MIRA INFORM REPORT

Report Date :

09.05.2011

IDENTIFICATION DETAILS

Name :	ABB LIMITED
Registered Office :	2^nd Floor, East Wing Khanija Bhawan, 49, Race Course Road, Bangalore – 560 001, Karnataka
Country :	India
Financials (as on) :	31.12.2009
Date of Incorporation :	24.12.1949
Com. Reg. No.:	08-032923
Capital Investment / Paid-up Capital :	Rs.423.817 millions
CIN No.: [Company Identification No.]	L32202KA1949PLC032923
TAN No.: [Tax Deduction & Collection Account No.]	MUMA19181B
PAN No.: [Permanent Account No.]	AAACA3834B
Legal Form :	Public Limited Liability Company. The company's shares are listed on the Stock Exchanges.
Line of Business :	Manufacturing of switchgears, pollution and environment control equipments and motors/alternators/generators. It is also into manufacture of electrical items such as motors, transformers, etc.
No. of Employees :	5535 (approximately)

RATING & COMMENTS

MIRA’s Rating :

Aa (75)

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 97000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed company having fine track. Financial position of the company appears to be sound. Fundamentals are strong and healthy. Directors are reported to be experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The Company can be considered normal for business dealings at usual trade terms and conditions.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – April 1, 2010

Country Name	Previous Rating (31.12.2009)	Current Rating (01.04.2010)
India	A1	A1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

LOCATIONS

Registered Office :	2^nd Floor, East Wing Khanija Bhawan, 49, Race Course Road, Bangalore – 560 001, Karnataka, India
Tel. No.:	91-80-22949150/54
Fax No.:	91-80-22949148
E-Mail :	ashay.khandwala@in.abb.com b.gururaj@in.abb.com
Website:	http://www.abb.co/in
Corporate Office:	Plot No. Street No. 17, Nashik – 422 007, Maharashtra, India
Factory:	Nos. 5 and 6, Peenya Industrial Estate, Phase II, Bangalore - 560 058, Karnataka, India P. O. and Village Jalkhura, Budge Trunk Road, Maheshtala, District South 24 Paraganas - 743 352, West Bengal, India Plot No. 22A, Shah Industrial Estate, Off Veera Desai Road, Andheri (West), Mumbai - 400 053, Maharashtra, India Plot No. 79, Street No. 17, MIDC Industrial Estate, Satpur, Nashik - 422 007, Maharashtra, India Maneja, Vadodara - 390 013, Gujarat, India 32, Industrial Area, Faridabad - 121 001, Haryana, India Village Numbal, 110, Poonamalle High Road, Chennai - 600 077, Tamilnadu, India
Marketing and Service Centre:	Located at : Chandigarh Delhi Jaipur Udaipur Vadodara Mumbai Pune Bangalore Coimbatore Kochi Lucknow Kanpur Bhopal Nagpur Hyderabad Chennai Visakhapatnam Bhubaneshwar Kolkata Jamshedpur.
Branch Offices :	Located at – Ahmedabad Bhubaneswar Coimbatore Dehradun Hyderabad Jaipur Jamshedpur Kochi Lucknow Ludhiana Nagpur Pune Thiruvananthapuram Visakhapatnam
Regional Offices :	Located at – Bangalore Bhopal Chandigarh Chennai Delhi Kolkata Mumbai Raipur
Manufacturing Units :	Bangalore 23, KHB Light Industrial Area, Bangalore, Karnataka, India Tel. No.: 91-80-22949725 538, 4^th Phase, Peenya Industrial Area, Bangalore, Karnataka, India Tel. No.: 91-80-22949660 Plot No.5 and 6, 2^nd Phase, Rajanagar Industrial Estate, Bangalore, Karnataka, India Tel. No.: 90-80-22949449 / 22949650 to 70 Faridabad 14, Mathura Road, Faridabad, India Tel. No.: 91-129-2275592 32, Industrial Area, Faridabad, India Tel. No.: 91-129-5023001 to 05 Halol Halol-Champaner Road, Halol, Gujarat, India Tel. No.: 91-2676-220999 Haridwar Integrated Industrial Estate, Haridwar, India Tel. No.: 91-1334-235447/50 Mumbai 22A, Shah Industrial Estate, Mumbai, Maharashtra, India Tel. No.: 91-22-66717272/73/74 Vadodara Maneja, Vadodara, India Tel. No.: 91-265-2642141/42

DIRECTORS

As On 31.12.2009

Name :	Mr. Dinesh Paliwal
Designation :	Chairman
Name :	Mr. Gary Steel
Designation :	Chairman
Name :	Mr. Ravi Uppal
Designation :	Vice Chairman and Managing Director
Qualification :	B.Tech (Electrical and Electronics), M.B.A.
Date of Appointment :	01.10.2001
Previous Employment:	Volvo India Private Limited – Managing Director
Name :	Mr. Biplab Majumder
Designation :	Vice Chairman and Managing Director
Name :	Mr. N. S. Raghavan
Designation :	Independent Director
Name :	Mr. Darius E Udwadia
Designation :	Independent Director
Name :	Mr. K Sridhar
Designation :	Director (w.e.f. 21/07/2005)
Name :	Mr. Nasser Munjee
Designation :	Independent Director
Name :	Mr. Umesh Prasad Singh
Designation :	Director
Name :	Mr. Peter Smits
Designation :	Director
Name :	Mr. Tom E. Sjoekvist
Designation :	Director
Name :	Mr. Bernhard Jucker
Designation :	Director (w.e.f. 24/01/2006)
Name :	Mr. Peter Leupp
Designation :	Director
Name :	Mr. Arun Kanti Dasgupta
Designation :	Independent Director
Name :	Mr. R. N. Bharadwaj
Designation :	Director
Name :	Mr. Francis Duggan
Designation :	Director

KEY EXECUTIVES

Name :	Mr. B. Gururaj
Designation :	Company Secretary
Name :	Mr. Harbertus Von Grunberg
Designation :	Chairman of the Board
Name :	Mr. Roger Agnelli
Designation :	President and Chief Executive Officer of Companhia Vale Do Rio Doce (Brazil)
Name :	Mr. Louis R. Hughes
Designation :	President and Chief Executive Officer of GBS Laboratories LLC
Name :	Mr. Hans Ulrich Maerki
Designation :	Retied Chairman of IBM Europe/ Middle East/ Africa (France)
Name :	Mr. Michel De Rosen
Designation :	Chief Executive Officer of Eutelsat Communications (France)
Name :	Mr. Michel Treschow
Designation :	Chairman of Ericsson AB (Sweden)
Name :	Mr. Bernd W. Voss
Designation :	Member of the Supervisory Board of the Dresdner Bank (Germany)
Name :	Mr. Jacob Wallenberg
Designation :	Chairman of Investor AB (Sweden)
MANAGEMENT COMMITTEE :
Mr. I. K. Sadhu	Power Technologies – Systems
Qualification	B. Sc. (Engineering)
Previous Employment	Bharat Heavy Electrical Limited (Commercial Engineer)
Ravi Uppal	Corporate Management Committee
Mr. Amresh Dhawan	Power Technologies – Products
K Rajagopal	Corporate Management Committee
Mr. Biplab Majumder	Automation Technologies
Mr. Bazmi Husain	Automation – Control Platform Products and Research and Development
Mr. V. Swamy	Building Systems and Group Service Centre
S Karun	Corporate Management Committee
Mr. P. P. Gomes	National Service Organization
Mr. K. S. S. Rajan	Marketing
K. Rajagopalan	Finance
Mr. P. C. Rajiv	Human Resources
Prakash Kanagalekar	Corporate Management Committee

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 31.03.2011

Names of Shareholders	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
(2) Foreign
Bodies Corporate	158,931,282	75.00
Sub Total	158,931,282	75.00
Total shareholding of Promoter and Promoter Group (A)	158,931,282	75.00
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	1,625,069	0.77
Financial Institutions / Banks	24,501,082	11.56
Foreign Institutional Investors	6,657,320	3.14
Sub Total	32,783,471	15.47
(2) Non-Institutions
Bodies Corporate	1,514,153	0.71
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	17,920,545	8.46
Individual shareholders holding nominal share capital in excess of Rs. 0.100 million	344,035	0.16
Any Others (Specify)	414,889	0.20
Directors & their Relatives & Friends	3,500	-
Non Resident Indians	328,938	0.16
Trusts	56,746	0.03
Clearing Members	25,705	0.01
Sub Total	20,193,622	9.53
Total Public shareholding (B)	52,977,093	25.00
Total (A)+(B)	211,908,375	100.00
(C) Shares held by Custodians and against which Depository Receipts have been issued	-	-
(1) Promoter and Promoter Group	-	-
(2) Public	-	-
Sub Total	-	-
Total (A)+(B)+(C)	211,908,375	-

BUSINESS DETAILS

Line of Business :

Manufacturing of switchgears, pollution and environment control equipments and motors/alternators/generators. It is also into manufacture of electrical items such as motors, transformers, etc.

Products :

Product Description	ITC Code
Switchgears of all types	83.35
Transformers	85.04
Motors and others machines	85.01

Exports to :

· Asia Pacific

· Europe

· Germany

· Middle East

· South America

· Sweden

· UK

PRODUCTION STATUS (As on 31.12.2008):-

Particulars	Unit	Installed Capacity
Motors and other machines	HP	3124484
Switchgear of all types	Nos.	15277350
PLCC Equipment	Nos.	2850
Multiplexures	Nos.	100
Telemetering Equipments	Nos.	150
Turbochargers	Nos.	200
Transformers	MVA	12000
Electronic Control and Supply Units for Variable Speed Drivers and other applications	Nos.	100000
Mini Computer/Microprocessor based Systems	Value Rs. in ‘000	2300000
Non-Microprocessor Based Electronics (Analog and Digital) for Weighing, Batching and Force Measuring Systems and Sub Systems	Value Rs. in ‘000	70000
Power Capacitors of all types	MVAR	3700
Robotics	Nos.	30
Gas Analyzers and Systems	Nos.	300
Process Control Instruments	Nos.	30225

GENERAL INFORMATION

No. of Employees :	5535 (approximately)
Bankers :	ICICI Bank Limited, 20, R N Mukherjee Road, Kolkata – 700 001, West Bengal, India ICICI Center, 163, H.T. Parekh Marg, Back Bay Reclamation, Churchgate, Mumbai – 400020, Maharashtra, India Canara Bank IDBI Bank Limited HDFC Bank Limited Hongkong and Shanghai Banking Corporation Limited Union Bank of India Standard Chartered Bank
Banking Relations :	--
Auditors :	S. R. Batliboi and Company Chartered Accountants
Associates :	ABB (China) Engineering Company Limited, China ABB (Hongkong) Limited ABB (Pty) Limited, Southern Africa ABB A/S, Skovlunde, Denmark ABB AG, Austria ABB AS, Automation Technology Products, Norway ABB AS, Tallinn ABB Asia Pacific Services Limited, Hong Kong ABB Assist AB, Sweden ABB Australia Pty Limited ABB Automation Company Limited, Saudi Arabia ABB Automation E. C., Bahrain ABB Automation Inc, U.S.A. ABB Automation Products, Germany ABB Automation Technology Products, AB ABB Beijing Drive Systems Company Limited ABB Business Centre, Switzerland ABB Calor Emag Hochspannung GmbH ABB Capacitors AB, Sweden ABB Capital BV, Amesterdam ABB Control Valves Inc. U.S.A. ABB Control, Siege Social, France ABB Corporate Management Services AG, Switzerland ABB Distribution Limited, Thailand ABB EJF S.R.O. ABB Electrical Company S. A. L., Lebanon ABB Electrik Sanayi A.S., Turkey ABB Energy Automation S. P. A., UAE ABB Energy Engineering AG ABB Engineering Technologies Company, Kuwait ABB Eutech Limited, U.K. ABB Group Process Limited, Zurich ABB Group Services Center S.A.E., Egypt ABB High Voltage Company S.A.E., Egypt ABB Hochspannungstechnik, Zurich ABB Holdings (South Asia) Limited ABB Hong Kong Limited
Membership :	Confederation of Indian Industry
Holding company :	ABB Asea Brown Boveri Limited, Zurich

CAPITAL STRUCTURE

As on 31.12.2009

Authorized Capital :

No. of Shares	Type	Value	Amount
212500000	Equity Shares	Rs.2/- each	Rs.425.000 Millions
750000	11% Redeemable 10 year, Cumulative Preference Shares	Rs.100/- each	Rs.75.000 Millions
	TOTAL		Rs.500.000 millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
211908375	Equity Shares	Rs.2/- each	Rs.423.817 millions

Notes:

Share Capital Includes:

a) 46185525 Equity Shares of Rs. 2 each allotted as fully paid up at par, pursuant to contracts for consideration other than cash.

b) 1000000 equity shares of Rs. 2 each issued to the holders of 40000-8.57% cumulative preference shares of Rs. 100 each on cancellation of the preference shares in terms of Scheme of Compromise between the Company and its preference/equity shareholders in 1988

c) 42219465 and 51772945 equity shares of Rs. 2 each issued as fully paid up bonus shares by capitalization of General Reserve Account and Securities Premium Account respectively

d) 97879955 equity shares of Rs. 2 each are held by ABB Asea Brown Boveri Limited, Zurich, Switzerland, the ultimate holding company and 12540330 equity shares of Rs. 2 each are held By ABB Norden Holdings AB, Sweden, a subsidiary of the ultimate holding company.

During the year face value of each equity shares of Rs. 10 each was sub-divided (stock split) into 5 equity shares of face value of Rs. 2 each.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.12.2009	31.12.2008	31.12.2007
SHAREHOLDERS FUNDS
1] Share Capital		423.800	423.800	423.817
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		23813.500	20765.700	15839.626
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		24237.300	21189.500	16263.443
LOAN FUNDS
1] Secured Loans		0.000	0.200	5.660
2] Unsecured Loans		0.000	0.000	0.000
TOTAL BORROWING		0.000	0.200	5.660
DEFERRED TAX LIABILITIES		617.200	0.000	128.034
TOTAL		24854.500	21189.700	16397.137
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		6731.300	5458.300	3519.298
Capital work-in-progress		1163.400	1375.200	1059.418
INVESTMENT		168.800	611.200	704.546
DEFERREX TAX ASSETS		618.200	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	7294.000	6426.500	4887.102
	Sundry Debtors	28577.300	29758.900	24235.625
	Cash & Bank Balances	5241.400	3482.300	6428.636
	Other Current Assets	0.000	0.000	2753.603
	Loans & Advances	6379.900	7789.100	2802.023
Total Current Assets		47492.600	47456.800	41106.989
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors and Other Current Liabilities	29869.300	32115.500	29314.878
	Provisions	1450.500	1596.300	678.236
Total Current Liabilities		31319.800	33711.800	29993.114
Net Current Assets		16172.800	13745.000	11113.875
MISCELLANEOUS EXPENSES		0.000	0.000	0.000
TOTAL		24854.500	21189.700	16397.137

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.12.2009	31.12.2008	31.12.2007
	SALES
		Income	62372.000	73402.400	59303.114
		Other Income	725.700	1304.200	710.454
		TOTAL (A)	63097.700	74706.600	60013.568
Less	EXPENSES
		Raw Material Consumed		20835.000	42920.333
		Personnel Expenses		0.000	3060.684
		Increase/(Decrease) in Finished Goods		(737.800)	0.000
		Other Expenditure		45416.400	6075.802
		TOTAL (B)	57821.700 (Including Financial and Depreciation Expenses)	65513.600	52056.819
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)			9193.000	7956.749
Less	FINANCIAL EXPENSES (D)			493.800	68.123
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)			8699.200	7888.626
Less/ Add	DEPRECIATION/ AMORTISATION (F)			366.800	324.057
	PROFIT BEFORE TAX (E-F) (G)		5276.000	8332.400	7564.569
Less	TAX (H)		1729.600	2858.300	2647.879
	PROFIT AFTER TAX (G-H) (I)		3546.400	5474.100	4916.690
	EARNINGS IN FOREIGN CURRENCY
		Export Earnings	NA	NA	4663.719
	TOTAL EARNINGS		NA	NA	4663.719
	IMPORTS
		Raw Materials	NA	NA	13883.670
	TOTAL IMPORTS		NA	NA	13883.670
	Earnings Per Share (Rs.)		16.74	129.17	---

QUARTERLY RESULTS

PARTICULARS	31.03.2010	30.06.2010	30.09.2010	31.12.2010
Type	1^st Quarter	2^nd Quarter	3^rd Quarter	4^th Quarter
Net Sales	14752.420	14630.930	13489.760	20720.170
Total Expenditure	14529.670	13965.510	13624.260	20393.330
PBIDT (Excl OI)	222.750	665.420	(134.500)	326.840
Other Income	18.590	54.630	513.240	25.850
Operating Profit	241.340	720.050	378.740	352.690
Interest	37.570	42.930	45.010	48.420
PBDT	203.770	677.120	333.730	304.270
Depreciation	120.380	121.960	125.820	148.450
Profit Before Tax	83.390	555.160	207.920	155.820
Tax	17.000	172.000	92.850	88.150
Profit After Tax	66.390	383.170	115.070	67.670
Net Profit	66.390	383.170	115.070	67.670

KEY RATIOS

PARTICULARS		31.12.2009	31.12.2008	31.12.2007
PAT / Total Income	(%)	5.62	7.33	8.19
Net Profit Margin (PBT/Sales)	(%)	8.46	11.35	12.76
Return on Total Assets (PBT/Total Assets}	(%)	9.73	1.41	1.37
Return on Investment (ROI) (PBT/Networth)		0.22	6.18	1.84
Debt Equity Ratio (Total Liability/Networth)		1.29	0.39	0.47
Current Ratio (Current Asset/Current Liability)		1.52	15.75	16.95

LOCAL AGENCY FURTHER INFORMATION

REVENUE AND OPERATIONS:

The revenue for the first quarter ending March 2010 was 14558 MINR. Since the major position of the backlog constitutes large projects with long gestation periods, the company posted a normal growth of 5% in revenues. With increased focus on working capital management, the company improved its operating cash flows significantly as compared to same period List year and the company continues to remain debt free.

NET PROFIT

The results of the company was adversely impacted due to loin on account of fan- valuation of foreign exchange forward contracts for firm trade commitments and embedded derivatives contracts winch resulted in a net PBT of 83 MINR as against 906 MINR (PBT excluding exchange late impact). In addition o the continuing early exit costs born rural electrification business, the company also incurred some cost overruns In a couple of large projects.

“The company is now investing heat-lie in developing competency, particularly and project management in its endeavour to take on large technology projects. When the market cycle turns upwards,” said Biplab Majumder, Vice Chairman and Managing Director of subject, India.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customer to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 117,001) people.

Performance Review:

Orders received during the year at Rs 86847.000 millions were 8% higher compared to Rs 80541.000 millions in the previous year. Order backlog at the end of 2009 was healthy at Rs 84787.000 millions compared to Rs 61618.000 millions at the end of the previous year.

Sales and other income for the year were lower by 9% at Rs 63098.000 millions compared to Rs 69675.000 millions in the previous year. Revenues of all the segments were lower than the previous year except Automation Products which saw a moderate growth of 4%.

Profit before tax was lower at Rs 5274.000 millions compared to Rs 8332.000 millions in the previous year. Reduction in profit was mainly attributable to lower sales, adverse impact from fair valuations of forward foreign exchange and embedded derivative contracts and additional cost incurred for exit/ foreclosure of rural electrification business.

Profit after tax at Rs 3546.000 millions for the year has reduced by 35% compared to Rs 5474.000 millions in the previous year. Earning per equity share of face value of Rs 2/- correspondingly decreased to Rs 16.74 compared to Rs 25.83 in the previous year.

BOARD OF DIRECTORS:

Mr. Bernhard Jucker and Mr. Veli-Matti Reinikkala, Directors of the Company resigned effective March 20, 2009 and March 31, 2009 respectively.

Mr. Bernhard Jucker was appointed as an Alternate Director for Mr. Peter Leupp during the period from April 30, 2009 to July 31, 2009.

Mr. K Rajagopal, Whole-time Director of the Company resigned effective July 31, 2009.

MANAGEMENT'S DISCUSSION AND ANALYSIS

OPERATING RESULTS OF THE COMPANY:

During the year 2009, the Company secured orders worth Rs 86847.000 millions, a modest 8% higher than the previous year's orders of Rs 80541.000 millions. Due to slowing down of global and Indian economy and liquidity crunch particularly in early part of the year, investment decisions by the customers, particularly industrial sector customers, were either deferred or dropped. As a result, orders for Process Automation segment were significantly lower. This had affected rate of overall growth in order receipt during the year. Central Government's stimulus package had positive impact on investments and liquidity in the economy. consequently, order receipt for Power Products segment had remained at the same level as achieved in last year. The Company had good inflow of orders from Power Systems and Automation Products segments. During the year, relative share of project orders were higher compared to product orders which delayed conversion of these orders into revenues. Company's order backlog at the end of the year increased by 38% to Rs 84787.000 millions as compared to Rs 61618.000 millions at the beginning of the year.

Revenues during the year were at Rs 63098.000 millions, registering a decline of 9% over the previous year's revenues of Rs 69675.000 millions. Slowing down of orders for products, particularly in the first two quarters of the year, increased credit risk, decision to exit from rural electrification business in Power Systems segment and requests from certain customers to defer the supplies affected overall revenue growth. Profit before tax was lower at Rs 5274.000 millions as compared to Rs 3.332 millions in the previous year. Profit before tax for the year was lower on account of lower revenues, cost of early exit / foreclosure of certain contracts in moral electrification business, adverse impact from fair valuation of forward foreign exchange and embedded derivative contracts, building of organisation and manufacturing capacities for higher expected scale of operation and significant provision against receivables due to higher credit and other risks. During the year, management continued to pursue several cost optimisation measures, which partially helped in improving the profitability. Net profit after tax at Rs 3546.000 millions for the year was lower by 35% compared to the previous year. Earnings per equity share (face value Rs 2) was also lower at Rs 16.74 compared to Rs 5.83 in the previous year. Cash flow, however, from operations was significantly higher than the previous year to line with attractive long term returns, the Company has completed majority of manufacturing capacities expansion projects and continued to expand its range of offering and introduced several new products. Investment in fixed assets during the year was Rs 1632.000 millions.

OUTLOOK FOR THE COMPANY:

With improvement in economic scenario, better liquidity environment, recent pickup in growth rate in the manufacturing sector, continued investments in power and other infrastructure projects, the business is expected to grow. And all time high order backlog, potential for increase in exports, adequate manufacturing and engineering capacities coupled with various management strategies and access to global technologies, management is optimistic about volume growth of the Company in coming years. Profitable growth in the short term may be influenced by market competition, credit risk, successful closure of rural electrification and certain other large projects.

FINANCE:

There was improvement in liquidity position in economy from second half of the year compared to short of crisis situation witnessed during later part of the previous year. Availability of funds from banking sector improved and rate of interest reduced during the year. Collections from industrial customers and channel partners improved in the later part of the year. Cash flow from operation during the year improved significantly. However higher investment in receivable continues to remain area of concern. Interest expenses during the year reduced to Rs 256.000 millions compared to Rs 347.000 millions in the previous year. Company had borrowing position in most part of the year and interest income from placement of temporary surplus funds as fixed deposits with the banks reduced to Rs 11.000 millions compared to Rs 85.000 millions in the previous year. Net cash position (cash and bank balances less loan fund) at the end of the year was higher at Rs 5241.000 millions compared to Rs 3482.000 millions at the end of the previous year. The Company continued to hedge ail its foreign currency exposures for imports and exports to protect contract stage margins. As in the past, Company has maintained excellent relationship with major banks operating in India and was able to avail and negotiate favourable terms for various banking facilities.

Fixed Assets:

• Freehold land
• Leasehold Land
• Leasehold Improvements
• Factory Buildings
• Other Building
• Residential Quarters
• Plant and Machinery
• Furniture and Fixture
• Vehicle

UNAUDITED FINANCIAL RESULTS FOR THE QUARTER ENDED ON 31.12.2010

(Rs. In Millions)

Particulars	3 months ended 31.12.2010	Corresponding 3 Months ended on 31.12.2010
1. Net Sales / Income from operations	20506.438	62871.118
Other operating income	213.731	722.168
Total operating income	20720.169	63893.286
2. Expenditure
a. Increase /Decrease in work in progress / Construction Materials	164.116	(99.294)
b. consumption of materials	15789.016	45139.789
c. purchases of traded goods	781.824	2980.454
d. Employee Cost	1259.223	4901.126
e Depreciation	148.447	616.808
f. Other expenditure	2014.000	81652.84
g. Exchange rate variation – loss (net)	375.153	946.157
Total	20541.778	62660.124
3. Profit from operations before other income, Interest & Exceptional Items (1-2)	178.391	1043.162
4. Other Income	25.861	133.068
5. Profit before Interest & Exceptional Items (3+4)	204.242	1176.230
6. Interest	48.424	173.927
7. Profit after Interest but before Exceptional items (5-6)	155.818	1002.303
8. Exceptional Items	--	--
9. Profit (+)/Loss(-) from ordinary activities before tax (7+8)	155.818	1002.303
10. Tax expenses
Current Tax	66.146	415.000
Deferred Tax	32.000	(46.000)
Fringe benefits tax	0.000	0.000
11. Net profit (+)/Loss(-) from ordinary activities after tax (9-10)	67.672	632.303
12. Extraordinary item (net of tax expense)	0.000	0.000
13. Net profit (+)/Loss(-) for the period (11-12)	67.672	632.303
14. Paid up equity share capital (Face value Rs.2 each per share)	423.617	423.617
15. Reserve excluding Revaluation reserves as per balance sheet of previous accounting year
16. Earning per share(EPS)
a. Basic and diluted EPS before extraordinary items for the period, for the year to date and the previous year (not to be annualised)	0.32	2.98
b. Basic and diluted EPS after extraordinary items for the period, for the year to date and for the previous year (not to be annualised)	0.32	2.98
17. Public Share holding
Number of shares	62977093	62977093
Percentage of shareholding	25.00%	25.00%
Promoters and promoter group shareholding
a. Pledged / Encumbered
No. of Shares	--	--
Percentage of shareholding (as a % of the total shareholding of promoter and promoter group)	--	--
Percentage of shareholding (as a % of the total share capital of the company	--	--
b) Non-encumbered
- Number of Shares	156931282	156931282
- Percentage of Share (as a % of the total shareholding of promoter and promoter group)	100.00%	100.00%
- Percentage of Share (as a % of the total share capital of the company)	75.00%	75.00%

REVENUES, RESULTS AND CAPITAL EMPLOYED FOR THE SEGMENTS.

(Rs. In Millions)

Sr. No.	Particulars	3 months ended 31.12.2010	Corresponding 3 Months ended on 31.12.2010
		(Unaudited)	(Unaudited)
1.	Segment Revenue
(a)	Power Systems	6348.940	18267.019
(b)	Power Products	5404.161	18155.406
(c)	Process Automation	4581.964	11886.705
(d)	Discrete Automation and Motion	4874.987	15928.726
(e)	Low Voltage Products	1439.539	4485.562
	Total	22650.611	88723.418
	Unallocated	94.576	314.341
	Total	22745.187	69037.759
	Less: Inter Segment Revenue	2026.018	6444.473
	Total Operating Income	20720.169	63693.296
2.	Segment Results (Profit)(+)/ Loss (-) before tax and interest
(a)	Power Systems	(381.096)	(1105.042)
(b)	Power Products	203.930	818.739
(c)	Process Automation	346.259	816.358
(d)	Discrete Automation and Motion	270.871	1302.971
(e)	Low Voltage Products	(12.043)	18.096
	Total	427.921	1869.022
	(Add) / Less: (i) Interest	48.424	173.927
	(ii) Other Un-allocable Expenditure net off Un-allocable income	223.679	692.792
	Total Profit Before Tax	155.818	1002.303
3.	Capital Employed
(a)	Power Systems	3861.949	3861.949
(b)	Power Products	5485.971	5485.971
(c)	Process Automation	2958.473	2958.473
(d)	Discrete Automation and Motion	2004.957	2004.957
(e)	Low Voltage Products	1257.098	1257.098
	Unallocated	8305.590	8305.590
	Total	24237.036	24237.036

Statement of Assets and Liabilities

Rs. In Millions

Particulars	As at 31.12.2010
	Unaudited
Shareholders' Funds:
(a) Capital	423.617
(b) Reserves and Surplus	23813.219
Total	24237.036
Fixed Assets	8237.607
Investments	167.958
Deferred Tax Asset (net)	45.966
Current Assets, Loans and Advances
(a) Inventories	6978.526
(b) Sundry Debtors	29259.657
(c) Cash and Bank balances	5871.250
(d) Other Current Assets	3611.195
(e) Loans and Advances	3541.566
Less : Current Liabilities and Provisions
(a) Liabilities	31630.477
(b) Provisions	1846.434
Total	24237.036

Notes

1. This statement has been reviewed by the Audit Committee and recommended for approval to the Board and was approved by the Board at its meeting held on 23.02.2011.
2. Exchange rate variation - (Gain) / Loss (net) for the quarter includes loss on account of fair valuation of foreign exchange forward contracts for firm trade commitments and embedded derivative contracts amounting to Rs. 217.200 Millions as compared to gain of Rs. 10.400 Millions in the corresponding quarter of the previous year. Exchange rate variation - (Gain) / loss (net) for the year ended 31.03.2010 includes loss on account of fair valuation of such contracts amounting to Rs. 562.000 Millions as compared to loss of Rs. 112.400 Millions in the corresponding period of the previous year.
3. The figures of Employee Cost, Other Expenditure and Interest are net of amount capitalised during the respective periods.
4. The figures of the previous year/ periods have been regrouped/ reclassified, wherever necessary.
5. The Board of Directors of the Company have recommended a dividend of Rs 2.00 per equity share of Rs 2 each for the year ended on 31.12.2010
6. There were no complaints from investors outstanding at the beginning of the quarter. The Company had received 78 complaints from investors during the quarter and all the complaints were resolved during the quarter. There was no complaint pending to be resolved at the end of the quarter.

WEBSITE DETAILS:

ABB India introduction

As one of the world’s leading engineering companies, Subject helps customers to use electrical power effectively and to increase industrial productivity in a sustainable way. The Subject Group of companies operates in over 100 countries and employs about 120,000 people.

Subject operations in India include 14 manufacturing facilities with over 7500 employees. Customers are served through an extensive countrywide presence with more than 18 marketing offices, 8 service centers, 3 logistics warehouses and a network of over 800 channel partners. The Subject Group is increasingly leveraging the Indian operations for projects, products, services, engineering and R and D.

NEWS:

ABB selected to provide link worth $900 million for power superhighway in India

Zurich, Switzerland, 23.03.2011 - Multi-terminal ultrahigh-voltage direct current system will have record 8,000 MW capacity

ABB, the leading power and automation technology group, has been selected by Power Grid Corporation of India Limited (PGCIL) to deliver an ultrahigh-voltage transmission system, worth about $900 million. The link will supply hydropower from northeastern India to the city of Agra over a distance of 1,728 kilometers.

ABB has been chosen to execute the North-East Agra transmission project together with BHEL (Bharat Heavy Electricals Limited), a leading Indian government-owned power company that will deliver the remainder of the project worth more than $1.1 billion in total. The order will be booked on completion of financing requirements.

The ultrahigh-voltage direct current (UHVDC) link operating at 800 kilovolts (kV) will have a converter capacity of 8,000 megawatts (MW), the highest ever built. When operating at full capacity, the link will be able to supply enough electricity to serve 90 million people based on average national consumption. Using ultrahigh-voltage minimizes transmission losses and improves efficiency.

“The North-East Agra transmission link sets a new standard in ultrahigh-voltage power transmission and underlines ABB’s global leadership in HVDC technology,” said Peter Leupp, head of ABB’s Power Systems division. ”We are pleased to continue supporting India in the development of its power infrastructure.”

The system will be the world’s first UHVDC link with three converter stations: Two “sending” stations will convert power from AC to DC for transmission over a single power line that will pass through the narrow Siliguri Corridor and deliver electricity to the third, “receiving” station in Agra where it will be converted back into AC for distribution to end users.

The multi-terminal solution considerably reduces costs compared to the alternative of running separate power links from multiple hydropower plants to Agra. The project will be executed on a turnkey basis including design, system engineering, supply, installation and commissioning. This is ABB’s second multi-terminal HVDC link: The first was constructed in North America in 1990-92.

UHVDC transmission is a development of HVDC, a technology pioneered by ABB more than 50 years ago, and represents the biggest capacity and efficiency leap in over two decades. ABB is a world leader in HVDC transmission technology, with many pioneering achievements and over 70 HVDC projects around the world with a combined transmission capacity around 60,000 MW.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 124,000 people.

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.44.78
UK Pound	1	Rs.73.43
Euro	1	Rs.65.27

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	7
PAID-UP CAPITAL	1~10	8
OPERATING SCALE	1~10	8
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	9
--PROFITABILIRY	1~10	9
--LIQUIDITY	1~10	9
--LEVERAGE	1~10	8
--RESERVES	1~10	9
--CREDIT LINES	1~10	8
--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	YES
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		75

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	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
-	NB	New Business	-

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

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.