MIRA INFORM REPORT

Report Date :

27.12.2006

IDENTIFICATION DETAILS

Name :	AREVA T & D INDIA LIMITED
Formerly Known As :	ALSTOM LIMITED
Registered Office :	D-2, Gillander House, 8 Netaji Subhas Road, Kolkata - 700001, West Bengal
Country :	India
Financials (as on) :	31.12.2005 [9 Months]
Date of Incorporation :	13/03/1957
Com. Reg. No.:	21-23381
TAN No.: (Tax Deduction & Collection Account No.)	MRTA01297C
Legal Form :	Public Limited Liability Company. The Company’s Shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing of all types of Switchgears, Transformers, Reactors and Control Panels. Subject is also engaged in the business of Designing, building and servicing technologically advanced products and systems for the world's energy and transport infrastructure.

RATING & COMMENTS

MIRA’s Rating :

A

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Maximum Credit Limit :	USD 8500000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a part of multinational Areva Group. Available information indicates high financial responsibility of the company. Trade relations are fair. General financial position is good. Payments are usually correct and as per commitments. The company can be considered good for any normal business dealings. It can be regarded as a promising business partners in a medium to long-run.

LOCATIONS

Registered Office :	D-2, Gillander House, 8 Netaji Subhas Road, Kolkata - 700 001, West Bengal, India
Tel. No.:	91-33-22203991-94/22434705
Fax No.:	91-33-22203995
E-Mail :	info@alstom.com info.india@crn.alstom.com
Telex:	041-7766
Website :	http://www.alstom.com , http://www.arevatde.com
Head Office :	457, Anna Salai, Teynampet, Chennai - 600018, Tamilnadu
Tel. No.:	91-44-24364575 / 4146 / 4192
Fax No.:	91-44-24340511
E-mail :	sankaran.natarajan@areva-td.com
Factory 1 :	AEI WORKS 1, Taratala Road, Kolkata - 700 024, West Bengal
Tel. No.:	91-33-2469 5370 / 9370 / 71
Fax No.:	91-33-2469 6988 / 3509
Factory 2 :	BEHALA WORKS P5, Taratala Road, Kolkata - 700 088, West Bengal
Tel. No.:	91-33-2401 2239 / 7586
Fax No.:	91-33-2401 7590
Factory 3 :	PAHARPUR WORKS 58, Taratala Road, Kolkata - 700 024, West Bengal
Tel. No.:	91-33-2469 5560 / 61 / 65-67
Fax No.:	91-33-2469 8530
Factory 4 :	SALT LAKE WORKS Block BN, Sector V, Salt Lake City, Kolkata - 700 091, West Bengal
Tel. No.:	91-33-2367 5827 / 367 4002
Fax No.:	91-33-2367 7958
Factory 5 :	PALLAVARAM WORKS 19/1, GST Road, Pallavaram, Chennai - 600 043, Tamilnadu
Tel. No.:	91-44-2236 8621 / 8723 / 8917
Fax No.:	91-44-2236 7276
Factory 6 :	PERUNGUDI WORKS 119/120, Electrical & Electronics Industrial Estate, Perungudi, Chennai - 600 096, Tamilnadu
Tel. No.:	91-44-2496 0696
Fax No.:	91-44-2496 0024
Factory 7 :	NAINI WORKS P. O. Naini, Allahabad - 211 008, Uttar Pradesh
Tel. No.:	91-532-2697422 / 424
Fax No.:	91-532-2697604
Factory 8 :	TARATALA WORKS 1, Taratala Road, Kolkata – 700024, West Bengal
Tel. No.:	91-33-24695370
Fax No.:	91-33-24696988
Branches :	D-2, Gillander House, Netaji Subhas Road, Kolkata - 700 001, West Bengal
Tel. No.:	91-33-22203991-94
Fax No.:	91-33-22203995
Branches :	14^th Floor, Devika Towers, 6 Nehru Place, New Delhi – 110019
Tel. No.:	91-11-26449902/03/07
Fax No.:	91-11-26449447
Branches :	Narottam Morarji Marg, Ballard Estate, Mumbai – 400038, Maharashtra
Tel. No.:	91-22-22618141-45
Fax No.:	91-22-22621170
Branches :	457, Anna Sali, Teynampet, Chennai – 600018, Tamilnadu
Tel. No.:	91-44-24317100
Fax No.:	91-44-24323462
Branches :	T&D PROJECTS A21-24, Sector 16, Noida – 201301, Uttar Pradesh
Tel. No.:	91-120-22510248
Fax No.:	91-120-22510032
Branches :	T&D SERVICE 1^st Floor, A/17, Sector – 16, Noida – 201301, Uttar Pradesh
Tel. No.:	91-120-22516475/478
Fax No.:	91-120-22510801
Branches :	EDS 457, Anna Salai, Teynampet, Chennai – 600018, Tamilnadu
Tel. No.:	91-44-24317201
Fax No.:	91-44-24355498

DIRECTORS

Name :	Mr. S. K. Poddar
Designation :	Chairman (Non-executive)
Name :	Mr. M. V. Dhekne
Designation :	Director
Name :	Mr. Krishna Pillai
Designation :	Deputy Chairman & Joint Managing Director (w.e.f. 01.07.2002)
Name :	Mr. A. K. Dhagat
Designation :	Managing Director
Name :	Mr. C. M. A. Nayar
Designation :	Director (w.e.f. 13.05.2004)
Name :	Mr. Lawrence Hoskins
Designation :	Director (Non-executive)
Name :	Mr. S. M. Momaya
Designation :	Director
Name :	Mr. Michel Augonnet
Designation :	Director
Name :	Mr. Nicolas Swetchine
Designation :	Director
Name :	Mr. Karim Vissandjee
Designation :	Director

KEY EXECUTIVES

Name :	Mr. K. S. Natarajan
Designation :	Company Secretary & Director (Legal)

MAJOR SHAREHOLDERS

Names of Shareholders	No. of Shares	Percentage of Holding
Foreign Principal – Areva T & D SA, France	26583845	66.65
Financial Institutions and Banks	3368066	8.44
UTI and other Mutual Funds	3309339	8.30
Foreign Institutional Investors	1490	Negligible
Corporate Bodies	752736	1.89
Non-resident Indians and Overseas Corporate Bodies	95730	0.24
Directors and their Relatives	457	Negligible
General Public	5727107	14.36
Others	48702	012
Total	39887472	100.00

BUSINESS DETAILS

Line of Business :	Manufacturing of all types of Switchgears, Transformers, Reactors and Control Panels. Subject is also engaged in the business of Designing, building and servicing technologically advanced products and systems for the world's energy and transport infrastructure.
Products with ITC Code :	Switchgear - All Types – 85.35 Transformers and Reactors – 85.04 Control Panels Motors – 85.01

GENERAL INFORMATION

No. of Employees :	3250
Bankers :	· Standard Chartered Grindlays Bank Limited, Kolkata – 700 001, West Bengal · Citi Bank NA · Canara Bank · BNP Paribas · Punjab National Bank

Banking Relations :	Satisfactory
Auditors :	Deloitte Haskins & Sells Chartered Accountants
Address:	672, Temple Tower, Anna Salai, Nandanam, Chennai-600035, Tamilnadu, India
Holding Company :	Areva T & D SA, France Alstom Holdings SA, France [Holding Company Until 07.08.2005]
Subsidiaries :	ALSTOM Establissment DeTarbes ALSTOM Lancashire ALSTOM Moteurs ALSTOM Power Sweden ALSTOM Projects India Limited ALSTOM Transport France ALSTOM Transport South Africa AREVA Australia AREVA Canada AREVA Chile AREVA Dubai AREVA Energietechnic, Gmbh, Germany AREVA Germany AREVA Hungaria AREVA Instrument Transformers India Private Limited AREVA Inturrupter SA AREVA Italy AREVA Lattes AREVA Polland AREVA Sachsenwerk, Gmbh, Germany AREVA Singapore AREVA Spain AREVAT&D AG, Switzerland AREVA T&D Australia Limited AREVA T&D Brazil AREVA T&D DRC AREVA T&D ERT France AREVAT&D Lightning Arresters Private Limited AREVA T&D Middle East, Sharjah AREVAT&D Protection & Control, Stafford AREVA T&D SA France AREVA T&D Suzhou HV Switchgears China AREVA T&D Sweden AREVA T&D Systems India Limited AREVA Vacuum Interrupter, France AREVA Villeurbanne Lionel India Limited Texmaco Limited Zuari Industries Limited
Associates :	GA Daniel! India Limited

CAPITAL STRUCTURE

Authorised Capital :

No. of Shares	Type	Value	Amount
50,000,000	Equity Shares	Rs. 10/-	Rs. 500.000 millions

Issued:

No. of Shares	Type	Value	Amount
39,887,992	Equity Shares	Rs. 10/-	Rs. 398.880 millions

Subscribed & Paid-up Capital

39,887,472

Equity Shares

Rs. 10/-

Rs. 398.875 millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2005 [9 Months]	31.03.2005 [12 Months]	31.03.2004 [12 Months]
SHAREHOLDERS FUNDS
1] Share Capital		398.875	398.875	398.875
2] Reserves & Surplus		1794.899	1547.452	1436.203
NETWORTH		2193.774	1946.327	1835.078
LOAN FUNDS
1] Secured Loans		0.000	15.796	50.000
2] Unsecured Loans		100.000	0.000	87.885
TOTAL BORROWING		100.000	15.796	137.885
DEFERRED TAX LIABILITIES		0.000	0.000	72.591
TOTAL		2293.774	1962.123	2045.554
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		554.544	506.626	597.617
Capital work-in-progress		181.023	67.191	13.839
INVESTMENT		97.484	96.534	113.169
DEFERREX TAX ASSETS		136.972	109.254	142.653
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	1857.660	1192.781	767.135
	Sundry Debtors	4019.658	2826.894	2162.501
	Cash & Bank Balances	413.617	271.022	211.600
	Loans & Advances	658.012	515.116	399.677
Total Current Assets		6948.947	4805.813	3540.913
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	5223.150	3368.981	2169.446
	Provisions	402.046	262.240	212.253
Total Current Liabilities		5625.196	3631.221	2381.699
Net Current Assets		1323.751	1174.592	1159.214
MISCELLANEOUS EXPENSES		0.000	7.926	19.062
TOTAL		2293.774	1962.123	2045.554

PROFIT & LOSS ACCOUNT

PARTICULARS	31.12.2005 [9 Months]	31.03.2005 [12 Months]	31.03.2004 [12 Months]
Sales Turnover [including other income]	8751.020	7825.509	6190.698
Profit/(Loss) Before Tax	593.941	347.829	201.882
Provision for Taxation	231.297	135.866	33.059
Profit/(Loss) After Tax	362.644	211.963	168.823
Export Value	N.A.	169.425	491.014
Import Value	N.A.	840.040	509.066
Total Expenditure	8102.870	7336.429	135.236

QUARTERLY RESULTS

PARTICULARS	31.03.2006 [1^st Qtr.]	30.06.2006 [2^nd Qtr.]	30.09.2006 [3^rd Qtr.]
Sales Turnover	3632.000	3914.500	3203.500
Other Income	26.300	15.900	120.300
Total Income	3658.300	3930.400	3323.800
Total Expenditure	3262.300	3466.300	2840.400
Operating Profit	396.000	464.100	483.400
Interest	3.100	3.900	7.000
Gross Profit	392.900	460.200	476.400
Depreciation	26.700	42.800	27.300
Tax	126.900	143.700	88.200
Reported PAT	236.400	270.800	359.900

Notes:

2006-03 Quarter 1

EPS is Basic & Diluted 1. At the shareholders meeting held today, under the direction of the Hon'ble Calcutta High Court, the Scheme of Arrangement between the Company and ALSTOM Industrial Products Limited (AIPL) for the transfer of the Company's Non T&D business to AIPL, effective 1^st January, 2006, was duly approved by requisite majority subject to sanction of the same by the Hon'ble Kolkata High Court. Pending approval of the Court, the above results include revenue of Rs. 707.7 millions (Rs. 540.8 millions), expenditure of Rs. 648.5 millions (Rs 508.9 millions), total assets of Rs. 1029.2 millions (Rs. 768 millions) and total liabilities of Rs. 706.4 millions (Rs. 536.9 millions) related to Non T&D Business. The Cashflow related to Non T&D business is Rs. 45.1 millions (Rs. 18 millions) 2. The above results were taken on record by the Board of Directors at the meeting held on 28^th April 2006. 3. The Auditors have conducted 'Limited Review' of the above financial results for the quarter ended 31^st March 2006. 4. There were no pending complaints at the beginning of the quarter. One investor complaints was received and duly resolved during the quarter. 5. Prior period figures have been reclassified wherever necessary for comparative purposes.

2006-06 Quarter 2

1. The Scheme of Arrangement between the Company and ALSTOM Industrial Products Limited (AIPL, for transfer of its Non T&D business, which was duly approved by the shareholders at the Court convened meeting held on 28^th April, 2006, has since been sanctioned by the Hon'ble Calcutta High Court. Pending the receipt of the Certified copy of the High Court Order, and filing the same with the Registrar of Companies to make the Scheme effective, the above results for the 6 months period include revenue of Rs. 1243.3 millions (Rs. 946 millions), expenditure of Rs. 1142.6 millions (Rs. 884.7 millions), total assets of Rs. 1350.5 millions (Rs. 868 millions) and total liabilities of Rs 938 millions (Rs. 600.4 millions) related to Non T&D Business. The Cashflow related to Non T&D Business is Rs. 101.8 millions (Rs. 50 millions), 2 The above results were taken on record by the Board of Directors at the meeting held on 22^nd July 2006. 3 The Auditors have conducted a ' Limited Review' of the above financial results for the quarter ended 30^th June 2006, 4 There were no pending complaints at the beginning of the quarter. Fifteen investor complaints were received during the quarter and alt of them have been duly settled. 5 Prior period figures have been reclassified wherever necessary for comparative purposes.

2006-09 Quarter 3

EPS is Basic & Diluted. 1. The Scheme of Arrangement between the company and ALSTOM Industrial Products Limited (AIPL) for transfer of its Non T&D business with effect from 1^st January 2006 ('Appointed Date'), which was duly approved by the shareholders at the court convened meeting held on 28^th April 2006 has since been sanctioned by the Hon'ble Kolkata High Court. The certified copy of the High Court Order has been filed with the Registrar of Companies on 14^th Aug 2006 ('Effective Date'). Consequently, (a) the profit on sale of Non T&D Business amounting to Rs. 97.5 millions has been recognized. (b) the entire shareholding of the company in AIPL has since been transferred to ALSTOM Energy Limited (nominees of ALSTOM) for a consideration of Rs. 414.349 millions. (c) the company is now engaged in the business of T&D activities only and accordingly there are no reportable segments to be reported as per Accounting Standard 17 on Segment Reporting issued by The Institute of Chartered Accountants of India. 2. The figures for Nine Months ended 30^th September 2005 includes Revenue of Rs. 1468.6 millions, expenditure of Rs. 1373.7 millions and Operating Profit before Interest of Rs. 94.9 millions relating to the discontinued Non T&D business. 3. At the Board Meeting held today the Board approved the amalgamation of AREVA T&D Systems India Limited, AREVA T&D Instrument Transformers India Private Limited and AREVA T&D Lightning Arresters Private Limited with AREVA T&D India Ltd with effect from January 1 2006 ('Appointed Date'). Kolkata and Bombay Stock Exchange have also been informed separately. 4. The above results were taken on record by the Board of Directors at its meeting held on 27^th October 2006. 5. The auditors have conducted a limited review of the above financial results for the quarter ended 30^th September 2006. 6. There were no pending complaints at the beginning of the quarter. Seven investor complaints were received during the quarter and all of them have been duly resolved. 7. Prior period figures have been reclassified wherever necessary for comparative purposes.

KEY RATIOS

PARTICULARS	31.12.2005 [9 Months]	31.03.2005 [12 Months]	31.03.2004 [12 Months]
Debt Equity Ratio	0.03	0.04	0.09
Long Term Debt Equity Ratio	0.00	0.02	0.02
Current Ratio	1.28	1.39	1.47
TURNOVER RATIOS
Fixed Assets	6.49	4.47	3.18
Inventory	8.37	8.89	7.98
Debtors	3.73	3.49	3.17
Interest Cover Ratio	19.68	15.06	4.59
Operating Profit Margin (%)	7.53	7.53	5.59
Profit Before Interest and Tax Margin (%)	6.53	6.08	3.50
Cash Profit Margin (%)	4.78	4.76	4.38
Adjusted Net Profit Margin (%)	3.79	3.32	2.29
Return on Capital Employed (%)	40.92	28.40	11.96
Return on Net Worth (%)	24.36	16.03	8.38

STOCK PRICES

Face Value	Rs. 10/-
High	Rs. 1017.40/-
Low	Rs. 997.35/-

LOCAL AGENCY FURTHER INFORMATION

History

Subject was originally incorporated as General Electric Company of India (GECI) in 1911. GECI was amalgamated with the English Electric Company of India (EEI) in April, 1993 and the name was changed to GEC Alstom India Limited.

The company was promoted by GEC Alstom, The Netherlands, which had interests in GEC Alstom Triveni. The collaborator, GEC Alstom, has a 66.35% stake in the company.

The company came out with a rights issue in July, 1994 to fund the normal capital expenditure and augment long-term sources of working capital. In 1982-83, it started manufacturing of solid-state generators and transformers, vacuum switches and electric motors in collaboration with GEC International Controls, UK and Electroimplex, Bulgaria. In 1984, collaboration agreements were signed with GEC Power Transformers, UK and Raydne, UK to manufacture medical electronic equipment. Another collaboration agreement was signed with GEC Machines, UK to manufacture hydro-electric generators.

The company has been accredited with ISO 9001 Certification for cubicle gear engineered products, switchgear stock products, relays and control panels at Pallavaram Works, Chennai and for fusegear stock products at Hosur Works. Its T & D projects at Chennai plans to get certified to the latest version of ISO 9001 standard in the fiscal 2002.

During the year 1999-2000, two collaboration agreement were entered during the year with Alstom T & D SA, France for the manufacture of 72.5 kV SF6 Circuit Breakers and 420 kV SF6 Circuit Breakers both operated by spring mechanism. It has spun off the energy division into a joint venture with KoCos Messtechnik of Germany. The new company, Alstom Energy Measurements & Systems Limited was incorporated in February, 2000 in Chennai.

During August, 2001, the 315 MVA 400 kV Transformer was commissioned successfully.

The company has got the approval of High Court of Mumbai for its scheme of amalgamation of Alstom Transport Limited, Alstom Systems Limited and Alstom Power Boilers Limited with itself. During 2002-03 it has successfully tested new generation 145 kV circuit breaker – types GL312 as per IEC standards. It has also commissioned the 420 kV circuit breaker for the 4,500 MW Superthermal Power Plant at NTPC, Talcher

During 2004-05 the company has increased its installed capacity of Switchgear- All types and Transformers & reactors by 1880 Nos and 2300000 kVA respectively. With this expansion the total installed capacity of Switchgear- All types and Transformers & reactors has increased to 90510 Nos and 8500000 kVA respectively. 

During April 2005 Alstom Holdings SA and AREVA T&D SA (Jointly with Areva T&D Holdings SA) has reached an understanding for acquisition of upto 26464400 equity shares (66.35%) held by Alstom Holdings in the company for a consideration of Rs.806 Million. After the said acquisition the name of the company was changed from Alstom Ltd to Areva T&D India Ltd from October 2005. Further Alstom has sold its T&D business to AREVA. 

In January 2006 the company as decided to transfer its non T&D business (Meters & Motors) as a going concern to the company's subsidiary, Alstom Industrial Products Ltd for a consideration of Rs.413 million. This scheme of arrangement is subject to approval.

Business:

The company is engaged in Manufacturing of all types of Switchgears, Transformers, Reactors and Control Panels.

The company is a 67% subsidiary of Alstom France SA, which is a leading player worldwide in T & D and industrial equipment. The company's main business includes manufacture, sales and support of power transmission and distribution (T & D) and other industrial equipments. The T & D segment manufactures switchgears, transformers, measurement and control systems and undertakes T & D projects. The industrial equipment division manufactures rotating machinery (motors), industrial and domestic fans, alternators and undertakes industrial projects.

The Generic Names of the Principal Products / Services of the company are (As per monetary terms)

Item Code No. (ITC Code)	Production Description
85.35	Switchgear - All Types
85.04	Transformers and Reactors
85.37	Control Panels
85.01	Motors

Name change to AREVA T&D India Limited

Pursuant to the Special Resolution passed by the Members at the Annual General Meeting of the Company held on 6^th September, 2005 and approval of the Central Government under Section 21 of the Companies Act, 1956, the name of the Company was changed from ALSTOM Limited to AREVA T&D India Limited, effective 23^rd September, 2005. 

Fiftieth year - a milestone: 

As they enter the 50^th year, it is only appropriate they pause and take stock of their past. 

The Company was incorporated as a Private Limited Company on 13^th March, 1957 under the name 'The English Electric Company of India Private Limited' in Calcutta (now Kolkata), West Bengal. 

This was later converted into a Public Limited Company on 25^th February, 1963. This name continued till 20th April 1993, when the Company's name was changed to GEC ALSTHOM India Limited consequent to acquisition of the stake held by EEC, UK by GEC ALSTHOM N.V. (a JV between GEC plc. UK and ALSTHOM N.V., The Netherlands). 

Again, consequent to the exit of GEC plc from the JV, it became a subsidiary of ALSTOM, France and the Company's name was also changed to ALSTOM Limited, effective 1^st September, 1998. 

The recent change, as mentioned earlier, happened in September, 2005, when, worldwide, the T & D business of ALSTOM, was acquired by AREVA. 

Incidentally, all through this, the Registered Office of the company has remained at the same address viz. D2, Gillander House, Netaji Subhas Road, Kolkata 700001. 

The most important point to be noted here is that despite all these changes, in the last 50 years, the Company had continued to maintain its steady growth and transparency. Further, inspite of the name changes, it has been able to retain its identity and hold on the Indian electrical industry/market. This speaks for itself about the quality of Company's products and people's commitments. These changes were appropriate and need of the time. 

No doubt, all this has been possible only because of the dedicated and committed team they had at the helm, from time to time, as well as the support as Members of the Company and that of the other stakeholders. 

The Board wishes to take this opportunity to place on record its deep appreciation of the former Chairmen/Managing Directors of this Company and the Management Team, who were responsible for steering the affairs of the Company at various points of time. 

Presently, this legacy is being carried on by Mr. Ajay Dhagat, Managing Director, who has brought about a perceptible change both to the performance of the Company and its work culture. Mr. Dhagat has been at the helm since July, 2002 and the growth of the company during this period, has been exponential. The growth is balanced between various segments like Utility, VAR and Industry. 

Given the direction in which the Energy Sector in their Country is likely to grow, it is only appropriate to record here that their association with AREVA could not have come at a more opportune time. They can certainly visualize more exciting times ahead. 

Review of Operations: 

The Directors are pleased to report that for the period under report, the company's growth was satisfactory and they have grown above industry average. 

Both T&D and the non-T&D Segments performed well during this period. The non-T&D business is in the process of being hived off as detailed hereunder. 

The review of performance of each Segment/Business of T&D is as under. It may please be noted that comparative figures/forecasts and percentages mentioned herein are against the corresponding nine month period of last year. 

Order book of the company is satisfactory and well addressed. 

This Company is able to leverage the products and systems competency of other AREVA T&D Units in the Country and this helps us in enhancing customer concept for all products together. 

Transmission and Distribution Segment: 

Automation: 

Order intake increased by 35% and increase in sales was over by 21%. Order in hand is satisfactory. 

Export sales were about Rs.79 million, which represents 42% growth. In order to further consolidate its market share in Relays, certain new types are proposed to be introduced viz. Numerical LBB Relay, Numerical Current Differential Relay and Numerical Distance Relay. Further, approvals have been received from NTPC for the Numerical Busbar Protection Scheme and Panels for their 765 kV Switchgear at SIPAT. 

Also, during the current year, the business has planned to export HA Relays using India as Competence Centre. 

MV Switchgear: 

Growth and performance of this Unit were better than industry growth. The Unit was also successful in exporting Vacuum Interrupters and Circuit Breakers to Australia, UK, France and Germany. Outdoor Breakers were continued to be exported from the Naini Unit to Brazil and Vietnam. New products which will be now available for sales will be package S/S for city distribution, HVX Breakers for export and gradual replacement of current products as well as 33kV Indoor Circuit Breakers. Secondary distribution products are also being introduced for improvement of distribution system and to reduce distribution loss. 

Transformer: 

Power Transformer: 

This Unit further consolidated its position during the year. Order intake was 98% higher in comparison with the same period last year, part of it was also due to increase in input materials, which has pushed Transformer prices by 32%. 

During the year, input material increase could not be passed on to market and partly for 2006 also it will be the same. 

The Unit manufactured and delivered successfully the biggest Generator Transformer (210 MVA) for Gauthami and the biggest Furnace Transformer (42 MVA) for ISAAL. Upgradation of capacity has been completed and will further improve performance. 

Distribution Transformer: 

The performance of this Unit, during the period, was satisfactory. Order input increased by 72% and sales was higher by 32%. Again part of increase is due to increase in input material prices. 

Technology change is being implemented for reducing material content. 

HV Switchgear: 

They are proud to report that this Unit is fast aligning itself to latest global technologies. In the current year too, a prestigious order has been received for the supply of 3 nos. of 800 kV Circuit Breakers Type GL 318 from NTPC for their SIPAT project. This is a testimony to Indian Unit's expertise and its world-class products. 

Considering the tremendous market potential for these products, capital investment is being made in this Unit also to augment capacity. 

Sustainable Development and Continuous Improvement (SD&CI): 

During the period under report, all Units of the company, including the sales organization, progressed well with the implementation of the `Global Sustainable Development (SD)' model, `AREVA Way'. `Sustainable Development' concept recognizes the interdependence of environmental, social and economic systems and performance factors. In line with `Sustainable Development Commitments', the following Units of the company have been certified to Environment Management System Standard ISO 14001, in addition to Quality Management System Standard ISO 9001: 

* Taratala Works (AEI)* Salt Lake Works* Naini Works* Perungudi Works 

Further, the implementation of Quality improvement actions, based on global change management initiatives, for example Six sigma methodology, have continued to progress well across all the Units of the Company. To quote a few results of improvement actions: 

* Single piece flow line implemented for mechanism assembly resulting in 55% increase in productivity. 

* Flow and layout improvements in AEI - Fabrication shop, resulting in WIP divided by 8. 

* Pre-treatment, coating and plating process improvements in AEI resulting in improvement in process sigma from 3 to 5. 

The Joint Venture agreement with KoCoS Messtechnik, Germany was terminated and the company has since been wound up.

The company has been awarded with "ISO-9002" Certification.

It has joint venture with GEC Installation Equipment Limited, UK and The General Electric Company Plc.

It imports its requirements from France and UK.

The company is in trade terms with :

· Aar Kay Enterprises

• Adco Rubber Industries

· Ajanta Electronics

· Alfa Industries

• Allied Electricals & Switchfuses

· And Independent Power Producers

• Brite Glass Works Private Limited
• Calcutta Stripwire Industries
• Capital Enterprises
• Chowdhury Engineering Company

· Deco Paints & Chemicals

• Delta Trans Conductors Private Limited
• Electro Chemicals

· Esko Die Casting Private Limited

• Grandco Iron & Allied Industries
• Gururaj Radiators Private Limited

· Gyro Laboratories Limited

• Hatim Die Electric Private Limited
• Hrheem Electronics Private Limited

· Iika Metal India Private Limited

· Indian Railways

• Indo-British Spring Manufacturing Company
• Jay Tara Engineering Company

· Kapson India Private Limited

• Lads Tools & Services
• Latika Engineering Company

· National Hydro Power Corporation

· National Thermal Power Corporation

· Pearl Indulation Private Limited

· Power Grid Corporation of India Limited

• Pushpanjali Srimurugan Industries
• Sinha Insulated Cables Private Limited

· State Electricity Boards

• Super Jewel Bearings Private Limited
• Super Tech
• Sur Electrical Enterprise
• Tee Dee Castings
• Tesla-Mag Products

· Universal Industries

· V. L. Cables Limited

• Venus Engineering Services
• Vikas Enterprises
• Watterman Industries Limited
• Yash International

The company’s fixed assets of important value include land, buildings, plant and machinery, furniture, fittings and equipment, motor vehicles and railway siding.

Parent Company

ALSTOM SA, France

It is a Public Limited Company incorporated in France. Its substitutes GEC ALSTHOM NV as the top tier holding company and consequently, the entire shareholding of GEC ALSTHOM NV in the company. Constituting 66.49% of the paid up share capital, transferred to ALSTOM SA France after obtaining all the requisites statutory approvals. The company then became a subsidiary of ALSTOM SA France.

Memberships

· Confederation of Indian Industry

About Us

ALSTOM in India

ALSTOM, the global leader in power and rail transport, is in the business of designing, building and servicing technologically advanced products and systems for the world's energy and transport infrastructure.

In India, ALSTOM is active in two major areas of businesses i.e. Power and Transport

Commencing its operations in Kolkata in the 1910s and later in Chennai in the 1950s, ALSTOM in India traces its lineage to English Electric, CEGELEC, AEI, GEC ALSTHOM, ASEA, HBB, FLAKT and ABB, drawing its strengths from technologies developed over the years by these companies. ALSTOM has been a long-term player in India in the energy and transport infrastructure business, supplying critical electrical and industrial equipment including boilers and turbines and pollution control equipment for power plants, and transmission & distribution equipment. With its significant presence in the transport sector in India, ALSTOM provides railway equipment and technology solutions.

The Industrial equipment division with annual sales of 15 Million Euro manufactures rotating machinery, motors, industrial and domestic fans.

ALSTOM in India helps generate nearly 40% of the total power produced in the country.

In India, ALSTOM companies have together a turnover of about 150 Million Euro with about 2,700 employees. ALSTOM is the majority shareholder in ALSTOM Projects India Ltd.

In India, ALSTOM is active in two major areas of businesses:

· Power

· Transport

ALSTOM's Mission:

Improve conditions for millions of people and work towards a cleaner and better environment.

ALSTOM's Commitment:

Constantly innovate and develop new products, which provide better performance and cost-effective solutions.

· Reduce polluting emissions and strive towards environmental protection.

ALSTOM's hallmark for quality in India is its commitment to providing value to customers, shareholders, employees, vendors, and to society. We continually innovate and develop new products, and strive to exceed their customer's expectations.

ALSTOM is a global leader in power generation and rail transport infrastructure. The Company serves the energy market through its activities in the field of power generation and the transport market through its activities in rail and marine. ALSTOM's annual sales are around €14 billion. It employs 69,000 people in over 70 countries worldwide.

ALSTOM is listed on the Paris Stock Exchange.

ALSTOM is the majority shareholder in ALSTOM Projects India Ltd.

NEWS

on 7'' April 2005, which contained the detailed terms of the understanding reached between ALSTOM Holdings SA and AREVA T&D SA (jointly with AREVA T&D Holdings SA) for the acquisition of upto 26,464,400 equity shares (66.350l0) held by ALSTOM Holdings in the Company for a consideration of Euros 14.50 million i.e Rs. 806 million which translates to Rs. 30.45 per share and an Offer to purchase upto 20% i.e. upto 7,977,495 equity shares from the public at a price of Rs. 75.03 per share. 

FRENCH energy major Areva SA plans to spend as much as Rs 806 millions to acquire a 66.35-per cent stake in Alstom Limited, Alstom Holdings SA's Indian unit.

Areva will also make an offer worth Rs 598 millions to the shareholders of Alstom Limited to buy an additional 20 per cent at Rs 75.3 a share, HSBC Securities and Capital Markets (India) Pvt said on behalf of Paris-based Areva in an advertisement.

Areva's final shareholding in Alstom Limited will depend on the response to the open offer. The company intends to stay listed on Indian stock exchanges, HSBC said.

Areva has already acquired the transmission and distribution assets of Alstom Holdings SA outside India.

The offer for the 20-per cent stake opens on May 30 and closes on June 18, the advertisement said.

The acquisition in Alstom is being made to strengthen Areva's position in the transmission and distribution business in India, added an announcement issued by HSBC to BSE.

Areva said in a statement from Paris that the agreement with Alstom enables Areva to transfer the non-transmission and distribution business to a subsidiary of Alstom.

CMT REPORT [Corruption, Money laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.44.23
UK Pound	1	Rs.86.91
Euro	1	Rs.58.26

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	7
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	8
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		67

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions