MIRA INFORM REPORT

Report Date :

23.10.2008

IDENTIFICATION DETAILS

Name :	BHARAT HEAVY ELECTRICALS LIMITED

Registered Office :	BHEL House, Siri Fort, Asian Games Village, New Delhi – 110 049

Country :	India

Financials (as on) :	31.03.2008

Date of Incorporation :	13.11.1964

Com. Reg. No.:	55-4281

CIN No.: [Company Identification No.]	L74899DL1964GOI004281/U28999AP1966GOI001202

TAN No.: [Tax Deduction & Collection Account No.]	DELB06995C

PAN No.: [Permanent Account No.]	AAACB4146P

Legal Form :	Public Limited Liability Company. The company’s shares are listed on the Stock Exchanges.

Line of Business :	Manufacturing and sale of Boilers, Hydro Turbines, Gas Turbines etc.

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Maximum Credit Limit :	USD 600000000

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Comments :	Subject is the largest engineering Company in India. It was a wholly owned Government of India Company, but now Government’s equity stake is 68%. The Company is making steady progress in its performance. Trade relations are fair. Payments are correct and as per commitments. It can be considered good for business dealings at usual trade terms and conditions.

LOCATIONS

Registered Office :	BHEL House, Siri Fort, Asian Games Village, New Delhi – 110 049, India
Tel. No.:	91-11-41793428/26001010 (15 Lines) / 26493031
Fax No.:	91-11-24368406/26493021
E-Mail :	cmdbs@asiad.bhel.co.in md@bhpvl.com
Website :	http://www.bhel.com

Factory :	Heavy Electrical Equipment Plant, Hardwar Central Foundry Forge Plant, Hardwar Heavy Power Equipment Plant, Hyderabad High Pressure Boiler Plant, Trichy Heavy Electricals Plant, Bhopal Transformer Plant, Jhansi Electronics Division, Bangalore Boiler Auxiliaries Plant, Ranipet Industrial Valves Plant, Goindwal Electro-Porcelains Division, Bangalore Insulator Plant, Jagdishpur Component Fabrication Plant, Rudrapur Heavy Equipment Repair Plant, Varanasi Electrical Machine Repair Plant, Mumbai

Other Office :	International Operations Division, Integrated Office Complex, Lodhi Road, New Delhi – 110003, India
Tel No.:	91-11-41793428
Fax No.:	91-11-24368406
Mobile No.:	91-9871556490

DIRECTORS

Name :	Mr. Ashok K. Puri
Designation :	Chairman and Managing Director

Name :	Mr. Naresh Chaturvedi
Designation :	Director

Name :	Mr. Surajit Mitra
Designation :	Director

Name :	Mr. Vineet Nayyar
Designation :	Director

Name :	Mr. Sanjay M. Dadlika
Designation :	Director
Date of Appointment :	16.11.2005

Name :	Mr. Ashok K. Aggarwal
Designation :	Director
Date of Appointment :	16.11.2005

Name :	Mr. Manish Gupta
Designation :	Director
Date of Appointment :	16.11.2005

Name :	Mr. Shekhar Datta
Designation :	Director
Date of Appointment :	16.11.2005

Name :	Mr. Raman Singh Sidhu
Designation :	Director
Date of Appointment :	04.01.2006

Name :	Mr. Madhukar
Designation :	Director
Date of Appointment :	05.07.2006

Name :	Mr. Ramji Rai
Designation :	Director

Name :	Mr. S.K. Jain
Designation :	Director

Name :	Mr. A. K. Mathur
Designation :	Director

Name :	Mr. K. Ravi Kumar
Designation :	Director (Power)

Name :	Mr. C.S. Verma
Designation :	Director (Finance)

Name :	Mr. N.K. Sinha
Designation :	Company Secretary

Name :	Mrs. B S Meena
Designation :	Part Time Director

Name :	Mr. S Ravi
Designation :	Part Time Director

Name :	Mr. B P Rao
Designation :	Director

Name :	Mr. Anil Sachdev
Designation :	Director

Name :	Mr. C P Singh
Designation :	Director

KEY EXECUTIVES

Mr. Ashok K. Puri	Chairman and Managing Director

Mr. Ramji Rai	Engg. Research and Development Corporate Research and Development Corporate Monitoring, Materials Management Investment Planning, Manufacturing Technology

Mr. S.K. Jain	Human Resources Human Resource Development Institute Corporate Information Technology Corporate Communication

Mr. K. Ravi Kumar	Power Business Power Sector Regions-North, East, South and West Spares and Services Business

Mr. A.K. Mathur	Industrial Systems including Captive Power Plants and Products Business Transmission Business Transportation Business Ceramics Business Unit Component Fabrication Plant

Mr. C.S. Verma	Finance Internal Audit and Taxation Financial Services

Mr A. Bhattacharya	Corporate Planning and Development

Mr P.T.Deo	Heavy Electrical Equipment Plant Electrical Machines Repair Plant

Mr. R.K. Belapurkar	International Operations Business

Mr. C.P. Singh	Heavy Power Equipment Plant Engg. Research and Development Corporate Research and Development Corporate Monitoring Materials Management Investment Planning Manufacturing Technology Centralised Stamping Unit Fabrication Plant

Mr. S.K. Gupta	Heavy Electrical Equipment Plant Central Foundry Forge Plant Pollution Control Research Institute

Dr. V. Gopalakrishnan	High Pressure Boiler Plant Seamless Steel Tube Plant Industrial Valves Plant Piping Centre Welding Research Institute

Mr. V.K. Pande	Transmission Business

Mr. S.C. Vig	Power Sector – Marketing

Mr. R.K. Singh	Power Sector- Western Region Heavy Electrical Plant Electrical Machines Repair Plant

Mr. V. Viswanathan	Electronics Division Electronics Systems Division Industrial Systems Group

Mr. D. Indran	Power Sector-Southern Region

Mr. M.L. Sah	Power Sector-Eastern Region Power Sector- Northern Region

Mr P.S. Kulshrestha	Corporate Human Resource Corporate Communication Corporate Productivity Health, Safety and Environment

Mr. R.K. Bhattacharya	Corporate Engg. and Product Development Advance Research Project Technology IJ censing and Joint Ventures

Mr. S. Sathyanarayanan	Boiler Auxiliaries Plant

Dr. V.K. Jain	Transformer Plant

Mr. Pankaj Sharma	Power Sector-Northern Region

Mr. B.P. Rao	Secretary, Management Committee Industrial Systems and Products Business including Captive Power Plant Business Transmission Business Transportation Business Ceramics Business Unit Component Fabrication Plant Transformation Programme

Mr. Anil Sachdev	Human Resources Human Resources Development Institute Corporate Information Technology

Mr. G.V. Rami Reddy	Heavy Power Equipment Plant

Mr. R N Misra	High Pressure Boiler Plant Seamless Steel Tube Plant Industrial Valves Plant Piping Centre Welding Research Institute

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

Names of Shareholders (As on 30.06.2008)	No. of Shares	Percentage of Holding

Shareholding of Promoter and Promoter Group

Indian
Central Government / State Government (s)	331510400	67.72

Public shareholding

Institutions
Mutual Funds/UTI	32846528	6.71
Financial Institutions/Banks	1144342	0.23
Insurance Companies	15390288	3.14
Foreign Institutional Investors	78224136	15.98

Non-institutions
Bodies Corporate	17793438	3.63
Individuals – i. Individual shareholders holding nominal share capital up to Rs. 0.100 Millions	10444953	2.13
ii. Individual shareholders holding nominal share capital in excess of Rs. 0.100 Millions	1010724	0.21
Any Other (i) NRIs	677910	0.14
Foreign Nationals	1000	0.00
Directors	800	0.00
Independent directors	20	0.00
Trust	14277	0.00
Clearing Members	461184	0.09
TOTAL	489520000	100.00

BUSINESS DETAILS

Line of Business :

Manufacturing and sale of Boilers, Hydro Turbines, Gas Turbines etc.

Products :

Item Code No.	Product Description
840210	Boilers other than parts
85023902	Complete generating sets including hydro turbines
84118206	Gas Turbine of thrust exceeding 115000 KW

PRODUCTION STATUS (as on 31.03.2008):-

BHOPAL

Particulars	Unit	Installed Capacity	Actual Production
Turbo Sets
- Steam Turbine / Nuclear Turbine	Set	1/1	1
	MW	210 or 250/236	250
Hydro sets
- Hydro Turbine	Nos.	25	17
	MW	2500	1284

- Hydro Generator	Nos.	25	12
	MW	2500	869

Large Electrical Machine	Nos.	100	332
Traction Machine	Nos.	3200	2920
Power Transformers	Nos.	65	81
	MVA	15000	11986
Instrument Transformers	Nos.	200	723
Electrical Machines	Nos.	550	970
Switchgear	Nos.	3000	4000
Capacitor	MVAR	3200	1853
Industrial Controlgear	Nos.	250	0
Traction Controlgear	Set	220	231
Control Equipment	Nos.	600	1184
Heat Exchangers	Nos. MT	52 1100	21 0
Control Panels	Nos.	600	405
Cathodic Protection System	Tonne	2700	0

JHANSI

Particulars	Unit	Installed Capacity	Actual Production
Power Transformers 33kv/ 132kv	Nos./ MVA	105/ 5500
Other Transformers · Special Purpose Transformers · Traction Transformers · Instrument Transformers · ESP Transformers	Nos. Nos. Nos. Nos.	140 140 1000 500	116 157 774 719
Bus Duct	Set	@
Diesel Shunters	Nos.	10	15
AC Locomotives	Nos.	30	0

Notes :-

v Installed capacity is as reassessed and certified by the management

v * Installed capacity of ESP Trfr has been generated out of Instrument Trfrs

v @ Bus duct manufacturing is being done within the existing capacity of Transformers.

v Actual production for 2007-2008 includes job done for internal use for the following Products :

v For Sister Units : 2 Nos Power Trfr, 4 Nos. Instrument Trfr, 6 Nos. Dry Type Trfr.

v For Own Unit: 9 Nos. Instrument Trfr.

HEEP HARDWAR

Particulars	Unit	Installed Capacity	Actual Production
Turbo Sets	MW	5750	2530
Hydro Sets	MW	---	304
Electrical Machines	MW	---	---
Gas Turbines @ @	MW	0	---
Super Rapid Guns	Nos.	3	2

CFFP HARDWAR

Particulars	Unit	Installed Capacity	Actual Production
Steel Castings	MT	6000	4416
Steel Forging · Steel Forgings (Heavy) · Medium Forgings	MT MT	2410 3000	646 2161
Billets and Blooms	MT	4000	521
N F Casting	MT	250	46

Notes:-

1. Licensed capacity not shown as the same is not required in terms of new Industrial Policy

2. Installed Capacity is as certified by the management

HYDERABAD

Particulars	Unit	Installed Capacity	Actual Production
Steam Turbines	MW	695	1156
Generators	MW	1360	1630
Gas Turbines	MW	480	396
Compressors	Nos.	0	6
Pulverisers @ @	Nos.	63	96
Pumps @	Nos.	126	200
Breakers # # #	Nos.	1035	309
Heat Exchangers #	Nos.	137	155
Oil Rigs # #	Nos.	0	10

Note:

v Above figures are inclusive of Refurbishment orders

v @ BFP, BP, CEP and CWP

v @ @ Bowl Mills and Tube mills

v # HP and LP Heaters, Deaerators, Condensers, Gas Coolers, LO System and Spl HE

v # # Mud Pumps, H and R Equipment and draw works

v # # # Capacity being re-assessed and figures are 132 KV Breaker equivalents.

EDN – BANGALORE

Particulars	Unit	Installed Capacity	Actual Production

Energy Meters	Nos.	0	0
Control Equipments	CUBICLE	2500	3058
Power Devices	Nos.	12000	14994
Photovoltaics	KWS	2000	1155
Simulators (Defence Electronics)	SETs	0	0

TRICHY

Particulars	Unit	Installed Capacity	Actual Production

Boilers	MT	108000 *A	305423
Valves	MT Nos.	2712 **	91639 115028
Nuclear Steam Generating Equipments	MW	382/500	xxx
Seamless Steel Tubes	MT	40000	30043
Armoured Recovery Vehicles	Nos.	25	----

Notes:-

+ Including 5000 MT for manufacture of equipments for Process Industries.

* Includes Sub-Contracting and Sub-Delivery.

A Excludes 788 MT of IVP/Goindwal

** Corresponding to 6.5 Steam Generators and 6.5 Reactor Headers for 235 MW (or) 4 Steam Generators and 4 Reactor Headers for 500 MW. Corresponding to the licensed capacity of 50 Nos.

XX The capacity was utilised for manufacturing components for Nuclear Projects and other Heat Exchangers, Pressure Vessels, 2 Nos. Return Coolers, Inner Vessel and Thermal Baffle were manufactured during 2006-07. Tubesheet drilling job was carried out during 2006-07.

XXX The capacity was utilised for manufacturing components for nuclear Projects and other Heat Exchangers, Pressure Vessels and components of fossil boilers. 1 No. Reheater Tube Bank, Thermal baffle were manufactured during 2007-08.

BAP – RANIPET

Particulars	Unit	Installed Capacity	Actual Production

Boiler Auxiliaries	MT	118000	152028

IVP –GOINDWAL

Particulars

Unit

Installed Capacity

Actual Production

Industrial Valves and Valves Spares

Nos.

788

1300

8005

EPD - BANGALORE

Particulars	Unit	Installed Capacity	Actual Production

Insulators and Bushings	CMT	6250	6876
Assembled Production	MT	0.000	10861
Ceralin	CMT	745	1040
Ceralin (Assembled)	MT	0.000	2734

IP - JAGDISHPUR

Particulars	Unit	Installed Capacity	Actual Production

Insulators	CMT	6000	6798.31
Ceralin	MT	330	705.00
Ceralin (Assembled)	MT		1752.55

CFP - RUDRAPUR

Particulars	Unit	Installed Capacity	Actual Production

S W H S	Nos.	4000	2241
Solar Lanterns	Nos.	10000	1531
Bus Duct	MT	100	----

GENERAL INFORMATION

No. of Employees :

46935

Bankers :

v Arab Bank, Jordan

v ABN AMRO Bank NV

v Bank of Baroda

v Canara Bank

v CITI Bank NA

v Deutsche Bank

v HDFC Bank Limited

v Hong Kong and Shanghai Banking Corp. Limited

v ICICI Bank Limited

v IDBI Bank Limited

v Punjab National Bank

v Standard Chartered Bank

v State Bank of Hyderabad

v State Bank of India

v State Bank of Travancore

v Bank Muskat, Oman

v Barclays Bank Limited, Zambia

v Bhumiputra Commerce (Bank of Commerce) Malaysia

v Indo Jambia Bank, Lusaka

v Jamahouria Bank, Libya

v National Bank of Egypt

Facilities :

Unsecured Loans	31.03.2008 (Rs. in millions)

Credits for Assets taken on lease	910.600
Interest accrued and due on :
- State Government Loans	23.300
- Credits for Assets taken on lease	17.900
Total	951.800

Banking Relations :

Good

Auditors :

Name :

J C Bhalla and Company

Chartered Accountants

Statutory Auditors :

Vasan and Sampath

Chartered Accountants,

Bangalore, Karnataka, India

Bhasin Raghavan and Company

Chartered Accountants,

New Delhi, India

S. L. Chhajed and Company

Chartered Accountants,

Bhopal, Madhya Pradesh, India

M. Bhaskara Rao and Company

Chartered Accountants,

Hyderabad, Andhra Pradesh, India

Bansal and Company

Chartered Accountants,

New Delhi, India

Raj Gupta and Company

Chartered Accountants,

Ludhiana, Punjab, India

Mehra Malhotra and Company

Chartered Accountant

New Delhi

Swamy and Company

Chartered Accountants

Chennai, Tamilnadu

S. P. Puri and Company,

Chartered Accountants,

New Delhi, India

V. Ramaswamy Iyer and Company,

Chartered Accountants,

Vellore, Tamil Nadu, India

Vinay Kant and Associates,

Chartered Accountants,

Varanasi, Uttar Pradesh, India

Sagar and Associates,

Chartered Accountants,

Hyderabad, Andhra Pradesh

Dinesh Ashok and Company,

Chartered Accountants,

Kanpur, Uttar Pradesh

V. Soundrarajan and Company,

Chartered Accountants,

Chennai, Tamilnadu

P. G. Joshi and Company,

Chartered Accountants,

Nagpur, Maharashtra

Nundy Roy and Company

Chartered Accountants

Kolkata, West Bengal

K. L. Banerjee and Company

Chartered Accountants

Kolkata, West Bengal

D. R. Mehta and Associates

Chartered Accountants

Mumbai, Maharashtra

Suri and Company

Chartered Accountants,

Chennai, Tamilnadu

Memberships :

Confederation of Indian Industry

Joint Ventures :

Power Plant Performance Improvement Limited
BHEL-GE Gas Turbine Services Limited

Associates/Subsidiaries :

All the Government of India Undertaking Companies
SWIL Limited
Tata Refractories Limited
Spectrum Power Generation Limited

CAPITAL STRUCTURE

(As on 31.03.2008):-

Authorised Capital :

No. of Shares

Type

Value

Amount

2000000000

Equity Shares

Rs.10/- each

Rs.20000.000

millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
489520000	Equity Shares	Rs.10/- each	Rs. 4895.200 millions

Notes:-

Previous year 74111200 allotted for consideration other than cash and 244760000 (Previous Year: Nil) allotted as bonus shares

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2008	31.03.2007	31.03.2006
SHAREHOLDERS FUNDS
1] Share Capital		4895.200	2447.600	2447.600
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		102846.900	85435.100	70566.176
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		107742.100	87882.700	73013.776
LOAN FUNDS
1] Secured Loans		0.000	0.000	5000.000
2] Unsecured Loans		951.800	893.300	582.404
TOTAL BORROWING		951.800	893.300	5582.404
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		108693.900	88776.000	78596.180

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		9812.600	9887.400	9822.765
Capital work-in-progress		6580.300	3025.400	1845.718

INVESTMENT		82.900	82.900	82.926
DEFERREX TAX ASSETS		13379.300	9351.600	6737.204

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	57364.000	42176.700	37443.706
	Sundry Debtors	119748.700	96128.100	71680.649
	Cash & Bank Balances	83860.200	58089.100	41339.754
	Other Current Assets	4210.900	1997.000	844.951
	Loans & Advances	11863.400	11408.700	11998.730
Total Current Assets		277047.200	209799.600	163307.790
Less : CURRENT LIABILITIES & PROVISIONS
	Current Liabilities	165764.500	117328.600	88077.480
	Provisions	32443.900	26042.300	15122.743
Total Current Liabilities		198208.400	143370.900	103200.223
Net Current Assets		78838.800	66428.700	60107.567

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		108693.900	88776.000	78596.180

PROFIT & LOSS ACCOUNT

PARTICULARS		31.03.2008	31.03.2007	31.03.2006
Sales Turnover		193046.400	172375.300	133740.300
Other Income		14447.600	8235.600	5469.200
Total Income		207494.000	180610.900	139209.500

Profit/(Loss) Before Tax		44303.900	37360.700	25643.500
Provision for Taxation		15710.500	13213.700	8851.900
Profit/(Loss) After Tax		28593.400	24147.000	16791.600

Export Value		9390.900	10959.100	19294.000

Import Value		33951.400	24441.700	23571.710

Expenditures :
	Manufacturing Expenses	16442.300	16600.700	11700.500
	Consumption of stores and spares parts	118208.700	100179.000	0.000
	Administrative Expenses	7782.500	1713.500	2827.500
	Raw Material Consumed	0.000	0.000	81465.200
	Salaries, Wages, Bonus, etc.	26076.900	23689.500	14526.000
	Increase/(Decrease) in Finished Goods	[8272.600]	[1811.900]	0.000
	Interest	363.400	433.300	587.500
	Depreciation & Amortization	2588.900	2446.100	2459.300
		171462.7
Total Expenditure		163190.100	143250.200	113566.000

QUARTERLY RESULTS

PARTICULARS			30.06.2008
Type			1^st Quarter
Sales Turnover			43292.400
Other Income			2917.400
Total Income			46209.800
Total Expenditure			39555.300
Operating Profit			6654.500
Interest			25.600
Gross Profit			6628.900
Depreciation			725.800
Tax			1980.300
Reported PAT			3844.100

KEY RATIOS

Year	31.03.2008	31.03.2007	31.03.2006
Debt-Equity Ratio	0.01	0.04	0.08
Long Term Debt-Equity Ratio	0.01	0.04	0.08
Current Ratio	1.40	1.47	1.54
TURNOVER RATIOS
Fixed Assets	5.07	4.78	3.96
Inventory	4.37	4.78	4.43
Debtors	2.00	2.26	2.24
Interest Cover Ratio	126.08	87.22	44.65
Operating Profit Margin(%)	21.92	21.31	19.46
Profit Before Interest And Tax Margin(%)	20.55	19.87	17.79
Cash Profit Margin(%)	14.53	14.13	13.06
Adjusted Net Profit Margin(%)	13.16	12.70	11.39
Return On Capital Employed(%)	45.23	45.16	36.37
Return On Net Worth(%)	29.23	30.02	25.20

LOCAL AGENCY FURTHER INFORMATION

History

Subject was wholly owned by the Government of India. On liberalisation, the government disinvested a portion of its share holding in December 1991 and February, 1992. Unit Trust of India, Bank of India, LIC and some insurance companies had purchased these shares. At present Government of India’s equity stake is 68%.

This company is the largest engineering enterprise of India. Its first plant was set up at Bhopal in 1956 under technical collaboration with AEI, UK followed by three more major plants at Hardwar, Hyderabad and Tiruchirapalli with Russian and Czechoslovak assistance.

The plants have been at the core of the company’s efforts to grow and diversify and become India’s leading engineering company. The company now has 14 manufacturing divisions, 8 service centres and 4 power sector regional centres, besides project sites spread all over India and abroad and also regional operations divisions in various state capitals in India for providing quick service to customers. The company manufactures over 180 products and meets the needs of core-sectors like power, industry, transmission, transportation (including railways), defense, telecommunications, oil business, etc. The Products of the company have established an enviable reputation for high quality and reliability.

The company has installed equipment for over 62,000 MW of power generation – for Utilities, Captive and Industrial users. It has supplied 2,00,000 MVA transformer capacity and sustained equipment operating in Transmission and Distribution network upto 400 KV-AC and DC.

This is due to the emphasis placed all along on designing, engineering and manufacturing to international standards by acquiring and assimilating some of the best technologies in the world from leading companies in USA, Europe and Japan together with technologies from its-own Research and Development Centres. The company has acquired ISO 9000 certification for its operations and has also adopted the concepts of Total Quality Management. Company’s major clients are State Electricity Boards, NTPC, World Bank aided projects, the Railways and a host of private companies. Its products are exported mainly to the Middle East and the far-east countries.

Recently the company’s performance has been affected due to long delays in placement of orders by the clients (on account of paucity of funds and industrial slowdown) and large VRS outgo.

Business

The company is serving the country as supplier of wide range of equipment, systems and service to the core sectors of the Indian economy. Its areas of operation broadly covers conversion, transmission, utilisation and conservation of energy in the power industry and transportation sectors, thus fulfilling a vital infrastructure need of the economy. The company has 14 manufacturing divisions, 9 service centres and 4 power sector regional centers, besides project sites spread all over India and abroad. Its operations are organized along three business sectors, viz. Power, Industry and International operations.

Financial Highlights:

During the year the turnover increased by 14.2% to Rs. 214010 millions from Rs.187390 millions in the previous year. Profit after tax registered an increase of 18.4% to Rs. 28590 millions as against Rs. 24150 millions in the previous year. The increase in profit is driven by the higher volume of operations and enhanced interest income. Net worth of the company has gone up from Rs. 87880 millions in 2006-07 to Rs. 107740 millions in 2007-08 registering an increase of 22.6%. NAV per share, based on enhanced share capital, has increased from Rs. 179.5 in 2006-07 to Rs. 220.1 in 2007-08.

Corporate Profile

Subject is the largest engineering and manufacturing enterprise in India in the energy related/infrastructure sector. Subject was established more than 40 years ago, ushering in the indigenous Heavy Electrical Equipment industry in India, a dream which has been more than realized with a well-recognized track record of performance. It has been earning profits continuously since 1971-72.

Subject caters to core sectors of the Indian Economy viz., Power Generation and Transmission, Industry, Transportation, Renewable Energy, Defence, etc.

The wide network of Subject's 14 manufacturing divisions, 4 power sector regional centres, 8 service centres, 15 regional offices and a large number of Project Sites spread all over India and abroad enables the Company to promptly serve its customers and provide them with suitable products, systems and services-efficiently and at competitive prices.

Subject has attained ISO 9001 certification for quality management and all the manufacturing units/divisions of Subject have been upgraded to the latest ISO-9001: 2000 version. All the major units/divisions of Subject have been awarded ISO-14001 certification for Environmental Management Systems and OHSAS-18001 certification for Occupational Health and Safety Management Systems.

Subject was the first Public Sector Company in the country to win the coveted PRIZE' for its Haridwar unit under the CII Exim Award for business excellence, as per the globally recognized model of European Foundation for Quality Management. The company received EEPC's Top Export Award for Project Exports for the seventeenth year in succession. It has also won the SCOPE Meritorious Award for R and D and Innovation 2005-06 for commendable contribution in the area of R and D and Innovation.

The company achieved the perfect MoU score of 1.00 for the year 2006-07 and has also been selected for the MoU award for highest growth rate in market capitalisation among listed PSEs during 2006-07. 12 out of the 13 power stations awarded with the Ministry of Power's Meritorious Productivity Awards for 2006-07 are equipped with Subject sets, reaffirming the quality and reliability of Subject's equipment.

Power Generation

Power Generation Sector comprises Thermal, Gas, Hydro and Nuclear power plant business. As of 31.3.2008, Subject-supplied sets account for 85,786 MW or around 64% of the total installed capacity of 134697 MW in the country. Significantly, these sets generated an all-time high 454.59 Billion Units of electricity contributing 73% of the total power generated in the country. The cumulative capacity of projects installed worldwide have crossed 100000 MW.

Subject has proven turnkey capabilities for executing power projects from Concept to Commissioning. The company has introduced new rating thermal sets of 270 MW, 525 MW and 600 MW in subcritical range and possesses the technology and capability to produce large capacity thermal sets with super critical parameters and gas turbine-generator sets. Co-generation and Combined cycle plants have been introduced to achieve higher plant efficiencies. To make efficient use of the high ash content coal available in India, Subject also supplies Circulating Fluidized Bed Combustion (CFBC) boilers for thermal plants.

The Company manufactures 220/235/500/540 MWe, nuclear turbine-generator sets. Custom-made hydro sets of Francis, Pelton and Kaplan types for different head-discharge combinations are also engineered and anufactured by Subject.

The Company has proven expertise in Plant Performance Improvement through Renovation, Modernization and Uprating of a variety of power plant equipment, besides specialized know-how of residual life assessment, health diagnostics and life extension of plants. Subject built thermal sets consistently exceed the national average efficiency parameters and have achieved the highest-ever Plant Load Factor (PLF) of 80.4% during 2007-08, which is 2.5% higher than the national average. Operating Availability (OA) was also the highest-ever at 86.7%.

Subject is one of the few companies worldwide, involved in the development of Integrated Gasification Combined Cycle (IGCC) technology which would usher in clean coal technology. Subject has set up Asia's first 6.2 MW IGCC power plant with an indigenously designed pressurised fluidised bed gasifier. The company has also signed an MoU with APGENCO for setting up a 125 MW IGCC plant at Vijayawada.

Industries
Subject manufactures and supplies major capital equipment and systems like Captive power plants, Centrifugal compressors, Drive Turbines, Industrial boilers and auxiliaries, Waste heat recovery boilers, Gas turbines, Pumps, Heat exchangers, Electrical machines, Valves, Heavy castings and forgings, Electrostatic precipitators, ID/FD fans, Seamless pipes etc. to a number of industries, like metallurgical, mining, cement, paper, fertilizers, refineries and petro-chemicals etc., other than power utilities. Subject has also emerged as a major supplier of controls and instrumentation systems, especially distributed digital control systems for various power plants and industries.

Transportation
Most of the trains in Indian Railways, whether electric or diesel powered, are equipped with Subject's traction propulsion system and controls. The systems supplied are both with conventional DC drives and state-of-theart AC drives. India's first underground metro at Kolkata runs on drives and controls supplied by Subject. The company also manufactures complete Rolling stock i.e. Electric locomotives up to 5000 HP and EMU coaches and Diesel Electric locomotives from 350 HP to 3100 HP for both mainline and shunting duty applications.

Subject also undertakes retrofitting and overhauling of rolling stock. In the area of urban transportation, Subject is geared up for turnkey execution of electric trolley bus systems, light rail systems and metro systems. Subject is contributing to the supply of electrics for EMUS for 1500V DC and 25 kV AC to Indian Railways. Almost all the EMUs in service in India are with the electrics manufactured and supplied by Subject. Subject has also diversified into the area of track maintenance machines and coach building for Indian Railways.

Renewable Energy

Subject has been manufacturing and supplying a range of Renewable Energy systems and products. It includes Solar Energy systems viz. PV modules, PV power plants, Street lighting, Solar pumps and Solar water heating systems.

A large number of small hydro power stations have also been completed.

In line with the efforts being made at national level for development of remote areas, Subject has commissioned six stand alone Solar Photovoltaic (SPV) power plants of 3x110 KWp and 3x55 KWp capacities in Sunderbans (West Bengal). 57 Sets of Solar PV operated petrol pumps are being supplied to M/s HPCL to illuminate and run the company-owned petrol pumps' smoothly irrespective of Grid power outage.

Oil and Gas

Subject is supplying onshore drilling rig equipment viz. Draw works, Rotary-table, Traveling block, Swivel, Mast and Sub structure, Mud systems and Rig electrics to ONGC and Oil India Limited. Well heads and X-Mas tree valves upto 10,000 psi rating for onshore as well as offshore application are being supplied to ONGC, Oil India Limited. and Private Drilling Companies. Subject has also supplied Casing Support System, Mudline Suspension System and Block Valves to ONGC for offshore application.

It also has the capability to supply complete onshore Drilling rigs, Super-deep drilling rigs, Desert rigs, Mobile rigs, Work over rigs and sub-sea well heads. Currently, Subject is executing orders for refurbishment and upgradation of onshore Oil Rigs from ONGC and Oil India Limited.

Subject has supplied GT driven centrifugal compressor packages to GAIL India Limited. for their gas compressor stations for the Dahej - Vijaipur gas pipeline project.

Transmission
Subject supplies a wide range of products and systems for transmission and distribution applications. The
products manufactured by Subject include Power transformers, Instrument transformers, Dry type transformers, Shunt reactors, Capacitors, Vacuum and SF6 switchgear, Gas insulated switchgears, Ceramic insulators, etc.

Subject has developed and commercialised the country's first indigenous 36 kV Gas Insulated Substation (GIS) and has also developed 145 kV GIS which has undergone successful field trials at Hyderabad. HVDC Disc insulators of rating 320kN/42OkN have been developed for the first time in the country for use in +/- 800kV HVDC application.

For enhancing the power transfer capability and reducing transmission losses in 400 kV lines, Subject has indigenously developed and executed fixed series compensation schemes and has developed thyristor controlled series compensation scheme, involving thyristor controlled reactors, popularly known as Flexible AC Transmission System (FACTS). Subject has indigenously developed and commercialized state-of-the-art controlled shunt reactor for reactive power management of long transmission lines. With a strong engineering base, the company undertakes turnkey execution of substations up to 400 kV and has the capability to execute 765 kV substations. High Voltage Direct Current (HVDC) systems have been supplied for economic transmission of bulk power over long distances.

International Business

Subject has, over the years, established its references in 70 countries across all inhabited continents of the world. These references encompass almost the entire range of Subject products and services, covering Thermal, Hydro and Gas-based turnkey power projects, Substation projects, Rehabilitation projects, besides a wide variety of products like Transformers, Compressors, Valves, Oil field equipment, Electrostatic Precipitators, Photovoltaic equipment, Insulators, Heat Exchangers, Switchgears, Castings and Forgings etc.

Some of the major successes achieved by Subject have been in Gas-based power projects in Oman, Libya, Malaysia, Saudi Arabia, Iraq, Bangladesh, Sri Lanka, China, Kazakhstan; Thermal power projects in Cyprus, Malta, Libya, Egypt, Indonesia, Thailand, Malaysia, Sudan; Hydro power plants in New Zealand, Malaysia, Azerbaijan, Bhutan, Nepal, Taiwan, Tajikistan, Thailand, Afghanistan; and Substation projects and equipment in various countries.

Execution of these overseas projects has also provided Subject the experience of working with world renowned consulting organizations and inspection agencies.

The company has been successful in meeting the demanding requirements of international markets in terms of complexity of work as well as technology, quality and other requirements viz. HSE requirements, financing packages and associated O and M services, to name a few. Subject has proved its capability to undertake projects on fast-track basis. The company has also established its versatility to successfully meet the varying needs of different sectors, be it captive power, utility power generation or the oil sector.

Besides undertaking turnkey projects on its own, Subject also possesses the requisite flexibility to interface and complement other international companies for large projects, and has also exhibited adaptability by manufacturing and supplying intermediate products.

The company is taking a number of strategic business initiatives to fuel further growth in overseas business. This includes firmly establishing itself in target export markets, positioning of Subject as a regular EPC contractor in the global market both in utility and IPP segments and exploring various opportunities for setting up overseas joint ventures etc.

TECHNOLOGY UP-GRADATION, RESEARCH And DEVELOPMENT

To remain competitive and meet customers' expectations, Subject lays great emphasis on the continuous up-gradation of products and related technologies, and development of new products. The Company has upgraded its products to contemporary levels through continuous in-house efforts as well as through acquisition of new technologies from leading engineering organisations of the world.

The Corporate R and D Division at Hyderabad leads Subject's research efforts in a number of areas of importance to Subject's product range. Research and product development centres at each of the manufacturing divisions play a complementary role. Centres of excellence have been set up for Simulators, Computational Fluid Dynamics, Permanent Magnet Machines and Surface Engineering. As the fifth in the series, Subject is establishing a Centre of Excellence for Intelligent Machines and Robotics (COE-IMAR). In addition to the Corporate R and D Division, Subject has four specialized institutes, viz., Welding Research Institute at Trichy, Ceramic Research Institute at Bangalore, Centre for Electric Traction and Hydro lab at Bhopal and Pollution Control Research Institute at Haridwar.

Subject has introduced, in the recent past, several state-of-the-art products viz. 60 MW Bubbling Fluidised Bed Combustion Boiler for power generation, 260 MW steam turbine designed to suit combined cycle power plants, Bypass Over Fire Air (BOFA) system for reduction of NOx from coal based thermal power plants, high efficiency Francis and Pelton hydro turbines, new LP turbine variant which can be retrofitted in old Russian (LMW) 210 MW thermal sets, Automatic Storage and Retrieval System (ASRS) for storage and inventory management system of the Indian Army, Solar Panels with 5500 watts output consisting of high- efficiency multi-junction solar cells, Satellite Batteries for INSAT 4A, Controlled Shunt Reactor (CSR) for 400 kV Transmission lines, Flexible AC Transmission Systems (FACTS), STATCOM, Phase Shifting Transformer (PST), 145 kV Gas Insulated Switchgear (GIS), Micro controller based flame scanner, a more energy efficient single cylinder non-reheat steam turbine for 100-140 MW application, IGBT based 3-phase drive system for 700 HP diesel electric locomotives, technology for manufacture of 400 kV long-rod composite insulators with improved properties by adding nano materials, Performance Analysis, Diagnostics and Optimization (PADO) package for power plants, 91 ton Subject 280 Bowl Mill, etc.

Reinforcing its position as a total solution provider, Subject has developed and successfully commissioned a Maintenance Controller (an Integrated Asset Management and Decision Support System) at the Western Mountain Power Project, Libya. Based on PowerPac-G, a software jointly developed by Subject and TCS, this is a system for complete power plant maintenance for Combined Cycle Power Plant application and takes care of all the maintenance needs of a power station.

The company is also engaged in research in futuristic areas like fuel cells for distributed environment-friendly power generation, clean coal technology applications, super conductivity applications in transformers, generators

motors etc. and nano technology for various applications.

Human Resource Development Institute

The Human Resource Development Institute (HRDI) situated in Noida, is the corner stone of Subject's learning Infrastructure, along with the Advanced Technical Education Centre (ATEC) at Hyderabad and the Human Resource Development Centres (HRDCs) at different units. Through various organizational developmental efforts, these centres ensure that the prime resource of the organization - the Human Capital - is always in a state of readiness to meet the dynamic challenges posed by the fast changing environment. It is their constant endeavour to take the HRD activities to the strategic level of becoming an active partner in achieving the organizational goals.

Guided by the HRD Polestar statement 'To create an environment supportive of blossoming of full potential of employees', the HRDI along with the HRDCs and the ATEC, through a systematic strategic long term training process and several short-term need based programmes based on comprehensive organizational research, enable the human resources to unearth and polish their potential. The HRDI is spearheading the HRD initiatives in the company and focusing on competency, commitment and culture building.

Some of the core programmes are Advanced Management Programmes, General Management Programmes, Strategic Management Programmes, Senior Management Programmes, Middle Management Programmes, and Young Managers Programmes.

In addition, the HRDI provides professional support to Corporate HR and HRDCs at Units/Divisions;.

Health, Safety And Environment Management

Subject is committed to be an environment friendly company in all its areas of activities, products and services, providing safe and healthy working environment to all stakeholders. In fact this aspect has become an integral part of the company's business performances. Significantly, Subject has also taken initiatives on Clean Development Mechanism (CDM) projects to reduce greenhouse gas emissions in a more focused way and vigorous efforts are being made to achieve milestones in this area.

In line with the company's strategy, Subject undertakes a host of Environment Improvement Projects and Community Development Programmes. Some of the major EIPs executed in the past at Subject plants and townships included tree plantation drives, installation of rain water harvesting plants, efficient water and energy management, reduction in noise level, improvement in chemical storage and handling systems etc. In conformity with Subject's concern for society and environment, a more energy efficient single cylinder non-reheat steam turbine for 100-140MW application has been developed, suitable for plants where large amounts of waste heat is available and reheat option is not feasible. This is the largest single cylinder steam turbine engineered so far by Subject.

Corporate Social Responsibility

As part of its Corporate Social Responsibility, Subject adopted 56 villages having nearly 80,000 inhabitants. Other examples of CSR activities are Blood Donation and Health Check-up camps, besides providing infrastructure support at these villages. In addition, Subject provides financial assistance to various NGOs/ Trusts/Social Welfare Societies that are engaged in social activities throughout the country.

Participation In The Un's Global Compact Programme

As the world's largest global corporate citizenship initiative, the Global Compact is the first and the foremost concern which is exhibiting and building the social legitimacy of business and markets. Subject is committed to United Nations Global Compact Programme, the set of core values enshrined in its ten principles and the intent to advance Global Compact principles within the company's sphere of influence. Subject has made these a part of the strategy, culture and day-to-day operations. As part of this programme, Subject continues to play a lead role in the activities of the Global Compact Society in India, which acts as an apex level nodal agency representing Indian corporate bodies and institutions/ organizations that are committed to UN's Global Compact Programmes.

Performance of Business Segments

Power Sector

Power Sector booked orders worth Rs.410690 millions for supply and installation of 14555.6 MW of generating equipment as well as services and supply of spares. This is the highest ever order booked by Power Sector in financial and physical terms, in any financial year.

Successful initiatives of the company have resulted in up-gradation of technology and a foray into new product segment and ratings:

v First Order for 660 MW Supercritical (SG package) of coal based TPP received

v First Order for Advance Class 9 FA GT CCPP received

v First Order for new rating of 270 MW, 525 MW, 600 MW received

v First Order for 500 MW Turbine Generator and Secondary Piping for Nuclear Set based on Fast Breeder Reactor from Bhavini for Kalpakkam Project.

To the credit are successful strategic initiatives resulting in MOU with TNEB for formation of JV for setting up Udangudi (2x800 MW) Super critical Power Project in Tamil Nadu. MOU with NTPC for formation of JV for EPC business for Power Projects.

CEA's recommendations - qualifying Subject for 600 MW sets based on 500 MW experience.

Year witnessed receipt of orders for the largest number, in any year, of the coal sets in the rating of 490 - 600 MW - 17 Nos and also of Hydro sets - 29 Nos.

Orders worth Rs 23570 millions towards Spare and Services business received.

Following significant orders for main equipment were received during the year

COAL (11140 MW)

Turnkey/EPC Orders:

· 2x500 MW (Main Plant excluding CHP and Water System) at Koderma TPP and Durgapur Steel TPS of Damodar Valley Corporation(DVC)

· 2x270 MW at Sikka 3 and 4 and 1x490 MW at Ukai of Gujarat State Electricity Corporation Limited (GSECL)

· 2x500 MW (excluding CHP and Switchyard) at Anpara D' of Uttar Pradesh Rajya Vidyut Utpadan Nigam Limited. (UPRVUNL)

· 1x600 MW at North Chennai Stg II-1 of Tamil Nadu Electricity Board (TNEB)

(b) Power Plant Packages

v 2x660 MW at Barh Stg II and 3x250 MW at Bongaigaon from National Thermal Power Corporation (NTPC)

v 3x500 MW at Indira Gandhi STPP (Jhajjar) of Aravali Power Company Private Limited (APCPL - a Joint Venture of NTPC, HPGCL and Delhi Govt).

v 2x500 MW at Ennore TIPS of Tamil Nadu Energy Company Limited (NTECL - Joint Venture Company of NTPC and TNEB).

v 4x250 MW at Nabinagar of Bhartiya Rail Bijlee Company (Joint Venture Company of NTPC and Railways).

v 1 x210 MW at Rayalseema 5 - Stg III of Andhra Pradesh Power Generation Corporation (APGENCO)

v 2x525 MW at Maithon of Maithon Power Limited. (MPL - Joint venture between Tata Power and Damodar Valley Corporation)

v 2x250 MW at Satpura of Madhya Pradesh Power Generating Company Limited. (MPPGCL)

v 1x500 MW at Korba (W) of Chhattisgarh State Electricity Board (CSEB)

GAS: (1416.6 MW):

v 2x350 MW CCPP at Pipava of GSPC Pipava Power Company Limited. (GPPC)

v 1x350 MW CCPP at Hazira Gujarat State Energy Gen. Limited. (GSEG).

v 345.6 MW CCPP at Nagathone of Reliance Industries Limited. (RIL)

NUCLEAR (500 MW):

1x500 MW TG and Secondary Cycle System at Bhavini (PFBR) Kalpakkam of Bharatiya Nabhikiya Vidyut Nigam Limited.( BNVNL)

HYDRO (1499 MW):

4x40 MW Teesta Low Dam IV, 3x15 MW Nimoo Bazgo and 4x11 MW Chutak HEP of National Hydro Power Corporation Limited. (NHPC)

10x40 MW Maheshwar HEP of Shree Maheshwar Hydel Power Corp. Limited.(SMHPCL)

4x130 MW Tapovan Vishnugad HEP of National Thermal Power Corporation (NTPC)

4x82.5 MW Srinagar HEP of GVK Group Company

Power Sector

The XI Plan envisages a capacity addition of 78,577 MW and during the XII plan, 82,000 MW addition is planned, which may end up at around 100000 MW. This translates into average capacity additions of around 15,000 to 17,000 MW per annum during these two plan periods. As rapid economic expansion continues to drive up the country's energy needs, power generation accounts for much of the increase in primary energy demand, with most of the new generating capacity fuelled by coal.

The country will continue to rely on imported coal for reasons of quality in the steel sector and for economic reasons in the power sector for power plants located a long way from mines but close to ports.

Growing demand for large powerVapacity additions in the country would warrant that the Power Plant Equipment manufacturing industry should gear-up to the challenge and meet the requirements of the country.

Higher rating thermal sets with super critical parameters, Ultra High Voltage Transmission Systems, advanced class Gas Turbines and higher rating Nuclear Power Plants are planned to be introduced during the XI Plan and beyond. Capacity creation in future would demand up-gradation to higher range equipment, faster capacity augmentation and shorter cycle times with better project execution cycles.

Ageing of power plants worldwide will improve the opportunities for renovation and modernisation and up-rating of the existing plants. The issue of Global Climatic Change is attracting the attention of everybody as it affects all parts of society. This will create the need to make energy supply more viable for the future and use the energy resources more efficiently. This is going to provide continued growth opportunities for the company as power equipment is the major business of Subject.

Industry Sector:

During 2007-08, the Indian economy continued to expand at a robusr pace for the fifth consecutive year, although there was some moderation in the growth momentum during the course of the year. According to the revised estimates released by Central Statistical Organisation (CSO), the growth rate in Index of Inccustrial production (IIP) moderated to 8.1% in 2007-08 from 10.630,% in 2006-07. The moderation in growth occurred mainly in manufacturing and mining sectors. The growth in the electricity sector improved to 6.27% during 2007-08 from 5.98% a year ago.

Notwithstanding the moderation, the growth performance was in tune with the high average real GDP growth of 8.80%; per annum during the five year period 2003-04 to 2007-08.

As per CMIE, the industrial growth is expected to accelerate to 10% in 2008-09 on the back of strong pick-up in consumption demand as well as demand for capital goods.

In Industry Sector, Subject secured record orders worth Rs. 78600 millions in FY 2007-08 achieving a growth rate of 20% over previous year. Each of the business segment registered a high growth and the year witnessed a number of first time ever achievements.

Major orders received during the year/ other business highlights- Industry segment-wise include:

Captive Power Plants

Highest value order ever received in Industry Sector from HZL for 4 x 80 MW CPP (2 units for Dariba, Rajasthan and 2 units for Dahej, Gujrat) on EPC basis. This is the fourth consecutive order from this Customer for 80 MW unit configuration.

v Largest-ever order from SAIL for Integrated Power and Blowing station for IISCO Steel plant, Burnpur on EPC basis.

v RINL, Vizag Steel Plant Customer reposed confidence in Subject by placing repeat order for 1 x 67.5 MW STG + 1 x 330 TPH Multi Fuel Fired Boiler based CPP.

v Repeat Order for 2 x Fr. 9E GTG sets from M/s Vadinar Power (Essar Group).

v Prestigious order for 2 x Fr. 6 GTG based Cogen. Plant for IOCL, Vadodara, Gujrat Refinery on EPC basis under international competitive bidding.

v Order for 1 x Fr. 6 GTG based Cogen Plant for KRL, Kochi Refinery on EPC basis under international competitive bidding. This order includes their Max based DCS system which is being supplied for the first time to the refinery segment.

v Fr. 6 GTG for Silk Road Sugar Refinery - Kakinada (JV of M/s EID Parry) - First GTG order from Sugar Industry and first order for supply to SEZ.

v 2 x 25 MW STG order received from Cethar Vessels Private. Limited.

v Order received for 1 x 34.5 MW STG set from West Coast Paper Mills Limited. This being first STG order received from this group.

v 1 x 15 MW STG for Lalitha Cement - First order for Steam Injection Turbine for Cement Industry a new customer.

v Repeat order for 1 x 33 MW STG from HEG Mandideep and 1 x 43 MW STG from Arasmeta Captive Power Company Limited

v Highest ever 'EPC Contracts' in CPP segment has been the other major business highlight during the year.

Transportation

Breakthrough in transportation business with bulk order for 50 nos. 25 kV Electric Locomotive type WAG 7 from Indian Railways after a gap of more than 8 years.

Orders from CLW Chittaranjan for 52 nos Loco Convertor/ Invertor, 41 nos.

Auxiliary Convertors for 3 phase locos, 70 nos. 5400KVA Freight Transformers and 150 nos Light weight traction motors.

Steel / Cement industries orders for 15 nos. Diesel Shunting Locomotives

Other business highlights in this segment include:

Subject making entry into coach building for Indian Railways with developmental order for 9 AC EMU coaches.

Capability building for development of 3 phase IGBT based propulsion system for AC EMU and AC DEMU. Agreement entered into with M/s Strukton for association during such developments.

v Industrial Products (Mechanical)

v Highest ever orders for Centrifugal compressors from Petrochemical and Refinery Industries.

v Single largest order in last 5 years secured from BPCL-Kochi Refinery for supply of 3 nos. Compressors.

v Largest capacity (66000 m3/ hour) Wet Gas Compressor order received from IOCL Baroda.

v A major long term rate contract finalized with ONGC for supply of Well Heads and X-Mas trees.

Industrial Products (Electrical):

Highest ever order-booking achieved in the Electrical machines segment from various industries. Orders totaling 1208 motors including 226 nos from various Cement plants received.

Major order received from BHAVINI, for 3 nos. each of 2700 KW and 3600 KW Vertical Motors with AC Drives.

Single largest rate contract for supply of HT motors finalized with M/s Essar Construction (I) Limited. The expected business in next 1(1/2) years from this shall be for about 604 nos. of HT motors.

First order for 7 nos. New Design vertical Synchronous motors (4000 KW each) from WPIL.

New compact motors of LA4 series have been introduced and are likely to constitute about 15% of next year's turnover of medium range HT motors.

Transmission Systems:

Order for 2 x 50 MVAr Controlled Shunt Reactor at Dhule from Maharashtra State Electricity Transmission Company Limited. in the area of new indigenous technologies in Transmission.

Initiatives taken to address future HVDC business. The initiatives involve setting up of state of art manufacturing facilities for manufacture of equipment for Ultra High Voltage transmission systems.

Subject has undertaken in-house development of 765kV class equipment and design of 765 kV substations for addressing future requirements.

Transmission Products (ROD)

Continuing technology and market leadership in transformers and reactors, Subject secures orders for 400 MVA, 400 kV transformers from Adani Power and 125 MVAr, 400 kV shunt reactors from Powergrid - the largest ratings to be installed in India.

Subject's leadership in transformer business reaffirmed with NTPC placing an order for 22 nos. 400 kV transformers totaling 3,398 MVA - the largest order for power transformers ever placed in India.

Large Order for 4 x 315 MVA Transformers from L and T, Chennai.

Breakthrough in NTPC for indoor VCBs - first order for 434 nos. panels.

NCES
Major order for supply and installation of 57 nos of Solar PV powered systems, each rated 5.94 kWp for dispensing petrol at the retail outlets of M/s HPCL, at locations all over India. This is the first ever large scale order of its kind released by any PSU in Petroleum Sector in the country and the system offered by Subject will enable HPCL to illuminate and run the Company Owned Company

Operated petrol pumps smoothly irrespective of Grid Power Outage.

A development order for 2 Nos. of 600 KW Induction Generators received from Vestas RRB Chennai. These will be first supplies of the Generators to the growing wind sector.

Projects Commissioning:

Captive Power Plant equipment (STG and GTG) ranging from 15 MW to 125 MW commissioned for various Industries, creating capacity addition of 807 MW during 2007-08.

In Transmission Sector, Powergrid's 220 KV Rae Bareilly Substation got dedicated to the Nation on 16.10.2007 besides commissioning of several other 400 KV, 220 KV substations.

Joint Ventures

BGGTS
BGGTS achieved a sales turnover of Rs. 3270 millions during the year 2007-08 with a profit after tax of Rs. 460 millions. Orders for Rs. 3920 millions were booked by BGGTS during the year including export orders from overseas GE shops viz. GTS-Abu Dhabi, GE Basil don and GE-MEELSA. BGGTS successfully completed gas turbine servicing and supply of spares to various customers like RGPPL, ONGC-Uran, TNEB, RIL- Jamnager, ONGC - Hazira, IOCL, PPCL, BPCL etc. BGGTS also completed export orders for repair of FR 6 and FR 7 gas turbine shrouds for GE-MEELSA and replacement of damaged rotor for BPDB, Bangladesh. For the year 2007-08, BGGTS has declared a dividend of 600% thereby maintaining its consistent record of improved performance. BGGTS has also successfully completed surveillance audit for ISO 9001, ISO 14001 and OHSAS 13001 certification.

b) PPIL

PPIL has made further progress in settlement of outstanding issues and collection of withheld payments for pending contracts. Since, sufficient business to ensure viability of the company has not been forthcoming both the promoter partners have mutually agreed to gradually wind up the company.

c) New Joint Ventures Launched

1) During the year 2007-08 Subject has also entered into a Joint Venture Agreement with NTPC for setting up of a joint venture company 'NTPC Subject Power Projects Private Limited' for carrying out EPC contracts for Power Plants and other Infrastructure Projects in India and Abroad. The JV Company can also take up manufacture and supply of equipments, for power plants and other infrastructure projects, which are not Subject to any limitation or restriction under any ongoing collaboration agreement of promoter companies.

2) The JV Company has subsequently been incorporated in April, 2008 and detailed business pians are being worked out.

3) MoU has been signed between Subject and TINED to set up a joint venture company to build, own and operate a 1600 MW (2X800 MW) Super Critical Thermal Power Plant at Udangudi, Tamilnadu.

4) A MoU has been signed between Subject and Nuclear Power Corporation of India Limited. to form a joint venture to carry out EPC activities for power plants (conventional island only) based on atomic energy both within the country and outside.

5) E. R and D AND TECHNOLOGICAL ACHIEVEMENTS

Subject's products and systems are highly technology intensive and R and D and technology development are of strategic importance to the company. During the year, Subject spent Rs.4640 millions on R and D efforts - nearly 83% higher than the previous year which is on top of 68% growth over 2005-06. A turnover of Rs. 29820 millions was achieved through products and systems developed in-house. Subject also filed 175 patents and copyrights, enhancing the company's intellectual capital to 664 patents and copyrights filed, which are in productive use in the company's business.

Some significant developments carried out during the year are as follows:

Reinforcing its commitment to conservation of natural resources. Subject has developed a new variant of 500 MW Steam Turbine. This design improves efficiency and saves coal consumption by around 8200 Tonnes annually. This design is being cornmerciaiised in 11 sets of 500 MW being supplied arid commissioned countrywide.

Consistently offering tailor-made designs to suit customer needs, Subject has developed a new Steam Turbine model for rating range of 30-45 MW for application in the Paper industry. The Turbine provides a large quantity of controlled extraction steam for the paper mill.

For the benefit of its customers by way of developing mere efficient products/technologies,

Subject is establishing a Centre of Excellence for Intelligent Machines and Robotics (COE-IMAR) the fifth in the series. The centre will focus on implementation of computer integrates manufacturing, advanced radio frequency identification technology for material identification and tracking and paperless manufacturing. Pilot projects are underway for integration of computer aided design, manufacturing, numerical controls and inspection. Consignment and vehicle tracking using global positioning system (GPS) and GSM technologies have also been taken up.

In line with its developmental work in futuristic areas, Subject. realised the immense potential of Nanotechnology and initiated several programmes to accelerate development in this area. For the first time in the country, Subject has commissioned a Gas-fired Spray Pyrolysis System for pilot-Scale synthesis of tailor-made nano materials with a production capacity of 0.5-1 kg/hour. The system is specifically designed for different metal oxide nano materials. Areas of application include nano structured coatings, additives for improving wear resistance in metals, development of nano composites, nano porous membrane coatings etc.

As its contribution to the armed forces, Subject has designed, manufactured and supplied 15 nos. Cooling Systems for Travelling Wave Tube. an electronic device for use in one of BEL's strategic projects for the Indian Army. The mobile cooling systems are compact, self sufficient and operate under stringent conditions over a wide range of ambient temperatures and orientations for operation in adverse environmental conditions.

As part of its customer-centric product upgradation process, Subject has designed and manufactured, India's largest rating (7161 kW) Pressurised Squirrel Cage Induction Motor for HPCL Vizag. The motor offers enhanced safety features and is designed for driving Blower with very high Inertia and meeting stringent starting current limitation of 450%.

Continually striving to improve the economies of solar PV systems, Subject has developed its largest size 220-Watt PV Module. This will meet customer demand for larger wattage modules, especially for grid-connected applications, as it will reduce the number of modules required per system thereby improving reliability.

Subject has developed a new non-electrical UHFPD (Ultra High Frequency-Partial Discharge) measurement technique for assessing the condition of Transformer Insulation. The method is important for High Voltage (800-1200 kV) transmission systems.

As part of Subject's efforts to provide modern and more efficient transportation solutions, Subject has successfully developed, manufactured and tested for the first time, a Traction Motor for 350 HP Diesel Electric Multiple Unit (DEMU), against an export order of 20 numbers, to be supplied to Angolan Railways.

Aimed at enhancing value for customers in the oil sector, Subject has designed for the first time a higher rating 1430 kVA Brushless Alternator for oil rig application against an order from ONGC. The alternator will offer self start facility in rigs located in remote areas which was not possible in the existing 1215 kVA alternators.

To augment its range of disc insulators for meeting customer requirements, Subject has developed HVDC Disc Insulators of 320kN / 420kN rating for the first time in the country. For application in 1 800 KV HVDC transmission systems, Subject will be the first manufacturer to develop and test these insulators in the world.

Awards won by Subject, Units and employees:

v Vishwakarma Rashtriya Puruskar 2006 (given by Ministry of Labour)

v Vishwakarma Rashtriya Puruskars are given to recognize outstanding contribution made by a worker or a group of workers in an organization through his/her/their suggestions to improve productivity. Eight employees of Subject have won three awards out of 28 Vishwakarma Rashtriya Puruskars declared by Ministry of Labour.

v National Safety Awards 2006 (given by Ministry of Labour)

v National Safety Awards are given to recognize good safety performance on the part of Industrial understanding (covered under Factories Act, 1986) and to stimulate and maintain interest of both the management and the workers in accident prevention programmes. 3 number National Safety Awards (Two by EPD and one by EDN) have been won by Subject units.

Energy Awards

HPEP, Hyderabad being Energy Efficient unit has won National Award for Excellence in Energy Management 2007. The award was given by CII on completion of the National Competition for Excellence in Energy Management held on 12-13 Sept. 2007 at Hyderabad.

Major Achievements during 2007-08:

During the year Subject secured several prestigious orders:

Entry into new market- New Caledonia - Secured an order for 2x135 MW Circulating Fluidised Bed Combustion Boilers (CFBC) from Koniambo Nickel SAS an overseas Joint Venture of Extrata, Switzerland. This is the first ever overseas order for CFBC Boiler for utility application. This prestigious reference of Subject is expected to open up new markets for this environment friendly product with a large growing demand.

First ever order for Power Generating equipment from UAE - Order secured from Ras A! Khaimah Investment Authority (RAKIA), UAE for supply and supervision of 2x42MW (Fr6B) Gas Turbine Generator sets for their Al Ghail Power Plant to be installed in Ras Al Khaimah, one of the seven emirates of UAE. This ground breaking achievement in UAE market in Power Generation equipment is expected to pave way for more opportunities not only in UAE but in other countries of Middle East and North African region.

Second consecutive order for Gas Turbine base power plant secured from Libya - 300 MW Gas Turbine (2xV94.2) based power plant on EPC basis at Western Mountain Extension, Libya. from General Electric Company of Libya (GECOL), Libya. This project is air extension of recently commissioned 600 MW Western Mountain Power Plant by Subject, which is the highest capacity Gas Turbine based Power Plant installed by Subject.

First ever order for Steam Turbine and Generators from Ethiopia - Secured three orders for Tendaho Sugar Factory (Phase-1, 2x20M4'J and Phase-2, 2x4t)MW Steam Turbine and Generators) and Finchaa Sugar Factory (2x 12 MW Steam Turbine and Generators) from Ethiopia for co-generation application.

This is the largest overseas order for co-generation application secured by company.

Export order for Steam Turbine Generators and CFBC Boilers secured from Indonesia - 1 x15MW Steam Turbine and Generators along with 120TPH CFBC Boiler Package received from PTIBR, Indonesia for their captive power and steam application.

Export order for CFBC Boilers for Mine Mouth Power Plant in Indonesia - 2x126 TPH CFBC Boiler package for utility application.

Maiden export orders for motors from UAE and Kuwait - First ever orders received from UAE and Kuwait for supply of Motors.

Maiden order for Soot Blowers for New Zealand and UAE - First ever orders received for supply of Soot Blowers to Ras AI Khaimah, UAE and RCR Easteel Energy, New Zealand.

First ever export order for Well Heads for Myanmar has been secured .

First ever export order for transformers from Azerbaijan - This order for 2x240MVA, 330kV class; 2x75MVA and 1 x63MVA, 110 kV class transformers from Azerenrgi, Azerbaijan, is a World Bank funded project.

Other notable export orders received include Hydrogen Recycle Gas Compressor from Iran, Wellheads from Oman and Reactors from PPC, Greece.

Continued focus on After Sales Services led to orders for Spares and Services from Oman, Kazakhstan, Malaysia, Sri Lanka, Indonesia, Cyprus, Libya, Kenya, New Zealand, Thailand, Saudi Arabia. UAE, France; Jordan, Philippines and Iran.

R and D Technological Achievements

Some significant developments carried out during the year are as follows:

For the benefit of its customers by way of developing mere efficient products/technologies,

In line with its developmental work in futuristic areas, subject. realised the immense potential of Nanotechnology and initiated several programmes to accelerate development in this area. For the first time in the country, Subject has commissioned a Gas-fired Spray Pyrolysis System for pilot-scale synthesis of tailor-made nano materials with a production capacity of 0.5-1 kg/hour. The system is specifically designed for different metal oxide nano materials. Areas of application include nano structured coatings, additives for improving wear resistance in metals, development of nano composites, nano porous membrane coatings etc.

As its contribution to the armed forces, subject has designed, manufactured and supplied 15 nos. Cooling Systems for Travelling Wave Tube an electronic device for use in one of BEL's strategic projects for the Indian Army. The mobile cooling systems are compact, self sufficient and operate under stringent conditions over a wide range of ambient temperatures and orientations for operation in adverse environmental conditions.

Awards:

Awards won by the Subject and Employees during 2003-04 were as under :

BHEL Excel Awards
Prime Minister’s Shram Awards
Vishwakarma Rashtriya Puraskars
National Safety Awards
National Award for Excellence in Energy Management
National Design Award
CII Energy Excellence Award
Indian National Suggestion Schemes' Association Award (INSAAN Award)
Padma Shree

Joint Venture

· Powerplant Performance Improvement Limited

· BHEL-GE Gas Turbine Services Limited

· SWIL Limited

· Tata Refractories Limited

· Spectrum Power Generation Limited

Trade References:-

2M Company
21^st Century Fabricators
A Bond Strands Private Limited
A-1 Industries
AB Metal Formers (Private) Limited
Acme Forgings Private Limited
Aerovent Projects Private Limited
Ag Measurematics Private Limited
Agile Heavy Engineering Private Limited
Ahsanali Engineering Workshop
Aishu Castings Private Limited
Ajantha Fabrication Works
Ajmer Minerals and Grinding Company
Alert Engineering Enterprises
Aliasons Industries
Allied Rubber Products
Altec Fabricators
Alcoat Aplicators Private Limited
Browns Hitech Structures Private Limited
Aishyu Castings Private Limited
G. S. Alloys Castings Private Limited
GEI Godavari Engineering Limited
Hyderabad Heavy Engineering Private Limited
T. M. Private Limited
Krishna Engineering Company (Private) Limited
SOL Engineers Limited
Patny Systems Private Limited
Rama Ferro Alloys and Finance Private Limited
Thermopads Private Limited
Vikas Machino Fabs (Private) Limited
Voltamp Transformers Private Limited
Vansanti Heavy Machining (Private) Limited
Trimech Engineering Private Limited
Uppar Ferrocast Private Limited
Sri Balamurgan Engineering Works Private Limited
G. B. Engineering Enterprises Private Limited
Ghaziabad Ispat Udyog (Private) Limited
Chhari Electricals (Private) Limited
Hydropack (India) Private Limited
Acme Forgings (Private) Limited
Popular Swichtgear (Private) Limited
M. P. Electricals Limited
M. J. Patel (India) Limited
Pearl Insulations Limited
Rajasthan Coach Builders Private Limited
Super Forgings and Steels Limited
Benchmark Electronics Systems Limited
Associated Cables Limited
V. Valves Limited
Reva Industries Limited
Techno Electric and Engineering Company Limited
Techno Fab Engineering Limited
Spirax Marshall Limited

Subject has been accredited with ISO 9001 and ISO 9002 Certifications.

FIXED ASSETS:

Freehold Land
Leasehold Land, Roads
Bridges And Culverts
Buildings
Lease-hold Buildings
Drainage, Sewerage and Water supply
Locomotive and Wagons
Railway Siding
Plant and Machinery
Construction Equipment
Electrical Installations
Vehicles
Furniture And Fixtures
Office And Other Equipments
Trade Marks
Patents and Designs
Electronic Data Processing Equipments

Contingents Liabilities:-

(a) Claims against the company not acknowledged as debt:

(i) Income Tax pending appeals (net of provisions) Rs. 284.100 millions (previous year Rs. 487.200 millions) against which Rs. 0.100 million (previous year Rs. 0.100 million) has been paid under protest and included under the head deposits- others.

(ii) Sales Tax demands Rs. 2951.800 millions (previous year Rs. 3286 millions) against which Rs. 780.300 millions (previous year Rs. 889 millions) has been paid under protest/court orders and included under the head advances recoverable.

(iii) Excise Duty demands Rs.1402.300 millions (previous year Rs. 1491.800 millions), against which Rs.124.900 millions (previous year Rs. 65.200 millions) has been paid under protest/court orders and included under the head advances recoverable.

(iv) Custom Duty demands Rs. Nil (previous year Rs. 7.600 millions).

(v) Court / Arbitration cases Rs. 761.700 millions (previous year Rs. 824.700 millions)

(v) Liquidated Damages Rs. 8095.300 millions (previous year Rs. 2572.200 millions).

(vi) Counter claim by contractors Rs. 409.900 millions (previous year Rs. 404.000 millions).

(vii) Others Rs. 563.100 millions (previous year Rs. 476.500 millions).

AS PER WEBSITE

Press Release

30-Sep-2008

BHEL bags Rs.9900 Million Contract for installing 2 thermal sets of 250 MW each in Rajasthan; Project to add 12 million units every day to the Grid on commissioning

Bharat Heavy Electricals Limited (BHEL) has secured a prestigious contract for setting up a 500 MW thermal power plant (2x250 MW) in Rajasthan.

Reposing confidence in BHEL's proven technological excellence; Rajasthan Rajya Vidyut Utpadan Nigam Limited (RRVUNL) has placed an order valued at nearly Rs.9900 Million on the company, for setting up two units of 250 MW each (Units 3 and 4) as an expansion project of Chhabra Thermal Power Station (TPS).

BHEL is already executing a contract for setting up two units of 250 MW each (Units 1 and 2) at Chhabra TPS in Baran District of Rajasthan. The present order, for Units 3 and 4 at the same power project, is a testimony to the customer's confidence in the company's capabilities that has yet again opted to source equipment from BHEL.

Slated for synchronisation during the 11th Plan, these units will add 12 million units every day to the grid on commissioning.

With this, BHEL has maintained its track record of bagging most of the orders placed by RRUVNL for power generating equipment in Rajasthan. The company has already supplied and commissioned thermal sets aggregating to 2,750 MW for RRVUNL. These include units of various ratings at Suratgarh, Kota, Giral, Dholpur and Ramgarh power plants. Significantly, these sets recorded an impressive Plant Load Factor (PLF) of 92.3 per cent and Operating Availability (OA) of 93.2 per cent during 2007-08.

BHEL's scope of work in the present contract envisages design, engineering, manufacture, supply, erection and commissioning of Steam Generators and Steam Turbine Generators and Associated Auxiliaries with state-of-the-art Controls and Instrumentation system. The equipment for the project shall be supplied by BHEL's Haridwar, Trichy, Ranipet and Bangalore plants, while BHEL's Power Sector – Northern Region will undertake erection and commissioning of the equipment.

BHEL has fully established state-of-the-art technology for manufacture of thermal sets up to 600 MW rating in the sub-critical range and has the capability to manufacture sets up to 1,000 MW rating. The company has also equipped itself to produce thermal sets with supercritical parameters, suited to Indian conditions, using Indian as well as imported coal.

BHEL is building Capacity and Capability to contribute fully for meeting the power forecast for the 11th Plan and beyond. For this, the company has enhanced its manufacturing capacity to 10,000 MW per annum which is being further enhanced to 15,000 MW per annum in the next two years at a total investment of Rs.42,000 Million. Manpower is also being ramped up in a commensurate and timely manner. Besides, the company has taken steps like shift in operational focus from Product to Project and implementation of effective Project Management Systems.

16-Sep-2005
Subject employees bag three Vishwakarma National Awards; Manufacturing plants win five National Safety Awards.

For their innovations, employees of subject have once again bagged several 'Vishwakarma Rashtriya Puraskars', among a host of public and private sector companies in the country.

Various innovations and modifications in manufacturing systems and processes undertaken by these awardees have resulted in a cumulative saving of more than Rs. Ten Million to the company.

In addition, five 'National Safety Awards' have been won by subject manufacturing plants at Trichy and Bangalore, for outstanding achievements in terms of longest accident free period and lowest accident frequency rate at their works.

Significantly, subject and its employees have been winning both these prestigious national awards, instituted by the Government of India, Ministry of Labour, consistently, since their inception.

Three Vishwakarma Rashtriya Puraskars, under different categories, have been shared by seven employees from subject units at Haridwar and Hyderabad, for their innovative suggestions leading to cost reduction, higher productivity, import substitution etc.

Notably, the team of Mr. Sumant Nagar, Mr. Karan Singh Chauhan and Mr. Satish Kumar re-designed and renovated a Putty-filling machine for stators of 500 MW Turbine Generators resulting in increased efficiency and productivity, reduced manpower requirement and savings of valuable foreign exchange.

Similarly, Mr. Gulam Ahmed, a Vishwakarma award winner, developed an improved process for overlaying of stainless steel material on heat exchanger tube sheets leading to reduction in cycle time and improved quality. His efforts resulted in enhanced customer satisfaction and significant recurring savings.

The awards will be presented by the Union Minister for Labour and Employment, Mr. K. Chandrashekhar Rao, at a function, to be organized here on September 17, ’2005.

5-Sep-2005

Subject was the first PSU to win ‘Best of its Class Distinction’ from the International Asia Pacific Quality Organization.

Subject has added another feather in its cap by becoming the first Public Sector as well as the first engineering and manufacturing organization in the country to have won the coveted ‘Best of its Class Distinction’ from the International Asia Pacific Quality Organization (APQO).

Subject Ranipet plant has won the recognition in the big manufacturing category as part of the International Asia Pacific Quality Award (IAPQA – 2005), wherein more than 50 countries participated. The Award will be presented during the 11th APQO Conference, being organized in Hanoi, Vietnam on October 27 & 28, 2005.

The award has been instituted by APQO adopting the criterion of ‘Malcom Baldrige National Award’ in USA and is administered by APQO’s ‘Walter L Hurd Foundation.’

Significantly, only those companies that have won quality awards at a national level in their respective countries are eligible to apply for this prestigious award. Subject Ranipet participated as it had won the coveted ‘IMC Ramakrishna Bajaj National Quality Award 2004’, where again subject was the first Public Sector and the first engineering and manufacturing organization in the country to have got the award.

Prior to that, four manufacturing units of subject located at Haridwar, Trichy, Bhopal and Hyderabad besides its Power Sector-Northern Region were conferred the coveted CII Exim, Commendation Certificate 2004 for business excellence conforming to global standards.

A quality conscious organization with a strong customer focus, subject has acquired ISO-9001 (2000 version), ISO-14001 and OHSAS-18001 certification for all its operations. SUBJECT initiated TQM in 1995 at its Trichy Unit. Later, the concept was extended company-wide and a road map for business excellence was evolved. TQM concepts deployed under the ‘Movement towards Business Excellence’, focused on benchmarking and improving its products and internal processes to global standards

Subject, today enjoys national and international recognition, in the form of certification of products by international bodies like ASME, API etc. Most of the manufacturing plants of subject are equipped with state-of-the art testing and calibration labs, which are duly accredited by the National Accreditation Board for Calibration and Testing Labs (NABL).

3-Sep-2005

Mr. C S Verma appointed Director (Finance), BHEL.

Mr. C S Verma has assumed charge as Director (Finance) of India's Navratna Public Sector engineering and manufacturing enterprise, here today. Prior to this, he served as Director (Finance) on the Board of ITI, the country’s premier telecom company under the administrative control of the Department of Telecommunications, Ministry of Communications & IT, and Government of India.

Mr. Verma holds a Master’s degree in Commerce, a Master’s degree in Management and a Bachelor’s degree in Law. He is a Fellow Member of the Institute of Company Secretaries of India and also an Associate Member of the Institute of Cost & Works Accountants of India. During his tenure of more than three years in the Telecom major, through adroit management of funds and strategic deployment of scarce resources, Mr. Verma lent the much-needed financial muscle required for ITI to operate in the highly competitive telecom markets.

With over two decades of professional experience behind him, he is credited to be an expert in funds mobilisation having raised huge resources for the Indian Railway Finance Corporation where he served as Group General Manager before taking over as Director Finance in ITI in February 2002.

Mr. Verma has handled a number of foreign issues, swap transactions and derivative products. His earlier assignments include a stint in Delhi Stock Exchange (DSE) as its General Manager where he worked for about 4 years and in a Financial Institution where he worked for about 9 years. He has widely traveled abroad and has visited a number of countries.

11-Aug-2005

Subject wins contract for World Bank-funded Project; Once again beats Chinese Companies to make foray in Ethiopia.

Subject has achieved a major breakthrough on the export front by making a foray into the Ethiopian market. Outbidding Chinese and other multinational companies, the company has secured its first ever order from Ethiopia for setting up 230 kV substations on EPC basis.

The project is a part of the rural electrification programme initiated by the Ethiopian Government. BHEL’s scope of work in the project includes design, supply, erection, civil construction and commissioning of 230 KV Nefas-Mewucha and Gashena substations, apart from the expansion of Couitebe substation. The substations are to be completed in a schedule of 14 months.

On energisation, these substations will provide electrification to 17 towns in Nefas-Mewucha and 11 towns in Gashena. This project is significant for the ongoing rural electrification activities in Ethiopia. In addition to the 28 towns to be electrified, the project has been particularly designed to support the agro industry and other developmental activities in the area.

Under its power development programme, EEPCO has identified a series of substation and generation projects in the country. BHEL is working towards securing these businesses and associate with EEPCO in their power development programme on a long-term basis, which will benefit the people of Ethiopia in getting uninterrupted power supply.

23-Oct-2006

Subject pays all-time high 145% dividend for fiscal 2005-06

Subject has paid the highest ever equity dividend of 145% for fiscal 2005-06 as against 80%, in the year before, maintaining its track record of paying dividends uninterruptedly for the last 30 years.

A cheque for the payment of the final dividend for the year, on the equity (67.72%) held by the Government of India, was presented here to Mr. Sontosh Mohan Dev, Hon’ble Union Minister for Heavy Industries & Public Enterprises by Mr. Ashok K. Puri, CMD, BHEL in New Delhi.

During the year 2005-06, subject has recorded an all-time high turnover of Rs. 145250 Million, notching a growth of nearly 41% on top of 19% and 16% top line growth achieved in 2004-05 and 2003-04, respectively. This is also the highest year-on-year growth in the last three decades. In the same period, net profit soared over 76% to Rs. 16790 Million.

Significantly, in line with its vision -‘committed to enhancing stakeholder value‘, subject recorded a surge in Economic Value Addition (EVA), which catapulted to Rs. 10790 Million from Rs. 504 Million for the year before

Subject is building Capacity and Capability for the future to contribute fully for meeting the power forecast for the 11^th Plan and beyond. For this, the company is investing more than Rs. 16000 Million for holistic modernization and capacity expansion of its facilities from 6,000 MW per annum at present to 10,000 MW per annum, which will be available in 2007. Subject will be more than willing to enhance it further as required by the country’s power sector in future. These programmes are in the nature of brown field expansions and have strong economic rationale in terms of time and cost benefits. Subject has large reserves in addition to leveraging its capacity and can fully meet the resource requirements for its expansion on its own.

Subject has already taken necessary steps to cater to the likely demand for the next higher rating 800 MW Thermal sets and is actively looking at opportunities in Ultra Mega projects with various project developers. In addition, the company is shoring up its capability for higher rating Hydro sets and advanced class Gas Turbines to cater to upcoming market requirements.

The Electronics Division (EDN) of subject was formed in 1976, mainly to establish a strong base in the areas of power and industrial electronics and supplement the company’s pioneering efforts in power generation, transmission, industry and transportation sectors.

Making a modest beginning in 1976, the unit has registered continuous and impressive growth, which is amply reflected in the fact that a large number of power plants in the country today, are equipped with products and systems made by BHEL-EDN. As reported by the ARC Survey for the year 2005, subject is holding over 65 percent of the Market share of DCS Supplies to Power Industry in India (including hardware, software and services).Despite of stiff competition posed by the world leaders and domestic private manufacturers, the unit has successfully maintained its growth rate and become a major force to reckon with in power and industrial electronics.

Electronics Division has also been making pioneering efforts in Renewable Energy Sector by commissioning Large-size Grid-Interactive as well as Stand-Alone Solar Power Plants, thus lighting the lives of people living in remote parts of the country. The unit has also been making humble contribution to Indian Space Programmes by fabricating Space Grade Solar Panels and Space Quality Batteries for ISRO.

In recognition of its commitment to the quality systems and procedures, the unit has been certified for ISO 9001 since July 1993. To fulfill its role of a responsible corporate citizen, envisaging protection and conservation of the environment and ensuring that it’s products and systems are also environment-friendly, Subject has framed a Corporate Environment Management Policy. Accordingly, the Electronics Division has become the first Electronics Industry in Bangalore to get ISO 14001 Environment Management System Certification and OHSAS 18001 Certification. The Electronics Division has established itself in the field of IT applications, using the state-of-art technology systems, for communication, computing, networking and security requirement of the organization in achieving it's business goal. In this pursuit, the unit has been Certified to ISO/IEC 27001:2005 Information Security Management System from STQC, Ministry of Communication and Information Technology, Government of India.

Subject has also joined United Nations' “Global Compact” and has committed to support the set of core values enshrined in its ten principles in the area of Human Rights, Labour Standards, Environment and Anti-Corruption.

Power Plant Automation Systems:

Source: BSE -

Subject has informed BSE that a meeting of the Board of Directors of the Company will be held on July 21, 2008, inter alia, to consider and take on record the un-audited financial results of the Company for the quarter ended June 30, 2008 (Q1).

Date: 2008-07-07

Source: BSE –

Subject has informed the Exchange regarding clause 20, Company furnish herewith, prescribed particulars of the financial results of the Company for the financial Year 2007-08. The details of the same shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).

Date: 2005-05-26

Source: BSE -

Subject has informed the Exchange that the Board, at its meeting held on May 23, 2008 have recommended Final Dividend @ 62.5% on the paid up share capital of the Company, for the year 2007-08

Date: 2008-05-26

Source: NSE –

Subject has informed the Exchange regarding the standalone Results for the year ended on 31-MAR-2008 as follows: Net Sales of Rs. 193654.600 millions for year ending on 31-Mar-2008 against Rs. 172375.300 millions for the year ending on 31-mar-2007. Net profit of Rs. 28593.400 millions for the year ending on 31-mar-2008 against Rs. 24147.000 millions for the year ending on 31-mar-2007

Date: 2008-05-26

Source: NSE

Subject has informed the Exchange vide its letter dated May 12, 2008 regarding a press release dated May 10, 2008, titled "SUBJECT Takes Over BHPV; Signs MoU with APGenco for setting up Nation's biggest 125 MW Clean Coal Power Plant". A copy of the press release shall be available on the NSE website (http://www.nseindia.com) under: Corporates > Latest Announcements and on the Extranet Server (/Common/Corporate Announcements).

Date: 2008-05-13

Source: NSE

Subject has informed BSE that the Company has formally taken over Bharat Heavy Plate and Vessels (BHPV). The Authority Letter was handed over by Dr. Satyanarayana Dash, Secretary, Department of Heavy Industry to Mr. K Ravi Kumar, CMD, in a ceremony held at Vizag on May 10, 2008, in the presence of Sh. Sontosh Mohan Dev, Hon'ble Union Minister for Heavy Industries & Public Enterprises; Sh. P Chidambaram, Hon'ble Union Minister for Finance; Sh. Y S Rajasekhara Reddy, Hon'ble Chief Minister of Andhra Pradesh and Sh. S Jaipal Reddy, Hon'ble Union Minister for Urban Development. A memorandum of Understanding for setting up the Nation's Biggest Integrated Coal Gasification Combined Cycle (IGCC) Power Plant at Vijayawada, was also signed between Subject and APGenco.

Date: 2008-05-13

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 records 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.49.29
UK Pound	1	Rs.80.40
Euro	1	Rs.63.35

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	9
PAID-UP CAPITAL	1~10	9
OPERATING SCALE	1~10	9
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	9
--RESERVES	1~10	9
--CREDIT LINES	1~10	9
--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		81

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 EXPLANATIONS

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.	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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

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

MIRA INFORM REPORT

57364.000

42176.700

119748.700

96128.100

83860.200

58089.100

4210.900

1997.000

11863.400

11408.700

277047.200

209799.600

165764.500

117328.600

32443.900

26042.300

198208.400

143370.900

78838.800

66428.700

Export Value

Import Value

Awards:

Unit