
811.42
1168.57
261.84
5.39
857.43
Notes:
(a)
Additions to general reserve represents Rs. 0.33 crore transferred from investment allowance (utilised) reserve specified in the Income Tax Act, 1961 and
Rs. 39.71 crore transferred from profit and loss account in compliance with the provisions of the Companies Act, 1956
(b)
Depreciation on revalued fixed assets, recouped from revaluation reserve Rs. 0.18 crore.
70
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F OR M I N G
PART O F T H E B ALAN C E S H EET
SCHEDULE : 3
SECURED LOANS
Term Loans
From banks
Foreign currency
Working Capital Demand Loans
From banks
Foreign currency
As at
31-03-2009
Rs. crore
As at
31-03-2008
Rs. crore
34.52
46.22
-
16.15
34.52
62.37
As at
31-03-2009
Rs. crore
As at
31-03-2008
Rs. crore
19.15
25.19
19.15
25.19
(Refer Note 5 of Schedule ‘B’)
SCHEDULE : 4
UNSECURED LOANS
Interest free sales tax deferral loans from State Governments
{Due within one year Rs. 6.66 crore; (Previous year Rs. 6.04 crore)}
71
financials
72
SCHEDULES F OR M I N G
PART O F T H E B ALAN C E S H EET
SCHEDULE : 5
Rs. crore
FIXED ASSETS
Gross block (Cost / Valuation)
ASSETS
As at
Additions
Deductions
01-04-2008
Impairment
As at
As at
31-03-2009
01-04-2008
Depreciation / Obsolescence / Amortisation
Reversed
As at
Upto
For the
31-03-2009
31-03-2008
year
Deductions
Net block
Upto
31-03-2009
As at
As at
31-03-2009 31-03-2008
(A) Tangible Assets
14.34
-
-
14.34
-
-
-
-
-
-
-
14.34
14.34
Buildings
217.72
16.06
0.05
233.73
1.15
1.15
-
61.10
5.58
0.01
66.67
167.06
155.47
Plant and equipments
675.98
39.16
2.78
712.36
2.66
2.66
-
395.92
36.47
2.52
429.87
282.49
277.40
0.02
-
-
0.02
-
-
-
0.01
-
-
0.01
0.01
0.01
109.87
4.23
4.23
109.87
1.40
1.40
-
85.04
5.32
3.76
86.60
23.27
23.43
11.52
2.40
2.01
11.91
0.15
0.15
-
6.52
1.57
1.08
7.01
4.90
4.85
1029.45
61.85
9.07
1082.23
5.36
5.36
-
548.59
48.94
7.37
590.16
492.07
475.50
14.11
1.73
-
15.84
-
-
-
2.16
0.16
-
2.32
13.52
11.95
Computer software
8.98
1.51
-
10.49
-
-
-
5.50
1.06
-
6.56
3.93
3.48
Technical know-how
2.97
-
-
2.97
-
-
-
1.19
0.59
-
1.78
1.19
1.78
26.06
3.24
-
29.30
-
-
-
8.85
1.81
-
10.66
18.64
17.21
Total (A+B)
1055.51
65.09
9.07
1111.53
5.36
5.36
-
557.44
50.75
7.37
600.82
510.71
492.71
Previous year
915.31
147.65
7.45
1055.51
10.80
5.44
5.36
514.51
46.30
3.37
557.44
12.95
22.59
523.66
515.30
Freehold land
Railway sidings
Furniture and fixtures
Vehicles
Sub-total (A)
(B) Intangible Assets
Leasehold land
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
Sub-total (B)
Add: Capital work-in-progress
Notes:
(a)
Cost / Valuation of Buildings includes ownership accommodation in various co-operative societies and apartments Rs 4.31 crore, including 5 shares of Rs 100 each and 332 shares of Rs 50 each.
(b)
Plant and equipments includes co-ownership right in an aircraft with gross block of Rs. 56.25 crore, accumulated depreciation of Rs. 4.24 crore and net block of Rs. 52.01 crore.
(Previous year gross block of Rs. 56.25 crore, accumulated depreciation of Rs. 1.09 crore and net block of Rs. 55.16 crore)
(c)
Cost of Land and Buildings includes Rs. 25.31 crore; (Previous year Rs.25.31 crore) added on revaluation on 30th June, 1985
(d)
Additions during the year include Rs.8.40 crore; (Previous year Rs.19.92 crore) relating to research and development.
(e)
Capital work-in-progress include Rs. 2.00 crore; (Previous year Rs. 7.97 crore) relating to research and development.
SCHEDULES F OR M I N G
PART O F T H E B ALAN C E S H EET
SCHEDULE : 6
INVESTMENTS
As at 31-03-2009
Rs. crore
Rs. crore
As at 31-03-2008
Rs. crore
Rs. crore
(Refer Note 5 of Schedule ‘A’)
Long Term Investments
Quoted Investments
Government and trust securities
Bonds
0.75
-
0.75
1.81
0.75
Unquoted Investments
Investment in Subsidiary Companies
Fully paid equity shares
Fully paid preference shares
Investment in Associate Companies
Fully paid equity shares
123.59
32.93
2.56
121.93
32.93
8.53
8.53
165.05
Current Investments
Quoted Investments
Fully paid equity shares
Other investments
0.61
99.00
163.39
0.77
27.50
99.61
Unquoted Investments
Fully paid equity shares and debentures
Other investments
Note:
Quoted Investments
Book value
Market value
Unquoted Investments
Book value
0.06
0.05
28.27
0.06
0.05
0.11
265.52
0.11
194.33
100.36
100.44
30.83
31.17
165.16
163.50
73
financials
SCHEDULES F OR M I N G
PART O F T H E B ALAN C E S H EET
SCHEDULE : 6
INVESTMENTS (contd.)
Particulars of Investments:
A) Long Tem Investments
Quoted Investments
Government and trust securities
1 Central Government Securities
10.18% GOI 2026 of Rs. 100 each
2 State guaranteed bonds
10.50% APSDL 2011 of Rs. 100 each
No. of shares/
securities /
bonds / units
fully paid up
of Rs.10 each unless
otherwise specified
As at
31-03-2009
As at
31-03-2008
Rs. crore
Rs. crore
39000
0.49
0.49
22000
0.26
0.75
0.26
0.75
-
1.81
-
1.81
10.50
0.74
101.33
11.02
10.50
0.74
101.33
9.36
123.59
121.93
32928044
32.93
32.93
32.93
32.93
7840000
599993
85500
20600
7.84
0.60
0.09
0.00
7.84
0.60
0.09
0.00
8.53
165.80
8.53
165.95
Bonds
6.75% Tax-Free US64 Bonds of Rs. 100 each
(167210 units matured during the year)
Unquoted Investments
Investment in Subsidiary Companies
Fully paid equity shares
1 CG Capital & Investments Limited
2 CG Energy Management Limited
3 CG International B.V., of Euro 100 each
4 Malanpur Captive Power Limited
(1663500 shares subscribed during the year)
(Refer Note 6 of Schedule ‘B’)
Fully paid preference shares
CG Capital & Investments Limited
(7% Non-Convertible, Non-Cumulative Redeemable Preference Shares)
Investment in Associate Companies
Fully paid equity shares
1 Brook Crompton Greaves Limited
2 CG Lucy Switchgear Limited
3 International Components India Limited
4 Power Equipment Limited, of US $ 10 each
(Carried at nominal value of Rs. 10)
Total (A)
10500000
1600000
180000
11022000
74
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F OR M I N G
PART O F T H E B ALAN C E S H EET
SCHEDULE : 6
INVESTMENTS (contd.)
B) Current Investments
Quoted Investments
Fully paid equity shares
1 Nicco Corporation Limited
(Diminution in value of Rs. 0.01 crores during the year)
2 IDBI Bank Limited
(Diminution in value of Rs. 0.16 crore during the year)
Other investments
Mutual Funds
(Purchased during the year)
LICMF Savings Plus Fund - Daily Dividend Plan
Sundaram BNP Paribas Money Fund Super Institutional Daily
Dividend Reinvestment
Baroda Pioneer Liquid Fund - Institutional Daily Dividend Plan
JPMorgan India Liquid Fund-Super Institutional Daily Dividend
Plan-Reinvestment
Birla Sun Life Short Term Fund-Institutional Daily Dividend
No. of shares/
securities /
bonds / units
fully paid up
of Rs.10 each unless
otherwise specified
As at
31-03-2009
As at
31-03-2008
Rs. crore
Rs. crore
66078
0.03
0.03
127720
0.58
0.74
0.61
0.77
20005658
20.00
-
29749244
30013699
30.00
30.00
-
4997596
14024741
5.00
14.00
-
-
10.00
-
7.50
-
5.00
-
5.00
99.00
27.50
190000
0.00
0.00
500
0.01
0.01
5000
0.05
0.05
0.06
0.06
0.05
0.05
99.72
265.52
0.05
0.05
28.38
194.33
(Sold during the year)
Canara Robeco Floating rates Short Term Daily Dividend Fund
(9748291 units sold during the year)
Birla Sun Life Cash Plus Institutional Premium Growth
(7487131 units sold during the year)
Reliance Liquidity Fund Daily Dividend Reinvestment Option
(4999463 units sold during the year)
Principal Cash Management Fund Liquid Option Institutional Premium Plan
(5000605 units sold during the year)
Unquoted Investments
Fully paid equity shares and debentures
1 Radiant Electronics Limited
(Carried at nominal value of Rs.10)
2 Dinette Exclusive Club Private Limited
(Shares of Rs.100 each)
3 Dinette Exclusive Club Private Limited
(0% Unsecured irredeemable non-convertible debentures of Rs.100 each)
Other Investments
UTI Unit Scheme 2002
Total (B)
Total (A+B)
88215
75
financials
SCHEDULES F OR M I N G
PART O F T H E B ALAN C E S H EET
Schedule : 6
INVESTMENT (Contd.)
Details of investments purchased and sold during the year
Malanpur Captive Power Limited
6.75% Tax-Free US64 Bonds of Rs. 100 each
Canara Robeco Floating Rate Short Term Daily Dividend Fund
Canara Robeco Liquid Super Institutional Daily Dividend Reinvestment Fund
Canara Robeco Interval fund series 2 - Qtrly Plan 1 - Institutional Dividend
LICMF Liquid Fund - Dividend Plan
LICMF Savings Plus Fund - Daily Dividend Plan
Sundaram BNP Paribas Money Fund Super Institutional Daily Dividend
Reinvestment
Birla Sun Life Cash Plus - Institutional Premium Daily Dividend Reinvestment
Birla Sun Life Short Term Fund -Institutional Daily Dividend
Birla Sun Life Cash Plus - Institutional Premium Growth
Reliance Liquidity Fund Daily Dividend Reinvestment Option
Reliance Liquid Plus Fund - Institutional Option - Daily Dividend Plan
Principal Cash Management Fund - Liquid Option Institutional Premium
Plan Dividend Reinvestment Daily
Religare Liquid Fund - Super Institutional Daily Dividend
Religare Half yearly interval fund plan A Institutional Dividend
Religare FMP 375 Days series XVI- Institutional Growth
HDFC Liquid Fund Premium Plan - Dividend - Daily Reinvestment
JPMorgan India Liquid Fund - Dividend Plan - Reinvestment
JP Morgan India Liquid Fund Super Institutional Daily Dividend
Plan Reinvestment
Kotak Liquid (Institutional Premium) - Daily Dividend
SBI - Magnum Institutional Cash Fund - Cash Option
Tata Liquid Super High Investment Fund - Daily Dividend
JM High Liquidity Fund - Super Institutional Plan - Daily Dividend (92)
Baroda Pioneer Liquid Fund - Institutional Daily Dividend Plan
SCHEDULE : 7
INVENTORIES
Stores, spares and packing materials
Raw materials
Work-in-progress - Manufacturing
Work-in-progress - Contracts
At cost
At realisable sales value
Less: Progress payments
Purchase
Quantity
No.
Purchase
Value
Rs. crore
Sales
Quantity
No.
Sales
Value
Rs. crore
1663500
321220166
53681547
10239279
290211281
48597960
1.66
329.20
53.74
10.00
318.00
48.50
167210
330968457
53681547
10239279
290211281
28592302
1.67
339.57
53.90
10.24
318.65
28.59
167761968
446740131
44077382
1490246
128733159
19990
169.00
447.00
44.03
2.00
128.50
2.00
138012724
454227262
30052641
1490246
133732622
19990
139.33
455.11
30.07
2.02
133.77
2.00
46125757
116203918
7000000
3500000
40870390
9995978
46.00
116.00
7.00
3.50
50.00
10.00
51126362
116203918
7000000
3500000
40870390
9995978
51.13
116.24
7.04
3.48
50.11
10.00
91178075
12711565
15595413
552615
76452035
30013699
91.00
15.50
30.00
61.50
76.50
30.00
86180479
12711565
15595413
552615
76452035
-
86.25
15.54
30.12
61.59
76.58
-
As at 31-03-2009
Rs. crore
Rs. crore
As at 31-03-2008
Rs. crore
Rs. crore
3.24
97.17
111.25
3.20
96.28
109.41
0.56
27.94
28.50
9.71
4.57
42.37
46.94
39.91
18.79
Finished goods - Manufacturing
Add:- Excise duty on finished goods
Finished goods - Trading
31.03
2.00
7.03
25.44
3.63
33.03
17.84
281.32
29.07
17.97
262.96
76
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F OR M I N G
PART O F T H E B ALAN C E S H EET
SCHEDULE : 8
SUNDRY DEBTORS
As at 31-03-2009
Rs. crore
Rs. crore
As at 31-03-2008
Rs. crore
Rs. crore
(Unsecured)
Debts outstanding for a period exceeding six months
Considered good
Considered doubtful
143.85
36.28
180.13
165.16
18.00
183.16
Less: Provision for doubtful debts
868.41
1048.54
36.28
791.06
974.22
18.00
SCHEDULE : 9
CASH AND BANK BALANCES
As at 31-03-2 009
Rs. crore
Rs. crore
As at 31-03-2008
Rs. crore
Rs. crore
0.13
0.13
Other debts
Considered good
Cash on hand
Bank balances with scheduled banks
On current accounts
On deposit accounts
1012.26
1012.26
181.36
291.02
109.54
47.98
472.38
472.51
SCHEDULE : 10
LOANS AND ADVANCES
956.22
956.22
157.52
157.65
As at
31-03-2009
Rs. crore
As at
31-03-2008
Rs. crore
267.84
11.13
40.93
319.90
234.53
11.12
33.75
279.40
(Unsecured, considered good)
Advances recoverable in cash or in kind or for value to be received
Advances to subsidiaries
Balances with excise, customs, service tax and value added tax etc.
77
financials
SCHEDULES F OR M I N G
PART O F T H E B ALAN C E S H EET
SCHEDULE : 11
CURRENT LIABILITIES
Sundry creditors
Due to micro and small enterprises
Others
As at 31-03-2009
Rs. crore
Rs. crore
19.29
828.22
As at 31-03-2008
Rs. crore
Rs. crore
15.22
755.75
847.51
28.17
224.25
Due to subsidiaries
Advances from customers
Investor Education and Protection Fund
770.97
8.66
187.23
(Refer Note 7 of Schedule ‘B’)
Unclaimed dividend
Unclaimed matured fixed deposits
Due to Directors
Interest accrued but not due on loans
Other liabilities
SCHEDULE : 12
PROVISIONS
Taxes
Fringe benefit tax
Interim dividend
Corporate dividend tax
Leave encashment
Gratuity
Post retirement medical benefits
Others provisions
1.21
0.17
1.02
0.26
1.38
4.90
0.33
81.13
1187.67
1.28
3.82
0.81
68.43
1041.20
As at
31-03-2009
Rs. crore
As at
31-03-2008
Rs. crore
200.21
5.30
18.33
3.11
16.95
3.64
6.24
74.24
152.06
5.00
14.66
2.49
14.18
2.69
5.09
57.93
328.02
254.10
(Refer Note 34 of Schedule ‘B’)
78
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F OR M I N G
PART O F T H E PRO F I T AN D LO S S A C C OUNT
SCHEDULE : 13
OTHER INCOME
Income from lease of premises / business service centers
(Tax deducted at source Rs. 3.65 crore; Previous year Rs.3.81 crore)
Income from investments
Interest income
(Tax deducted at source Rs. 2.30 crore; Previous year Rs.0.91 crore)
Profit on sale of investments (net)
Profit on sale of fixed assets (net)
Exchange gain (net)
Miscellaneous income
SCHEDULE : 14
MATERIALS, MANUFACTURING AND OPERATING EXPENSES
Raw materials consumed
Opening stock
Add: Purchases
Less: Closing stock
Total
Add: Sub contracting charges
(including construction materials Rs.12.58 crore; Previous year Rs. 19.75 crore)
Less: Scrap sales
Purchase of trading goods
(Increase) / decrease in stocks:
Closing Stock
Work-in-progress - Manufacturing
- Contracts
Finished goods
Opening Stock
Work-in-progress - Manufacturing
- Contracts
Finished goods
Stores and spares
Power and fuel
Repairs - Buildings
Repairs - Plant and equipments
Technical and testing fees
2008-09
Rs. crore
Rs. crore
96.28
2237.62
97.17
2236.73
149.61
2008-09
Rs. crore
2007-08
Rs. crore
22.08
19.06
1.35
13.93
0.22
4.39
3.73
8.90
49.99
1.73
0.71
38.71
7.14
71.96
2007-08
Rs. crore
Rs. crore
68.11
1953.57
96.28
1925.40
126.07
68.13
54.74
2318.21
794.62
1996.73
719.55
111.25
0.56
50.87
162.68
109.41
4.57
47.04
161.02
109.41
4.57
47.04
161.02
96.95
17.83
50.95
165.73
(1.66)
3111.17
27.65
29.04
4.54
16.03
7.99
3196.42
4.71
2720.99
26.10
27.42
5.40
11.90
6.79
2798.60
79
financials
SCHEDULES F OR M I N G
PART O F T H E PRO F I T AN D LO S S A C C OUNT
SCHEDULE : 15
STAFF EXPENSES
Salaries, wages and bonus
Provident fund and family pension scheme contributions
Superannuation fund contributions
Gratuity
Post retirement medical benefits
Leave encashment
Workmen and staff welfare
SCHEDULE : 16
SELLING AND ADMINISTRATION EXPENSES
Rent
Repairs - others
Rates and taxes
Insurance
Travelling
Vehicle maintenance
Legal and professional charges
Auditors’ remuneration (excluding service tax)
Audit fees
Tax audit fees
Certification work
Other services
Expenses reimbursed
Freight and forwarding
Packing materials
Advertising
After sales services including warranties
Sales promotion
Bad debts and advances
Provision for doubtful debts and advances (net)
Loss on sale of fixed assets (net)
Provision for diminution in value of investments
Exchange loss (net)
Directors’ fees
Miscellaneous expenses
2008-09
Rs. crore
Rs. crore
2008-09
Rs. crore
2007-08
Rs. crore
185.73
9.16
3.42
4.02
1.49
5.46
17.95
227.23
163.65
8.49
3.10
3.67
0.58
4.92
16.58
200.99
2007-08
Rs. crore
6.65
6.14
15.72
5.15
27.28
1.76
18.26
0.49
0.10
0.22
0.20
0.16
Rs. crore
6.24
6.34
26.01
3.92
25.47
1.69
18.95
0.41
0.08
0.18
0.07
0.04
1.17
119.17
42.11
25.55
38.48
27.19
1.35
18.28
0.14
0.17
116.93
0.13
77.34
548.97
0.78
79.60
33.99
21.14
35.95
20.36
17.16
18.00
0.12
74.60
390.32
80
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F OR M I N G
PART O F T H E PRO F I T AN D LO S S A C C OUNT
SCHEDULE : 17
INTEREST AND COMMITMENT CHARGES
Fixed loans
Others
SCHEDULE : 18
DEPRECIATION, OBSOLESCENCE, AMORTISATION AND IMPAIRMENT
Depreciation, obsolescence and amortisation
Impairment provided / (reversed)
Recoupment from revaluation reserve
2008-09
Rs. crore
2007-08
Rs. crore
2.72
25.83
28.55
10.09
21.42
31.51
2008-09
Rs. crore
2007-08
Rs. crore
50.75
(5.36)
(0.18)
45.21
46.30
(5.44)
(0.21)
40.65
81
financials
SCHEDULES F OR M I N G
PART O F T H E B ALAN C E S H EET
As at
31-03-2009
Rs. crore
As at
31-03-2008
Rs. crore
11.65
16.07
(b) Sales tax liability that may arise in respect of matters in appeal
1.26
2.35
(c) Excise duty / service tax liability that may arise in respect of matters in appeal preferred by the Company
6.22
15.49
(d) Excise duty / service tax liability that may arise in respect of matters disputed by the department
1.35
0.33
(e) Income tax liability that may arise in respect of matters in appeal preferred by the department
4.31
8.74
519.05
575.61
SCHEDULE : 19
CONTINGENT LIABILITIES
(a) Claims against the Company not acknowledged as debts
(f ) Guarantees / securities given on behalf of subsidiary companies
(g) Guarantees given on behalf of associate company
(h) Bills discounted
5.68
4.37
231.16
156.82
82
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n ce S hee t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : A
SIGNIFICANT ACCOUNTING POLICIES
1
Basis of Presentation
(a)
The Company maintains its accounts on accrual basis following the historical cost convention, except for the revaluation of certain fixed assets,
in accordance with the Generally Accepted Accounting Principles (GAAP) and in compliance with the Accounting Standards specified in the
Companies (Accounting Standards) Rules, 2006 notified by the Central Government and other provisions of the Companies Act, 1956. However,
certain escalation and other claims are accounted for in terms of contracts with the customers. Insurance and other claims are accounted for as
and when admitted by the appropriate authorities.
(b)
The preparation of financial statements in conformity with GAAP requires that the management of the Company makes estimates and assumptions
that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating
to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful life of tangible and intangible fixed
assets, provision for doubtful debts / advances, future obligations in respect of retirement benefit plans, etc. Difference, if any, between the actual
results and estimates is recognised in the period in which the results are known.
2
Fixed Assets
(a)
Fixed assets are stated at cost net of tax / duty credit availed, if any, except for land and buildings added prior to 30th June, 1985 which are stated
at revalued cost as at that date based on the report of technical expert.
(b)
Fixed assets are eliminated from financial statements, either on disposal or when retired from active use. The retired assets are disposed off
immediately.
(c)
Pre-operative expenses, including interest on borrowings upto the date of commercial operations, are treated as part of the project cost and
capitalised.
(d)
Internally manufactured / constructed fixed assets are capitalised at factory cost, including excise duty, where applicable.
(e)
Machinery spares which are specific to particular item of fixed assets and whose use is irregular are capitalised as part of the cost of machinery.
3Impairment of Assets
(a)
The carrying amount of assets, other than inventories is reviewed at each balance sheet date, to determine whether there is any indication of
impairment. If any such indication exists, the recoverable amount of the assets is estimated.
(b)
An impairment loss is recognised, whenever the carrying amount of assets or its cash generating units exceeds its recoverable amount. The
recoverable amount is the greater of the asset’s net selling price and value in use which is determined based on the estimated future cash flow
generated from the continuing use of an asset and from its disposal at the end of its useful life, discounted to its present value.
(c)
An impairment loss is reversed, if there has been a change in the estimates made to determine and recognise the recoverable amount in the
earlier year.
4Intangible Assets and Amortisation
Intangible assets are recognised as per the criteria specified in the Accounting Standard (AS) 26 Intangible Assets and are amortised as under:
(a) Leasehold land
(b) Specialised software
(c) Lump sum fees for technical know-how
: Over the period of lease;
: Over a period of five years; and
: Over a period of five years from the year of commercial production.
5Investments
(a)
Long term investments are carried at cost after providing for any diminution in value, if such diminution is of other than temporary nature.
(b)
Current investments are carried at the lower of cost and market value. The determination of carrying costs of such investments is done on the basis
of specific identification.
6Inventories
Inventories are valued at the lower of cost and net realisable value, after providing for obsolescence and damages, as under:
(a)
(b)
(c)
(d)
Raw materials, packing materials, stores and spares
Work-in-progress - Manufacturing
Work-in-progress - Contracts
Finished goods - Manufacturing
(e) Finished goods - Trading
:
:
:
:
At cost, on weighted average basis;
At cost, plus appropriate production overheads;
At cost, till certain percentage of completion and thereafter at realisable sales value;
At cost plus appropriate production overheads, including excise duty paid / payable on such
goods; and
: At cost, on weighted average basis.
83
financials
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n ce S hee t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : A
SIGNIFICANT ACCOUNTING POLICIES (Contd.)
7
Foreign currency transactions, Forward contracts and Derivatives
(a)
The reporting currency of the Company is Indian Rupee.
(b)
Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of the transaction.
At each balance sheet date, foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried at
historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
(c)
Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of the Company’s monetary items at
the closing rate are recognised as income or expense in the period in which they arise.
(d)
The premium or the discount on forward exchange contracts not relating to firm commitments or highly probable forecast transactions and not
intended for trading or speculation purpose is amortised as expense or income over the life of the contract.
(e)
Gain or loss on forward exchange contracts relating to firm commitments or highly probable forecast transactions is computed by multiplying
the foreign currency amount of the forward exchange contract by the difference between the forward rate available at the reporting date for the
remaining maturity of the contract and the contracted forward rate. Such gain or loss is recognised in the profit and loss account.
(f )
Cash flows arising on account of roll-over / cancellation of forward contracts are recognised as income / expense of the period in line with the
movement in the underlying exposures.
8Revenue Recognition
(a)
Revenue from sale of products is recognised when all the significant risks and rewards of ownership of the products are passed on to the customers,
which is generally on dispatch of goods and acceptance. Sales include excise duty and price variation and are recognised in terms of contracts
with the customers. Sales exclude value added tax / sales tax, brokerage and commission.
(b)
Service income is recognised as per the terms of the contracts with the customers. Revenue from contracts is recognised based on percentage of
completion method after providing for expected losses, if any.
(c)
Income from interest on deposits, loans and interest bearing securities is recognised on accrual basis.
(d)
Dividend income is accounted for when the right to receive income is established.
9
Employee Benefits
(a)
Short term employee benefits
All employee benefits payable wholly within twelve months of rendering service are classified as short term employee benefits. Benefits such as
salaries, wages, short term compensated absences, etc. and the expected cost of bonus, ex-gratia are recognised during the period in which the
employee renders the service.
(b)
Defined contribution plans
Company’s contributions paid / payable during the year to provident fund, officer’s superannuation fund, ESIC and labour welfare fund are
recognised in the profit and loss account.
(c)
Defined benefit plans
For defined benefit schemes in the form of gratuity fund and post retirement medical benefits, the cost of providing benefits is determined using
the Projected Unit Credit Method, with actuarial valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised
in full in the profit and loss account for the period in which they occur. Past service cost is recognised immediately to the extent that the benefits
are already vested, and otherwise is amortised on a straight-line basis over the average period until the benefits become vested. The retirement
benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognised
past service cost, and as reduced by the fair value of scheme assets. The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of
the obligation under defined benefit plans, is based on the market yields on Government securities as at the balance sheet date, having maturity
periods approximating to the terms of related obligations.
(d)
Long term employee benefits
Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the
related services are recognised as a liability at the present value of the defined benefit obligation at the balance sheet date.
(e)
Termination benefits
Termination benefits are recognised as expenses.
84
c r o m p t o n g r e av e s l i m i t e d a n n u a l r ep o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n ce S hee t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : A
SIGNIFICANT ACCOUNTING POLICIES (Contd.)
10
Depreciation
(a)
Depreciation on the fixed assets is provided at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956, on written down
value method other than on buildings and plant and equipments, which are depreciated on a straight line method.
(b)
Buildings constructed on leasehold land are depreciated at normal rate as prescribed in Schedule XIV to the Companies Act, 1956, where the lease
period of land is beyond the life of the building. In other cases, amortised over the lease period.
(c)
In the case of revalued assets, the difference between the depreciation based on revaluation and the depreciation charged on historical cost is
recouped out of revaluation reserve.
(d)
In case of impaired assets, the depreciation is charged on the adjusted cost computed after impairment.
11Research and Development
(a)
Revenue expenditure on research and development is charged under respective heads of account.
(b)
Capital expenditure on research and development is included as part of fixed assets and depreciated on the same basis as other fixed assets.
12
Borrowing Costs
(a)
Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of such
asset till such time as the asset is ready for its intended use or sale.
(b)
All other borrowing costs are recognised as expense in the period in which they are incurred.
13Taxes on Income
(a)
Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the
provisions of the Income Tax Act, 1961 and based on the expected outcome of assessments / appeals.
(b) Deferred tax reflects the tax effects of timing differences between the accounting income and the taxable income for the year, and quantified
using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date.
(c)
14
Fringe Benefit Tax
Fringe Benefit Tax (FBT) on all applicable expenses, as specified in the Chapter XII-H of the Income Tax Act, 1961, is recognised in the profit and loss
account when the underlying expenses are incurred.
15
Provisions, Contingent liabilities and Contingent assets
(a)
Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation, if
(i) (ii) a probable outflow of resources is expected to settle the obligation; and
(iii) the amount of the obligation can be reliably estimated.
(b)
Reimbursements by another party, expected in respect of expenditure required to settle a provision, is recognised when it is virtually certain that
reimbursement will be received if, obligation is settled.
(c)
Contingent liability is disclosed in the case of:
(i) (ii) a present obligation when no reliable estimate is possible;
(iii) a possible obligation arising from past events, unless the probability of outflow of resources is remote.
(d)
Contingent assets are neither recognised nor disclosed.
(e)
Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.
Deferred tax assets are recognised and carried forward only to the extent that there is reasonable certainty supported by convincing evidence that
sufficient future taxable income will be available against which such deferred tax assets can be realised.
the Company has a present obligation as a result of a past event;
a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation;
85
financials
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
1
Of the equity shares of Rs. 2 each comprised in the subscribed capital of the Company:
19,36,000 issued pursuant to a contract without payment being received in cash;
18,57,33,312
issued as fully paid up bonus shares by way of capitalisation of reserves;
73,82,830 issued as fully paid up pursuant to scheme of amalgamation; and
3,30,68,750
issued as an international offering of Global Depository Receipts (GDR’s) (in US Dollars).
2
The Board of Directors at their meeting held on 24th March 2009, has approved the Buy- back of fully paid equity shares of Rs 2 each, from the open
market through the Stock Exchanges, at a price not exceeding Rs. 170 per share, upto an amount of Rs. 224.15 crore, being 25% of the total paid-up
capital plus free reserves as per the audited balance sheet of the Company for the year ended 31st March, 2008. The Buy-back of equity shares has been
approved by the Members, through the Postal Ballot mechanism, on 20th May, 2009.
3
The Company, through its wholly owned subsidiary CG International B.V., The Netherlands, has completed all the formalities, during the year, in respect
of acquisition of :
(a)
Societe Nouvelle de Maintenance de Transformateurs (Sonomatra) based in France; and
(b)
M.S.E. Power Systems, Inc. and its subsidiary M.S.E. West LLC (MSE Group) based in the USA.
4
The Board of Directors at their meeting held on 24th March, 2009 has approved an investment of upto Rs. 227.00 crore in equity shares of Rs 10 each of
Avantha Power & Infrastructure Limited at book value estimated at approximately Rs 11 per share. The investment of Rs. 227.00 crore, is well within the
limits prescribed by Section 372A of the Companies Act, 1956 and therefore, approval of the shareholders is not required.
5
Secured Loans
(a)
Term loans from banks are secured by way of equitable mortgage of land and building and by way of hypothecation of specific movable properties
at certain locations.
(b)
Working capital demand loans from banks are secured by hypothecation of stocks and book debts, present and future.
6
The Company’s investment in its subsidiary (Malanpur Captive Power Limited), to the extent of 93,58,493 equity shares of Rs. 10 each, has been pledged
as security in favour of a financial institution against assistance availed by the subsidiary.
7
There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as at 31st March, 2009.
8
Miscellaneous expenses include donations to political parties: All India Congress Committee Rs. 1.50 crore and Bharatiya Janata Party Rs. 1.00 crore.
86
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
9
Estimated amount of contracts remaining to be executed on capital account and
not provided for (net of advances)
10 Provision for current tax for the year includes wealth tax payable under the Wealth Tax Act, 1957
11 Sales include
(a) Increase / (Decrease) in work-in-progress - contracts, at realisable value:
(i) Closing work-in-progress
(ii) Less: Opening work-in-progress
and are net of:
(b) Brokerage and commission
(c) Cash discount
12 Expenses have been capitalised during the year:
Materials, manufacturing and operating expenses
13 Value of imports (on C.I.F. basis)
(a) Raw materials
(b) Trading goods
(c) Spare parts
(d) Capital goods
14 Expenditure in foreign currency
(a) Technical know-how fees
(b) Professional charges
(c) Interest
(d) Travelling, commission and other matters
15 Remittance in foreign currency on account of dividend:
3rd Interim dividend for previous year
(a) Number of non-resident shareholders
(b) Number of shares held
(c) Amount of dividend
1st Interim dividend for current year
(a) Number of non-resident shareholders
(b) Number of shares held
(c) Amount of dividend
2nd Interim dividend for current year
(a) Number of non-resident shareholders
(b) Number of shares held
(c) Amount of dividend
16 Earnings in foreign exchange
(a) Export of goods (on F.O.B. basis) including deemed exports Rs.133.93 crore; (Previous year Rs. 25.62 crore)
(b) Service income
(c) Others
17 Expenditure on research and development
(a) Capital expenses
(b) Revenue expenses
(Revenue expenses debited to the profit and loss account under the normal head of
expenses, which are grouped under the following heads):
Staff cost
Depreciation
Others
Total
2008-09
Rs. crore
2007-08
Rs. crore
7.53
21.25
0.20
0.20
27.94
42.37
(14.43)
42.37
134.16
(91.79)
37.76
10.24
25.65
6.99
1.17
0.01
379.89
43.73
3.16
13.56
283.41
33.83
8.52
11.36
3.43
1.04
3.52
38.96
3.17
1.82
4.68
17.35
411
24588784
0.98
426
31749158
1.59
408
22570034
1.58
419
26611543
1.06
408
20903337
1.67
412
24588819
1.97
1157.65
1.26
0.20
756.45
0.73
0.07
10.40
27.89
13.92
2.11
11.32
27.35
8.65
1.51
13.46
23.62
87
financials
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
18 Raw Materials Consumed:
Unit
(i)
(ii)
(iii)
(iv)
(v)
(vi)
Ferrous Metals
Non-ferrous Metals
Chemicals, Oils and Paints
Wires, Pipes, Tubes and Cables
Components
Others
Ton
Ton
K.Ltr
K.Mtr
M.Pcs
Raw Materials:
Imported
Indigenous
Spare Parts:
Imported
Indigenous
(i) Transformers, Reactors and Accessories thereof
(ii) Switchgears, Control Equipments and
Accessories thereof
(iii) Energy Meters
(iv) Electric Motors and Alternators
(v) Power driven Pumps
(vi) Electrical steel Stampings and Laminates
(vii) Electric Fans, Ventilation Control Systems
(viii)Electric Lamps
(ix) Servicing
(x) Others
79691
38353
17706
458073
259
2008-09
Percentage
of total
Consumption
19 Consumption of Raw Materials and Spare Parts:
20 Sales
2008-09
Quantity
Unit
Nos.
Nos.
Nos.
Nos.
Nos.
M.Ton
Nos.
M.Nos.
Rs. crore
627.11
497.05
102.41
81.23
793.81
135.12
2236.73
Rs. crore
2007-08
Quantity
85626
34963
17556
452215
256
2007-08
Percentage
of total
Consumption
Rs. crore
572.37
417.90
66.16
75.54
631.91
161.52
1925.40
Rs. crore
15.75
84.25
100.00
352.24
1884.49
2236.73
13.66
86.34
100.00
262.92
1662.48
1925.40
7.70
92.30
100.00
2.13
25.52
27.65
2.48
97.52
100.00
0.65
25.45
26.10
2008-09
Quantity
Rs. crore
2007-08
Quantity
Rs. crore
18577
1638.73
24505
1286.97
258264
280693
561758
91735
16277
5625423
70
635.26
16.44
1040.81
61.93
50.62
598.28
191.31
21.01
649.33
4903.72
230235
225000
593147
97862
16156
4844970
63
591.59
14.42
922.39
48.66
54.63
492.77
163.43
64.34
583.40
4222.60
Notes:
1
Quantitative figures for sales are after exclusion of inter-divisional transfers, capitalisation / captive consumption, samples, etc.
2
Sales include excise duty Rs. 293.06 crore; (Previous year Rs.346.84 crore)
88
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
21
Details of licensed capacity, installed capacity and actual production
Class of goods
manufactured
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
#
*
@
Transformers,
Reactors and
Accessories
thereof
Switchgear,
Control
Equipment and
Accessories
thereof
Energy Meters
Electric
Motors and
Alternators
Power driven
Pumps
Electrical Steel
Stamping and
Laminates
Electric Fans,
Ventilation and
Pollution Control
Systems
Lighting Electric Lamps
Other Items
Unit
# Licensed Capacity
As at
As at
31-03-2009
31-03-2008
*Installed Capacity
As at
As at
31-03-2009
31-03-2008
@Actual Production
2008-09
2007-08
MVA
Nos.
15600
38500
15600
38500
24670
27000
24670
27000
23405
18659
22765
24581
Nos.
389600
389600
413400
393400
263868
235361
Nos.
HP
Nos.
1000000
5400000
2089500
1000000
5400000
2089500
1000000
4755818
592360
1000000
4487721
651436
280693
3911683
353941
225000
3778134
390727
Nos.
130000
130000
130000
130000
91463
97026
MT
22000
22000
22000
22000
16281
15796
Nos.
4480000
4480000
4236400
4233400
2831881
2595285
Nos.
114988000
102800000
114988000
102800000
78995295
76538071
Nos.
1050
1050
1050
1050
83
6
Under the liberalised Industrial Policy of Government of India, the Company obtained the capacities approved by way of acknowledgements against
the IEMs submitted by it.
Installed Capacities are as certified by the Managing Director.
The production figures are as per returns submitted to the Department of Industrial Development.
89
financials
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
22
Opening stock and closing stock of finished goods
Class of goods
(i)
(ii)
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
23
Transformers,
Reactors and
Accessories
thereof
Switchgears,
Control
Equipment
and
Accessories
thereof
Energy Meters
Electric
Motors and
Alternators
Power driven
Pumps
Electrical
steel
stampings
and
Laminations
Electric fans
Ventilation
control
systems
Electric
Lamps
Others
Unit
As at 31-03-2009
Quantity
Rs. crore
As at 31-03-2008
Quantity
Rs. crore
Nos.
27
8.88
57
0.77
192
2.79
Nos.
Nos.
255
-
2.52
-
212
-
1.91
-
396
-
0.65
-
Nos.
17988
13.54
22811
2.44
26221
5.06
Nos.
252
7.99
524
9.11
1360
8.86
M.Ton
143
0.86
474
3.35
271
1.82
63267
7.09
139133
11.51
115199
10.22
1.25
9.17
0.82
50.87
1.85
5.52
12.43
47.04
1.44
4.28
17.27
50.95
Nos.
M.Nos.
The Company has amounts due to suppliers under The Micro, Small and Medium Enterprises Development Act, 2006,
(MSMED Act) as at 31st March, 2009. The disclosure pursuant to the said Act is as under:
Particulars
(a)
(b)
(c)
(d)
(e)
(f )
(g)
As at 31-03-2007
Quantity
Rs. crore
Principal amount due to suppliers under MSMED Act, 2006
Interest accrued and due to suppliers under MSMED Act on the above amount, unpaid
Payment made to suppliers (other than interest) beyond the appointed day, during the year
Interest paid to suppliers under MSMED Act (other than Section 16)
Interest paid to suppliers under MSMED Act (Section 16)
Interest due and payable towards suppliers under MSMED Act for payments already made
Interest accrued and remaining unpaid at the end of each of the year to suppliers under MSMED Act
2008-09
Rs. crore
2007-08
Rs. crore
19.29
0.00
71.69
0.00
15.22
- 76.63
- - - - Note: The information has been given in respect of such vendors to the extent they could be identified as micro and small enterprises on the basis of
information available with the Company.
90
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
24 Managerial Remuneration :
Computation of Net Profit in accordance with the provisions of Section 349 of the Companies Act, 1956
Rs. crore
2008-09
Profit before tax as per profit and loss account
Add: Managerial remuneration
Directors sitting fees
Loss on sale of fixed assets (net)
Profit on sale of fixed assets (net) (as per Section 349)
Provision for doubtful debts and advances
Provision for diminution in value of investments
Less: Profit on sale of investments (net)
Loss on sale of fixed assets (net) (as per Section 349)
Profit on sale of fixed assets (net)
Net Profit / (Loss) in terms of Section 349
Net profit for the purpose of calculation under Section 309
Maximum remuneration to Managing Director under Section 309 (3) @ 5%
Maximum Commission to Non-executive directors under Section 309 (4) @ 1%
Actual payable to Non-executive directors (included in miscellaneous expenses)
Remuneration to Managing Director / Directors charged to accounts :
(a) Salaries, commission and incentives
(b) Contribution to provident and other funds
(c) Other perquisites
2007-08
614.27
6.99
0.13
0.14
18.28
0.17
3.73
0.25
-
485.65
5.58
0.12
0.71
18.00
-
25.71
1.73
0.71
3.98
636.00
636.00
31.80
6.36
3.87
5.87
0.54
0.58
6.99
24.41
2.44
507.62
507.62
25.38
5.08
3.21
4.71
0.36
0.51
5.58
25 Particulars in respect of Loans and Advances in the nature of loans as required by the Listing Agreement:
Name of the Company
Loans and advances in the nature of loans given to subsidiaries
Pauwels International N.V.
Pauwels Transformer Inc.
Pauwels Trafo Belgium N.V.
CG PPI Adhesive Products Limited
Malanpur Captive Power Limited
(b) Loans and advances in the nature of loans given to associates
Brook Crompton Greaves Limited
CG Lucy Switchgear Limited
(c) Loans and advances in the nature of loans where repayment
schedule is not specified
Pauwels International N.V.
Pauwels Transformer Inc.
Pauwels Trafo Belgium N.V.
CG PPI Adhesive Products Limited
Malanpur Captive Power Limited
Brook Crompton Greaves Limited
CG Lucy Switchgear Limited
(d) Loans and advances in the nature of loans
where interest is not charged
Pauwels International N.V.
Pauwels Transformer Inc.
Pauwels Trafo Belgium N.V.
CG PPI Adhesive Products Limited
Brook Crompton Greaves Limited
CG Lucy Switchgear Limited
Balance as at
31-03-2009
31-03-2008
Rs. crore
Maximum outstanding during
2008-09
2007-08
(a)
0.63
0.06
0.70
9.74
0.80
0.01
0.00
10.31
0.80
0.10
0.70
0.00
12.92
2.46
0.01
0.02
10.31
4.00
0.01
1.96
0.01
4.00
0.09
1.96
0.20
0.63
0.06
0.70
9.74
4.00
0.01
0.80
0.01
0.00
10.31
1.96
0.01
0.80
0.10
0.70
0.00
12.92
4.00
0.09
2.46
0.01
0.02
10.31
1.96
0.20
0.63
0.06
0.70
4.00
0.01
0.80
0.01
0.00
1.96
0.01
0.80
0.10
0.70
0.00
4.00
0.09
2.46
0.01
0.02
1.96
0.20
91
financials
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
26 Disclosure under Accounting Standard (AS) 7 Construction Contracts:
Rs. crore
2007-08
24.53
2008-09
27.94
(a) Contract revenue recognised during the year
(b) Aggregate amount of contract costs incurred and recognised profits
(less recognised losses) for all contracts in progress up to the reporting date
(c) Amount of customer advances outstanding for contracts in progress as at reporting date
(d) Retention amount due from customer for contract in progress up to reporting date
27.94
1.40
24.53
1.06
2.45
27 Disclosures as required by Accounting Standard (AS) 15 Employee Benefits:
(a) Defined Benefit Plans as per Actuarial Valuation are as under:
Gratuity
I
1
2
3
4
5
6
7
II
1
2
3
4
5
6
7
III
1
2
3
IV
1
2
3
V
Change in obligation during the year
Liability at the beginning of the year
Interest cost
Current service cost
Past service cost
Benefits paid
Actuarial (gains) / losses
Liability at the end of the year
Change in assets during the year
Plan assets at the beginning of the year
Expected return of plan assets
Contributions
Benefits paid
Actuarial gain / (loss)
Plan assets at the end of the year
Total actuarial gain/(loss) to be recognised
Actual return on plan assets
Expected return on plan assets
Actuarial gain / (loss)
Actual return on plan assets
Net asset / (liability) recognised in the balance sheet
Liability at the end of the year
Plan assets at the end of the year
Amount recognised in the balance sheet
Expenses recognised in the statement of profit and
loss account for the year
1 Current service cost
2 Interest cost
3 Expected return on plan assets
4 Actuarial (gains) / losses
5 Past service cost
6 Total expenses as per actuarial valuation
7 Optional payment
8 Total expenses
VI Balance sheet reconciliation
1 Opening net liability
2 Expenses as above
3 Employer contribution
4 Amount recognised in the balance sheet
VII The major categories of plan assets as a percentage of total
Insurer Managed Funds
Rs. crore
Post Retirement Medical
Benefits
2007-08
2008-09
2007-08
Leave Encashment
2008-09
(Funded)
2007-08
(Funded)
2008-09
26.87
2.20
1.35
(3.27)
2.21
29.36
26.20
2.13
1.60
(4.08)
1.02
26.87
14.18
1.19
1.54
(2.69)
2.73
16.95
12.79
0.99
0.79
(3.53)
3.14
14.18
5.09
0.41
0.08
(0.34)
1.00
6.24
4.75
0.38
0.07
(0.24)
0.13
5.09
24.18
2.08
2.69
(3.27)
0.04
25.72
(2.17)
19.01
1.99
7.19
(4.08)
0.07
24.18
(0.95)
2.69
(2.69)
2.73
3.53
(3.53)
3.14
0.34
(0.34)
1.00
0.24
(0.24)
0.13
2.08
0.04
2.12
1.99
0.07
2.06
-
-
-
-
(29.36)
25.72
(3.64)
(26.87)
24.18
(2.69)
(16.95)
(16.95)
(14.18)
(14.18)
(6.24)
(6.24)
(5.09)
(5.09)
1.35
2.20
(2.08)
2.17
3.64
0.38
4.02
1.60
2.13
(1.99)
0.95
2.69
0.98
3.67
1.54
1.19
2.73
5.46
5.46
0.79
0.99
3.14
4.92
4.92
0.08
0.41
1.00
1.49
1.49
0.07
0.38
0.13
0.58
0.58
2.69
3.64
2.69
3.64
7.19
2.69
7.19
2.69
14.18
5.46
2.69
16.95
12.79
4.92
3.53
14.18
5.09
1.49
0.34
6.24
4.75
0.58
0.24
5.09
100%
100%
-
- -
- 92
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
27
Disclosures as required by Accounting Standard (AS) 15 Employee Benefits (Contd.)
Gratuity
VIII Effect of one percent point change in the assumed
medical inflation rate
(1) Increase / (decrease) on aggregate service and interest cost of
Post Retirement Medical Benefits
(i) One Percentage point increase in Discount Rate
(ii) One Percentage point decrease in Discount Rate
(2) Increase / (decrease) on present value of defined benefits
obligation as at 31st March, 2009
(i) One Percentage point increase in Medical Inflation Rate
(ii) One Percentage point decrease in Medical Inflation Rate
Rs. crore
Post Retirement Medical
Benefits
2007-08
2008-09
2007-08
Leave Encashment
2008-09
(Funded)
2007-08
(Funded)
2008-09
-
-
-
-
0.05
(0.05)
0.05
(0.04)
-
-
-
-
0.59
(0.48)
0.52
(0.43)
8.00% p.a.
8.00% p.a.
2.50% p.a.
LIC
(1994-96)
Ultimate
Table
-
8.25% p.a.
8.25% p.a.
2.50% p.a.
LIC
(1994-96)
Ultimate
Table
-
8.00% p.a.
2.50% p.a.
LIC
(1994-96)
Ultimate
Table
-
8.25% p.a.
2.50% p.a.
LIC
(1994-96)
Ultimate
Table
-
8.00% p.a.
-
8.25% p.a.
-
-
- -
LIC
(1996-98)
Ultimate
Table
- 4.00% p.a.
LIC
(1996-98) Ultimate
Table
4.00 % p.a.
IX
1
2
3
4
Actuarial assumptions
Discount rate
Rate of return on plan assets
Salary escalation
Mortality pre retirement rate
5
Mortality post retirement rate
6
Medical premium Inflation rate
(b)
The Company makes contribution towards provident fund and superannuation fund as a defined contribution retirement benefit plan for qualifying
employees. To fund the benefits, the Company is required to contribute a specified percentage of salary to the respective trusts, which administer the
retirement benefit schemes.
(c)
The Guidance issued by the Accounting Standard Board (ASB) on implementing the Accounting Standard states that provident funds set up by
employers, which require interest shortfall to be met by the employer, needs to be treated as defined benefit plan. The Fund does not have any existing
deficit or interest shortfall. As per the Company’s Actuary, any future obligation arising due to interest shortfall can not be measured reliably. However,
having regard to the assets of the Fund and return on the investments, the Company does not expect any deficiency in the foreseeable future.
(d)
The Company makes annual contributions to the Crompton Greaves Limited Gratuity Trust, which is funded defined benefit plan for qualifying employees.
The Scheme provides for lump sum payment to vested employees at retirement, death while in employment or on termination of employment as per
the Company’s Gratuity Scheme. Vesting occurs upon completion of five years of service.
(e)
The Company provides post retirement medical benefits to qualifying employees.
(f )
The actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out at 31st March, 2009. The present value of
the defined benefit obligation and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.
(g)
The salary escalation rate is arrived after taking into consideration seniority, promotion and other relevant factors such as demand and supply in
employment market.
93
financials
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
28 Disclosures as required by Accounting Standard (AS) 17 Segment Reporting
I Primary Segments (Business Segments)
Rs. crore
Particulars
Power
Systems
Consumer
Products
Industrial
Systems
Others
Segment revenue (net of excise duty)
Add: Inter segment revenue
Total
Segment results
Less: Interest (net)
Less: Other unallocable expenditure
Net of unallocable income
Profit before tax
Capital Employed:
Segment assets
Segment liabilities
Net Assets
Capital expenditure
Depreciation
2224.26
0.10
2224.36
349.28
1321.82
0.04
1321.86
146.28
1024.20
31.00
1055.20
203.84
40.38
0.05
40.43
0.75
*
Total
2008-09
4610.66
4610.66
700.15
14.62
71.26
614.27
1092.75
662.79
429.96
21.36
21.17
305.88
250.00
55.88
8.65
6.77
359.26
171.96
187.30
18.70
11.96
15.47
19.03
(3.56)
0.60
1101.81
411.91
689.90
6.74
4.71
2875.17
1515.69
1359.48
55.45
45.21
Unallocable assets comprise assets and liabilities which cannot be allocated to the segments. Tax credit assets / liabilities are not considered in capital employed.
Particulars
Segment revenue (net of excise duty)
Add: Inter segment revenue
Total
Segment results
Less: Interest (net)
Less: Other unallocable expenditure
Net of unallocable income
Profit before tax
Capital Employed:
Segment assets
Segment liabilities
Net Assets
Capital expenditure
Depreciation
*
Eliminations/
Unallocable
Expenditure /
Assets*
(31.19)
(31.19)
Power
Systems
Consumer
Products
Industrial
Systems
Others
1805.07
0.64
1805.71
257.69
1117.74
0.09
1117.83
120.81
893.36
25.14
918.50
194.60
59.59
0.17
59.76
(7.26)
Eliminations/
Unallocable
Expenditure /
Assets*
(26.04)
(26.04)
Rs. crore
Total
2007-08
3875.76
3875.76
565.84
27.12
53.07
485.65
978.15
568.23
409.92
31.83
19.54
309.64
221.97
87.67
7.97
6.71
347.60
180.45
167.15
10.56
12.99
23.27
19.97
3.30
74.84
0.56
707.20
304.68
402.52
1.66
0.85
2365.86
1295.30
1070.56
126.86
40.65
Unallocable assets comprise assets and liabilities which cannot be allocated to the segments. Tax credit assets / liabilities are not considered in capital employed.
94
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
II
Secondary Segments (Geographical Segments)
(a) The distribution of Company’s sales by geographical market is as under:
Sales and service revenue:
Domestic
Overseas:
Asia
Africa
North America
South America
Europe
Australia
Total
(b)
2008-09
3520.70
Rs. crore
2007-08
3111.36
448.84
242.90
70.02
213.94
84.53
29.73
4610.66
400.02
67.58
92.58
99.92
76.21
28.09
3875.76
The Company’s tangible fixed assets are located entirely in India.
III Segment Identification, Reportable Segment and definition of each Reportable Segment:
(a)
Primary segment:
In the opinion of the management, the business segment comprises the following :
(i)
Power Systems :
Transformer, Switchgear, Turnkey Projects
(ii)
Consumer Products
:
Fans, Luminaires, Light Sources and Pumps
(iii) Industrial Systems
:
Electric Motors and Alternators, Drives
(b)
Primary / Secondary segment reporting format:
(i)
The risk-return profile of the Company’s business is determined predominantly by the nature of its products and services. Accordingly, the
business segment constitutes the primary segment for disclosure of segment information.
(ii)
In respect of secondary segment information, the management has identified its geographical segments as (a) Domestic and (b) Overseas.
The secondary segment information has been disclosed accordingly.
(c)
Segment identification:
Business segments have been identified on the basis of the nature of products / services, the risk-return profile of individual businesses, the
organisational structure and the internal reporting system of the Company.
(d)
Reportable segments:
Reportable segments have been identified as per the quantitative criteria specified in the Accounting Standard.
(e)
Segment revenue and results :
The expenses and incomes which are not directly attributable to any business segment are shown as unallocable expenditure (net of unallocated
income).
(f )
Segment assets and liabilities :
Segment assets include all operating assets used by the business segment and mainly consist of fixed assets, debtors and inventories. Segment
liabilities primarily include creditors and other liabilities. Common assets and liabilities which cannot be allocated to any of the segments are
shown as a part of unallocable assets / liabilities.
95
financials
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
29 Disclosures as required by Accounting Standard (AS)18 Related Party Disclosures
i)
List of related parties over which control exists:
Sr. No. Name of the Related Party
Relationship
Wholly owned Subsidiary
1
CG Capital & Investments Limited
Wholly owned Subsidiary
2
CG Energy Management Limited
Subsidiary of CG Capital & Investments Limited
3
CG PPI Adhesive Products Limited
Subsidiary of Crompton Greaves Limited
4
Malanpur Captive Power Limited
Wholly owned Subsidiary
5
CG International B.V.
Wholly owned subsidiary of CG International B.V.
6
Pauwels International N.V.
Subsidiary of Pauwels International N.V.
7
Pauwels Trafo Belgium N.V.
Subsidiary of Pauwels International N.V.
8
Pauwels Trafo Gent N.V.
Wholly owned subsidiary of Pauwels Trafo Belgium N.V.
9
Pauwels Trafo Ireland Limited
Subsidiary of Pauwels Trafo Belgium N.V.
10
Pauwels France S.A.
Wholly owned subsidiary of Pauwels Trafo Belgium N.V.
11
Pauwels Transformer Inc
Wholly owned subsidiary of Pauwels International N.V.
12
Pauwels Americas Inc.
Wholly owned subsidiary of Pauwels Trafo Belgium N.V.
13
Pauwels Canada Inc
Subsidiary of CG International B.V.
14
Pauwels Trafo Service N.V.
Subsidiary of Pauwels International N.V.
15
PT Pauwels Trafo Asia
Wholly owned subsidiary of CG International B.V.
16
CG Hungary Kft.
Wholly owned subsidiary of Pauwels Trafo Belgium N.V.
17
Ganz Transelektro Villamossagi Zrt.
Wholly owned subsidiary of Ganz Transelektro Villamossagi Zrt.
18
Transverticum Kft (under liquidation)
Wholly owned subsidiary of CG International B.V.
19
Microsol Holdings Limited
Wholly owned subsidiary of Microsol Holdings Limited
20
Microsol Limited
Wholly owned subsidiary of Microsol Holdings Limited
21
Microsol (UK) Limited Subsidiary of Microsol Holdings Limited
22
Viserge Limited
Wholly owned subsidiary of Microsol Holdings Limited
23
Microsol Inc
24
Societe Nouvelle de Maintenance de
Transformateurs (Sonomatra)
Wholly owned subsidiary of CG International B.V.
Wholly owned subsidiary of CG International B.V.
25
M.S.E. Power Systems Inc.
Wholly owned subsidiary of M.S.E. Power Systems Inc.
26
M.S.E. West LLC
Wholly owned subsidiary of CG International B.V.
27
Crompton Greaves Germany GmbH
Serial no.24 to 27 acquired during the year.
During the year, Tricon Controls Limited , wholly owned subsidiary of Microsol (UK) Limited has been liquidated.
ii)
List of related parties with whom transactions were carried out during the year and description of relationship :
Subsidiaries:
1
CG Capital & Investments Limited
2
CG Energy Management Limited
3
CG PPI Adhesive Products Limited
4
Malanpur Captive Power Limited
5
CG International B.V.
6
Pauwels Trafo Belgium N.V.
7
Pauwels Transformer Inc.
8
Pauwels Americas Inc.
9
Pauwels Canada Inc.
10
PT Pauwels Trafo Asia
11
Ganz Transelektro Villamossagi Zrt.
12
Microsol (UK) Limited
Associates:
1
Brook Crompton Greaves Limited
2
CG Lucy Switchgear Limited
3
International Components India Limited
Key Management Personnel:
1
G.Thapar - Chairman and Promoter Director
2
S.M. Trehan - Managing Director
96
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
Other Related Parties in which a director is interested:
1
Ballarpur Industries Limited
2
Solaris Chemtech Limited
3
BILT Graphic Paper Products Limited
4
Avantha Power & Infrastructure Limited
5
Asia Aviation Limited
6
Sabah Forest Industries Sdn. Bhd.
7
NewQuest Corporation Limited
8
Salient Business Solutions Limited
9
Solaris Holdings Limited
10
Janpath Investments & Holdings Limited
11
KCT Chemicals & Electricals Limited
iii) The following transactions were carried out with the related parties in the ordinary course of business:
Sr. Nature of transaction / relationship
No.
1
Purchases of goods and services
Subsidiaries
CG PPI Adhesive Products Limited
PT Pauwels Trafo Asia
Pauwels Trafo Belgium N.V.
Pauwels Transformer Inc.
Pauwels Canada Inc
Ganz Transelektro Villamossagi Zrt.
Microsol (UK) Limited
Associates
Brook Crompton Greaves Limited
CG Lucy Switchgear Limited
International Components India Limited
Other Related Party
BILT Graphic Paper Products Limited
Total
2
Sales of goods and services
Subsidiaries
PT Pauwels Trafo Asia
Pauwels Canada Inc
Pauwels Americas Inc.
Pauwels Trafo Belgium N.V.
Malanpur Captive Power Limited
Ganz Transelektro Villamossagi Zrt.
Pauwels International N.V.
Associates
Brook Crompton Greaves Limited
CG Lucy Switchgear Limited
Other Related Parties
Ballarpur Industries Limited
Solaris Chemtech Limited
BILT Graphic Paper Products Limited
Avantha Power & Infrastructure Limited
Sabah Forest Industries Sdn. Bhd.
NewQuest Corporation Limited
Total
2008-09
Rs. crore
2007-08
1.27
18.11
22.59
0.08
2.49
16.64
16.95
0.56
1.06
- - 6.28
50.95
4.27
28.47
40.47
3.21
0.29
103.84
- 109.85
0.01
1.10
0.29
29.40
0.01
3.05
8.87
- 7.09
54.04
1.69
0.81
0.64
- 6.28
3.57
4.73
0.33
2.00
0.28
19.27
6.76
0.50
0.00
81.39
0.59
1.21
0.29
1.13
- - 72.55
97
financials
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
iii) The transactions carried out with the related parties in the ordinary course of business (Contd.)
Sr. Nature of transaction / relationship
No.
3
Purchase of fixed assets
Subsidiary
Microsol (UK) Limited
Other Related Party
Asia Aviation Limited
Total
4
Subscription to equity shares
Subsidiaries
CG International B.V.
Malanpur Captive Power Limited
Total
5
Interest expenses
Subsidiaries
CG Capital & Investments Limited
CG Energy Management Limited
Associate
CG Lucy Switchgear Limited
Total
6
Dividend received
Associate
CG Lucy Switchgear Limited
Total
7
Commission received
Subsidiary
Ganz Transelektro Villamossagi Zrt.
Associate
Brook Crompton Greaves Limited
Total
8
Rental income
Other Related Party
Ballarpur Industries Limited
Total
9
Interest income
Subsidiary
Malanpur Captive Power Limited
Total
10 Payment of salaries, commission and perquisites
Key Management Personnel
G.Thapar
S.M. Trehan
Total
11 Dividend paid
Key Management Personnel
G.Thapar
S.M. Trehan
Other related parties
Solaris Holdings Limited
Janpath Investments & Holdings Limited
KCT Chemicals & Electricals Limited
Total
12 Rent paid
Other Related Parties
Ballarpur Industries Limited
Asia Aviation Limited
Total
2008-09
Rs. crore
2007-08
-
0.32
-
56.25
56.57
1.66
1.66
32.81
- 32.81
0.28
0.03
0.27
0.04
0.13
0.44
0.31
1.20
1.20
- - 0.20
- 1.07
1.27
0.80
0.80
4.44
4.44
2.84
2.84
0.84
0.84
0.75
0.75
3.18
3.12
6.30
2.54
2.37
4.91
0.04
0.02
0.04
0.02
28.69
0.00
0.13
28.88
22.95
0.00
- 23.01
4.11
4.11
0.01
0.77
0.78
98
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
iii) The transactions carried out with the related parties in the ordinary course of business (Contd.)
Sr. Nature of transaction / relationship
No.
13 Other Expenses
Other Related Parties
Asia Aviation Limited
NewQuest Corporation Limited
Salient Business Solutions Limited
Total
14 Other Income
Other Related Party
Ballarpur Industries Limited
Total
2008-09
Rs. crore
2007-08
0.70
1.72
0.09
2.51
- - - - 0.38
0.38
- - As at
31-03-2009
Rs. crore
As at
31-03-2008
iv) Amount due to / from related parties
Sr. Nature of transaction / relationship
No.
1 Account payable
Subsidiaries
CG PPI Adhesive Products Limited
Pauwels Transformer Inc.
Pauwels Americas Inc.
Pauwels Trafo Belgium N.V.
Pauwels Canada Inc
Ganz Transelektro Villamossagi Zrt.
Associates
Brook Crompton Greaves Limited
CG Lucy Switchgear Limited
International Components India Limited
Other Related Party
Salient Business Solutions Limited
Total
2 Account receivable
Subsidiaries
Malanpur Captive Power Limited
PT Pauwels Trafo Asia
Pauwels Transformer Inc.
Pauwels Americas Inc.
Pauwels Trafo Belgium N.V.
Pauwels Canada Inc.
Pauwels International N.V.
Ganz Transelektro Villamossagi Zrt.
Associates
Brook Crompton Greaves Limited
CG Lucy Switchgear Limited
International Components India Limited
Other Related Parties
BILT Graphic Paper Products Limited
Avantha Power & Infrastructure Limited
NewQuest Corporation Limited
Total
0.63
0.01
0.01
2.36
0.02
19.90
0.48
3.09
0.03
-
10.71
19.13
0.23
7.66
8.71
0.29
0.03
53.03
20.26
2.13
3.13
0.08
0.27
0.35
0.22
1.83
0.00
0.46
0.08
0.21
0.00
0.50
0.73
1.62
-
2.07
0.18
6.58
0.99
0.01
15.89
5.55
99
financials
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
iv) Amount due to / from related parties (Contd.)
Sr. Nature of transaction / relationship
No.
3 Loans and advances receivable
Subsidiaries
CG PPI Adhesive Products Limited
Malanpur Captive Power Limited
Pauwels Transformer Inc.
Pauwels Trafo Belgium N.V.
Pauwels International N.V.
Associates
CG Lucy Switchgear Limited
Brook Crompton Greaves Limited
Other Related Parties
Ballarpur Industries Limited
Avantha Power & Infrastructure Limited
Total
4 Loans and advances payable
Subsidiaries
CG Energy Management Limited
CG Capital and Investments Limited
Total
5 Dividend payable
Key Management Personnel
G.Thapar
S.M. Trehan
Other Related Parties
Solaris Holdings Limited
Janpath Investments & Holdings Limited
KCT Chemicals & Electricals Limited
Total
6 Due to Key Management Personnel
G.Thapar
S.M. Trehan
Total
Note: No amounts have been written off or written back during the year.
As at
31-03-2009
Rs. crore
As at
31-03-2008
9.74
0.06
0.70
0.63
0.00
10.31
0.01
0.80
0.01
4.00
0.01
1.96
0.33
0.17
15.64
13.09
0.54
4.70
5.24
0.52
4.54
5.06
0.01
0.01
0.01
0.00
7.17
0.00
0.03
7.22
5.74
5.75
3.18
1.04
4.22
2.54
0.61
3.15
30
(a)
The Company has not entered into any finance / operating lease as specified in Accounting Standard (AS) 19 Leases. The Company has, however
taken various residential / commercial premises and plant and equipments under cancellable operating lease. These lease agreements are
normally renewed on expiry, wherever required.
(b)
There are no exceptional / restrictive covenants in the lease agreements.
31
Disclosures as required by Accounting Standard (AS) 20 Earnings Per Share
Particulars
Profit after taxes
Number of equity shares outstanding
Face value of equity share
Earnings per share (basic and diluted)
Rs. crore
Rs. / share
Rs.
2008-09
397.09
366566592
2.00
10.83
2007-08
313.92
366566592
2.00
8.56
100
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
32
Deferred Tax
The major components of deferred tax assets and deferred tax liabilities are as under:
Particulars
Difference between book depreciation and tax depreciation
Expenses allowable for tax purposes when paid / on payment of TDS
Other items giving rise to timing differences
Net deferred tax liability
Net Incremental liability charged to profit and loss account
33
As at 31-03-2009
Deferred
Deferred
Tax
Tax
Assets
Liabilities
78.21
5.66
8.63
14.29
78.21
63.92
11.67
Rs. crore
As at 31-03-2008
Deferred
Deferred
Tax
Tax
Assets
Liabilities
67.00
4.94
9.81
14.75
67.00
52.25
14.67
As per the Accounting Standard (AS) 28 Impairment of Assets, the Company has reviewed potential generation of economic benefits from fixed assets.
Accordingly, impairment loss amounting to Rs.5.36 crore (Previous year Rs. 5.44 crore) provided in prior years has been reversed during the year.
34
Disclosures as required by Accounting Standard (AS) 29 Provisions, Contingent Liabilities and Contingent Assets
(a)Movement in provisions:
Nature of Provision
Carrying amount at the beginning of the year
Additional provision made during the year
Amounts used during the year
Unused amounts reversed during the year
Carrying amount at the end of the year
Nature of Provision
Carrying amount at the beginning of the year
Additional provision made during the year
Amounts used during the year
Unused amounts reversed during the year
Carrying amount at the end of the year
Warranties
2008-09
2007-08
26.09
15.06
22.32
16.95
2.49
1.77
9.18
4.15
36.74
26.09
Sales Tax / VAT
2008-09
2007-08
18.14
7.00
0.71
11.14
- - 18.85
18.14
Liquidated damages
2008-09
2007-08
11.88
9.09
2.79
- - 11.88
11.88
Other Litigation Claims
2008-09
2007-08
- - 1.98
- - - 1.98
Rs. crore
Excise Duty
2008-09
2007-08
1.82
0.43
2.97
1.39
- - 4.79
1.82
Total
2008-09
57.93
27.98
2.49
9.18
74.24
2007-08
31.58
32.27
1.77
4.15
57.93
(b)Nature of Provisions:
(i)
Product Warranties: The Company gives warranties on certain products and services in the nature of repairs / replacement, which fail to
perform satisfactorily during the warranty period. Provision made represents the amount of the expected cost of meeting such obligation
on account of rectification / replacement. The timing of outflows is expected to be within a period of two years.
(ii)
Provision for sales tax represents sales tax liability on account of non-collection of declaration forms and other legal matters which are in
appeal under the Act / Rules.
(iii) Provision for excise duty represents the differential duty liability that is expected to materialise in respect of matters in appeal.
(iv) Provision for liquidated damages has been made on contracts for which delivery dates are exceeded and computed in reasonable and
prudent manner.
(v)
(c) Disclosure in respect of contingent liabilities: Refer Schedule 19.
Provision for litigation related obligations represents liabilities that are expected to materialise in respect of matters in appeal.
101
financials
SCHEDULES F o r m i n g
P a r t o f T H E B a l a n c e S h e e t A n d P r o f i t A n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
35
Foreign currency transactions, Forward contracts and Derivatives:
Pursuant to the announcement of the Institute of Chartered Accountants of India dated 29th March, 2008 on Accounting for Derivatives, the Company
has adopted, during the year under review, the principles of hedge accounting as per the Accounting Standard (AS) 30 Financial Instruments : Recognition
and Measurement, in respect of those derivative transactions which are not covered by the existing Accounting Standard (AS) 11. This treatment has
resulted in a net loss of Rs.24.16 crore (Previous year - Rs. nil)arising out of fair valuation of hedge of outstanding derivative contracts which has been
recognised in the profit and loss account.
The particulars of derivative contracts entered into for hedging purposes outstanding as at 31st March, 2009 are as under
Sr. Category of Derivative Instruments
No.
1 For hedging foreign currency risks
(a) Forward contracts for receivables including firm commitments and highly probable forecasted transactions
(b) Option Contracts
2
As at
31-03-2009
As at
31-03-2008
USD million
61.00
16.00
USD million
88.00
14.00
Rs. crore
60.03
34.52
6.66
101.33
Rs. crore
84.75
62.32
2.91
101.33
Particulars of unhedged foreign currency exposure as at the balance sheet date:
(a)
(b)
(c)
(d)
Creditors
Loans received
Bank balance in current accounts and term deposit accounts
Investments in overseas subsidiaries
36
Other liabilities include Rs. 8.30 crore received as advance against sale of immovable property of the Company. As per the agreements with the buyers,
the Company is entitled to forfeit the said amounts, if the buyers do not comply with the conditions of sale within the stipulated time. Since, the
buyers have failed to comply with the conditions and hence, the Company has forfeited these amounts received in accordance with the terms of the
agreements. The buyers have filed suits in the Courts for recovery of the advances paid by them. The Company contends that as per the force majeure
clause of the agreements, is not required to be refunded. Pending disposal of the cases by the Courts, the Company, as a measure of prudence, has not
recognised the said amount in the profit and loss account.
37
Amounts shown as 0.00 represents amount below Rs. 50,000 (Rupees Fifty Thousands).
38
Figures for the previous year have been re-grouped / re-classified wherever necessary.
Signature to Schedule 1 to 19, A and B
As per our report attached
For SHARP & TANNAN
CHARTERED ACCOUNTANTS
L. Vaidyanathan
PARTNER
Membership No. 16368
Mumbai, 20th May, 2009
B. R. Jaju
CHIEF FINANCIAL OFFICER
S. M. Trehan
MANAGING DIRECTOR
W. Henriques
COMPANY SECRETARY
G. Thapar
CHAIRMAN
Mumbai, 20th May, 2009
102
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
Balance Sheet Abstract and Company’s General Business Profile
IRegistration details
Registration No.
2 6 4 1
Balance Sheet Date
II
State Code
1
1
3 1 0 3 2 0 0 9
Capital raised during the year (Amount in Rs. Thousands)
Public issue
Rights issue
N I
L
N I
Bonus issue
Private placement
N I L
IIIPosition of mobilisation and deployment of funds (Amount in Rs. Thousands)
Sources of Funds
L
N I
L
Total liabilities
Total assets
1 3 5 9 4 8 2 2
1 3 5 9 4 8 2 2
Paid-up capital
Reserves & surplus
7 3 3 1 6 5
1 1 6 8 5 7 6 9
Secured loans
Unsecured loans
3 4 5 2 1 8
1 9 1 4 7 0
Net deferred tax liabilities
6 3 9 2 0 0
Application of Funds
Net fixed assets and intangible assets
Investments
5 2 3 6 6 2 7
2 6 5 5 1 2 9
Net current assets
5 7 0 3 0 6 6
IVPerformance of Company (Amount in Rs. Thousands)
+ -
Turnover (including other income)
Total expenditure
4 9 5 3 7 0 8 7
4 3 3 9 4 3 5 2
Profit / Loss before tax before extra-ordinary items
+
6 1 4 2 7 3 5
+ -
Profit / Loss after tax
+
3 9 7 0 9 6 1
+ -
Profit / Loss before tax after extra-ordinary items
+
6 1 4 2 7 3 5
Basic earnings per share in Rs.
1 0
.
8 3
Dividend rate %
1 0 0
VGeneric names of the principal products / services of the Company:
Item code no. (ITC code)
Product description
Item code no. (ITC code)
Product description
Item code no. (ITC code)
Product description
Item code no. (ITC code)
Product description
Item code no. (ITC code)
Product description
8 5
.
0 4
Transformers
8 5
.
3 5
Switchgears and power control equipment
8 4
.
1 4
Fan, light sources and luminaires
8 5
.
0 1
Electrical motors and alternators
8 5
.
1 7
Telecom and networking
B. R. Jaju
CHIEF FINANCIAL OFFICER
S. M. Trehan
MANAGING DIRECTOR
W. Henriques
COMPANY SECRETARY
Mumbai, 20th May, 2009
G.Thapar
CHAIRMAN
103
financials
104
STATEMENT UNDER SECTION 212 OF THE COMPANIES ACT, 1956
Rs. crore
Sr.
No.
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Name of the Subsidiary Company
CG Capital & Investments Limited
CG Energy Management Limited
CG PPI Adhesive Products Limited
Malanpur Captive Power Limited
CG International B.V.
Pauwels International N.V.
Pauwels Trafo Belgium N.V.
Pauwels Trafo Gent N.V.
Pauwels Trafo Ireland Limited
Pauwels France S.A.
Pauwels Transformer Inc
Pauwels Americas Inc.
Pauwels Canada Inc
Pauwels Trafo Service N.V.
PT Pauwels Trafo Asia
CG Hungary Kft.
Ganz Transelektro Villamossagi Zrt.
Transverticum Kft
Microsol Holdings Limited
Microsol Limited
Microsol (UK) Limited Viserge Limited
Microsol Inc
Societe Nouvelle de Maintenance de
Transformateurs (Sonomatra)
M.S.E. Power Systems Inc.
M.S.E. West LLC
Crompton Greaves Germany GmbH
Financial year of the
subsidiary ended on
Extent of holding by
Crompton Greaves
Limited in the
subsidiary as on
31st March, 2009
Profit / (loss) so far as it concerns the
members of Crompton Greaves Limited
and not dealt with in the accounts of
Crompton Greaves Limited
Profit / (loss) so far as it concerns the
members of Crompton Greaves Limited
and dealt with in the accounts of Crompton
Greaves Limited
For the financial
year ended
31st March, 2009
For the previous
years since it
became a subsidiary
For the financial
year ended
31st March, 2009
For the previous
years since it
became a subsidiary
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
100.00%
100.00%
81.42%
59.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
95.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
0.97
0.04
0.71
3.16
14.81
102.21
97.03
(4.09)
12.52
0.56
57.41
(0.21)
(11.94)
0.81
25.45
(92.46)
30.38
0.07
(1.42)
0.99
0.44
(3.23)
(1.41)
13.21
(0.92)
12.87
(1.12)
7.72
244.95
88.63
(5.87)
71.44
0.43
73.77
(0.81)
42.66
(0.29)
28.92
(45.60)
(25.96)
(0.11)
(128.40)
118.09
(0.29)
2.19
0.30
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
31st March, 2009
31st March, 2009
31st March, 2009
31st March, 2009
100.00%
100.00%
100.00%
100.00%
0.45
0.42
(0.04)
(0.01)
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
NIL
B. R. Jaju
W. Henriques
S. M. Trehan
G.Thapar
CHIEF FINANCIAL OFFICER
COMPANY SECRETARY
MANAGING DIRECTOR
CHAIRMAN
Mumbai, 20th May, 2009
financials
INFORMATION IN RESPECT OF SUBSIDIARY COMPANIES F OR
Sr. Name of Subsidiary Company
No.
Reporting
currency
Exchange
rate
Capital
Equity
Preference
share
share
capital
capital
Reserves
Total
assets
T H E Y EAR EN D E D 3 1 S T M AR C H 2 0 0 9
Total
liabilities
Investment
(included in
total assets)
Turnover
(including
other
income)
Profit
before
taxation
Provision
for
taxation
Profit
after
taxation
Proposed
dividend
Rs. crore
Country of
incorporation
1
CG Capital & Investments Limited
INR
1.0000
10.50
32.93
14.18
57.76
0.15
50.91
1.12
1.11
0.14
0.97
-
India
2
CG Energy Management Limited
INR
1.0000
1.60
-
(0.88)
0.73
0.01
-
0.04
0.04
0.00
0.04
-
India
3
CG PPI Adhesive Products Limited
INR
1.0000
3.90
-
8.34
19.66
7.42
-
10.40
1.56
0.69
0.87
-
India
4
Malanpur Captive Power Limited
INR
1.0000
18.68
-
3.45
100.78
78.65
4.79
74.23
8.54
3.18
5.36
-
India
5
CG International B.V.
EUR
67.4400
101.33
-
23.14
688.60
564.13
262.88
113.45
14.81
-
14.81
-
The Netherlands
6
Pauwels International N.V.
EUR
67.4400
247.43
-
1015.65
2084.90
821.82
331.49
1302.45
93.17
(9.04)
102.21
-
Belgium
7
Pauwels Trafo Belgium N.V.
EUR
67.4400
183.74
-
166.22
2370.21
2020.25
1184.60
1962.94
133.57
36.54
97.03
-
Belgium
8
Pauwels Trafo Gent N.V.
EUR
67.4400
22.63
-
(97.08)
0.21
74.66
-
1.15
(4.09)
-
(4.09)
-
Belgium
9
Pauwels Trafo Ireland Limited
EUR
67.4400
20.31
15.50
126.10
301.05
139.14
-
501.50
14.00
1.49
12.51
-
Ireland
10
Pauwels France S.A.
EUR
67.4400
0.25
-
2.97
22.39
19.17
-
67.84
0.90
0.34
0.56
-
France
11
Pauwels Transformer Inc
USD
50.7100
6.68
6.68
88.57
322.12
220.19
-
515.72
82.36
24.96
57.40
-
USA
12
Pauwels Americas Inc.
USD
50.7100
0.45
-
(1.98)
27.14
28.67
-
58.21
0.07
0.28
(0.21)
-
USA
13
Pauwels Canada Inc
CAD
40.5250
132.83
-
(118.54)
337.87
323.58
-
389.22
(3.62)
8.32
(11.94)
-
Canada
14
Pauwels Trafo Service N.V.
EUR
67.4400
0.05
-
1.20
1.69
0.44
-
2.56
0.81
-
0.81
-
Netherlands Antilles
15
PT Pauwels Trafo Asia
USD
50.7100
56.36
-
38.51
264.45
169.58
-
346.01
47.55
20.76
26.79
-
Indonesia
16
CG Hungary Kft.
HUF
0.2226
0.06
-
(68.56)
338.59
407.09
-
68.79
(92.46)
-
(92.46)
-
Hungary
17
Ganz Transelektro Villamossagi Zrt.
HUF
0.2226
542.25
-
(484.46)
562.02
504.23
-
496.68
30.86
0.48
30.38
-
Hungary
18
Transverticum Kft
HUF
0.2226
0.07
-
(0.04)
0.03
-
-
0.24
0.08
-
0.08
-
Hungary
19
Microsol Holdings Limited
EUR
67.4400
21.29
4.67
(52.62)
23.48
50.14
23.48
-
(1.42)
-
(1.42)
-
Ireland
20
Microsol Limited
EUR
67.4400
5.44
1.25
(6.67)
0.02
-
-
1.02
0.99
-
0.99
-
Ireland
21
Microsol (UK) Limited EUR
67.4400
0.00
-
3.10
23.81
20.71
-
34.21
0.99
0.55
0.44
-
United Kindom
22
Viserge Limited
EUR
67.4400
0.01
-
14.57
14.66
0.08
-
3.26
(3.23)
-
(3.23)
-
Ireland
23
Microsol Inc
USD
50.7100
9.77
-
(7.60)
5.22
3.05
-
11.75
(1.41)
-
(1.41)
-
USA
24
Societe Nouvelle de Maintenance
de Transformateurs (Sonomatra)
EUR
67.4400
1.35
-
1.58
8.58
5.65
-
10.91
0.34
(0.11)
0.45
-
France
25
M.S.E. Power Systems Inc.
USD
50.7100
0.61
-
9.09
53.51
43.81
-
70.81
0.20
(0.22)
0.42
-
USA
26
M.S.E. West LLC
USD
50.7100
0.50
-
(0.46)
0.12
0.08
-
0.09
(0.04)
-
(0.04)
-
USA
27
Crompton Greaves Germany GmbH
EUR
67.4400
0.17
-
(0.01)
0.16
-
-
-
(0.01)
-
(0.01)
-
Germany
105
CROMPTON
GREAVES
CONSOLIDATED
FINANCIALS
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
Auditors’ Report tC or otmhpetBoonaGrrdeoavf eDsi rLei mc tiot re ds oa nn dt hi tes Csounbssoildiidaartieeds F i n a n c i a l
1. We have audited the attached Consolidated Balance Sheet of Crompton
In our opinion and to the best of our information and explanations
Greaves Limited and its subsidiaries and associates (‘the Crompton
given to us and on consideration of the separate audit report on
Greaves Group’) as at 31st March, 2009, the Consolidated Profit and
individual audited financial statements of the Crompton Greaves
Loss Account and the Consolidated Cash Flow Statement for the year
Group, we are of the opinion that the said consolidated financial
ended on that date, annexed thereto. These financial statements are
statements give a true and fair view in conformity with the accounting
the responsibility of the Company’s management. Our responsibility
principles generally accepted in India:
is to express an opinion on these financial statements based on our
audit.
2. 5. Statements of
(a)
state of affairs of the Crompton Greaves Group as at 31st March,
2009;
We conducted our audit in accordance with auditing standards
generally accepted in India. Those Standards require that we plan and
in the case of the Consolidated Balance Sheet, of the consolidated
(b)
in the case of the Consolidated Profit and Loss Account, of the
perform the audit to obtain reasonable assurance about whether the
consolidated results of operations of the Crompton Greaves
financial statements are prepared, in all material respects, in accordance
Group for the year ended on that date; and
with an identified financial reporting framework and are free of material
misstatements. An audit includes examining, on test basis, evidence
supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
(c)
in the case of the Consolidated Cash Flow Statement, of the
consolidated cash flows of the Crompton Greaves Group for the
year ended on that date.
significant estimates made by management, as well as evaluating
For SHARP & TANNAN
Chartered Accountants
the overall financial statements. We believe that our audit provides a
reasonable basis for our opinion.
3. We did not audit the financial statements of certain subsidiaries,
namely, CG Capital & Investments Limited and CG International B.V.,
The Netherlands and its subsidiaries whose financial statements reflect
Mumbai, 20th May, 2009
L. Vaidyanathan
Partner
Membership No. 16368
total assets of Rs. 3010.52 crore as at 31st March, 2009, total revenues of
Rs. 4112.35 crore and the cash inflows being Rs. 4.34 crore for the year
ended on that date and certain associates, namely, CG Actaris Electricity
Management Private Limited and Pauwels Middle East Trading &
Contracting Private Limited whose net carrying cost of investments
being Rs. 0.60 crore and current year share of losses (net) being Rs. 2.95
crore. These financial statements have been audited by other auditors
whose reports have been furnished to us, and our opinion, in so far as
it relates to the amounts included in respect of these subsidiaries and
associates, is based solely on the report of the other auditors.
4. We report that the consolidated financial statements have been
prepared by the Company in accordance with the requirements of
the Accounting Standard (AS) 21 Consolidated Financial Statements
and (AS) 23 Accounting for Investments in Associates in Consolidated
Financial Statements specified by the Companies (Accounting
Standards) Rules, 2006 notified by the Central Government and on the
basis of the separate audited financial statements of the Crompton
Greaves Group included in the consolidated financial statements.
107
financials
CONSOLIDATED BALANCE SHEET A S
AT 3 1 S T M AR C H , 2 0 0 9
Schedule
SOURCES OF FUNDS
SHAREHOLDERS’ FUNDS:
Share capital
Reserve and surplus
1
2
As at 31-03-2009
Rs. crore
Rs. crore
73.32
1757.73
3
MINORITY INTEREST
LOAN FUNDS:
Secured loans
Unsecured loans
4
5
As at 31-03-2008
Rs. crore
Rs. crore
73.32
1228.47
1831.05
1301.79
13.85
12.25
692.25
25.95
811.98
29.97
718.20
2563.10
APPLICATION OF FUNDS
FIXED ASSETS:
Gross block
Less: Depreciation, obsolescence, amortisation and impairment
Net block
Capital work-in-progress
INVESTMENTS
DEFERRED TAX:
Deferred tax assets
Less: Deferred tax liabilities
6
3028.85
1704.02
1324.83
53.70
Less: CURRENT LIABILITIES AND PROVISIONS:
Current liabilities
Provisions
132.98
84.77
1244.41
93.43
130.68
71.87
48.21
58.81
8
9
10
11
1094.92
2055.64
565.64
453.71
4169.91
1066.36
1720.41
244.49
370.38
3401.64
12
13
2602.15
598.61
3200.76
2099.77
542.53
2642.30
969.15
2563.10
Net Current Assets
CONTINGENT LIABILITIES
SIGNIFICANT ACCOUNTING POLICIES
NOTES ON THE CONSOLIDATED BALANCE SHEET AND
PROFIT AND LOSS ACCOUNT
2685.41
1488.58
1196.83
47.58
1378.53
167.21
7
(Refer Note 12 of Schedule ‘B’)
CURRENT ASSETS, LOANS AND ADVANCES:
Inventories
Sundry debtors
Cash and bank balances
Loans and advances
841.95
2155.99
759.34
2155.99
20
A
B
The Schedules referred to above and the Notes attached, form an integral part of the Balance Sheet
As per our report attached
For SHARP & TANNAN
CHARTERED ACCOUNTANTS
L. Vaidyanathan
PARTNER
Membership No. 16368
Mumbai, 20th May, 2009
B. R. Jaju
CHIEF FINANCIAL OFFICER
S. M. Trehan
MANAGING DIRECTOR
W. Henriques
COMPANY SECRETARY
G. Thapar
CHAIRMAN
Mumbai, 20th May, 2009
108
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
CONSOLIDATED PROFIT AND LOSS ACCOUNT F OR
T H E Y EAR EN D E D 3 1 S T M AR C H , 2 0 0 9
Schedule
INCOME:
Sales and services
Less: Excise duty
Sales and services (net)
Other income
14
EXPENDITURE:
Materials, manufacturing and operating expenses
Staff expenses
Selling and administration expenses
Interest and commitment charges
Depreciation, obsolescence, amortisation and impairment
15
16
17
18
19
2008-09
Rs. crore
Rs. crore
9031.08
293.82
2007-08
Rs. crore
7181.38
349.04
8737.26
73.99
8811.25
5693.76
1062.71
985.21
80.80
121.60
6832.34
73.67
6906.01
4564.64
796.81
724.94
78.12
126.26
7944.08
867.17
PROFIT BEFORE TAX
Provision for :
Current tax
Deferred tax
Rs. crore
261.30
38.04
6290.77
615.24
197.04
3.35
(Refer Note 12 of Schedule ‘B’)
5.33
Fringe benefit tax
PROFIT AFTER TAX
Minority interest in income
PROFIT AFTER TAXES AND MINORITY INTEREST
Share of profit / (loss) of Associate companies
AMOUNT AVAILABLE FOR APPROPRIATION
Transfer from doubtful debts reserve
AMOUNT AVAILABLE FOR DISTRIBUTION
1st Interim dividend
2nd Interim dividend
3rd Interim dividend
Corporate dividend tax
BALANCE CARRIED TO BALANCE SHEET
Earnings per share (basic and diluted)
(Face value of equity share of Rs. 2 each)
Rs.
5.03
304.67
562.50
205.42
409.82
(1.71)
560.79
(4.81)
405.01
(0.89)
559.90
1.71
406.72
559.90
16.14
422.86
25.66
29.32
18.33
12.57
474.02
14.66
29.32
14.66
9.98
354.24
15.27
11.10
(Refer Note 11 of Schedule ‘B’)
SIGNIFICANT ACCOUNTING POLICIES
A
NOTES ON THE CONSOLIDATED BALANCE SHEET AND
PROFIT AND LOSS ACCOUNT
B
The Schedules referred to above and the Notes attached, form an integral part of the Profit and Loss Account
As per our report attached
For SHARP & TANNAN
CHARTERED ACCOUNTANTS
L. Vaidyanathan
PARTNER
Membership No. 16368
Mumbai, 20th May, 2009
B. R. Jaju
CHIEF FINANCIAL OFFICER
S. M. Trehan
MANAGING DIRECTOR
W. Henriques
COMPANY SECRETARY
G. Thapar
CHAIRMAN
Mumbai, 20th May, 2009
109
financials
CONSOLIDATED CASH FLOW STATEMENT F OR
T H E Y EAR EN D E D 3 1 S T M AR C H , 2 0 0 9
[A] CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxes
Adjustments for :
Depreciation, obsolescence, amortisation and impairment
Provision for doubtful debts and advances
Interest expenses
Interest income
Income from investments
Profit on sale of investments (net)
Unrealised exchange (gain) / loss (net)
Unrealised foreign exchange gain on consolidation (net)
(Profit) / Loss on sale of fixed assets (net)
Provision for diminution in value of investments
Operating profit before working capital changes
Adjustments for:
(Increase) / Decrease in trade and other receivables
(Increase) / Decrease in Inventories
Increase / (Decrease) in trade and other payables
Increase / (Decrease) in provision
Cash generated from operations
Direct taxes and fringe benefit tax paid (net of refunds)
Minority interest in income
Share of profit / (loss) of associate companies
Cash generated from / (used in) operations
[A]
[B] CASH FLOW FROM INVESTING ACTIVITIES
Add: Inflows from investing activities
Sale of fixed assets
Sale of investments
Change in minority interest
Change in investment in associate companies
Cash and cash equivalents acquired pursuant to acquisition of subsidiary companies
Income from investments (net)
Less: Outflows from investing activities
Purchase of fixed assets
Purchase of investments
Acquisition of subsidiary and minority interest
Change in investment in associate companies
Net Cash (used in) / from investing activities
[B]
2008-09
Rs. crore
2007-08
Rs. crore
867.17
615.24
121.60
18.80
80.80
(15.29)
(1.41)
(3.78)
29.52
60.18
(0.09)
0.17
290.50
1157.67
126.26
18.00
78.12
(8.16)
(0.24)
(1.81)
(0.37)
26.79
(0.88)
237.71
852.95
(314.74)
(25.05)
322.83
22.81
5.85
1163.52
(216.54)
(1.71)
(0.89)
944.38
(217.88)
(148.26)
222.78
59.13
(84.23)
768.72
(186.81)
(4.81)
1.71
578.81
3.55
2026.27
1.60
0.89
15.33
1.41
2049.05
5.78
1629.91
7.58
0.41
0.24
1643.92
(201.22)
(2097.70)
(84.38)
(2383.30)
(334.25)
(258.28)
(1655.58)
(75.26)
(1.71)
(1990.83)
(346.91)
110
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
CONSOLIDATED CASH FLOW STATEMENT F OR
T H E Y EAR EN D E D 3 1 S T M AR C H , 2 0 0 9
2008-09
Rs. crore
2007-08
Rs. crore
12.69
12.69
8.02
8.02
(131.54)
(5.82)
(69.45)
(11.95)
(82.91)
(301.67)
(288.98)
(88.67)
(2.14)
(62.04)
(7.59)
(76.46)
(236.90)
(228.88)
NET CHANGES IN CASH AND CASH EQUIVALENTS (A+B+C)
321.15
3.02
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year
244.49
565.64
241.47
244.49
[C] CASH FLOW FROM FINANCING ACTIVITIES
Add: Inflows from financing activities
Interest income
Less: Outflows from financing activities
Secured loans
Unsecured loans
Interim dividend paid
Corporate dividend tax
Interest expenses
Cash generated from / (used in) financing activities
[C]
Notes :
1
The cash flow statement has been prepared under the indirect method as set out in Accounting Standard (AS) 3 Cash Flow Statements, as specified in
the Companies (Accounting Standards) Rules, 2006.
2
Additions to fixed assets include movements of capital work-in-progress during the year.
3
Cash and cash equivalents at the end of the year represent cash and bank balances and include unrealised gain of Rs. 0.19 crore (Previous year Rs. nil) on
account of translation of foreign currency bank balances.
4
Figures for the previous year have been re-grouped / re-classified wherever necessary.
As per our report attached
For SHARP & TANNAN
CHARTERED ACCOUNTANTS
L. Vaidyanathan
PARTNER
Membership No. 16368
Mumbai, 20th May, 2009
B. R. Jaju
CHIEF FINANCIAL OFFICER
S. M. Trehan
MANAGING DIRECTOR
W. Henriques
COMPANY SECRETARY
G. Thapar
CHAIRMAN
Mumbai, 20th May, 2009
111
financials
SCHEDULES F OR M I N G
PART O F T H E C ON S OL I D ATE D B ALAN C E S H EET
SCHEDULE : 1
SHARE CAPITAL
Authorised
62,50,00,000 Equity shares of Rs. 2 each
Issued and subscribed
36,66,08,892 Equity shares of Rs. 2 each
Paid-up
36,65,66,592 Equity shares of Rs. 2 each
Add: Forfeited shares 42,300 equity shares of Rs. 2 each
(amount paid-up Rs. 32,175)
SCHEDULE : 2
RESERVES AND SURPLUS
Capital reserve on consolidation
Capital reserve
Securities premium account
Capital redemption reserve
Revaluation reserve
Government subsidy
Foreign currency transalation reserve
Investment allowance (utilised) reserve
Retained Earnings
Total
Previous year
As at
01-04-2008
Rs. crore
156.68
19.12
206.82
10.00
14.76
0.39
(22.72)
0.33
385.38
843.09
1228.47
895.53
As at
31-03-2009
Rs. crore
As at
31-03-2008
Rs. crore
125.00
125.00
73.32
73.32
73.32
0.00
73.32
0.00
73.32
73.32
Additions
Deductions
Rs. crore
Rs. crore
65.61
65.61
474.36 (b)
539.97
381.31
0.18 (a)
0.01 (b)
0.33 (b)
0.52
10.19 (c)
10.71
48.37
As at
31-03-2009
Rs. crore
156.68
19.12
206.82
10.00
14.58
0.38
42.89
450.47
1307.26
1757.73
1228.47
Notes:
(a)
Depreciation on revalued fixed assets, recouped from revaluation reserve Rs. 0.18 crore.
(b)
Additions to retained earnings represents Rs. 474.02 crore transferred from profit and loss account, Rs. 0.33 crore transferred from investment allowance
(utilised) reserve and Rs. 0.01 crore transferred from government subsidy.
(c)
Deductions from retained earnings represents Rs. 10.18 crore on account of employee benefits provided as per Accounting Standard (AS) 15 Employee
Benefits and Rs. 0.01 crore on account of acquisition of share of minority interest.
(d)
Retained earnings comprises of general reserve and profit and loss account balances.
SCHEDULE : 3
MINORITY INTEREST
Opening balance
Adjustment on account of subsidiaries
Share of profit for the year
Dividend to minority shareholders
Closing balance
As at
31-03-2009
Rs. crore
As at
31-03-2008
Rs. crore
12.25
0.06
1.71
(0.17)
13.85
28.40
(20.84)
4.81
(0.12)
12.25
112
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F OR M I N G
PART O F T H E C ON S OL I D ATE D B ALAN C E S H EET
SCHEDULE : 4
SECURED LOANS
Term Loans
From banks
From financial institutions
Working Capital Demand Loan
From banks
As at
31-03-2009
Rs. crore
As at
31-03-2008
Rs. crore
554.04
138.21
423.90
267.63
-
120.45
692.25
811.98
As at
31-03-2009
Rs. crore
As at
31-03-2008
Rs. crore
2.21
2.07
4.07
2.71
19.15
25.19
0.52
-
25.95
29.97
(Refer Note 16 of Schedule ‘B’)
SCHEDULE : 5
UNSECURED LOANS
Inter-corporate deposits
{Due within one year Rs.0.33 crore; (Previous year Rs.0.18 crore)}
Lease finance
{Due within one year Rs. 2.27 crore; (Previous year Rs. 1.08 crore)}
Interest free sales tax deferral loans from State Governments
{Due within one year Rs. 6.66 crore; (Previous year Rs. 6.04 crore)}
Others
(Due within one year)
113
financials
114
SCHEDULES F OR M I N G PART O F T H E C ON S OL I D ATE D B ALAN C E S H EET
SCHEDULE : 6
Rs. crore
FIXED ASSETS
Gross block (Cost / Valuation)
ASSETS
As at
Additions
Deductions
01-04-2008
Impairment
Translation
As at
As at
adjustments
31-03-2009
01-04-2008
Reversed
Depreciation / Obsolescence / Amortisation
As at
Upto
For the
31-03-2009
31-03-2008
year
Deductions
Net block
Translation
Upto
As at
As at
adjustments
31-03-2009
31-03-2009
31-03-2008
(A) Tangible Assets
31.76
4.77
-
1.51
38.04
-
-
-
-
-
-
-
-
38.04
31.76
652.41
23.71
0.09
22.21
698.24
1.15
1.15
-
316.92
15.62
0.04
19.19
351.69
346.55
334.34
1364.56
61.66
4.85
79.81
1501.18
2.66
2.66
-
897.35
56.91
2.97
49.65
1000.94
500.24
464.55
0.02
-
-
-
0.02
-
-
-
0.01
-
-
-
0.01
0.01
0.01
186.66
9.72
4.97
11.30
202.71
1.40
1.40
-
148.18
9.02
4.42
8.70
161.48
41.23
37.08
31.18
3.02
2.33
0.95
32.82
0.15
0.15
-
19.42
3.26
1.35
1.05
22.38
10.44
11.61
2266.59
102.88
12.24
115.78
2473.01
5.36
5.36
-
1381.88
84.81
8.78
78.59
1536.50
936.51
879.35
317.96
72.69
-
23.60
414.25
-
-
-
42.48
32.84
-
7.78
83.10
331.15
275.48
Leasehold land
14.62
1.72
-
-
16.34
-
-
-
2.27
0.17
-
-
2.44
13.90
12.35
Computer software
70.72
10.62
0.78
17.22
97.78
-
-
-
49.96
8.06
0.78
14.15
71.39
26.39
20.76
Technical know-how
2.97
-
-
-
2.97
-
-
-
1.19
0.59
-
-
1.78
1.19
1.78
Patents and licenses
0.02
0.31
-
-
0.33
-
-
-
-
0.01
-
-
0.01
0.32
0.02
12.53
9.86
-
1.78
24.17
-
-
-
5.44
0.66
-
2.70
8.80
15.37
7.09
418.82
95.20
0.78
42.60
555.84
-
-
-
101.34
42.33
0.78
24.63
167.52
388.32
317.48
Total (A+B)
2685.41
198.08
13.02
158.38
3028.85
5.36
5.36
-
1483.22
127.14
9.56
103.22
1704.02
1324.83
1196.83
Previous year
2233.16
314.72
31.43
168.96
2685.41
10.80
5.44
5.36
1237.15
131.91
26.53
140.69
1483.22
53.70
47.58
1378.53
1244.41
Freehold land
Buildings
Plant and equipments
Railway sidings
Furniture and fixtures
Vehicles
Sub-total (A)
(B) Intangible Assets
Goodwill on consolidation
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
Research and development
Sub-total (B)
Add : Capital work-in-progress
SCHEDULES F OR M I N G
PART O F T H E C ON S OL I D ATE D B ALAN C E S H EET
As at 31-03-2009
Rs. crore
Rs. crore
SCHEDULE : 7
INVESTMENTS
As at 31-03-2008
Rs. crore
Rs. crore
(Refer Note 6 of Schedule ‘A’)
Long Term Investments
Government and trust securities
Fully paid shares of associate companies
(Under equity method)
Fully paid preference / equity shares of other companies
Bonds and debentures
0.75
27.19
0.75
26.66
0.52
34.24
0.52
36.05
62.70
Current Investments
Other fully paid equity shares
Other investments
SCHEDULE : 8
INVENTORIES
Stores, spares and packing materials
Raw materials
Work-in-progress - Manufacturing
Work-in-progress - Contracts
At cost
At realisable sales value
Less: Progress payments
0.66
103.85
63.98
0.83
28.62
104.51
167.21
29.45
93.43
As at 31-03-2009
Rs. crore
Rs. crore
As at 31-03-2008
Rs. crore
Rs. crore
7.73
370.08
566.02
7.62
363.39
526.97
5.00
443.43
448.43
404.11
5.85
222.47
228.32
180.78
44.32
Finished goods - Manufacturing
Add:- Excise duty on finished goods
Finished goods - Trading
SCHEDULE : 9
SUNDRY DEBTORS
81.53
2.00
83.53
23.24
47.54
70.80
3.63
74.43
46.41
106.77
1094.92
120.84
1066.36
As at 31-03-2009
Rs. crore
Rs. crore
As at 31-03-2008
Rs. crore
Rs. crore
(Unsecured)
Debts outstanding for a period exceeding six months
Considered good
Considered doubtful
Other debts
Considered good
Considered doubtful
Less: Provision for doubtful debts
195.98
55.46
251.44
224.41
31.49
255.90
1859.66
0.70
2111.80
56.16
1496.00
0.22
1752.12
31.71
2055.64
2055.64
1720.41
1720.41
115
financials
SCHEDULES F OR M I N G
PART O F T H E C ON S OL I D ATE D B ALAN C E S H EET
SCHEDULE : 10
CASH AND BANK BALANCES
Cash on hand
Bank balances with scheduled banks
On current accounts
On deposit accounts
As at 31-03-2009
Rs. crore
Rs. crore
As at 31-03-2008
Rs. crore
Rs. crore
0.32
0.35
186.20
297.08
114.81
50.56
483.28
Bank balances with non-scheduled banks
On current accounts
On deposit accounts
SCHEDULE : 11
LOANS AND ADVANCES
76.08
5.96
165.37
51.46
27.31
82.04
565.64
78.77
244.49
As at 31-03-2009
Rs. crore
Rs. crore
As at 31-03-2008
Rs. crore
Rs. crore
(Unsecured, considered good)
Advances recoverable in cash or in kind or for value to be received
Considered good
Considered doubtful
Less: Provision for doubtful advances
368.37
5.51
5.51
368.37
85.34
453.71
314.03
56.35
370.38
As at 31-03-2009
Rs. crore
Rs. crore
As at 31-03-2008
Rs. crore
Rs. crore
1588.40
729.04
1222.85
673.60
Balances with excise, customs, service tax and value added tax etc.
SCHEDULE : 12
CURRENT LIABILITIES
Sundry creditors
Advances from customers
Investor Education and Protection Fund
Unclaimed dividend
Unclaimed matured fixed deposits
Due to Directors
Interest accrued but not due on loans
Other liabilities
Due to erstwhile shareholders of acquired subsidiaries
SCHEDULE : 13
PROVISIONS
Taxes
Fringe benefit tax
Interim dividend
Corporate dividend tax
Leave encashment
Gratuity
Pension / social security
Post retirement medical benefits
Others provisions
314.03
4.14
4.14
1.25
0.17
1.06
0.26
1.42
4.90
2.52
224.81
51.06
2602.15
1.32
3.82
4.63
189.14
4.41
2099.77
As at
31-03-2009
Rs. crore
As at
31-03-2008
Rs. crore
261.30
5.33
18.33
3.11
17.01
3.65
76.99
6.24
206.65
197.04
5.03
14.66
2.49
14.23
2.71
114.66
5.09
186.62
598.61
542.53
(Refer Note 14 of Schedule ‘B’)
116
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F OR M I N G
PART O F T H E C ON S OL I D ATE D PRO F I T AN D LO S S A C C OUNT
SCHEDULE : 14
OTHER INCOME
Income from lease of premises / business service centers
Income from investments (net)
Interest income
Profit on sale of investments (net)
Profit on sale of fixed assets (net)
Exchange gain (net)
Miscellaneous income
2008-09
SCHEDULE : 15
MATERIALS, MANUFACTURING AND OPERATING EXPENSES
Rs. crore
2008-09
Rs. crore
2007-08
Rs. crore
22.08
1.41
15.29
3.78
0.09
31.34
73.99
19.06
0.24
8.16
1.81
0.88
14.06
29.46
73.67
2007-08
Rs. crore
Rs. crore
Rs. crore
Raw materials consumed
Opening stock
363.39
312.28
Add: Purchases
4442.49
3574.48
Less: Closing stock
370.08
363.39
Total
4435.80
3523.37
237.85
171.35
Add: Sub contracting charges
(including construction materials Rs. 12.58 crore; Previous year Rs.19.75 crore)
89.25
Less: Scrap sales
Purchase of trading goods
71.77
4584.40
3622.95
932.10
861.46
(Increase) / decrease in stocks :
Closing Stock
Work-in-progress - Manufacturing
- Contracts
Finished goods
566.02
526.97
5.00
5.85
106.77
120.84
677.79
653.66
526.97
417.05
Opening Stock
Work-in-progress - Manufacturing
- Contracts
Finished goods
5.85
32.90
120.84
123.03
653.66
572.98
(24.13)
(80.68)
5492.37
4403.73
Stores and spares
60.91
53.35
Power and fuel
75.78
59.06
Repairs - Buildings
16.07
13.22
Repairs - Plant and equipments
36.14
25.56
Technical and testing fees
12.49
9.72
5693.76
4564.64
117
financials
SCHEDULES F OR M I N G
PART O F T H E C ON S OL I D ATE D PRO F I T AN D LO S S A C C OUNT
SCHEDULE : 16
STAFF EXPENSES
2008-09
Rs. crore
2007-08
Rs. crore
Salaries, wages and bonus
Provident fund and family pension scheme contributions
Superannuation fund contributions
Gratuity
Pension / social security
Post retirement medical benefits
Leave encashment
Workmen and staff welfare
833.35
9.25
3.45
4.04
136.06
1.49
5.49
69.58
1062.71
642.29
8.60
3.12
3.67
79.29
0.58
4.92
54.34
796.81
SCHEDULE : 17
SELLING AND ADMINISTRATION EXPENSES
2008-09
Rs. crore
2007-08
Rs. crore
27.31
28.39
32.42
27.55
59.06
57.65
6.34
267.47
42.11
55.00
27.19
7.06
18.80
0.17
127.82
0.15
200.72
985.21
18.72
21.63
40.15
25.01
46.64
57.90
5.51
181.94
33.99
69.64
20.36
20.16
18.00
0.14
165.15
724.94
2008-09
Rs. crore
2007-08
Rs. crore
41.20
39.60
80.80
36.38
41.74
78.12
2008-09
Rs. crore
2007-08
Rs. crore
127.14
(5.36)
(0.18)
121.60
131.91
(5.44)
(0.21)
126.26
Rent
Repairs - others
Rates and taxes
Insurance
Travelling
Legal and professional charges
Auditors’ remuneration (excluding service tax)
Freight and forwarding
Packing materials
After sales services including warranties
Sales promotion
Bad debts and advances
Provision for doubtful debts and advances (net)
Provision for diminution in value of investments
Exchange loss (net)
Directors’ fees
Miscellaneous expenses
SCHEDULE : 18
INTEREST AND COMMITMENT CHARGES
Fixed loans
Others
SCHEDULE : 19
DEPRECIATION, OBSOLESCENCE, AMORTISATION AND IMPAIRMENT
Depreciation, obsolescence and amortisation
Impairment provided / (reversed)
Recoupment from revaluation reserve
118
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F OR M I N G
PART O F T H E C ON S OL I D ATE D B ALAN C E S H EET
As at
31-03-2009
Rs. crore
As at
31-03-2008
Rs. crore
11.87
16.22
(b) Sales tax liability that may arise in respect of matters in appeal
1.41
2.55
(c) Excise duty / service tax liability that may arise in respect of matters in appeal preferred by the companies
6.27
15.58
(d) Excise duty / service tax liability that may arise in respect of matters disputed by the department
1.35
0.33
(e) Income tax liability that may arise in respect of matters in appeal by the companies
3.34
1.85
10.09
12.03
(g) Guarantees issued to bankers by associate companies
0.14
0.31
(h) Guarantee given on behalf of associate companies
5.68
4.37
231.78
157.91
SCHEDULE : 20
CONTINGENT LIABILITIES
(a) Claims against the companies not acknowledged as debts
(f ) Income tax liability that may arise in respect of matters in appeal preferred by the department
(i) Bills discounted
119
financials
SCHEDULES F o r m i n g
P a r t o f T H E C o n s o l i d a t e d B a l a n c e S h e e t a n d P r o f i t a n d L o ss Acc o u n t
SCHEDULE : A
SIGNIFICANT ACCOUNTING POLICIES
1
Basis of Presentation
The consolidated financial statements relate to Crompton Greaves Limited (the Parent Company), its subsidiary companies and associates. The Parent
Company with its subsidiaries and associates constitute the Group.
(a)
The financial statements of the subsidiary companies used in the consolidation are drawn upto the same reporting date as that of the Parent
Company, i.e. year ended 31st March, 2009.
(b)
The Group maintains its accounts on accrual basis following the historical cost convention, except for the revaluation of certain fixed assets,
in accordance with the Generally Accepted Accounting Principles (GAAP) and in compliance with the Accounting Standards specified in the
Companies (Accounting Standards) Rules, 2006 notified by the Central Government and other provisions of the Companies Act, 1956. However,
certain escalation and other claims are accounted for in terms of contracts with the customers. Insurance and other claims are accounted for as
and when admitted by the appropriate authorities.
(c)
The preparation of financial statements in conformity with GAAP requires that the respective management of the companies makes estimates
and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the
disclosures relating to contingent liabilities as of the date of the financial statements. Examples of such estimates include the useful life of tangible
and intangible fixed assets, provision for doubtful debts / advances, future obligations in respect of retirement benefit plans, etc. Difference, if any,
between the actual results and estimates is recognised in the period in which the results are known.
(d)
The financial statements of all Indian subsidiaries and associates are prepared in compliance with the Accounting Standards specified in the
Companies (Accounting Standards) Rules, 2006 notified by the Central Government and other provisions of the Companies Act, 1956 and those
of the foreign subsidiaries and associates, have been prepared in compliance with the local laws and applicable accounting standards.
2Principles of Consolidation
(a)
The financial statements of the Parent Company and its subsidiaries have been consolidated on a line by line basis by adding together the book
values of like items of assets, liabilities, incomes and expenses after eliminating intra-group balances, intra-group transactions and unrealised
profits resulting therefrom and are presented to the extent possible, in the same manner as the Company’s independent financial statements.
(b)
The financial statements of the Parent Company and its subsidiaries have been consolidated using uniform accounting policies for like transactions
and other events in similar circumstances.
(c)
The excess of cost to the Parent Company of its investment in each of the subsidiaries over its share of equity in the respective subsidiary, on
the acquisition date, is recognised in the consolidated financial statements as ‘goodwill on consolidation’ and carried in the balance sheet as an
asset. Where the share of equity in the subsidiary companies as on the date of investment, is in excess of cost of investment of the company, it is
recognised as ‘capital reserve’ and shown under the head Reserves and Surplus, in the consolidated financial statements. (d)
Minority interest in the net assets of consolidated subsidiaries consists of the amount of equity attributable to the minority shareholders at
the dates on which investments are made by the company in the subsidiary companies and further movements in their share in the equity,
subsequent to the dates of investments.
(e)
Investments in associate companies have been accounted under the equity method as per Accounting Standard (AS) 23 Accounting for
Investments in Associates in Consolidated Financial Statements.
Under the equity method of accounting, the investment is initially recorded at cost, identifying any goodwill / capital reserve arising at the time
of acquisition. The carrying amount of investment is adjusted thereafter for the post acquisition change in the investor’s share of net assets of the
investee. The consolidated profit and loss account reflects the investor’s share of the results of the operations of the investee.
3
Fixed Assets
(a)
Fixed assets are stated at cost net of tax / duty credit availed, if any, except for land and buildings added prior to 30th June, 1985 which are stated
at revalued cost as at that date based on the report of technical expert (in case of the Parent Company).
(b)
Fixed assets are eliminated from financial statements, either on disposal or when retired from active use. The retired assets are disposed off
immediately.
(c)
Pre-operative expenses, including interest on borrowings upto the date of commercial operations, are treated as part of the project cost and
capitalised.
(d)
Internally manufactured / constructed fixed assets are capitalised at factory cost, including excise duty, where applicable.
(e)
Machinery spares which are specific to particular item of fixed assets and whose use is irregular are capitalised as part of the cost of machinery.
120
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E C o n s o l i d a t e d B a l a n c e S h e e t a n d P r o f i t a n d L o ss Acc o u n t
SCHEDULE : A
SIGNIFICANT ACCOUNTING POLICIES (Contd.)
4Impairment of Assets
(a)
The carrying amount of assets, other than inventories is reviewed at each balance sheet date, to determine whether there is any indication of
impairment. If any such indication exists, the recoverable amount of the assets is estimated.
(b)
An impairment loss is recognised, whenever the carrying amount of assets or its cash generating units exceeds its recoverable amount. The
recoverable amount is the greater of the asset’s net selling price and value in use which is determined based on the estimated future cash flow
generated from the continuing use of an asset and from its disposal at the end of its useful life, discounted to its present value.
(c)
An impairment loss is reversed, if there has been a change in the estimates made to determine and recognise the recoverable amount in the
earlier year.
5Intangible Assets and Amortisation
Intangible assets are recognised as per the criteria specified in the Accounting Standard (AS) 26 Intangible Assets and are amortised as under:
(a) Leasehold land :
Over the period of lease;
(b) Specialised software :
Over a period of three to five years;
(c) Lump sum fees for technical know-how :
Over a period of five years from the year of commercial production;
(d) Goodwill on consolidation :
Over the period of ten years; and
(e) Other intangible assets
:
Over the period of five years.
6Investments
(a)
Long term investments are carried at cost after providing for any diminution in value, if such diminution is of other than temporary nature.
(b)
Current investments are carried at the lower of cost and market value. The determination of carrying costs of such investments is done on the
basis of specific identification.
7Inventories
Inventories are valued at the lower of cost and net realisable value, after providing for obsolescence and damages as under :
(a) Raw materials, packing materials, stores and spares :
At cost, on weighted average basis;
(b)
(c)
(d)
(e)
8
Foreign currency transactions, Forward contracts and Derivatives
(a)
The reporting currency is Indian Rupee.
(b)
Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of the transaction.
At each balance sheet date, foreign currency monetary items are reported using the closing rate. Non-monetary items which are carried at
historical cost denominated in a foreign currency are reported using the exchange rate at the date of the transaction.
(c)
Exchange differences that arise on settlement of monetary items or on reporting at each balance sheet date of the company’s monetary items at
the closing rate are recognised as income or expense in the period in which they arise.
(d)
The premium or the discount on forward exchange contracts not relating to firm commitments or highly probable forecast transactions and not
intended for trading or speculation purpose is amortised as expense or income over the life of the contract.
(e)
Gain or loss on forward exchange contracts relating to firm commitments or highly probable forecast transactions is computed by multiplying
the foreign currency amount of the forward exchange contract by the difference between the forward rate available at the reporting date for the
remaining maturity of the contract and the contracted forward rate. Such gain or loss is recognised in the profit and loss account.
(f )
Cash flows arising on account of roll-over / cancellation of forward contracts are recognised as income / expense of the period in line with the
movement in the underlying exposures.
(g)
The operation of foreign subsidiaries which are considered as non-integral operations, their financial statements are translated at the following
exchange rates:
(i)
Revenue and Expenses
:
(ii)
Current assets and Current liabilities
:
Exchange rate prevailing at the end of the year
(iii) Fixed Assets
:
Exchange rate prevailing at the end of the year
(iv) Share Capital
:
At the original rate when the capital was infused
The resultant exchange difference is accounted as Foreign Currency Translation Reserve untill the disposal of the net investment.
Work-in-progress - Manufacturing
Work-in-progress - Contracts
Finished goods - Manufacturing
Finished goods - Trading
:
:
:
:
At cost, plus appropriate production overheads;
At cost, till certain percentage of completion and thereafter at realisable value;
At cost, plus appropriate production overheads, including excise duty paid / payable
on such goods; and
At cost, on weighted average basis.
At the average exchange rate during the year
121
financials
SCHEDULES F o r m i n g
P a r t o f T H E C o n s o l i d a t e d B a l a n c e S h e e t a n d P r o f i t a n d L o ss Acc o u n t
SCHEDULE : A
SIGNIFICANT ACCOUNTING POLICIES (Contd.)
9Revenue Recognition
(a)
Revenue from sale of products is recognised when all the significant risks and rewards of ownership of the products are passed on to the customers,
which is generally on dispatch of goods and acceptance. Sales include excise duty and price variation and are recognised in terms of contracts
with the customers. Sales exclude value added tax / sales tax, brokerage and commission.
(b)
Service income is recognised as per the terms of the contracts with the customers. Revenue from contracts is recognised based on percentage of
completion method after providing for expected losses, if any.
(c)
Income from interest on deposits, loans and interest bearing securities is recognised on accrual basis.
(d)
Dividend income is accounted for when the right to receive income is established.
10Employee Benefits
Employee benefits including contributions towards social security, retirement benefit schemes are accounted for based on the regulatory framework in
the respective countries and employment rules/ contracts applicable to the specific companies.
11
Depreciation
(a)
Depreciation on the fixed assets is provided at the rates and in the manner specified in Schedule XIV to the Companies Act, 1956, on written down
value method except in the case of the Parent Company, where depreciation on buildings and plant and equipments is provided on straight line
method.
(b)
Buildings constructed on leasehold land are depreciated at normal rate as prescribed in Schedule XIV to the Companies Act, 1956, where the lease
period of land is beyond the life of the building. In other cases, amortised over the lease period.
(c)
In the case of revalued assets, the difference between the depreciation based on revaluation and the depreciation charged on historical cost is
recouped out of revaluation reserve.
(d)
In case of impaired assets, the depreciation is charged on the adjusted cost computed after impairment.
(e)
In case of foreign subsidiaries, depreciation on fixed assets has been provided at the rates required / permissible by the GAAPs of the respective
countries. However, the depreciation rates are higher than the rates specified in the Schedule XIV to the Companies Act, 1956.
12Research and Development
(a)
Revenue expenditure on research and development is charged under respective heads of account.
(b)
Capital expenditure on research and development is included as part of fixed assets and depreciated on the same basis as other fixed assets.
13
Borrowing Costs
(a)
Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of such
asset till such time as the asset is ready for its intended use or sale.
(b)
All other borrowing costs are recognised as expense in the period in which they are incurred.
14Leases
(a)
Assets acquired under leases where the Group has substantially all the risks and rewards of ownership are classified as finance leases. Such assets
are capitalised at the inception of the lease at the lower of the fair value and the present value of minimum lease payments and liability is created
for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost, so as to obtain a constant periodic rate of
interest on the outstanding liability for each period.
(b) Assets acquired on leases where a significant portion of the risks and rewards of ownership are retained by lessor are classified as operating leases.
Lease rentals are charged to the profit and loss account on accrual basis.
15Taxes on Income
(a)
Tax on income for the current period is determined on the basis of estimated taxable income and tax credits computed in accordance with the
provisions of relevant tax laws and based on the expected outcome of assessments / appeals.
(b) Deferred tax reflects the tax effects of timing differences between the accounting income and the taxable income for the year, and quantified
using the tax rates and laws that have been enacted or substantively enacted as on the balance sheet date.
(c)
Deferred tax assets are recognised and carried forward only to the extent that there is reasonable certainty supported by convincing evidence that
sufficient future taxable income will be available against which such deferred tax assets can be realised.
(d)
The break-up of the major components of the deferred tax assets and liabilities as at balance sheet date has been arrived at after setting off
deferred tax assets and liabilities where the respective companies have a legally enforceable right to set-off assets against liabilities and where
such assets and liabilities relate to taxes on income levied by the same governing taxation laws.
122
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E C o n s o l i d a t e d B a l a n c e S h e e t a n d P r o f i t a n d L o ss Acc o u n t
SCHEDULE : A
SIGNIFICANT ACCOUNTING POLICIES (Contd.)
16
Fringe Benefit Tax
Fringe Benefit Tax (FBT) on all applicable expenses, as specified in the Chapter XII-H of the Income Tax Act, 1961, is recognised in the profit and loss
account when the underlying expenses are incurred.
17Provisions, Contingent liabilities and Contingent assets
(a)
Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation, if
(i)
the Company has a present obligation as a result of a past event;
(ii)
a probable outflow of resources is expected to settle the obligation; and
(iii) the amount of the obligation can be reliably estimated.
(b)
Reimbursements by another party, expected in respect of expenditure required to settle a provision, is recognised when it is virtually certain that
reimbursement will be received if, obligation is settled.
(c)
Contingent liability is disclosed in the case of :
(i)
a present obligation arising from past events, when it is not probable that an outflow of resources;
(ii)
a present obligation when no reliable estimate is possible;
(iii) a possible obligation arising from past events, unless the probability of outflow of resources is remote.
(d)
Contingent assets are neither recognised nor disclosed.
(e)
Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.
123
financials
SCHEDULES F o r m i n g
P a r t o f T H E C o n s o l i d a t e d B a l a n c e S h e e t a n d P r o f i t a n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT
(a) In terms of Accounting Standard (AS) 21 Consolidated Financial Statements and Accounting Standard (AS) 23 Accounting for Investments in
Associates in Consolidated Financial Statements, the consolidated financial statements present the consolidated accounts of Crompton Greaves
Limited (the Parent Company) with its subsidiaries and associates as under:
1
Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
Country of Proportion of ownership interest
incorporation either directly or through subsidiary
As at
As at
31-03-2009
31-03-2008
Subsidiaries
CG Capital & Investments Limited
CG Energy Management Limited
CG PPI Adhesive Products Limited
Malanpur Captive Power Limited
CG International BV
Pauwels International NV
Pauwels Trafo Belgium NV
Pauwels Trafo Gent NV
Pauwels Trafo Ireland Limited
Pauwels France SA
Pauwels Transformer Inc
Pauwels Americas Inc
Pauwels Canada Inc
Pauwels Trafo Service NV
PT Pauwels Trafo Asia
CG Hungary Kft
Ganz Transelektro Villamossagi Zrt
Transverticum Kft. (under liquidation)
Microsol Holdings Limited
Microsol Limited
Microsol (UK) Limited Viserge Limited
Microsol Inc
Tricon Controls Limited (liquidated on 20th January, 2009)
Societe Nouvelle de Maintenance de Transformateurs (Sonomatra)
(Acquired on 2nd June, 2008)
M.S.E. Power Systems, Inc
M.S.E. West LLC
[Acquired the MSE Group (Sr. No. 26 and 27) on 12th September, 2008 ]
Crompton Greaves Germany GmbH
(Acquired on 13th October, 2008)
Associates
Brook Crompton Greaves Limited
CG Actaris Electricity Management Private Limited
CG Lucy Switchgears Limited
International Components India Limited
Pauwels Middle East Trading & Contracting Private Limited
1
2
3
4
5
India
India
India
India
The Netherlands
Belgium
Belgium
Belgium
Ireland
France
USA
USA
Canada
Netherlands Antilles
Indonesia
Hungary
Hungary
Hungary
Ireland
Ireland
United Kingdom
Ireland
USA
United Kingdom
France
100.00
100.00
81.42
59.00
100.00
100.00
100.00
100.00
100.00
99.80
100.00
100.00
100.00
100.00
95.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
81.42
58.14
100.00
100.00
100.00
100.00
100.00
99.80
100.00
100.00
100.00
100.00
95.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
-
USA
USA
100.00
100.00
-
Germany
100.00
-
India
India
India
India
Sharjah
49.00
49.00
50.00
50.00
49.00
49.00
49.00
50.00
50.00
49.00
(b)
For the purposes of consolidation, the financial statements of CG International BV, which includes the accounts of the foreign subsidiaries and
associates (Pauwels, Ganz, Microsol, Sonomatra and MSE Group) as at 31st March, 2009, have been restated to comply with the Generally Accepted
Accounting Principles in India.
(c)
In case of CG Actaris Electricity Management Private Limited, the financial statements as at 31st December, 2008 have been considered. There
were no material adjustments required for any significant events or transactions for three months upto 31st March, 2009
(d)
For the purposes of consolidation in accordance with Accounting Standard (AS) 23 Accounting for Investments in Associates in Consolidated
Financial Statements, other defunct associate companies which do not fulfill the criterion specified in the said standard have been excluded.
Investments in such associates have been accounted for in accordance with Accounting Standard (AS) 13 Accounting for Investments. The list of
associates not included in the consolidated financial statements are as under:
(i) Power Equipment Limited
(ii) Radiant Electronics Limited
124
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E C o n s o l i d a t e d B a l a n c e S h e e t a n d P r o f i t a n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
2
The effect of acquisitions of subsidiaries during the year:
Societe Nouvelle de Maintenance de Transformateurs (Sonomatra)
M.S.E. Power Systems, Inc. and its group companies
Crompton Greaves Germany GmbH
3
4
5
6
Goodwill on consolidation :
Opening Balance
Goodwill on acquisition of subsidiaries during the year
Less : Goodwill charged to profit and loss account during the year
Add : Translation adjustment
Closing balance
Estimated amount of contracts remaining to be executed on capital account
and not provided for (net of advances)
Advances recoverable in cash or in kind or for value to be received include:
Rent deposit with director
Sales include
(a) Increase / (Decrease) in work-in-progress - contracts, at realisable value:
(i) Closing work-in-progress
(ii) Less: Opening work-in-progress
and are net of:
(b) Brokerage and commission
(c) Cash discount
7
Disclosure under Accounting Standard (AS) 7 Construction Contracts
(a) Contract revenue recognised during the year
(b) Aggregate amount of contract cost incurred and recognised profits (less recognised losses)
for all contracts in progress up to the reporting date.
(c) Amount of customer advances outstanding for contracts in progress up to the reporting date
(d) Retention amount due from customer for contract in progress up to reporting date
Effect on group
profit after
minority interest
Increase /
(Decrease)
Rs. crore
0.45
0.42
(0.01)
0.86
Net assets as at
31-03-2009
As at
31-03-2009
Rs. crore
As at
31-03-2008
Rs. crore
275.48
72.69
32.84
15.82
331.15
229.81
51.17
28.04
22.54
275.48
51.71
30.28
0.02
0.01
2008-09
Rs. crore
2007-08
Rs. crore
443.43
222.47
220.96
222.47
173.39
49.08
70.93
11.03
57.80
7.42
316.75
191.41
429.02
18.87
4.88
159.16
128.56
5.59
Increase /
(Decrease)
Rs. crore
2.93
(7.94)
0.16
(4.85)
125
financials
SCHEDULES F o r m i n g
P a r t o f T H E C o n s o l i d a t e d B a l a n c e S h e e t a n d P r o f i t a n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
8
I
Disclosures as required by Accounting Standard (AS) 17 Segment Reporting
Primary Segment (Business Segment)
Particulars
Power
Systems
Consumer
Products
Industrial
Systems
Others
Segment revenue (net of excise duty)
Add: Inter segment revenue
Total
Segment results
Less: Interest (net)
Less: Other unallocable expenditure
Net of unallocable income
Profit before taxes
Capital Employed:
Segment assets
Segment liabilities
Net Assets
Capital expenditure
Depreciation / Amortisation
6174.38
0.10
6174.48
624.97
1321.82
0.04
1321.86
146.28
1118.77
31.00
1149.77
213.27
122.29
0.05
122.34
19.43
Eliminations/
Unallocable
Expenditure /
Assets*
(31.19)
(31.19)
-
Rs. crore
Total
2008-09
8737.26
8737.26
1003.95
65.51
71.27
867.17
3853.75
2320.39
1533.36
168.21
87.77
305.88
250.00
55.88
8.65
6.77
433.82
193.91
239.91
20.08
16.66
185.23
28.49
156.74
0.52
5.70
936.97
407.97
529.00
6.74
4.70
5715.65
3200.76
2514.89
204.20
121.60
*
Unallocable assets comprise assets and liabilities which cannot be allocated to the segments. Tax credit assets / liabilities are not considered in
capital employed above.
Rs. crore
Particulars
Power
Consumer
Industrial
Others
Eliminations/
Total
Systems
Products
Systems
Unallocable
2007-08
Expenditure /
Assets*
Segment revenue (net of excise duty)
4666.12
1117.74
939.80
108.68
6832.34
0.64
0.09
25.14
0.17
(26.04)
Add: Inter segment revenue
4666.76
1117.83
964.94
108.85
(26.04)
6832.34
Total
(0.32)
753.31
437.19
120.81
195.63
Segment results
69.96
Less: Interest (net)
Less: Other unallocable expenditure
Net of unallocable income
68.11
Profit before taxes
615.24
Capital Employed:
Segment assets
3036.46
309.64
422.90
190.13
780.35
4739.48
1640.59
221.97
261.11
28.14
490.49
2642.30
Segment liabilities
1395.87
87.67
161.79
161.99
289.86
2097.18
Net Assets
153.44
7.97
10.56
86.61
1.66
260.24
Capital Expenditure
69.50
6.71
17.05
4.10
28.90
126.26
Depreciation / Amortisation
*
Unallocable assets comprise assets and liabilities which cannot be allocated to the segments. Tax credit assets / liabilities are not considered in
capital employed above.
126
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E C o n s o l i d a t e d B a l a n c e S h e e t a n d P r o f i t a n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
II Secondary Segment (Geographical Segment)
(a) The distribution of sales :
Sales and Service Revenue:
Domestic
Overseas
Total
2008-09
3602.60
5134.66
8737.26
Rs. crore
2007-08
3160.47
3671.87
6832.34
As at
31-03-2009
610.70
767.83
1378.53
Rs. crore
As at
31-03-2008
606.95
637.46
1244.41
2008-09
4782.61
593.16
1044.86
235.61
1950.28
130.74
8737.26
Rs. crore
2007-08
3688.31
505.98
809.90
115.48
1570.87
141.80
6832.34
(b) The location of tangible / intangible fixed assets :
Particulars
Domestic
Overseas
Total
III Continent wise sales
Continents
Asia
Africa
North America
South America
Europe
Australia
Total
IV Segment Identification, Reportable Segment and definition of each Reportable Segment:
(a) Primary segment
In the opinion of the management, the business segment comprises the following :
: Transformer, Switchgear, Turnkey Projects
(i) Power Systems (ii) Consumer Products : Fans, Luminaires, Light Sources and Pumps
: Electric Motors and Alternators, Drives
(iii) Industrial Systems : Telecommunication, Investment Activity, Generation and Distribution of electricity etc. (iv) Others (b) Primary / Secondary segment reporting format:
(i) The risk-return profile of the Group’s business is determined predominantly by the nature of its products and services. Accordingly, the business
segment constitutes the primary segment for disclosure of segment information.
(ii) In respect of secondary segment information, the Group has identified its geographical segments as (a) Domestic and (b) Overseas. The
secondary segment information has been disclosed accordingly.
(c) Segment identification:
Business segments have been identified on the basis of the nature of products / services, the risk-return profile of individual business, the organisational
structure and the internal reporting system.
(d) Reportable segments:
Reportable segments have been identified as per the quantitative criteria specified in the Accounting Standard.
(e) Segment revenue and results:
The expenses and incomes which are not directly attributable to any business segment are shown as unallocable expenditure. (Net of unallocated
income)
(f ) Segment assets and liabilities:
Segment assets include all operating assets used by the business segment and mainly consist of fixed assets, debtors and inventories. Segment
liabilities primarily include creditors and other liabilities. Common Assets and Liabilities which cannot be allocated to any of the segments are shown
as a part of unallocable assets / liabilities.
127
financials
SCHEDULES F o r m i n g
P a r t o f T H E C o n s o l i d a t e d B a l a n c e S h e e t a n d P r o f i t a n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
9
Disclosures as required by Accounting Standard (AS) 18 Related Party Disclosures
(a) Relationships:
List of related parties with whom transactions were carried out during the year:
(i) Associates :
1
Brook Crompton Greaves Limited
2
CG Lucy Switchgear Limited
3
International Components India Limited
(ii) Key Management Personnel :
- Chairman and Promoter Director
1
G.Thapar 2
S.M. Trehan - Managing Director
(iii) Other Related Parties in which a director is interested:
1
Ballarpur Industries Limited
2
Solaris Chemtech Limited
3
BILT Graphic Paper Products Limited
4
Avantha Power & Infrastructure Limited
5
Asia Aviation Limited
6
Sabah Forest Industries Sdn. Bhd.
7
NewQuest Corporation Limited
8
Salient Business Solutions Limited
9
Solaris Holdings Limited
10 Janpath Investments & Holdings Limited
11 KCT Chemicals & Electricals Limited
(b)
The following transactions were carried out with the related parties in the ordinary course of business:
Sr. Nature of transaction / relationship
No.
1
Purchases of goods and services
Associates
Brooks Crompton Greaves Limited
CG Lucy Switchgear Limited
International Components India Limited
Other Related Party
BILT Graphic Paper Products Limited
Total
2
Sales of goods and services
Associates
Brooks Crompton Greaves Limited
CG Lucy Switchgear Limited
Other Related Parties
Ballarpur Industries Limited
Solaris Chemtech Limited
BILT Graphic Paper Products Limited
Avantha Power & Infrastructure Limited
Sabah Forest Industries Sdn. Bhd.
NewQuest Corporation Limited
Total
2008-09
Rs. crore
2007-08
6.28
50.95
4.27
28.47
40.47
3.21
0.29
61.79
72.15
6.28
3.57
4.73
0.33
2.00
0.28
19.27
6.76
0.50
0.00
38.66
0.59
1.21
0.29
1.13
8.28
128
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E C o n s o l i d a t e d B a l a n c e S h e e t a n d P r o f i t a n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
(b) The transactions carried out with the related parties in the ordinary course of business (Contd.)
Sr. Nature of transaction / relationship
No.
3
Purchase of fixed assets
Other Related Party
Asia Aviation Limited
Total
4
Interest expenses
Associate
CG Lucy Switchgear Limited
Total
5
Dividend received
Associate
CG Lucy Switchgear Limited
Total
6
Commission received
Associate
Brooks Crompton Greaves Limited
Total
7
Rental income
Other Related Party
Ballarpur Industries Limited
Total
8
Payment of Salaries, commission and perquisites
Key Management Personnel
G.Thapar
S.M. Trehan
Total
9
Dividend paid
Key Management Personnel
G.Thapar
S.M. Trehan
Other Related Parties
Solaris Holdings Limited
Janpath Investments & Holdings Limited
KCT Chemicals & Electricals Limited
Total
10 Rent paid
Other Related Parties
Ballarpur Industries Limited
Asia Aviation Limited
Total
11 Other Expenses
Other Related Parties
Asia Aviation Limited
NewQuest Corporation Limited
Salient Business Solutions Limited
Total
12 Other Income
Other Related Party
Ballarpur Industries Limited
Total
2008-09
Rs. crore
2007-08
-
56.25
56.25
0.13
0.13
-
1.20
1.20
-
1.07
1.07
0.80
0.80
4.44
4.44
2.84
2.84
3.18
3.12
6.30
2.54
2.37
4.91
0.04
0.02
0.04
0.02
28.69
0.00
0.13
28.88
22.95
0.00
23.01
4.11
4.11
0.01
0.77
0.78
0.70
1.72
0.09
2.51
-
0.38
0.38
129
financials
SCHEDULES F o r m i n g
P a r t o f T H E C o n s o l i d a t e d B a l a n c e S h e e t a n d P r o f i t a n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
(c) Amount due to / from related parties
Sr. Nature of transaction / relationship
No.
1
2
3
4
5
Account payable
Associates
Brooks Crompton Greaves Limited
CG Lucy Switchgear Limited
International Components India Limited
Other Related Party
Salient Business Solutions Limited
Total
Account receivable
Associates
Brooks Crompton Greaves Limited
CG Lucy Switchgear Limited
International Components India Limited
Other Related Parties
BILT Graphic Paper Products Limited
Avantha Power & Infrastructure Limited
NewQuest Corporation Limited
Total
Loans and advances receivable
Associates
CG Lucy Switchgear Limited
Brooks Crompton Greaves Limited
Other Related Parties
Ballarpur Industries Limited
Avantha Power & Infrastructure Limited
Total
Dividend payable
Key Management Personnel
G.Thapar
S.M. Trehan
Other Related Parties
Solaris Holdings Limited
Janpath Investments & Holdings Limited
KCT Chemicals & Electricals Limited
Total
Due to Key Management Personnel
G.Thapar
S.M. Trehan
Total
As at
31-03-2009
Rs. crore
As at
31-03-2008
10.71
19.13
0.23
7.66
8.71
0.29
0.03
30.10
16.66
0.73
1.62
-
2.07
0.18
6.58
0.99
0.01
9.93
2.25
0.01
4.00
0.01
1.96
0.33
0.17
4.51
1.97
0.01
0.01
0.01
0.00
7.17
0.00
0.03
7.22
5.74
5.75
3.18
1.04
4.22
2.54
0.61
3.15
Note: No amounts have been written off or written back during the year.
130
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E C o n s o l i d a t e d B a l a n c e S h e e t a n d P r o f i t a n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
10 (a) Finance Lease:
Assets acquired on finance lease mainly comprise cars and equipments. The lease have primary period, which is fixed and non-cancellable. The
Group has an option to renew the lease for a secondary period.
The minimum lease rentals as at 31st March, 2009 and the present value as at 31st March, 2009 of minimum payments in respect of assets acquired
under finance leases are as follows:
Particulars
Amount due within one year
Amount due one to five years
Total
Minimum Lease Payments
2008-09
2.27
2.64
4.91
2007-08
1.08
1.97
3.05
Rs. crore
Present Value of Minimum
Lease Payments
2008-09
2007-08
1.83
0.95
2.24
1.76
4.07
2.71
(b) The Group has not entered into any operating lease as specified in Accounting Standard (AS) 19 Leases. The Group has, however taken various
residential / commercial premises and plant and equipments under cancellable operating lease. These lease agreements are normally renewed on
expiry, wherever required.
(c) There are no exceptional / restrictive covenants in the lease agreements.
11 Disclosures as required by Accounting Standard (AS) 20 Earnings Per Share
Particulars
Profit after tax, minority interest and share of profit / (loss) of
associate companies
Number of equity shares outstanding
Face value of equity share
Earnings per share (basic and diluted)
Rs. crore
Nos.
Rs. / Share
Rs.
2008-09
2007-08
559.90
366566592
2.00
15.27
406.72
366566592
2.00
11.10
131
financials
SCHEDULES F o r m i n g
P a r t o f T H E C o n s o l i d a t e d B a l a n c e S h e e t a n d P r o f i t a n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
12 Deferred Tax
The major components of deferred tax assets and deferred tax liabilities are as under:
Particulars
As at 31-03-2009
Deferred
Deferred
Tax
Tax
Assets
Liabilities
Rs. crore
As at 31-03-2008
Deferred
Deferred
Tax
Tax
Assets
Liabilities
-
84.77
-
71.87
Expenses allowable for tax purposes when paid / on payment of TDS
16.94
-
17.63
-
Unabsorbed carried forward tax losses / depreciation
80.17
-
101.00
-
Other items giving rise to timing differences
35.87
-
12.05
-
132.98
84.77
130.68
71.87
Difference between book and tax depreciation
Net deferred tax asset
48.21
Deferred tax assets on acquisition of subsidiaries
19.29
-
-
-
8.15
-
7.67
-
Accounting Standard (AS) 15 Employee Benefits
-
-
12.67
-
Net liability charged to the profit and loss account
-
38.04
-
3.35
38.04
20.34
3.35
(10.60)
16.99
Effect of translation gain
58.81
Deferred tax liabilities charged to retained earnings on adoption of
27.44
Net incremental (liability)/ asset
13 As per the Accounting Standard (AS) 28 Impairment of Assets, the Company has reviewed potential generation of economic benefits from fixed assets.
Accordingly, impairment loss amounting to Rs.5.36 crore (Previous year Rs.5.44 crore) provided in prior years has been reversed during the year.
132
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SCHEDULES F o r m i n g
P a r t o f T H E C o n s o l i d a t e d B a l a n c e S h e e t a n d P r o f i t a n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
14 Disclosures as required by Accounting Standard (AS) 29 Provisions, Contingent Liabilities and Contingent Assets
(a) Movement in provisions:
Nature of Provision
Carrying amount at the beginning of the year
Additional provision made during the year
Amounts used during the year
Unused amounts reversed during the year
Translation adjustment
Carrying amount at the end of the year
Nature of Provision
Carrying amount at the beginning of the year
Additional provision made during the year
Amounts used during the year
Unused amounts reversed during the year
Translation adjustment
Carrying amount at the end of the year
Warranties
2008-09
2007-08
40.68
83.08
54.15
41.83
6.82
18.25
7.66
12.16
2.73
6.52
83.08
101.02
Sales Tax / VAT
2008-09
2007-08
18.14
7.00
0.71
11.14
18.85
18.14
Rs. crore
Excise Duty
2008-09
2007-08
1.82
0.43
2.97
1.39
4.79
1.82
Liquidated Damages
2008-09
2007-08
43.72
59.78
16.06
14.27
18.26
0.03
59.78
55.82
Other Litigation Claims
2008-09
2007-08
1.98
1.98
-
Environmental Obligation
2008-09
2007-08
23.80
19.37
2.63
1.23
0.17
1.62
1.97
24.19
23.80
Nature of Provision
Carrying amount at the beginning of the year
Additional provision made during the year
Amounts used during the year
Unused amounts reversed during the year
Translation adjustment
Carrying amount at the end of the year
Total
2008-09
186.62
61.76
18.25
31.65
8.17
206.65
2007-08
111.20
85.37
6.82
7.83
4.70
186.62
(b) Nature of Provisions:
(i) Product Warranties: The Company gives warranties on certain products and services in the nature of repairs / replacement, which fail to perform
satisfactorily during the warranty period. Provision made represents the amount of the expected cost of meeting such obligation on account of
rectification / replacement. The timing of outflows is expected to be within a period of two years.
(ii) Provision for sales tax represents sales tax liability on account of non-collection of declaration forms and other legal matters which are in appeal
under the Act / Rules.
(iii) Provision for excise duty represents the differential duty liability that is expected to materialise in respect of matters in appeal.
(iv) Provision for liquidated damages has been made on contracts for which delivery dates are exceeded and computed in reasonable and prudent
manner.
(v) Provision for litigation related obligations represents liabilities that are expected to materialise in respect of matters in appeal.
(vi) Provision for environmental obligations represents liabilities towards the costs expected to be incurred to treat contaminated soil / effluents at
its manufacturing locations, wherever required by local law.
(c) Disclosure in respect of contingent libilities: Refer Schedule 20.
133
financials
SCHEDULES F o r m i n g
P a r t o f T H E C o n s o l i d a t e d B a l a n c e S h e e t a n d P r o f i t a n d L o ss Acc o u n t
SCHEDULE : B
NOTES ON THE CONSOLIDATED BALANCE SHEET AND PROFIT AND LOSS ACCOUNT (Contd.)
15
Foreign currency transactions, Forward contracts and Derivatives:
Pursuant to the announcement of the Institute of Chartered Accountants of India dated 29th March, 2008 on Accounting of Derivatives, the Group has
adopted, during the year under review, the principles of hedge accounting as per the Accounting Standard (AS) 30 Financial Instruments: Recognition
and Measurement, in respect of those derivative transactions which are not covered by the existing Accounting Standard (AS) 11. This treatment has
resulted in a net profit of Rs.10.26 crore (Previous year- Rs. nil) arising out of fair valuation of hedge of outstanding derivative contracts which has been
recognised in the profit and loss account.
16
The Group has availed the loan facility secured by the equitable mortgage of fixed assets and hypothecation of inventories and receivables both present
and future.
17
Amount shown as 0.00 represents amount below Rs. 50,000 (Rupees Fifty Thousands).
18
Current year figures include the results of the subsidiaries acquired during the year. Consequently, the figures for the current year are not comparable
with the figures of the previous year and figures for the previous year have been regrouped and reclassified, wherever necessary.
Signature to Schedule 1 to 20, A and B
As per our report attached
For SHARP & TANNAN
CHARTERED ACCOUNTANTS
L. Vaidyanathan
PARTNER
Membership No. 16368
Mumbai, 20th May, 2009
B. R. Jaju
CHIEF FINANCIAL OFFICER
S. M. Trehan
MANAGING DIRECTOR
W. Henriques
COMPANY SECRETARY
G. Thapar
CHAIRMAN
Mumbai, 20th May, 2009
134
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
ACCOUNTS
IN FOREIGN
CURRENCY
Only for convenience of Shareholders
financials
STANDALONE BALANCE SHEET A S
AT 3 1 S T M AR C H , 2 0 0 9
As at 31-03-2009
USD million
USD million
SOURCES OF FUNDS
SHAREHOLDERS’ FUNDS:
Share capital
Reserves and surplus
As at 31-03-2008
USD million
USD million
14.46
230.44
18.27
213.72
244.90
LOAN FUNDS:
Secured loans
Unsecured loans
6.81
3.78
231.99
15.55
6.28
10.59
DEFERRED TAX:
Deferred tax liabilities
Less: Deferred tax assets
15.42
2.82
21.83
16.70
3.68
12.60
268.09
APPLICATION OF FUNDS
FIXED ASSETS:
Gross block
Less: Depreciation, obsolescence, amortisation and impairment
Net block
Capital work-in-progress
INVESTMENTS
CURRENT ASSETS, LOANS AND ADVANCES:
Inventories
Sundry debtors
Cash and bank balances
Loans and advances
Less: CURRENT LIABILITIES AND PROVISIONS:
Current liabilities
Provisions
Net Current assets
219.19
118.48
100.71
2.56
13.02
266.84
263.09
140.28
122.81
5.63
103.27
52.36
128.44
48.44
55.48
199.62
93.18
63.08
411.36
65.54
238.34
39.29
69.64
412.81
234.21
64.69
298.90
259.52
63.33
322.85
112.46
268.09
89.96
266.84
Note: Closing exchange rate considered for 1 USD as on 31st March, 2009 is Rs. 50.71 and as on 31st March, 2008 is Rs. 40.12.
136
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
STANDALONE PROFIT AND LOSS ACCOUNT F OR
T H E Y EAR EN D E D 3 1 S T M AR C H , 2 0 0 9
2008-09
USD million
USD million
INCOME:
Sales and services
Less: Excise duty
Sales and services (net)
Other income
EXPENDITURE:
Materials, manufacturing and operating expenses
Staff expenses
Selling and administration expenses
Interest and commitment charges
Depreciation, obsolescence, amortisation and impairment
PROFIT BEFORE TAX
Provision for :
Current tax
Deferred tax
Fringe benefit tax
1053.74
62.97
2007-08
USD million
USD million
1052.39
86.44
990.77
10.74
1001.51
686.87
48.83
117.96
6.13
9.72
965.95
17.93
983.88
697.49
50.09
97.28
7.85
10.13
869.51
132.00
43.02
2.51
1.14
PROFIT AFTER TAX
Balance brought forward from previous year
Transfer from doubtful debts reserve
PROFIT AVAILABLE FOR APPROPRIATION
General reserve
PROFIT AVAILABLE FOR DISTRIBUTION
1st Interim dividend
2nd Interim dividend
3rd Interim dividend
Corporate dividend tax
BALANCE CARRIED TO BALANCE SHEET
Earning per share (basic and diluted) (in USD)
862.84
121.04
37.90
3.66
1.24
46.67
85.33
134.55
219.88
8.53
211.35
5.51
6.30
3.94
2.68
192.92
0.23
42.80
78.24
77.20
4.02
159.46
7.82
151.64
3.65
7.31
3.65
2.48
134.55
0.21
Note: Average exchange rate considered for 1 USD in 2008-09 is Rs. 46.5363 and in 2007-08 is Rs. 40.1238.
137
financials
STANDALONE BALANCE SHEET A S
AT 3 1 S T M AR C H , 2 0 0 9
As at 31-03-2009
Euro million
Euro million
SOURCES OF FUNDS
SHAREHOLDERS’ FUNDS:
Share capital
Reserves and surplus
As at 31-03-2008
Euro million
Euro million
10.87
173.28
11.56
135.16
184.15
LOAN FUNDS:
Secured loans
Unsecured loans
5.12
2.84
146.72
9.83
3.97
7.96
DEFERRED TAX:
Deferred tax liabilities
Less: Deferred tax assets
11.59
2.12
13.80
10.56
2.32
9.47
201.58
APPLICATION OF FUNDS
FIXED ASSETS:
Gross block
Less : Depreciation, obsolescence, amortisation and impairment
Net block
Capital work-in-progress
INVESTMENTS
CURRENT ASSETS, LOANS AND ADVANCES:
Inventories
Sundry debtors
Cash and bank balances
Loans and advances
Less: CURRENT LIABILITIES AND PROVISIONS:
Current liabilities
Provisions
Net current assets
164.82
89.09
75.73
1.92
8.24
168.76
166.39
88.72
77.67
3.56
77.65
39.37
81.23
30.63
41.71
150.10
70.07
47.43
309.31
41.45
150.74
24.85
44.04
261.08
176.11
48.64
224.75
164.13
40.05
204.18
84.56
201.58
56.90
168.76
Note: Closing exchange rate considered for 1 Euro as on 31st March, 2009 is Rs. 67.44 and as on 31st March, 2008 is Rs. 63.4375.
138
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
STANDALONE PROFIT AND LOSS ACCOUNT F OR
T H E Y EAR EN D E D 3 1 S T M AR C H , 2 0 0 9
2008-09
Euro million
Euro million
INCOME:
Sales and services
Less: Excise duty
Sales and services (net)
Other income
EXPENDITURE:
Materials, manufacturing and operating expenses
Staff expenses
Selling and administration expenses
Interest and commitment charges
Depreciation, obsolescence, amortisation and impairment
PROFIT BEFORE TAX
Provision for :
Current tax
Deferred tax
Fringe benefit tax
748.22
44.72
2007-08
Euro million
Euro million
734.93
60.36
703.50
7.63
711.13
487.72
34.67
83.76
4.35
6.90
674.57
12.52
687.09
487.09
34.98
67.93
5.48
7.08
617.40
93.73
30.55
1.78
0.81
PROFIT AFTER TAX
Balance brought forward from previous year
Transfer from doubtful debts reserve
PROFIT AVAILABLE FOR APPROPRIATION
General reserve
PROFIT AVAILABLE FOR DISTRIBUTION
1st Interim dividend
2nd Interim dividend
3rd Interim dividend
Corporate dividend tax
BALANCE CARRIED TO BALANCE SHEET
Earning per share (basic and diluted) (in Euro)
602.56
84.53
26.47
2.55
0.87
33.14
60.59
93.95
154.54
6.06
148.48
3.92
4.47
2.80
1.90
135.39
0.17
29.89
54.64
53.91
2.81
111.36
5.46
105.90
2.55
5.11
2.55
1.74
93.95
0.15
Note: Average exchange rate considered for 1 Euro in 2008-09 is Rs. 65.5385 and in 2007-08 is Rs. 57.4556.
139
financials
CONSOLIDATED BALANCE SHEET A S
AT 3 1 S T M AR C H , 2 0 0 9
As at 31-03-2009
USD million
USD million
SOURCES OF FUNDS
SHAREHOLDERS’ FUNDS:
Share capital
Reserve and surplus
MINORITY INTEREST
LOAN FUNDS:
Secured loans
Unsecured loans
14.46
346.62
As at 31-03-2008
USD million
USD million
18.27
306.20
361.08
2.73
136.51
5.12
324.47
3.05
202.39
7.47
141.63
505.44
APPLICATION OF FUNDS
FIXED ASSETS:
Gross block
Less: Depreciation, obsolescence, amortisation and impairment
Net block
Capital work-in-progress
INVESTMENTS
DEFERRED TAX:
Deferred tax assets
Less: Deferred tax liabilities
597.29
336.03
261.26
10.59
209.86
537.38
669.34
371.03
298.31
11.86
271.85
32.97
26.22
16.72
310.17
23.28
32.57
17.91
9.50
CURRENT ASSETS, LOANS AND ADVANCES:
Inventories
Sundry debtors
Cash and bank balances
Loans and advances
Less: CURRENT LIABILITIES AND PROVISIONS:
Current liabilities
Provisions
14.66
215.92
405.38
111.54
89.47
822.31
265.79
428.82
60.94
92.32
847.87
513.14
118.05
631.19
523.37
135.23
658.60
191.12
505.44
Net Current Assets
189.27
537.38
Note: Closing exchange rate considered for 1 USD in 2008-09 is Rs. 50.71 and for 2007-08 is Rs. 40.12
140
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
CONSOLIDATED PROFIT AND LOSS ACCOUNT F OR
T H E Y EAR EN D E D 3 1 S T M AR C H , 2 0 0 9
2008-09
USD million
USD million
INCOME:
Sales and services
Less: Excise duty
Sales and services (net)
Other income
EXPENDITURE:
Materials, manufacturing and operating expenses
Staff expenses
Selling and administration expenses
Interest and commitment charges
Depreciation, obsolescence, amortisation and impairment
PROFIT BEFORE TAX
Provision for :
Current tax
Deferred tax
Fringe benefit tax
1940.65
63.14
2007-08
USD million
USD million
1789.81
86.99
1877.51
15.90
1893.41
1223.51
228.36
211.71
17.36
26.13
1702.82
18.36
1721.18
1137.64
198.59
180.68
19.47
31.47
1707.07
186.34
56.15
8.17
1.15
PROFIT AFTER TAX
Less: Minority interest in income
PROFIT AFTER TAXES AND MINORITY INTEREST
Share of profit / (loss) of Associate Companies
AMOUNT AVAILABLE FOR APPROPRATION
Transfer from doubtful debts reserve
AMOUNT AVAILABLE FOR DISTRIBUTION
1st Interim dividend
2nd Interim dividend
3rd Interim dividend
Corporate dividend tax
BALANCE CARRIED TO BALANCE SHEET
Earnings per share (basic and diluted) (in USD)
1567.85
153.33
49.11
0.83
1.25
65.47
120.87
(0.37)
120.50
(0.19)
120.31
120.31
5.51
6.30
3.94
2.70
101.86
0.33
51.19
102.14
(1.20)
100.94
0.43
101.37
4.02
105.39
3.65
7.31
3.65
2.48
88.30
0.28
Note: Average exchange rate considered for 1USD in 2008-09 is Rs. 46.5363 and for 2007-08 is Rs. 40.1238
141
financials
CONSOLIDATED BALANCE SHEET A S
AT 3 1 S T M AR C H , 2 0 0 9
As at 31-03-2009
Euro million
Euro million
SOURCES OF FUNDS
SHAREHOLDERS’ FUNDS:
Share capital
Reserve and surplus
MINORITY INTEREST
LOAN FUNDS:
Secured loans
Unsecured loans
10.87
260.64
As at 31-03-2008
Euro million
Euro million
11.56
193.65
271.51
2.05
102.65
3.85
205.21
1.93
128.00
4.72
106.50
380.06
APPLICATION OF FUNDS
FIXED ASSETS:
Gross block
Less: Depreciation, obsolescence, amortisation and impairment
Net block
Capital work-in-progress
INVESTMENTS
DEFERRED TAX:
Deferred tax assets
Less: Deferred tax liabilities
449.12
252.67
196.45
7.96
132.72
339.86
423.32
234.66
188.66
7.50
204.41
24.79
19.72
12.57
196.16
14.73
20.60
11.33
7.15
CURRENT ASSETS, LOANS AND ADVANCES
Inventories
Sundry debtors
Cash and bank balances
Loans and advances
Less: CURRENT LIABILITIES AND PROVISIONS
Current liabilities
Provisions
9.27
162.36
304.81
83.87
67.28
618.32
168.10
271.20
38.54
58.38
536.22
385.85
88.76
474.61
331.00
85.52
416.52
143.71
380.06
Net Current Assets
119.70
339.86
Note: Closing Exchange rate considered for 1 Euro in 2008-09 is Rs. 67.44 and for 2007-08 is Rs. 63.4375
142
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
CONSOLIDATED PROFIT AND LOSS ACCOUNT F OR
T H E Y EAR EN D E D 3 1 S T M AR C H , 2 0 0 9
2008-09
Euro million
Euro million
INCOME:
Sales and services
Less: Excise duty
Sales and services (net)
Other income
EXPENDITURE:
Materials, manufacturing and operating expenses
Staff expenses
Selling and administration expenses
Interest and commitment charges
Depreciation, obsolescence, amortisation and impairment
PROFIT BEFORE TAX
Provision for :
Current tax
Deferred tax
Fringe benefit tax
1377.98
44.83
2007-08
Euro million
Euro million
1249.90
60.75
1333.15
11.29
1344.44
868.77
162.15
150.33
12.33
18.55
1189.15
12.82
1201.97
794.46
138.68
126.17
13.60
21.98
1212.13
132.31
39.87
5.80
0.81
PROFIT AFTER TAX
Less: Minority interest in income
PROFIT AFTER TAXES AND MINORITY INTEREST
Share of profit / (loss) of Associate Companies
AMOUNT AVAILABLE FOR APPROPRATION
Transfer from doubtful debts reserve
AMOUNT AVAILABLE FOR DISTRIBUTION
1 st Interim dividend
2 nd Interim dividend
3 rd Interim dividend
Proposed dividend - final
Corporate dividend tax
BALANCE CARRIED TO BALANCE SHEET
Earnings per share (basic and diluted) (in Euro)
1094.89
107.08
34.29
0.58
0.88
46.48
85.83
(0.26)
85.57
(0.14)
85.43
85.43
3.92
4.47
2.80
1.92
72.32
0.23
35.75
71.33
(0.84)
70.49
0.30
70.79
2.81
73.60
2.55
5.10
2.55
1.73
61.67
0.19
Note: Average Exchange rate considered for 1 Euro in 2008-09 is Rs. 65.5385 and for 2007-08 is Rs. 57.4556
143
financials
PRODUCTS
& SERVICES
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
Products and Services
Power Systems
Transformers: CG
n
Phase Shifting Transformers
n
Traction Transformers
n
Mobile Transformers
n
Power Transformers (up to 765kV)
n
HVDC Converter Transformers
n
Distribution Transformers
n
Special Purpose Transformers
n
Energy Efficient Transformers
n
Compact Substations
n
Dry Type Transformers (Cast Resin & VPI)
n
Reactors
n
Locomotive Transformers
n
Traction Transformers
Service Division EMEA
n
Furnace Transformers
Pauwels Trafo Service
n
Rectifier Transformers
Ganz Services
n
Series and Shunt Reactors
SO.NO.MA.TRA.
Switchgear: CG
n
Site Services
n
Maintenance
n
OIP - Instrument Transformers upto 550 kV
n
Repair
n
Capacitive Voltage Transformer – 1200 kV
n
Refurbishment
n
OIP - Condenser Bushings upto 420 kV
( IEC ) and upto 138 kV (ANSI )
n
All types and makes of Transformers and OLTC’s
n
GIS and AIS
n
Condition Based Monitoring & Life Time Extension Programs
n
Substation Operation
n
Customer Training
n
Coupling/Grading Capacitors upto 420 kV
n
Vacuum Circuit Breakers upto 36 kV
n
Gas Circuit Breakers upto 420 kV
n
Lightning Arresters upto 390 kV
n
Disconnectors upto 420 kV
n
Vacuum Interrupters upto 52 kV, 44 kA
n
MV & LV Vacuum Contactors upto 12 kV and 630A
n
Unitised Substation
n
SF6 Insulated Vacuum Ring Main Units.
n
Oil Ring Main Units.
n
Power Quality Solutions – Reactive power compensators,
harmonic filters, current limiting and damping reactors,
transient suppressors.
n
Dry type outdoor Instrument Transformers upto 36 kV.
CG Power System Service
n
Site Services
n
Repair & Refurbishment
n
Condition Monitoring and Diagnostics of Power Apparatus.
Pauwels Contracting
Systems Engineering
Turnkey Projects:
n
Rural Electrification projects
n
Industrial HV & MV Installations
n
Mobile Capacitor Banks
n
Mobile HV Circuit Breakers
n
Mobile MV Switchgear
n
Transmission Line Projects
Ganz Transelektro Electric Co. Ltd.
n
High Voltage Power Transformers upto 750 kV,
Special Transformers & Reactors, Loco Transformers.
n
Gas Insulated Switchgear (GIS) upto 300 kV
n
Turnkey Sub-stations upto 400 kV
Transformers: Pauwels
Automation Products – Microsol
n
Power Transformers
n
Distribution Transformers
n
Substation Control and Automation Systems
n
Cast Resin Dry Type Transformers
n
Distribution Automation Systems
n
SLIM Transformers
n
Substation gateways
145
financials
n
Remote Telemetry Units
LT Motors
n
MV Switchgear Actuator Mechanisms
n
AC Motors Fr. 63 to 400 (0.18 kW – 450 kW)
n
Data concentrators
n
Squirrel cage & slipring Motors suitable for Safe Area & Hazardous Area
n
Protocol converters
n
DC Motors Fr. 100 to 280 (2.2 kW – 450 kW)
n
IED integration units
n
Alternators Fr. 112 to 355 (5 kVA – 625 kVA)
n
Turnkey Automation Systems
n
Slipring Alternators from 5KVA to 82.5 KVA
n
AC Drives 0.25 kW – 400kW
MSE Power Systems Inc
Services
Engineering and EPC Projects for Transmission
& Distribution Systems (5 – 500 kV)
n
Substations
n
Flexible AC Transmission Systems (FACTS)
n
Harmonic Filters
n
Substation Automation
n
Protective Relay Systems
n
SCADA Systems
n
Aerial Lines
n
Underground Lines
n
Renewable Energy Systems (Wind, Solar, Hydro, Geothermal)
Engineering Projects
HT Motors: GAN Z
n
HT Slip Ring Motors upto 10 MW
n
HT Squirrel Cage Motors upto 12 MW
FHP Motors
n
B48 Frame- 30 Watts - 187 Watts - 2 /4 /6 Pole Motors
n
M50 Frame- 187 Watts - 1100 Watts - 2/4 Pole Motors
n
100S Frame- 1500 Watts - 2200 Watts - 2/4 Pole Motors
n
80 -100 -112-132 CI Frame- 550 Watts - 3700 Watts - 4 Pole Motors
n
Flame Proof Motors (FP50)- 370 Watts - 750 Watts - 4 Pole Motors
Rail Transportation / Traction
n
A.C & D.C Traction motors
n
Traction Alternators
n
Electrical Traction Controls for Diesel Electric Tower Car and Multiple
Units
n
Systems Engineering
n
Projects on turnkey basis from concept to commissioning:
n
Electrical Control panel for Diesel Electric Locomotives
n
Power Generation, Transmission &
Distribution - 400 Volts to 400 kV
n
Brushless DC Carriage fans & motors
n
Industrial Electrification for Process Industries,
Power, Cement, Paper, Metallurgy,
Steel, Petrochemicals, etc.
Railway Signalling Products
n
Signalling Relays
Control and Automation Projects for Substations
n
Point Machines
Industrial Systems
n
Data Logger
HT Motors
Battery Powered Vehicle
n
HT & LT Induction Motor and generator
including flame proof, increased safety and
non sparking industrial duty machines upto 20
poles 7.5 MW, up to 13.2 KV and in frame
size 315 to 900 in horizontal frame & 740
to 2000 frame size in vertical frame in
enclosure type TEFC, CACA, CACW,SPDP & TETV.
n
Brushless DC Motors
n
Controller
n
Stampings
n
Synchronous machines from 1 MW to 7.5 MW
in frame size 500 to 1000, upto 13.2 KV
in all types of enclosures.
n
Laminations
n
Industrial duty DC machines upto 2200 KW, 810 Volts, in frame size
from 315 to 710 in all types of enclosures
n
Stampings
Consumer Products
Lighting
146
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
Lamps
n
Incandescent Lamps
n
Fluorescent Tubular Lamps
n
Compact Fluorescent Lamps
n
Mercury Sodium & Metal Halide Lamps
n
Halogen Lamps
n
LEDs
Luminaires & Accessories
n
Household Appliances like – Food Processors, Mixer Grinders, Juicer
Mixer Grinders, Juice Extractor, Wet Grinders, Hand Blenders, Electric
Kettle, Rice Cooker, Dry Irons, Steam Irons, Room Heaters, Lanterns,
Toasters, Home UPS.
Pumps
n
Electrically driven Pumps
– Centrifugal Monoblock Pump sets-Single/Two Stage
– Self Priming Pump sets – Monobloc/Coupled
– Submersible Pump sets for 75, 78, 100, 150, 200 & 250 mm Borewells
n
Domestic Luminaires
– Jet Centrifugal Pump sets – Single/ Multi Stage
n
Retail Lighting
– Dewatering Pump sets
n
Office Lighting
– Vertical In Line Pump sets
n
Street Lights
– Open well Submersible Pump sets
n
Flood Lights
n
Diesel Engines and Diesel Engine Pumps
n
High Masts
n
Petrol Kerosene Engine Pumps
n
Lighting Electronics
n
Compressor Pumps and Air Compressors
n
Accessories
n
Diesel Engine driven Pump sets
n
Building Management Systems
n
Submersible Pumpsets-100MM with Oilfield Motors
n
Integrated Security Systems & Home Automation
n
Cables suitable for submersible pumpsets 1.5 sq mm. To 10 sq mm.
n
3 PH Control Panels for Submersible Motors
n
Industrial Pump- Horizantal Split case Pumps.
Fans & Appliances
n
Ceiling : Luxury Under light, Premium Fans, Decorative Fans & Generic
Fans
n
Table, Pedestal and Wall Mounting Fans in metal and plastic
n
Domestic Exhaust Fans
n
Cooler Kits
n
Industrial Fans : Heavy Duty Exhaust Fans, Air Circulators & Air Curtains
n
Special Purpose Fans : Personal Fans, Cabin Fans, Tower Fans & Farrata
n
Geysers: Instant Water Heater (Plastic / Metal), Storage Water Heaters
(Plastic / Metal), Gas Geysers, Mercury Range (Combo– Metal &
Plastic).
International
n
Exports of all Crompton Greaves manufactured and factored
products.
Others
Meters
n
Energy Meters – Single phase & Three phase
147
financials
ESTABLISHMENTS
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
ESTABLISHMENTS
REGISTERED OFFICE
CG House, 6th Floor, Dr. Annie Besant Road, Worli,
Mumbai-400 030, India
Tel. +91-022-24237777
Fax +91-022-24237788.
INTERNATIONAL DIVISION
Railway Signalling Division
11 B, Industrial Area No1, Pithampur-454775,
District-Dhar (M.P), India.
Tel: +91-07292-410000, 403095
FAX: +91-07292-253211
Email: dipak.chattopadhyay@cgl.co.in
“Jagruti”, 2nd floor, Kanjur Marg (East),
Mumbai-400042, India.
Tel: +91-022-67558955, +91-022-67558365,
Fax: +91-022-25774066
Email: jaideep.patil@cgl.co.in
Stampings Division
Kanjur Marg (East), Mumbai-400042, India.
Tel: +91-022-67558715/6, 25796866
Fax: +91-022-25787970
Email: rajendra.gupta@cgl.co.in
POWER SYSTEMS
B-110, MIDC Industrial Area, Ahmednagar-414111, India.
Tel: +91-0241- 6610513/4, 6610518/23
FAX: +91-0241-6610511
Email: shivaji.salunkhe@cgl.co.in
Transformer Division
n Kanjur Marg (East), Mumbai-400042, India.
Tel: +91-022-25782974, 67558000, 67558202, 67558211.
FAX: +91-022-67558305. 25798214
Email: jayantkumar.kulkarni@cgl.co.in
n
Plot No. T1&T2 MPAKVN Industrial Area,
Malanpur (Dist. Bhind), Pin-477116, Madhya Pradesh, India.
Tel: +91-07539-283502/3/5/7, 409029
FAX: +91-07539-283585, 409031
Email: Anindya.Basu@cgl.co.in
n
Plot No. 29, 31& 32 New Industrial Area No.1,
AKVN, Mandideep-462046, Madhya Pradesh, India.
Tel: +91-07480-408285/6, 408209, 408201, 408281
FAX: +91-07480-408208, 408255
Email: Anindya.Basu@cgl.co.in
Switchgear
A-3, M.I.D.C., Ambad,
Nashik-422010(Maharashtra), India.
Tel: +91-0253-2382271-75
Fax: +91-0253-2381247
Email: jayantkumar.kulkarni@cgl.co.in
S6 & Power Quality
D2- MIDC, Waluj, Aurangabad-431136, India.
Tel: +91-0240-2558000, 2558081, 2558001, 2558031
FAX: +91-0240-2554697
Email: pramod.rao@cgl.co.in
Switchgear (S2) – Electronics Unit,
10A, Jigani Industrial Area, Jigani, Anekal Taluk,
Bangalore Rural, Bangalore 562 106.
Tel: +91-08110-413400, 413498
Fax: +91-08110-413430
Email: srinivasan.ms@cgl.co.in;
Engineering Projects Division
DLF Cyber-Green, Tower A, 3rd Floor, Sector 25-A,
DLF Phase III, Gurgaon-122002, Haryana, India.
Tel: +91-0124-3047700, 3047704, 3047701
FAX: +91-0124-3047777, 3047888
Email: neeraj.baxi@cgl.co.in
INDUSTRIAL SYSTEMS
Machines 7 Division:
D-5, Industrial Area, MPAKVN,
Mandideep- 462046(M.P), India.
Tel: +91-07480-400000, 403238, 400181/2
FAX: +91-07480-403119
Email: raina@cgl.co.in
LT Motors Division
A/6-2, MIDC Industrial Area, Ahmednagar- 414111(Maharashtra), India.
Tel: +91-0241- 2777500, 2777372
FAX: +91-0241-2777508, 2776103
Email: kn.neelkant@cgl.co.in
S-14-15, Colvale Industrial Estate, Colvale, Bardez, Goa-403513
Tel: +91-0832-2299664/665/666, 2404000
Fax: +91-0832-2299663
Email: abhay.kulkarni@cgl.co.in
FHP Motors Division
196-198, Kundaim Industrial Estate, Kundaim, Ponda, Goa-403115, India
Tel: +91-0832-3983200, 3983205, 2395954
FAX: +91-0832-2395377, 3983299
Email: jagdish.pant@cgl.co.in
CONSUMER PRODUCTS
Fans Division
Plot No. 1 Goa IDC Industrial Estate,
Bethora, Ponda, Goa-403409, India
Tel: +91-0832-2331200, 2331256
FAX: +91-0832-2330155
Email: uhm@cgl.co.in
Plot No. 214-A Kundaim Industrial Estate,
Kundaim, Goa-403115, India
Tel: +91-0832-2395901, 2395304
FAX: +91-0832-2395305
Email: uhm@cgl.co.in
Plot No. 81, HPSIDC Indl. Area, Baddi, District Solan, HP-173205
Tel: +91- 01795-320141
Email: rajesh.puri@cgl.co.in
Appliances Division
Plot No. 1 Goa IDC Industrial Estate,
Bethora, Ponda, Goa-403409, India
Tel: +91-0832-2331200, 2331256
FAX: +91-0832-2330155
Email: anandkumar.n@cgl.co.in
Lighting Division
Kanjur Marg (East), Mumbai 400 042. India.
Tel: +91-022-67558000, 67558425/26
FAX: +91-022-25787283/25783027
Email: manoj.verma@cgl.co.in
149
financials
Baroda Lamp Works, Kural Village,
Padra Taluka, Padra Jambusar Road,
District Baroda-391430, Gujarat, India.
Tel: +91-02662-242278, 329694, 329521
FAX: +91-02662-242326
Email: raj.ray@cgl.co.in
Pumps Division
A-28, MIDC, Ahmednagar-414111, India.
Tel: +91-0241-6606500, 6606501, 2777262
Fax: +91-0241- 6606550, 6606560
Email: vplele@cgl.co.in
BRANCH & MARKETING OFFICES
Northern Region
Regional Head Office: New DelhiVandhana Building, 11 Tolstoy Marg,
New Delhi-110001, India.
Tel: +91-011-30416300, 30416901, 23354879
FAX: +91-011-23324360, 23725661, 23352134
Email: sudhir.kane@cgl.co.in
Jaipur
Church Road, PO BOX 173, Jaipur-302001, India.
Tel: +91-0141-3018800/01
FAX: +91-0141-2365371
Email: rajat.chopra@cgl.co.in
Jalandhar
BXII-407, 2nd floor, Near BSF Chowk,
Ladowali Road, Jalandhar-144001, India.
Tel: +91-0181-3051301/95, 2225410
FAX: +91-0181-2226342
Email: nikesh.gupta@cgl.co.in
Lucknow
Saran Chambers II, 3rd floor,
5 Park Road, Lucknow-226001, India.
Tel: +91-0522-3018850-79
FAX: +91-0522-3018858
Email: jiwan.mannan@cgl.co.in
Rail Transportation Systems
Branch Details
Vandhana Building, 11, Tolstoy Marg,
New Delhi-110001, India.
Tel: +91-011-30416300
FAX: +91-011-23324360, 23352134
Email: salil.kumar@cgl.co.in
Eastern Region
Regional Head Office: Kolkata
50 Chowringhee Road, Kolkata - 700071 India
Tel : +91-033-2829681 – 85
Fax : +91-033-22829942
Email : mailadmin@cal.cgl.co.in
balvinder.bajwa@cgl.co.in
cglcal@cgl.co.in
BhubanesHwar
Janpath Tower, 3rd Floor, Ashok Nagar Unit II
Bhubaneshwar – 751009 India
Tel : +91-0674-2531128, 2531429
Fax : +91-00674-2533521
e-mail : satish.mohanty@cgl.co.in
Western Region
Regional Head Office: MumbaiKanjur Marg (East), Mumbai-400042, India.
Tel: +91-022-67558000, 25780234, 67558600/01
FAX: +91-022- 25795158, 67558669
Email: ajit.kamath@cgl.co.in
Ahmedabad
909-916, Sakar II, Near Ellis Bridge, Ahmedabad-380006, India.
Tel: +91-079-40012000, 40012201
FAX: +91-079-40012222
Email: sagar.mohbe@cgl.co.in
Indore
103-B, Apollo Trade Centre, 2B, Rajgarh Kothi,
Mumbai-Agra Road, Indore-452001, India.
Tel: +91-0731-2498269, 2498271, 2495531, 4201231
FAX: +91-0731-4065621
Email: pawankumar.singh@cgl.co.in
Pune
Premium Point Building, 4th floor, Opp Modern High School,
J M Road, Shivajinagar, Pune-411005, India.
Tel: +91-020-25534675-77. 25534685
FAX: +91-020-25534684
Email: vivek.batra@cgl.co.in
Nagpur (Satellite office)
3, West High Court Road, Lal Bahadur Shastri Chowk,
Dharampeth, Nagpur-440010, India.
Tel: +91-0712-2531271, 2560870, 2560871
FAX: +91-0712-2537196.
Email: pankaj.shah@cgl.co.in
Raipur
5, New Tilak Nagar, Avanti Vihar, Raipur - 493 001
Tel : 0771 - 4022214 / 15
Fax : 0771 – 2444577
Email: sanjay.jadhav@cgl.co.in
Southern Region
Regional Head Office: ChennaiCrompton House-3, Dr. MGR Salai, (Kodambakkam High Road),
Nungambakkam, Chennai-600034, India.
Tel: +91-044-42247500, 28235533, 28257375. 42247575
FAX: +91-044- 28281596, 28231973
Email: krashnavadan.desai@cgl.co.in
Bangalore
Janardhana Towers, 1st floor, 562/640 Bannerghatta Road,
Bilekahalli, Bangalore-560076, India.
Tel: +91-080-41391908, 41391909, 41391901
FAX: +91-080-41391900.
Email: pulacode.venkatesh@cgl.co.in
Cochin
Cherupushpam Building, 5th floor, 300-6, Shanmugham Road,
Ernakulam, Cochin-682031, India.
Tel: +91-0484-2370860-63, 2360240, 2382340
FAX: +91-0484-2373738.
Email: ramaswamy.ns@cgl.co.in
Secunderabad
Minerva Complex, 4th floor, 94, Sarojni Devi Road,
Secunderabad-500003, India.
Tel: +91-040-40002300, 40002347, 40002345
FAX: +91-040-40002340.
Email: anil.maniktala@cgl.co.in
150
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9
SERVICE CENTRES
Northern Region
New Delhi
Vandhana Building, 11,
Tolstoy Marg, New Delhi-110001. India
Tel: +91-011-30416311, 30416305
FAX +91-011-23324360
Email: david.c@cgl.co.in
Jaipur
Church Road, P.O. Box 173, Jaipur-302001.
Tel: +91-0141- 3018800, 3018806
Fax: +91-0141-2365371
Email: rajat.chopra@cgl.co.in
Email: suresh.avasthi@cgl.co.in
Jalandhar
Khasra No 151/99, Village Khajurla, Tehsil Phagwara,
Distt. Kapurthala, Jalandhar – 144001
Tel: +91-0181-3051321, 3051337
Email: rajinder.rahi@cgl.co.in
Email: nikesh.gupta@cgl.co.in
Lucknow
Saran Chambers II, 3rd floor,
5 Park Road, Lucknow-226001, India.
Tel. +91-0522-3018865, 3018857
Email: jiwan.mannan@cgl.co.in;
Email: kamlesh.sinha@cgl.co.in
Eastern Region
Kolkata
21, R.N.Mukherjee Road, Kolkata – 700001, India
Tel : +91- 033-22489160, 22488911
Fax : +91-033-22489737
Email : mailadmin@cgl.co.in
cglcal@cgl.co.in
prabir.mukhopadhyay@cal.cgl.co.in
subhash.ghosh@cal.co.in
Bhubaneshwar
Janpath Tower (Basement ), Ashok Nagar,
Unit II, Bhubaneshwar – 751009, India
Tel : +91-0674-2531128, 2531429
Fax : +91-0674-2531592
Email : ajoy.mahapatra@cgl.co.in
Patna
Vishwasadan, Behind Jeevan Deep Bldg.,
East of Narmada Apartment, Exhibition Road, Patna – 800001 India
Tel : +91-0612-6453160 / 6453161
Email : swapan.bera@cgl.co.in
Western Region
Mumbai
Kanjur Marg (East), Mumbai- 400042, India
Tel. +91-022-67558000, 67558590.
FAX: +91-022-67558669
Email: subhash.rege@cgl.co.in
Ahmedabad
909-916, Sakar II, Near Ellis Bridge, Ahmedabad-380006, India.
Tel: +91-079-40012000, 40012201
FAX: +91-079-40012222
Email: suman.tailor@cgl.co.in
Indore
103-B, Apollo Trade Centre,
2B Rajgarh Kothi, Mumbai – Agra Road,
Indore- 452001, India
Tel. +91-0731-2498269, 2498271
FAX: +91-0731-4065621
Email: mayank.shrivastava@cgl.co.in
Pune
Premium Point Building, 4th floor,
Opp Modern High School, J M Road,
Shivajinagar, Pune-411005, India.
Tel: +91-020-25534675-77.
FAX: +91-020-25534684
Email: amul.chhajed@cgl.co.in
Nagpur
3, West High Court Road, Lal Bahadur Shastri Chowk,
Dharampeth, Nagpur-440010, India.
Tel: +91-0712-2531271, 2560870
FAX: +91-0712-2537196.
Email: vipin.sahu@cgl.co.in
Southern Region
Chennai
A.G. Enterprises, 37 NSK Salai, Vadapalani, Chennai-600026
Tel: +91-044-23651369
Fax : +91-044-28231973
Email: leo.selvaraj@cgl.co.in
Email: prakash.j@cgl.co.in
Bangalore
SS Agencies, No. 20, New Timber Yard Layout,
Mysore Road, Bangalore-560026, India.
Tel. +91-080-26755727
Fax: +91-080-26755723
Email: pulacode.venkatesh@cgl.co.in
Email: michael.aa@cgl.co.in
Secunderabad
Crompton Greaves Limited,
Customer Care Centre, B-12, Industrial Development Area,
Uppal, Secunderabad – 500 039.
Tel. +91-040-27207538
Fax: +91-040-27207539
Email: anil.maniktala@cgl.co.in
Email: d.venugopal@cgl.co.in
Cochin
Vishnu Traders, 35/1872 A,
South Janata Road, Palarivattom,
Cochin-682025, India
Tel. 91-0484-2338102, 2338856
FAX: 91-0484- 2373738
Email: ramaswamy.ns@cgl.co.in
Coimbatore
Param Enterprises, 658-664,
Rajalakshmi Plaza, 100 ft Road, Gandhipuram,
Coimbatore-641 012, India
Tel. +91-0422-2526453
Fax: +91-0422-2525334
Email: leo.selvaraj@cgl.co.in
151
financials
ESTABLISHMENTS
REGION EMEA
Corporate Offices:
PAUWELS INTERNATIONAL N.V.
Corporate Division
Antwerpsesteenweg 167
B-2800 Mechelen, Belgium
T + 32 15 283 333 - F + 32 15 283 300
GANZ TRANSELEKTRO ELECTRIC Co. LTD.
Mariassy Street 7
H-1095 Budapest, Hungary
T + 36 1 483 66 11 - F + 36 1 266 66 13
MICROSOL LTD.
Unit 28, Enterprise Complex
Pearse Street
Dublin 2, Republic of Ireland
T + 353 1 415 3700 - F + 353 1 671 6343
Business Units:
PAUWELS TRAFO BELGIUM N.V.
Antwerpsesteenweg 167
B-2800 Mechelen, Belgium
T + 32 15 283 333 - F + 32 15 283 300
PAUWELS TRAFO IRELAND LTD.
Dublin Road
Cavan, Republic of Ireland
T + 353 49 43 31 588 - F + 353 49 43 32 053
PAUWELS INTERNATIONAL N.V.
T&D Systems Division
Antwerpsesteenweg 167
B-2800 Mechelen, Belgium
T + 32 15 283 333 - F + 32 15 283 491
PAUWELS INTERNATIONAL N.V.
UK Representative Office, Suite 11, Epoch House, Falkirk Road
Grangemouth FK3 8WW, United Kingdom
T + 44 1324 486100 - F + 44 1324 486020
PAUWELS INTERNATIONAL N.V.
Saudi Arabia Representative Office, P.O. Box 59276
Riyadh 11525, Saudi Arabia
T + 966 1 405 24 31 - F + 966 1 405 48 25
PAUWELS MIDDLE EAST
P.O. Box 5730, Sharjah, United Arab Emirates
T + 971 6 574 03 13 - F + 971 6 574 01 31
REGION AMERICAS
Business Units:
PAUWELS TRANSFORMERS, INC.
One Pauwels Drive, Washington, Missouri 63090, USA
T + 1 636 239 9300 - F + 1 636 239 9398
PAUWELS CANADA, INC.
101 Rockman Street, Winnipeg, MB R3T 0L7, Canada
T + 1 204 452 7446 - F + 1 204 453 8644
MICROSOL, INC.
92 Cogwheel Lane, Seymour, CT 06483, USA
T + 1 203 888 3002 - F +1 203 888 7640
MICROSOL, INC.
1251 E. Iron Eagle Drive, Suite #150, Eagle, Idaho 83616, USA
T + 1 208 938 5542 - F + 1 208 938 5582
MSE POWER SYSTEMS, INC.
403 New Karner Road, Albany, NY 12203, USA
T + 1 518 452 7718 - F + 1 518 452 7716
PAUWELS INTERNATIONAL N.V.
Service Division.
rue Vital Francoisse 220, B.P. 1581
B-6000 Charleroi, Belgium
T + 32 71 44 10 20 - F + 32 71 47 01 89
Sales Office:
PAUWELS AMERICAS, INC.
One Pauwels Drive, Washington, Missouri 63090, USA
T + 1 636 239 9349 - F + 1 636 239 9398
SO.NO.MA.TRA S.A.S
Parc d’Activite des Hautes Falaises
Avenue Jean York
F-76400 Saint Leonard
T + 33 2 35 10 31 57 - F + 33 2 35 29 23 51
REGION ASEAN
GANZ TRANSELEKTRO ELECTRIC Co. LTD.
Gyorgyei ut 14
H-2766 Tapioszele, Hungary
T + 36 1 483 6600 - F + 36 1 483 6855
MICROSOL UK
Unit F, Network Business Centre
Jarrow, Tyne & Wear
NE31 1SF, United Kingdom
T + 44 191 425 5200 - F +44 191 425 5202
Sales Offices:
PAUWELS FRANCE S.A.
41, Boulevard Vauban
Immeuble Arago 1
F-78280 Guyancourt, France
T + 33 1 34 52 10 80 - F + 33 1 34 52 27 30
Business Units:
PT PAUWELS TRAFO ASIA
Kawasan Industri Menara Permai Kav. 10
Jl. Raya Narogong, Cileungsi,
Bogor 16820, Indonesia
T + 62 21 823 04 30/36 - F + 62 21 823 02 68/42 22
Sales Offices:
PAUWELS INTERNATIONAL N.V.
T&D Systems Division, Plaza PP, 5th Floor,
Jl. TB. Simatupang No. 57, Pasar Rebo
Jakarta 13760, Indonesia
T + 62 21 841 40 57 - F + 62 21 841 43 64
PAUWELS TRAFO ASIA
NZ Representative Office
P.O. Box 28099
Christchurch 8242, New Zealand
T + 64 3 331 8290 - F + 64 3 331 8299
152
c r o m p t o n g r e av e s l i m i t e d a n n u a l r e p o r t 2 0 0 8 – 2 0 0 9