MIRA INFORM REPORT

Report Date :

14.11.2011

IDENTIFICATION DETAILS

Name :	TRIVENI ENGINEERING AND INDUSTRIES LIMITED (w.e.f. 31.03.2000)
Formerly Known As :	GANGESHWAR LIMITED (w.e.f. 03.04.1973) THE GANGA SUGAR CORPORATION LIMITED
Registered Office :	Deoband, District Saharanpur – 247 554, Uttar Pradesh
Country :	India
Financials (as on) :	30.09.2010
Date of Incorporation :	27.07.1932
Com. Reg. No.:	20-22174
Capital Investment / Paid-up Capital :	Rs.257.880 Millions
CIN No.: [Company Identification No.]	L15421UP1932PLC022174
TAN No.: [Tax Deduction & Collection Account No.]	MRTT00200E
PAN No.: [Permanent Account No.]	AABCT6370L
Legal Form :	A Public Limited Liability Company. The Company’s Shares are Listed on the Stock Exchanges
Line of Business :	Manufacturing and Sale of Sugar, Sugar Plant and Machinery Products and Turnkey Projects Turbines – Steam Turbines, Hydel Turbines, Packaging of Gas Turbines, Gears and Gearboxes and Surface Pollution Control –Turnkey Projects.
No. of Employees :	5000 (Approximately)

RATING & COMMENTS

MIRA’s Rating :

A (63)

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

Maximum Credit Limit :	USD 40000000
Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear
Comments :	Subject is a well established and reputed in concern business. Financial position of the company appears to be sound. Trade relations are reported as fair. Business is active. Payments are reported to be regular and as per commitments. The company can be considered good for normal 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 – September 30, 2011

Country Name	Previous Rating (30.06.2011)	Current Rating (30.09.2011)
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 / Deoband sugar unit / Co-generation Deoband :	Deoband, District Saharanpur – 247 554, Uttar Pradesh, India
Tel. No.:	91-1336-222497 / 222185 / 222866 / 223791
Fax No.:	91-1336-222220
E-Mail :	triveni@del2.vsnl.net.in legal@ho.trivenigroup.com geeta@ho.trivenigroup.com
Website :	www.trivenigroup.com
Head/ Corporate Office/ Fixed Deposit Section Accounts Department/ Share Department/Investors’ Grievances / Branded sugar business :	‘Express Trade Towers’, 8th Floor, 15-16, Sector- 16A, Noida - 201 301, Uttar Pradesh, India
Tel. No.:	91-120-4308000
Fax No.:	91-120-4311010-11
E-Mail :	hoaccts@trivenigroup.com
Factory 1 :	Turbine business group 12-A, Peenya Industrial Area, Peenya, Bangalore - 560 058, Karnataka, India
Tel. No.:	91-80-22164000
Fax No.:	91-80-28395211
Factory 2 :	Gear business group 1,2,3 Belagola Industrial Area, Metagalli Post, K.R.S. Road, Mysore - 570 016, Karnataka, India
Tel. No.:	91-821-4280502 / 4280501
Fax No.:	91-821-2582694
Factory 3 :	Khatauli sugar unit Khatauli, District- Muzaffarnagar - 251 201, Uttar Pradesh, India
Tel. No.:	91-1396-272561 / 272562
Fax No.:	91-1396-272309
Factory 4 :	Ramkola sugar unit Ramkola, District-Kushinagar - 247 305, Uttar Pradesh, India
Tel. No.:	91-5567-256021 / 256071-2 / 256182
Fax No.:	91-5567-256248
Factory 5 :	Sabitgarh sugar unit P.O. Karora, Tehsil Khurja, District-Bulandshahar, Uttar Pradesh, India
Tel. No.:	91-5738-228894
Fax No.:	91-5738-228893
Factory 6 :	Rani Nangal sugar unit Rani Nangal, Thakurdwara, District- Moradabad, Uttar Pradesh, India
Tel. No.:	91-595-2564350 / 2564627
Fax No.:	91-595-2565002
Factory 7 :	Milak Narayanpur sugar unit Milak Narayanpur, P.O. Dadiyal, District-Rampur - 244 925, Uttar Pradesh, India
Tel. No.:	91-595-2564350 / 2564627 / 2564215
Fax No.:	91-595-2565002
Factory 8 :	Chandanpur sugar unit P.O. Chhapna, Tehsil-Hasanpur, District- J.P. Nagar – 244 255, Uttar Pradesh, India
Tel. No.:	91-5924-295040
Fax No.:	91-5924-254006
Factory 9 :	Water business group Plot No.44, Block-A, Phase II Extension, Hosiery Complex, Noida, District Gautam Budh Nagar, Uttar Pradesh, India
Tel. No.:	91-120-4748000
Fax No.:	91-120-4243049
Factory 10 :	Co-generation Khatauli Khatauli, District- Muzaffarnagar - 251 201, Uttar Pradesh, India
Tel. No.:	91-1396-272561 / 272562
Fax No.:	91-1396-272309
Factory 11 :	Alco-chemical Unit Village Bhikki Bilaspur, Jolly Road, District- Muzaffarnagar - 251 001, Uttar Pradesh, India
Tel. No.:	91-131-2600659 / 2600684
Fax No.:	91-131-2600569

DIRECTORS

As on 30.09.2010

Name :	Mr. Dhruv M. Sawhney
Designation :	Chairman and Managing Director
Date of Appointment :	01.10.2011
DIN No.:	00102999

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	L15421UP1932PLC022174	Triveni Engineering and Industries Limited	Managing director	01-10-11	20-09-92	Active	NO
2	L14101UP1977PLC021546	Orient Ceramics And Industries Limited	Director	09-08-94	09-08-94	Active	NO
3	U29110UP1995PLC041834	Triveni Turbine Limited	Managing director	06-09-11	27-06-95	Active	NO
4	U29119UP2006PLC032060	Triveni Engineering Limited	Director	27-06-06	27-06-06	Active	NO
5	U40102UP2008PLC034648	Triveni Energy Systems Limited	Director	15-02-08	15-02-08	Active	NO
6	U29253KA2010PLC053834	GE Triveni Limited	Nominee director	25-08-11	28-05-10	Active	NO

Name :	Dr. F.C. Kohli
Designation :	Director
DIN No.:	020102878
Name :	Mr. M.K. Daga
Designation :	Director
Date of Appointment :	27.05.2000
DIN No.:	00062503

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74999DL1990NPL038848	Indian Council of Ceramic Tiles and Sanitaryware	Director	05-01-90	05-01-90	-	Active	NO
2	L14101UP1977PLC021546	Orient Ceramics and Industries Limited	Managing director	01-12-09	09-12-93	-	Active	NO
3	L65993DL1982PLC013546	Freesia Investment and Trading Company Limited	Director	05-08-95	05-08-95	-	Active	NO
4	U00063DL1981PTC139711	Good Team Investment and Trading Company Private Limited tfr. from kol.to delhi	Director	05-09-95	05-09-95	-	Active	NO
5	L15421UP1932PLC022174	Triveni Engineering and Industries Limited	Director	27-05-00	27-05-00	-	Active	NO
6	U51432UP2004PLC028546	Orient Rave Mecantile Limited	Director	21-04-06	21-04-06	-	Strike off	NO
7	L26921GJ1985PLC008196	BELL Ceramics Limited	Director	28-05-11	24-11-10	22-09-11	Active	NO

Name :	Mr. K.N. Shenoy
Designation :	Director
Date of Appointment :	24.12.2007
Date of Ceasing :	10.05.2011
DIN No.:	00021373

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U50101KA1996PTC024176	Volvo India Private Limited	Director	09-04-97	09-04-97	-	Active	NO
2	U72300KA1997PTC022977	Sobis Teksoft Private Limited	Director	04-11-97	04-11-97	-	Active	NO
3	U72900KA1997PTC022169	Shelk Software Private Limited	Director	25-08-01	25-08-01	-	Active	NO
4	U41000KA2005PTC036146	Geberit Plumbing Technology India Private Limited	Director	25-04-05	25-04-05	05-04-10	Active	NO
5	U72200KA2000PTC027761	Sobis Software (India) Private Limited	Director	25-04-05	25-04-05	-	Active	NO
6	L74999AP2005PLC059013	GVK Power and Infrastructure Limited	Director	14-10-05	14-10-05	-	Active	NO
7	L31102MH1964PLC013011	EMCO Limited	Director	15-09-06	20-01-06	-	Active	NO
8	L15421UP1932PLC022174	Triveni Engineering and Industries Limited	Director	24-12-07	13-07-06	10-05-11	Active	NO
9	U72200KA2006PTC040577	Open Country Technologies (India) Private Limited	Director	21-09-06	21-09-06	01-12-10	Active	NO
10	L33130GJ1987PLC009305	Integra India Group Company Limited	Director	29-08-08	24-08-07	-	Active	NO
11	U74200KA2009PTC051291	Voith Engineering Services Private Limited	Director	26-10-09	26-10-09	15-09-10	Active	NO
12	U40102AP2008PLC058683	GVK Energy Limited	Director	01-08-11	30-07-10	-	Active	NO
13	U29110UP1995PLC041834	Triveni Turbine Limited	Director	06-09-11	10-05-11	-	Active	NO

Name :	Lt. Gen. K.K. Hazari (Retired)
Designation :	Director
Date of Appointment :	03.04.2000
DIN No.:	00090909

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U63040DL1989PLC037689	Interglobe Enterprises Limited	Director	29-03-96	29-03-96	Active	NO
2	U74900DL1999PTC099696	Magoo Strategic Infotech Private Limited	Director	10-05-99	10-05-99	Active	NO
3	L15421UP1932PLC022174	Triveni Engineering and Industries Limited	Director	03-04-00	03-04-00	Active	NO
4	U29119UP2006PLC032060	Triveni Engineering Limited	Director	27-06-06	27-06-06	Active	NO
5	U29110UP1995PLC041834	Triveni Turbine Limited	Director	28-07-08	03-12-07	Active	NO

Name :	Mr. R.C. Sharma
Designation :	Director
Date of Appointment :	03.04.2000
DIN No.:	00107540

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U70101DL1988PTC030299	S.H.R. Properties Private Limited	Director	13-01-88	13-01-88	Active	NO
2	L15421UP1932PLC022174	Triveni Engineering and Industries Limited	Director	03-04-00	03-04-00	Active	NO

Name :	Mr. Amal Ganguli
Designation :	Director
Date of Appointment :	29.12.2009
Date of Ceasing :	10.05.2011
DIN No.:	00013808

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	U74899DL1993PTC051811	M L Infomap Private Limited	Director	20-01-93	20-01-93	-	Active	NO
2	U72200DL1991PLC046909	Flextronics Software Systems Limited	Director	08-01-01	08-01-01	-	Amalgamated	NO
3	L74140DL1991PLC046369	HCL Technologies Limited	Director	08-05-03	08-05-03	-	Active	NO
4	L35921TN1949PLC002905	Tube Investments Of India Limited	Director	02-06-03	02-06-03	29-07-10	Active	NO
5	L51909DL1986PLC024222	Samtel Color Limited	Director	10-10-03	10-10-03	02-02-07	Active	NO
6	L92111DL1988PLC033099	New Delhi Television Limited	Director	14-05-04	14-05-04	-	Active	NO
7	L17120MH1897PLC000163	Century Textile and Industries Limited	Director	31-07-04	31-07-04	-	Active	NO
8	U34103MP2005PLC017319	AVTEC Limited	Director	27-07-05	27-07-05	-	Active	NO
9	L74999DL1991PLC042749	ICRA Limited	Director	12-06-06	30-03-06	-	Active	NO
10	U64202DL1992PLC048053	Hughes Communications India Limited	Director	30-09-06	20-04-06	-	Active	NO
11	L34103DL1981PLC011375	Maruti Suzuki India Limited	Director	05-09-06	05-09-06	-	Active	NO
12	L64200MH1986PLC039266	Tata Communications Limited	Director	13-09-06	13-09-06	-	Active	NO
13	U93090MH2006PTC165286	AIG Trustee Company (India) Private Limited	Director	15-12-06	15-12-06	-	Active	NO
14	U65993DL2006PLC149728	Aricent Technologies (Holdings) Limited	Director	11-09-09	06-08-07	-	Active	NO
15	U24239AP2005PTC047518	Aptuit Laurus Private Limited	Director	02-09-11	30-08-07	-	Active	NO
16	L15421UP1932PLC022174	Triveni Engineering and Industries Limited	Director	29-12-09	19-01-09	10-05-11	Active	NO
17	L64200MH1995PLC086354	Tata Teleservices (Maharashtra) Limited	Director	13-08-09	24-03-09	-	Active	NO
18	U29110UP1995PLC041834	Triveni Turbine Limited	Director	06-09-11	10-05-11	-	Active	NO

Name :	Mr. Shekhar Datta
Designation :	Director
Date of Appointment :	29.12.2009
DIN No.:	00045591

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Date of cessation	Company Status	Defaulting status
1	L24230MH1999PLC120720	Wockhardt Limited	Director	25-02-00	25-02-00	-	Active	NO
2	U29111MH2001PTC131781	Lombardini India Private Limited	Director	27-04-01	27-04-01	24-08-07	Active	NO
3	L26933WB1991PLC052968	Vesuvius India Limited	Director	31-01-03	31-01-03	-	Active	NO
4	L74899DL1964GOI004281	Bharat Heavy Electricals Limited	Additional director	27-11-09	16-11-05	23-04-10	Active	NO
5	U67120MH2005PLC155188	BSE Limited	Director	14-09-07	20-06-06	16-06-08	Active	NO
6	L15421UP1932PLC022174	Triveni Engineering And Industries Limited	Director	29-12-09	25-04-09	-	Active	NO

Name :	Mr. Tarun Sawhney
Designation :	Executive Director
Date of Appointment :	10.05.2011
DIN No.:	00382878

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U52110DL1986PLC024603	Triveni Entertainment Limited	Director	27-01-03	27-01-03	Active	NO
2	U29110UP1995PLC041834	Triveni Turbine Limited	Director	28-07-08	03-12-07	Active	NO
3	L15421UP1932PLC022174	Triveni Engineering and Industries Limited	Managing director	10-05-11	19-11-08	Active	NO
4	U29253KA2010PLC053834	GE Triveni Limited	Nominee director	25-08-11	01-11-10	Active	NO

Name :	Mr. Nikhil Sawhney
Designation :	Executive Director
Date of Appointment :	10.05.2011
DIN No.:	00029028

S.No.	CIN	Name of the Company	Current designation of the director	Date of appointment at current designation	Original date of appointment	Company Status	Defaulting status
1	U45202PB1993PTC025592	Abohar Power Generation Private Limited	Director	06-06-05	06-06-05	Active	NO
2	U40102UP2008PLC034648	Triveni Energy Systems Limited	Director	15-02-08	15-02-08	Active	NO
3	L15421UP1932PLC022174	Triveni Engineering and Industries Limited	Director	10-05-11	19-11-08	Active	NO
4	U40100HP2005PTC030758	Upper Bari Power Generation Private Limited	Director	24-09-09	24-08-09	Active	NO
5	U29253KA2010PLC053834	GE Triveni Limited	Nominee director	25-08-11	28-05-10	Active	NO
6	U29110UP1995PLC041834	Triveni Turbine Limited	Managing director	06-09-11	10-05-11	Active	NO

KEY EXECUTIVES

Name :	Ms. Geeta Bhalla
Designation :	Company Secretary
Name :	Mr. Arun Mote
Designation :	Chief Executive Officer-Business-Turbine
Name :	Mr. A. K. Tanwar
Designation :	President-Sugar
Name :	Mr. C. N. Narayanan
Designation :	General Manager-Investor Relations and Value Creation
Name :	Mr. Raj Kumar Goel
Designation :	General Manager and Business Head
Name :	Mr. V. P. Ghuliani
Designation :	Vice President-Legal Affairs and Company Secretary
Name :	Mr. Suresh Taneja
Designation :	Chief Financial Officer and Vice President
Name :	Mr. Bharat Mehta
Designation :	Chief Human Resources Officer and Vice President
Name :	Mr. Sameer Sinha
Designation :	Vice President-Power, Alcohol and Planning
Name :	Mr. Rajiv Rajpal
Designation :	Vice President-Business-Gear

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

As on 30.09.2011

Category of Shareholder	No. of Shares	Percentage of Holding
(A) Shareholding of Promoter and Promoter Group
(1) Indian
Individuals / Hindu Undivided Family	87,992,116	34.12
Bodies Corporate	87,330,417	33.86
Sub Total	175,322,533	67.99
(2) Foreign
Total shareholding of Promoter and Promoter Group (A)	175,322,533	67.99
(B) Public Shareholding
(1) Institutions
Mutual Funds / UTI	17,527,536	6.80
Foreign Institutional Investors	37,906,162	14.70
Sub Total	55,433,698	21.50
(2) Non-Institutions
Bodies Corporate	5,108,623	1.98
Individuals
Individual shareholders holding nominal share capital up to Rs.0.100 million	17,077,323	6.62
Individual shareholders holding nominal share capital in excess of Rs.0.100 million	2,291,726	0.89
Any Others (Specify)	2,646,247	1.03
Non Resident Indians	1,747,013	0.68
Hindu Undivided Families	625,305	0.24
Clearing Members	251,976	0.10
Trusts	21,953	0.01
Sub Total	27,123,919	10.52
Total Public shareholding (B)	82,557,617	32.01
Total (A)+(B)	257,880,150	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)	257,880,150	-

BUSINESS DETAILS

Line of Business :

Manufacturing and Sale of Sugar, Sugar Plant and Machinery Products and Turnkey Projects Turbines – Steam Turbines, Hydel Turbines, Packaging of Gas Turbines, Gears and Gearboxes and Surface Pollution Control –Turnkey Projects.

Products :

Item Code No. (ITC Code)	Production Description
17011100	Manufacture of Sugar
NA	Co-Generation
00008406	Manufacture of Steam Turbine

PRODUCTION STATUS (As on 30.09.2010)

Particulars	Unit	Installed Capacity *1	Actual Production *2
Sugar	MT	61000 TCD	505796.20
Molasses	MT	NA	247573.13
Steam Turbines	MW	1000	717
High Speed Reduction Gears	Nos.	500	883
Mechanical Equipment - Water/ Waste Water *3	Rs. In Millions	NA	210.920
Alcohol	KL	160 KLPD	*4 28241.51
Power (Co-generation Plant)	000’KWH	68 MW	220059.31

*1 As certified by officials of the company.

*2 Includes captive consumption.

*3 Manufacturing outsourced,Product range is varying and is not capable of being expressed in common units.

*4 Excluding 8.72 KL (27.94 KL) of Denaturants added

N.A. - Not Applicable

TCD - Metric Tons of cane crushed per day.

MT - Metric Tons

KWH - Kilo Watt per hour

MW - Mega Watt

KL - Kilo Litre

KLPD- Kilo Litre per day

GENERAL INFORMATION

No. of Employees :

5000 (Approximately)

Bankers :

· ICICI Bank Limited

· Yes Bank Limited

· Central Bank of India

· Punjab National Bank

· Oriental Bank of Commerce

· Union Bank of India

· Standard Chartered Bank

· State Bank of Travancore

· Canara Bank

· Axis Bank Limited

· Citi Bank N.A.

· HSBC Bank Limited

· IDBI Bank Limited

· Indusind Bank Limited

· State Bank of India

· State Bank of Patiala

Facilities :

Secured Loans	30.09.2010 (Rs. in millions)	30.09.2009 (Rs. in millions)
Debenture *1	1000.000	1000.000
From Banks
Cash Credit/WCDL/Overdraft *2	2436.080	305.170
Term Loans *3	4471.800	5585.910
From Others *4	601.870	696.390
Total	8509.750	7587.470

* 1 1000 (1000) Non- Convertible Debentures of Rs.1.000 Million each privately placed in favour of Life Insurance Corporation of India redeemable in three installments at the end of 4th, 5th and 6th year in the ratio of 30:30:40 from the date of allotment (viz 26th December 2008) and secured by first pari-passu charge created /to be created by equitable mortgage on immoveable assets and hypothecation of all moveable assets, both present and future of the Company subject to bankers prior charges created/to be created on current assets for providing working capital facilities and excluding assets purchased under vehicle loan scheme. Due within one year Rs.Nil

* 2 Secured by pledge/hypothecation of the stock-in-trade, raw material, stores and spare parts, work-in-progress and receivables and second charge created/to be created on the properties of all the Engineering units and third charge on the properties of Sugar, Co-Generation and Distillery units of the Company on pari-passu basis. Includes Rs.200.00 million (Rs. Nil) towards Commercial Paper issued.

* 3 Includes

(a) Rs.218.210 Millions (Rs.430.070 Millions) in respect of External Commercial Borrowings and secured by first pari-passu charge created/to be created by equitable mortgage on immoveable fixed assets and hypothecation of all moveable fixed assets, both present and future of the Company excluding assets purchased under vehicle loan scheme,. Due within on year Rs.200.830 millions (Rs.215.030 millions).

(b) Rs.3531.760 Millions (Rs.4023.710 Millions) secured by first pari-passu charge created/to be created by equitable mortgage on immoveable assets and hypothecation of all moveable assets, both present and future of the Company subject to bankers prior charges created/to be created on current assets for providing Working Capital facilities and excluding assets purchased under vehicle loan scheme. Due within one year Rs.1114.420 Millions. (Rs.1117.210 Millions)

(c) Rs.719.260 Millions (Rs.1130.700 Millions) secured by subservient/residual charge created/to be created over the assets of the Company. Due within one year Rs.508.900 Millions. (Rs.427.080 Millions)

(d) Rs.2.570 Millions (Rs.1.430 Millions) secured by hypothecation of vehicles acquired under vehicle loan scheme. Due within one year Rs.1.190 Millions. (Rs.0.910 Millions)

* 4 (a) Rs.601.870 Millions (Rs.696.390 Millions) due to Sugar Development Fund, Government of India, secured by exclusive second charge created over moveable/immoveable assets of Deoband and Khatauli units. Due within one year Rs.157.280 Millions. (Rs.94.520 Millions)

Unsecured Loans	30.09.2010 (Rs. in millions)	30.09.2009 (Rs. in millions)
Fixed Deposits	36.240	99.350
Short Term Loan :-
From Banks	663.020	644.840
From Others	31.250	0.000
Other Loans and Advances :-
From Others	101.310	6.290
Total	831.820	750.480

Banking Relations :	Good
Auditors :
	J. C. Bhalla and Company Chartered Accountants Branch Auditors Virmani and Associates Chartered Accountants
Memberships :	Confederation of Indian Industry
Wholly Owned Subsidiaries :	· Triveni Turbine Limited (TTL) (Formerly Triveni Retail Venture Limited) · Upper Bari Power Generation Limited (UBPGL) · Triveni Energy Systems Limited (TESL) · Triveni Engineering Limited (TEL) · GE Triveni Limited (GETL)
Associates :	· TOFSL Trading and Investments Limited(TOFSL) · The Engineering and Technical Services Limited (ETS) · Triveni Entertainment Limited(TENL) · Carvanserai Limited(CL)* * ceased to be an associate company during the year
Companies/Parties in which key management Person or his relatives have substantial interest/significant influence :	· Kameni Upaskar Limited (KUL) · Tirath Ram Shah Charitable Trust (TRSCT)

CAPITAL STRUCTURE

As on 30.09.2010

Authorised Capital :

No. of Shares	Type	Value	Amount
500000000	Equity Shares	Re.1/- each	Rs.500.000 Millions
20000000	Preference Shares	Rs.10/- each	Rs.200.000 Millions
	Total		Rs.700.000 Millions

Issued Capital :

No. of Shares	Type	Value	Amount
257888150	Equity Shares (*1 and *2)	Re.1/- each	Rs.257.890 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount
257888150	Equity Shares (*1 and *2)	Re.1/- each	Rs.257.880 Millions
	Add : Paid up value of 8000 Equity Shares of Re.1/- each forfeited Rs.0.002 Million		--
	Total		Rs.257.880 Millions

*1. Before the Approval of Scheme of Arrangement in 2003, Issued Share Capital includes:-

· 562315 Equity Shares of Rs.10/- each allotted as fully paid up Bonus Shares by capitalisation of General Reserve and Preference Capital Redemption Reserve.

· 9390001 Equity Shares of Rs.10/- each fully paid issued, pursuant to amalgamation, to the Shareholders of erstwhile subject.

*2. 124728090 Equity Shares of Re.1/- each allotted as fully paid up Bonus Shares by capitalisation of Share Premium Account.

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		30.09.2010	30.09.2009	30.09.2008
SHAREHOLDERS FUNDS
1] Share Capital		257.880	257.880	257.880
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		9651.660	8972.040	7579.220
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		9909.540	9229.920	7837.100
LOAN FUNDS
1] Secured Loans		8509.750	7587.470	10798.380
2] Unsecured Loans		831.820	750.480	888.580
TOTAL BORROWING		9341.570	8337.950	11686.960
DEFERRED TAX LIABILITIES		1068.700	933.820	608.920
TOTAL		20319.810	18501.690	20132.980
APPLICATION OF FUNDS
FIXED ASSETS [Net Block]		12145.520	12399.390	12410.590
Capital work-in-progress		223.240	189.340	421.350
Intangible Assets		72.850	100.570	38.710
Discarded Fixed Assets Pending Disposal/Sale		3.010	3.010	3.060
Plant & Machinery acquired under Lease		133.560	147.040	161.830
INVESTMENT		111.650	269.840	116.150
DEFERREX TAX ASSETS		0.000	0.000	0.000
CURRENT ASSETS, LOANS & ADVANCES
	Inventories	4911.620	4581.210	5397.850
	Sundry Debtors	2789.730	2425.270	2134.460
	Cash & Bank Balances	190.740	273.170	188.090
	Other Current Assets	457.550	171.210	3.960
	Loans & Advances	4020.750	3973.450	3817.470
Total Current Assets		12370.390	11424.310	11541.830
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	2351.290	3680.200	2664.060
	Other Current Liabilities	1623.500	1391.960	1072.210
	Provisions	765.620	972.660	843.440
Total Current Liabilities		4740.410	6044.820	4579.710
Net Current Assets		7629.980	5379.490	6962.120
MISCELLANEOUS EXPENSES		0.000	13.010	19.170
TOTAL		20319.810	18501.690	20132.980

PROFIT & LOSS ACCOUNT

	PARTICULARS		30.09.2010	30.09.2009	30.09.2008
	SALES
		Net Sales	22595.340	18948.420	15922.200
		Other Income	245.510	112.400	90.670
		TOTAL (A)	22840.850	19060.820	16012.870
Less	EXPENSES
		Increase/Decrease in Work-in-Progress/Finished Goods	(1791.590)	2157.030	(1035.180)
		Materials	18221.610	9291.980	10673.800
		Manufacturing / Operating	1388.550	1017.760	1279.000
		Personnel	1657.760	1348.570	1193.490
		Administration	645.560	592.780	681.730
		Selling	259.720	243.220	218.720
		Off-season Expenses charged/(deferred) (Net)	(20.240)	(117.620)	(181.780)
		Exceptional/Non - Recurring Items	(450.860)	121.580	0.000
		TOTAL (B)	19910.510	14655.300	12829.780
Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		2930.340	4405.520	3183.090
Less	FINANCIAL EXPENSES (D)		849.640	1158.520	997.570
	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		2080.700	3247.000	2185.520
Less/ Add	DEPRECIATION/ AMORTISATION (F)		907.540	817.530	839.910
	PROFIT BEFORE TAX (E-F) (G)		1173.160	2429.470	1345.610
Less	TAX (H)		264.750	731.690	230.430
	PROFIT AFTER TAX (G-H) (I)		908.410	1697.780	1115.180
Add	PREVIOUS YEARS’ BALANCE BROUGHT FORWARD		220.120	100.150	92.530
Less	APPROPRIATIONS
		Interim Dividend Paid - Equity Shares	103.150	77.370	0.000
		Tax on Interim Dividend on Equity Shares	17.130	13.150	0.000
		Final Dividend Proposed on Equity shares	90.260	180.510	154.730
		Provision for Tax on Final Dividend on Equity Shares	14.990	30.680	26.290
		Transfer to Molasses Storage Fund Reserve	2.720	1.100	3.540
		Transfer to Debenture Redemption Reserve	75.000	75.000	0.000
		Transfer to General Reserve	650.000	1200.000	923.000
	BALANCE CARRIED TO THE B/S		175.280	220.120	100.150
	EARNINGS IN FOREIGN CURRENCY
		Exports of goods on F.O.B. basis	721.480	1314.210	608.480
		Service Charges	54.370	52.750	41.160
		Others (Carbon Credit)	99.860	0.000	131.000
	TOTAL EARNINGS		875.710	1366.960	780.640
	IMPORTS
		Raw Materials	446.000	1902.020	239.100
		Components and Spares	7.580	0.850	4.360
		Capital Goods	119.440	240.730	71.080
	TOTAL IMPORTS		573.020	2143.600	314.540
	Earnings Per Share (Rs.)		3.52	6.58	4.32

QUARTERLY RESULTS

PARTICULARS	31.12.2010 1^st Quarter	31.03.2011 2^nd Quarter	30.06.2011 3^rd Quarter
Net Sales	5921.300	4579.900	4182.800
Total Expenditure	5221.000	4006.700	3998.700
PBIDT (Excl OI)	700.300	573.200	184.100
Other Income	16.800	35.600	19.000
Operating Profit	717.100	608.800	203.100
Interest	187.000	236.300	285.500
Exceptional Items	0.000	41.500	0.000
PBDT	530.100	414.000	(82.400)
Depreciation	220.000	189.400	190.500
Profit Before Tax	310.100	224.600	(272.900)
Tax	70.900	(10.700)	(60.600)
Provisions and contingencies	0.000	0.000	0.000
Profit After Tax	239.200	235.300	(212.300)
Extraordinary Items	0.000	0.000	0.000
Prior Period Expenses	0.000	0.000	0.000
Other Adjustments	0.000	0.000	0.000
Net Profit	239.200	235.300	(212.300)

KEY RATIOS

PARTICULARS		30.09.2010	30.09.2009	30.09.2008
PAT / Total Income	(%)	3.98	8.91	6.96
Net Profit Margin (PBT/Sales)	(%)	5.19	12.82	8.45
Return on Total Assets (PBT/Total Assets}	(%)	4.79	10.20	5.62
Return on Investment (ROI) (PBT/Networth)		0.12	0.26	0.17
Debt Equity Ratio (Total Liability/Networth)		1.42	1.56	2.08
Current Ratio (Current Asset/Current Liability)		2.61	1.89	2.52

LOCAL AGENCY FURTHER INFORMATION

DEMERGER OF STEAM TURBINE BUSINESS

The Company had proposed a Scheme of Arrangement (Scheme) pursuant to which the Steam Turbine Business of the Company is proposed to be transferred and vested in Triveni Turbine Limited (TTL) (formerly known as Triveni Retail Ventures Limited), a wholly owned subsidiary of the Company, in accordance with the provisions of sections 391394 of the Companies Act, 1956 with effect from 1st October, 2010, being the Appointed Date fixed for this purpose. Upon the Scheme becoming effective and inconsideration of the demerger, TTL will issue and allot to the shareholders of the Company one equity share of Rs.1 each credited as fully paid up in TTL for every one equity share of Rs.1 each fully paid up held by them in the Company as on the Record Date. Further, as per the terms of the Scheme, out of the existing paid-up capital of 100,000,000 equity shares of Rs.1 each of TTL entirely held by the Company, 28,000,000 equity shares of Rs.1 each shall stand converted into 2,800,000 8% Cumulative Redeemable Preference Shares of Rs.10 each fully paid up, redeemable at the end of five years from the date of allotment, subject to the option of TTL to redeem the Preference Shares at any time after the end of 6 months from the date of allotment. The legal process for sanction of the Scheme by the Allahabad High Court is in progress.

Demerger of the steam turbine business is in the interest of all concerned stakeholders, and would provide focused management orientation and an opportunity for strategic partnerships. This structure will take advantage of significant global growth opportunities, provide flexibility for future fund raising, and unlock and maximize shareholder value.

JOINT VENTURE AGREEMENT

On 15th April, 2010, the Company signed a joint venture (JV) agreement with GE Oil and Gas, through its affiliate, GE Mauritius Infrastructure Holdings Limited (GEMIHL) to design, manufacture, supply, sell and service advanced technology steam turbines in India in the above 30 to 100 MW range for power generation applications in the Indian and worldwide markets. The Company will hold 50% plus one share in the joint venture company, GE Triveni Limited (GTL), with both parties having equal representation on the Board. GTL, which is headquartered in Bengaluru, will benefit from a full technology transfer and on-going R and D support from GE and will use the Company's Bengaluru facility for turbine manufacturing. It is proposed in the Scheme of Arrangement that the investment by theCompany in GTL will be transferred to Triveni Turbine Limited consequent to the demerger.

The transaction with GEMIHL has been concluded with both parties fulfilling all conditions under the JV agreement, including signing of the ancillary agreements and subscribing to the share capital of GTL on 3rd November 2010.

PERFORMANCE

Sugar Business

During 2009-10 sugar season, the Company's seven sugar units manufactured 419101 tonnes of sugar from sugar cane and 86695 tonnes of sugar from imported raw sugar aggregating toa total sugar production of 505796 tonnes, which was over 50% higher than the previous season.

During the previous season, the industry, buoyed by rising sugar prices, steadily paid higher cane prices to control diversion to alternate sweeteners and thus to ensure an optimum supply of cane. However, the rising trend of the sugar prices was abruptly halted due to a number of measures taken by Government. This resulted in bearish market sentiments and sugar prices declined by about 39% from the peak levels attained in January 2010. The average sugar realisation prices were not adequate to meet the increased cost of production, and together with higher levy obligation (from 10% to 20%), it led to substantial losses.

Engineering Business

Engineering business comprising Steam Turbines, High Speed Gears and Water and Waste Water Treatment, showed a combined growth of 28% in turnover and 21% in PBIT. Orders on hand at the year end are over 50% higher than last year, owing to substantial order intake in the year. Even after the demerger of the Steam Turbine business, the robust growth of the remaining Engineering businesses will enable the Company to meet the cyclicality of the sugar sector.

MANAGEMENT DISCUSSION AND ANALYSIS
 

INDIAN SUGAR INDUSTRY

India's sugar production for the 2009-10 sugar season was 18.9 million tonnes, whichwas higher by 30% over the previous year. The production in Maharashtra and Karnataka recorded significant increase of over 50% while Uttar Pradesh recorded an increase of 27%.Other sugar producing states including Tamilnadu and Andhra Pradesh recorded a decline in production by almost 20%. The overall increase in production has been primarily on account of favourable climatic conditions and lower diversion of cane in Uttar Pradesh for alternate sweeteners in the second half of the crushing cycle.

The sugar prices steadily increased from September 2009 to February 2010 in anticipation of lower production for the season. This prompted the sugar mills to procure cane at higher prices in order to secure better supplies. India imported an all time high quantity of raw and white sugar in the light of initial estimates of lower production forthe season. The total import for 2009-10 was 4.3 million tonnes comprising of 3 million tonnes of raw sugar and 1.3 million tonnes of refined white sugar.

The year 2009-10 witnessed huge swings in sugar prices due to volatility in production estimates. Domestic sugar prices touched an all-time high while global sugar price stouched a three-decade high. The sugar prices started moving upwards from September 2009and touched an all time high of Rs.4420 per quintal in the first week of January 2010. Lower cane diversion in UP coupled with higher yields in Maharashtra and Karnataka led to the additional sugarcane supplies to sugar factories and resulted in an increase in production of sugar by 4 to 4.5 million tonnes over the initial forecasts.

The year 2009-10 also showed high volatility in sugar prices. As the sugar prices continued its rise, the Government initiated various measures such as fixing stock limits for market intermediaries, allowing direct import by bulk consumers of sugar and allowing duty-free import of raws and whites to ease the domestic supplies. With the supply easing and in the backdrop of higher production estimates, sugar prices started declining from February 2010 and fell by about 39% from the peak in January 2010 to September 2010.

The cost of production of sugar for 2009-10 season has been high due to increased cost of cane. The average sugar prices during the year remained below the cost of production. All the mills in Uttar Pradesh ended up paying significantly higher cane price than the State Advised Price (SAP) of Rs. 1650 per tonne for normal variety of cane. Climatic conditions led to below normal recovery of sugar as compared with the earlier seasons. Initial estimates of lower sugar production prompted the Central Government to increase the levy quota obligation for sugar mills from 10% to 20%. These factors resulted in huge losses for sugar mills.

In respect of the forthcoming season 2010-11, the area under cane cultivation is estimated to increase by 15-18%, prompted by the record cane price realisation in the previous season. Favourable monsoon in most of the cane growing regions is expected to result in better yield and recovery. Government of India's estimates put the total cane production at about 348 million tonnes, reflecting a growth of 25% over the previous season. Initial estimate for sugar production for 2010-11 is at 25 million tonnes which is33% higher than the previous season. The Government, sensing a comfortable position, has allowed export of sugar under Advance License Scheme (ALS), which will aggregate to a million tonne and may allow more exports under Open General License (OGL) if there is no significant change in the production estimates. With the country's rising consumption, even at the high production estimate of 25 million tonnes, accretion to inventory is expected to be minimal and therefore, the sugar prices are expected to remain stable and firm at the current level of Rs. 29 per Kg.

In view of the higher estimates of sugar production for 2010-11 season, the Central Government has already revised the levy obligation back to 10% of production from the 20% during the previous season. This should considerably minimize losses on the sale of levy sugar during 2010-11 as the levy price is lower than its cost of production.

GLOBAL SUGAR INDUSTRY

India is the largest sugar consuming country in the world. The initial estimates of lower production in India for 2009-10 and physical sugar imported by it resulted in rising global sugar prices. Globally, in view of two successive years of sugar deficit, the sugar prices were ruling high. Later, the prices steeply declined in expectations of record production in Brazil and significant bounce back of production in India. Again the prices have started rising from July 2010 as the production estimates in India are being revised downwards, which may as best lead to parity position, without any accretion to the global sugar inventories.

With one of the strongest "El Nino" phenomena felt in Brazil from the middle of 2009, when the harvesting was at its peak, Brazil experienced the wettest summer during2009-10.

Because of the wet climatic conditions, the sweetener contained in sugarcane was lowest during 2009-10 at 130.2 kg per tonne of sugarcane crush. Due to wet summer months, about50 million tonnes of cane remained unharvested till the end of 2009-10 season.

The sugar prices internationally, after showing a steep decline from the peak in January 2010, started going up from July 2010 onwards on account of lower estimates of global sugar production. The estimates of sugar production for Brazil was consistently brought down due to adverse climatic conditions and logistics constraints and the same applied to Australia, Thailand, Russia etc. The sugar prices in India moved in tandem with Global sugar prices till June 2010 and since then the global prices moved upwards in view of the lower estimates of production from Brazil.

On account of the above factors, sugar prices further moved up globally in October and November and in November 2010, it touched the record highs.

Triveni is one of the largest sugar players in India having 61,000 tonnes crushing capacity per day. Its seven sugar units are strategically located in cane rich are as a cross the western, central and eastern part of Uttar Pradesh (UP). Its sugar operations are partially de-risked from cyclicality of sugar industry through integrated operations of sugar making, co-generation and distillery functions.

SUGAR BUSINESS GROUP

Operational Highlights

Triveni's seven units put together manufactured about 419,101 tonnes of sugar from sugarcane and 86,695 tonnes of sugar from processing raw sugar. The total sugar production stood at 505,796 tonnes, recording a growth of 50% over the previous season. At 10.12%, its Ramkola unit achieved the highest recovery in the state of U.P.

Against the State Advised Price (SAP) of Rs. 1650 per tonne for normal variety cane and Rs 1700 per tonne for early maturing variety, the price paid during the season was much higher due to lower availability of cane and competition from alternate sweeteners.Neighbouring states of Uttaranchal and Haryana announced a higher SAP of Rs.1920-1970per tonne and Rs.1800-1850 per tonne respectively with Haryana announcing an additional incentive of Rs.30 per quintal in November 2009.

In view of the differential price with those in the neighbouring states and high prices offered by alternate sweeteners, the SAP lost its relevance and the factories procured cane at prices higher than the SAP. The higher cane costs resulted in higher cost of production of sugar. This, coupled with higher levy sugar obligation from 10% to 20%,resulted in the sugar business incurring a net loss before interest of Rs. 573.300 million including write down of sugar inventory at the year end by Rs. 558.200 million to the Estimated Realisable Value (ERV), cost being higher than the ERV.

There has been an increase of nearly 10% in number of kolhus in the cane rich belt of UP in last couple of years. The gur prices remained strong compared to sugar prices for a good period during the last season, enhancing the paying capacity of the kolhus which wentas high as Rs. 250-260 per quintal. The kolhus reduced their price when the gur prices started declining resulting in reduced cane diversion to kolhus. The reduction in cane prices at that stage was not feasible to the industry as this would have impacted the spring plantation of sugarcane.

Cane Development Programme

The growth and the performance of the sugar business is largely dependent on the availability of both quality and quantity key raw material, sugarcane, and cane development has a definitive role in improving both. Triveni has a dedicated team of cane development staff comprising of village level supervisors and officers who remain indirect contact with cane farmers assisting them in various aspects of cane cultivation.

Being spread across the breadth of the Uttar Pradesh, the sugar units have varying cane development priorities depending upon the local situation. Bringing new areas under cane cultivation is a priority activity in low cane intensity areas whereas in good cane intensity areas, the development team is striving for ideal varietal mix with focus on early and high sugared varieties. The cane development wing of the sugar units provide round-the-year support to cane farmers in keeping the crop healthy and disease free. Apart from insecticidal spray campaign on cane crop, the sugar units are popularising biocontrol measures against certain pests of sugarcane in collaboration with companies ofrepute in this field.

Sustainable Sugarcane Initiative (SSI)

Apart from encouraging farmers for growing sugarcane, the Company is working on two other important aspects of cultivation of any field crop -

· bringing down the cost of cultivation, and

· yield enhancement.

The Company, as a part of its strategic move and social commitment, launched and successfully executed a campaign "Grow more with less" for promoting a new sugarcane farming technique known as Sustainable Sugarcane Initiative (SSI) to the farmers in the catchment areas of its sugar mills. The campaign "Grow more with less" has been designed to reduce the input cost for the farmer in terms of seeds and water requirement. At the same time, it promises to generate more output per hectare to the farmers than the conventional method being practiced presently. The technique has been designed by ICRISAT (International Crop Research Institute for the Semi-Arid Tropics) and supported by WWF (World Wide Fund for Nature). The project would enhance the supply of cane to the factories and support longer crushing season leading to optimal utilisation of the plant, apart from ensuring better quality sugarcane.

Outlook

The carry forward sugar stock for the season 2010-11 as per the Government is 5.0million tonnes, equivalent to about 3 months consumption. With the farmers having fetched record prices for the cane during the 2009-10 season, the area under cane cultivation for2010-11 has increased. As per preliminary estimates, the same may be higher by 16% in U Pand 20% in and around Triveni's sugar units, resulting in higher sugar production. Likewise, the recovery estimates are also high due to higher sugar in cane as is evident from initial sampling.

The cane yield which was earlier expected to be better than last year has been affected by the late rains and floods. The yield is expected to be at the same level as last year. The prevailing temperature trend is expected to lead to better sucrose formation and hence better recovery, resulting in overall sugar production to be higher by 12-15% in the coming season. The current estimates for the country's sugar production for 2010-11 season is 25 million tonnes. Demand is expected to be around 23.000 millions tonnes leading to marginal surplus in production over consumption, which may be consumed by some exports and therefore, the ending stock as on 30th Sept 2011 should be more or less in line with the opening inventory. Under these circumstances, the sugar prices are expected to remain firm during 2010-11 sugar season.

The Central Government has announced Fair and Remunerative Price (FRP) for 2010-11 at Rs 139.12 per quintal for 9.5% recovery, higher by Rs. 10 per quintal over last year. However the Government of Uttar Pradesh has announced State Advised Price (SAP) at Rs. 205 per quintal for normal variety and Rs. 210 per quintal for early maturing variety, which is Rs 40 per quintal higher than the previous season.

In line with the higher estimated sugarcane production, Triveni also estimates to have higher sugarcane crush during the 2010-11 season. With the improvement in climatic condition during October/November 2010, the recovery is also expected to be better than last year. Coupled with higher crush and increase in recovery, Triveni estimates sugar production from cane crush to be higher by 30%.

C-GENERATION BUSINESS GROUP

Triveni operates three co-generation power plants, one at Deoband and two at Khatauli, with combined installed capacity of 68 MW. Surplus power from these plants is exported tothe grid. The Deoband plant has a 22 MW co-generation capacity while Khatauli has two co-generation plants each with a capacity of 23 MW.

Performance highlights

Due to lower sugarcane crushed in the season 2009-10, the availability of bagasse remained low constraining the optimum operation of the co-generation plants. Thec o-generation plants on bagasse based operation generated 199.9 Million Units (MU) power and exported 133.3 MU power to the grid during the year 2009-10. The profitability of theco-generation plants was constrained due to higher pricing of bagasse.

Deoband and 'Khatauli Phase-I' co-generation plants of the Company are registered as Clean Development Mechanism (CDM) projects with UNFCCC. Carbon credits for the period April 2007 to March 2008 from both these plants were issued and transacted. The Company earned revenue of Rs.99.800 millions from the sale of issued carbon credits.

Trends

In order to enhance the utilisation of the power generation capacity during off-season, provision to fire coal in one of the co-generation boilers at Khatauli has been implemented in line with UP Government's Energy Policy 2009. The complete system has been tested and trial operations have been successfully carried out. Out of 20.2 MU of power generated during the trial operations in this off-season using coal as a fuel, 17.6 MU has been sold to UPPCL at a tariff of Rs.5.02 per kwh.

Outlook

The sugarcane crushing in sugar factories at Deoband and Khatauli are expected to be higher in the sugar season 2010-11 in comparison to the previous season. On account of increased baggase availability, the operational period and capacity utilisation is expected to be higher. The power generation and export from co-generation plants is expected to improve significantly, thereby improving the revenue and profitability of co-generation business of the Company.

In respect of the operation of the CDM projects during April 2008 to March 2010, claims would be filed with UNFCCC for issuance of the carbon credits, which are expected in the next financial year. The Company also expects to take full benefit of coal-based power generation in its unit during the next off-season, both through sale of power to UPPCL and merchant trading, to capitalise on better power tariff in peak summer months.

The Company continues to focus on its co-generation business and align its operations to maximise its utilisation and aspires to achieve operational excellence. The revenue generated from the sale of power and carbon credits generated from the UNFCCC registered CDM plants will continue to provide good returns from the co-generation business.

With an aim to integrate its sugar operations and to reduce the impact of its cyclicality, Triveni entered the distillery business in 2007 with the commissioning of its sole distillery at Muzaffar nagar. The distillery has a capacity of 160 Kilo Litres per Day(KLPD) and is one of the largest single stream molasses based distilleries in India. Strategically located in close proximity to two of its largest sugar units, the distillery procures consistent supply of captive raw material.

The distillery currently produces Extra Neutral Alcohol (ENA), Rectified Spirit (RS)and Special Denatured Spirit (SDS) and is known for the high quality of its products. Equipped to produce Ethanol as well, Triveni has been qualified in tender for supply of Ethanol to Oil Marketing Companies in UP, Uttaranchal and Delhi. The supplies are expected to commence from November 2010. The unit extracts bio-gas from the effluent and use it as main fuel in the boiler.

DISTILLERY BUSINESS GROUP

Performance highlights

Sharp decline in cane crushing and lower molasses availability in 2009-10 adversely affected the distillery performance. Though the distillery operated for 181 days as against 141 days in the previous year, its operational period was much below the normal period of around 270 days. The plant attained recovery at 228 litres per tonne of molasses due to higher fermentation and distillation efficiencies.

Major customers of the distillery business are United Spirits Limited, Jagatjit Industries, Indian Oil and Jubilant Life Sciences. The distillery remains a preferred supplier to these prestigious customers.

Outlook

The pricing of alcohol remained subdued throughout the year because of the surplus alcohol available in the market. They expect the position to correct on the commencement of supplies of ethanol to the oil companies.

POWER INDUSTRY

Power is a key input for socio-economic development of India. Ensuring access to electricity for all households, availability of adequate power to fully meet the demand and increasing the per capita availability of electricity to over 1000 units by 2012 are the key objectives under the National Electricity Policy 2005. Government of India has introduced a slew of measures and policies towards achieving them.

While the power sector in India has witnessed a few success stories in the recent past, there are innumerable challenges resulting from the gaps that exist between planning and delivery. The bottlenecks facing the sector include project execution delays on account of and acquisition, environmental clearance, equipment shortage, manpower shortage etc. and operational concerns like fuel availability and schedule dependency on transmission lines. These issues, coupled with factors of climate change and grid security has led the government to recognise the importance of distributed power generation through Captive Power Plants (CPPs) as well as renewable source based Independent Power Projects (IPPs).

During the year 2009-10, the overall power generation in India increased to 771.5Billion Units (BU) from 723.7 BU in 2008-09 recording a growth of 6.6%. The current demand-supply gap for electricity stands at around 10% with peak shortage at 12%. The Power Ministry has projected an actual power demand of 1077 BU by the end of 11th plan period. Against the capacity addition target of 78,700 MW under the 11th plan, approximately 9,585 MW of power generation capacity has been added during 2009-10. Triveni estimates one-third of all further capacity addition to happen through CPPs and renewable resource based IPPs.

As per the recent statistics, the total installed capacity in the country is 164 GW,7.7% of which is from renewable energy sources. Industrial sector consumes 35% of the total electricity generated in the country. Industries that generate steam for their manufacturing process would logically add power generation to their fold. Even those industries that do not use steam for their core processes will add captive power generation in order to safeguard from grid problems and/or utilise the waste-heat productively. Most of the smaller industrial units have deployed diesel generators to counter the erratic power supply coming in way of their growing power requirements. With the cost per unit of electricity produced through diesel generators being quite high, these industries are increasingly shifting towards steam turbine based captive power generation. Industries like Textile, Distilleries, Breweries, Caustic Soda, Fertilizer, Paper and Pulp Industry, Solvent Extraction, Sugar, Rice, Petrochemical etc. have a significant power generation potential through co-generation.

Bagasse based co-generation in sugar mills and other biomass based power plants harness grid quality power. It is estimated that the surplus power generation in sugar mills alone, through bagasse co-generation, can lead to over 5000 MW of power supply to grid. While the biomass based power generation capacity has reached to about 900 MW during the year, its potential is estimated at around 21,000 MW in India.

WATER INDUSTRY

Only 3% of the water available on the planet is fresh - and just a third of that is accessible to humans. With rising population and depleting per capita fresh water availability, Government of India is devoting about 3% of its national budget towards water investments. The water consumption in India is 1,900 billion litres per day (lpd).By 2050, it is estimated to increase to 2,463 billion lpd at a CAGR of 0.7 percent. Water as a resource is under relentless pressure. UN's medium projection estimates India's population to exceed 1.4 billion by 2025. The chronic water scarcity that already plagues many regions of the country is all but certain to intensify.

Due to steady population growth, overall socio-economic growth, rapid urbanisation, large-scale industrialisation and growing environmental concerns, water stress has emergedas a real threat. Municipal water and Waste-Water treatment, water recycle and reuse, industrial in-process and waste-water treatment hold key to sustainable water management.

Recognising the criticality of integrated water management, the Government of India revised the National Water Policy in 2002 and introduced many new schemes and projects for proper development and management of water resources. As per the policy, local bodies suchas Municipalities, State Governments and the Private Sector should incorporate participatory approach in various aspects of planning, design, development and management of water resources scheme. Funding for projects has been enabled through programs like Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for urban areas and Rajiv Gandhi National Drinking Water Mission (RGNDWM) for rural India. International bodies like ADB and JICA are also increasingly funding water projects in India.

The Water and Waste-Water treatment market in India is estimated at Rs. 54 billion and poised to grow at 13% CAGR between 2010 and 2013. Industrial and Municipal sectors will be the major contributors followed by point-of-use purifiers. Power sector will boost the water market with ultra-pure water required in upcoming projects. Globally, water recycle and reuse market is expected to grow at 16% to reach $57 billion by 2015. Membranefiltration and desalination technologies are being used across the country to meet industrial water requirements.

TURBINE BUSINESS GROUP

Triveni's Turbine Business Group (TBG) manufactures steam turbines upto 30 MW at its state-of-the-art manufacturing facility at Bengaluru, which is ISO 9001:2008 and ISO14001:2004 certified. It has installed over 2500 turbines in more than 30 countries. Its steam turbines meet national and international benchmarks like IS, CE, API, IEC specifications etc. TBG commands about 58% market share in the below 30 MW range. It has sustained indigenous technology development programme through a strong R and D team and strategic partnerships with the best global technology research and design firms. It provides its customers a wide range of integrated solutions and round-the-clock servicesupport through 150 trained service personnels and 13 service centres across the country. TBG provides complete customer care services to its clients - from erection till commissioning, spare parts and refurbishing.

TBG caters to a wide range of industries including bio-mass and municipal solid waste based Independent Power Plants (IPP), Captive Power Plants (CPP) and Co-generation Plantsin Sugar, Distillery and Ethanol, Palm Oil, Oil and Gas, Pulp and Paper, Textiles, Chemicals, Fertilizers, Pharmaceuticals, Steel, Solvent Extraction, Carbon Black, and District Heating sectors.

Performance Overview

TBG recorded an all round growth during 2009-10, with enhanced performance across the parameters of sales, profitability and order booking. During the year, its net sales grew by 19%, profit before interest increased by 13% and order intake grew by 43% over the previous year. The order intake during the year totalled Rs. 5.4 billion while the outstanding order book as on 30th September 2010 stood at Rs. 5.7 billion, representing 935MW, higher by 14 % over the last year. TBG dispatched turbines aggregating to 711 MW during the year.

The improved market conditions with increased demand and ensuing Capex programmes invarious industrial segments were the key drivers for sales and order booking during the year. Multiple orders were booked during the year for high temperature, high pressure turbines.

TBG continued its thrust on exports and is on course to expand its overseas market in a big way. The factors leading the growth in global market for steam turbines include the revival of industries in South East Asia, Biomass IPP growth driven by mandatory targets of EU nations for share of energy from non-renewable source, fuel shift i.e., oil to solid, and instances of some specific segments doing well. TBG continued to increase its presence in South East Asia and Korea. During the year, the revenue contribution from domestic sales and exports were 88.5% and 11.5% respectively, which is an indication of improved global market conditions for the customers.

Service remains the main differentiator for TBG in the Industrial Turbine segment. It continued to strengthen its work force during the year. TBG forayed into refurbishing inutility range. TBG's bid for refurbishment jobs up to 300 MW has received an encouraging response. An encouraging number of refurbishment orders for drive and power turbines of different makes were also booked during the year. The share of after-sales component in the total sales has gone up to 16.3% during the year from 15.9% in the previous year. This increased share of after-sales component will enable TBG to sustain its profitability going forward.

Key Orders

· A single order totalling to 183 MW for sugar co-generation projects in Tamilnadu, having multiple turbines with high pressure/ high temperature cycle.

· The unit undertook high speed balancing of 210 MW HP turbine rotor assembly and also undertook troubleshooting of 300 MW LP steam turbine system.

Outlook

With the increase in number of higher MW turbines installed, the business from spares and servicing is expected to go up considerably. The impact of the same has already started reflecting in their current performance. TBG executed refurbishment orders for drive and power turbines of different makes during the year, which paves way for getting into larger size turbines for refurbishing and troubleshooting.

TBG's foray into higher MW high-temperature high-pressure turbines will expand its market opportunities going forward. With its focus on Research and Development coupled with its ability to access new markets, the business is expected to grow significantly. With the economic growth gaining momentum, growth of power sector continues to be robust. Healthy growth in the Paper industry and Steel industry also augurs well for the TBG.

Benefits of renewable energy shall catalyse the development of low captive energy systems. Carbon Credits along with tax subsidies for biomass based power plants are added drivers for growth of renewable energy sector. The National Solar Mission will enable investment in Solar based power plants, which is an emerging opportunity.

On the back of above factors, TBG's growth outlook remains promising for 2010-11 and beyond. TBG's successful foray into the Palm Oil segment in South East Asian countries should enable the unit to venture aggressively in this segment in the coming years, which will be a boost to the overall export strategy of the unit. This coupled with the expansion of geographic reach through exports to high growth markets in Asia and Africa will also enable TBG to perform consistently and grow.

GEAR BUSINESS GROUP

Triveni's Gear Business Group (GBG) manufactures high-speed gears and gearboxes upto 70MW capacity and speed of 70,000 rpm from its unit located at Mysore. It is the country's largest one-stop solution provider in these segments and commands an overall market share of about 60%. Its market share in the below 25 MW Segment stands at over 80%. GBG supplies High Speed Gearboxes to OEM like TBG- Bengaluru (captive), Siemens, BHEL, Pump OEMs, Hydro market etc. and receives direct orders from end-users for replacement markets. Steam Turbine Generator (STG) segment has the highest share in GBG business.

Performance Overview

On the back of improving economic scenario, GBG delivered enhanced performance in terms of sales, profitability and order booking during 2009-10. Its net sales grew by 38% and profit before interest grew by 42% during the year over 2008-09. The order intake during the year grew by 27% at Rs. 1.1 billion. The outstanding order book as on 30th September2010 stood at Rs.621.000 million, recording a growth of 14% over the previous year.

During 2009-10, the gear business has manufactured more than 40 high power gearboxes of more than 20 MW size and also designed similar number of gearboxes for high technology applications conforming to API specifications for many OEMs. This has enabled the unit to get a strong footing into this market.

Apart from the improvement in product business, GBG's aftermarket business which includes spares, servicing, retrofitting and refurbishments etc., is also gaining momentum. This segment has grown in line with the overall turnover of GBG and maintained its share in total revenue at around 36% and helped GBG to consistently maintain its margin.

GBG's foray into high power hydel gear boxes and loose gearings are also gaining momentum with encouraging orders being received from some OEMs for non-turbine applications. Its export focus has traditionally been in SE Asia for OEMs and refurbishment. During the year, GBG entered new countries like Uganda, Australia and New Zealand.

Original Equipment Segment

GBG has a market share of 70% in steam turbines, 70-75% in pumps and 25% in hydro segment. Key clients of GBG are:

· OEM Turbines segment - TBG, Siemens, BHEL - 70%

· Small Turbine OEMs-80%

· Pumps - KSB, Sulzer, Flowserve, Kiriloskar Ebara pumps, Clyde pumps -70-75%.

· Hydro segment - B Fouress Limited, Boom Systems, HPP Energy, Jyoti-20%.

Going forward, growth in this segment is being guided by increased indiginisation objectives of some OEMs shifting their manufacturing base into India and MNCs already established in India. Export initiatives of OEMs present in India will also give further market footprints to GBG indirectly.

Service Offered in OEM segment

· Replacement of all makes of high speed, high power and niche slow speed gear boxes.

· Special test rig gearboxes

· Spares for gearboxes supplied through non-captive OEMs

· Loose gearing

Speed of response, flexibility and customer relationship are the key differentiators for GBG. Its exports to countries like Pakistan, Thailand, Indonesia, Malaysia, Uganda, Germany and Australia.

Spares and Servicing

GBG has a strong presence in spares and servicing of gearboxes. It maintains adequate stock levels of essential spares and ensures prompt delivery at client's site in case of any eventuality. It also offers services like overhauling of gearboxes and inspection and diagnostic study of gearboxes.

GBG manufactures customised loose gears for high technology equipment manufacturers in India, Germany and Finland. Major clients of GBG in this segment are Voith and Wartsila.

Industries Served

GBG caters to varied industrial sectors like Steel, Sugar, Cement, Small Process plants, Refineries, Defence segments through OEM supplies and direct supply in replacements. Its products and service solutions are used in applications like STG, Compressors, Pumps, Hydel Turbines, Power Plant equipments and Niche Slow Speed applications in Steel, Cement and Sugar for Briquetting and Mill applications.

Outlook

Continued focus on supplies to OEMs, aggressive strides into after-sales, widening of product profile to strengthen its presence in hydel gears and niche low speed gears are the key initiatives that would ensure GBG's sustained growth. Its focus on high-margin refurbishment, spares and services, apart from the new products for non-power applications, should enable it sustain the revenue and profitability growth. It is aggressively targeting Vietnam, Philippines, South Africa and European markets. Focus on OEMs in hydro segment and supply to overseas OEMs for less than 7.5 MW gearboxes as per Triveni design shall add to the promising outlook for GBG.

WATER BUSINESS GROUP

Triveni's Water Business Group (WBG) has charted aggressive growth over recent years and risen to feature amongst leading players in the Indian water space. It has sustained Sales and PBIT CAGR at 68% and 78% respectively over the last three years. During the year, it seized some of the largest opportunities in Water and Wastewater treatment segments in Indian market which demonstrates the market's confidence in its abilities and growing stature

Performance Overview

During 2009-10, WBG's performance in terms of sales, order booking and profitability has been significantly higher than those in 2008-09. It registered a growth of 61% in net sales and 48% in profit before interest. The order intake during the year recorded multiplier growth of 227% and stood at Rs. 5.0 billion. The outstanding order book as on30th September 2010 stood at Rs. 5.4 billion, recording an increase of 173% over the previous year. The order booking and outstanding order book include Rs. 1.7 billion towards Operation and Maintenance (O and M) for a municipal project.

During the year, WBG expanded its business horizon by breaking into large size water packages - in terms of scale as well as scope - and maintained focus on lucrative equipments market. Recycle and Reuse remained a focus area for WBG and yielded results in securing prestigious jobs in Industrial sector.

WBG's commitment on technology partnerships paid rich dividend during the year and resulted in numerous orders bagged on the strength of its superior technologies across the processes as well as products.

Having commissioned Phase-I of its manufacturing facility, WBG has moved into a new business format wherein critical components of Water plants will be assembled in the facility to address quality and delivery issues comprehensively. In view of fullutilization of Phase-I of the facility in the first year of its commencement itself, WBG has planned to implement Phase-II of the facility in 2010-11.

Technology Tie-ups

During the year, WBG concluded technology agreements with numerous global technology providers in order to bring proven and optimum solutions for Indian customers in the areas of Water and Wastewater treatment across municipal and industrial applications.

Key Orders

· Total Water Management for 2 x 300 MW Thermal Power Plant of GMR group in Warora- Maharashtra. Highlight of this order is recycling of wastewater to produce Boiler Feedquality water for the Power Plant through UF-RO-DM route.

· Sewage Treatment Plant (STP) of 23,000 M3/day capacity to cover surrounding areas of newly constructed Delhi airport. It will deploy Sequential Batch Reactor (SBR)technology followed by disinfection through Ultrafiltration (UF) technology.

· Successfully commissioned 16,200 M3/day capacity Reverse Osmosis (RO) based Sea Water Desalination Plant for Lanco's 1200 MW Thermal Power Plant at Udipi -Karnataka. This is the largest RO based Sea Water Desalination Plant in India for Thermal Power Plant producing Boiler Feed quality water.

· Orders received from BHEL for complete water scheme involving Pre-treatment Plant, DM Plant and Effluent Treatment Plant for their 500 MW Ukai Thermal Power Plant in Gujarat. BHEL also awarded Effluent Treatment Plant package for their 2 x 600 MW Thermal Power Plant at North Chennai Project in Tamilnadu.

· Order for India's largest Ultrafiltration (UF) based surface water source drinking water treatment plant for Taj city (Agra). WBG was selected through international competitive bidding for this Japan International Cooperation Agency (JICA) funded scheme from UP Jal Nigam. The project involves most advanced technology combination of Moving BedBio Reactor (MBBR) followed by Ultrafiltration (UF) treatment.

Outlook

Indian water sector is entering into a higher growth trajectory and is estimated to grow at a much higher rate than the global average in short to medium term. Funding from the Government of India under JNNURM and funding from multi-lateral and external agencies such as JICA, ADB, etc. for several projects are enabling execution of large packages with latest technology inputs in the water sector.

Ministry of Urban Development (MoUD) is actively supporting water recycle and reusein industrial sector. Water recycle and reuse is likely to open significantly large opportunities in Indian water space.

Rapid socio-economic growth coupled with growing population and urbanisation is likely to increase demand for fresh water - for household, industrial and agrarian usage. The possibility of recycle and reuse of water and environmental pressure to treat the industrial as well as civic sewage and affluent will also contribute in rapid growth of Water and Wastewater treatment sector in India.

Sea water desalination will be another area for both industrial and municipal sectors. Large coastal cities and series of large power plants in Indian coastal belt - east and west - are driving the market growth.

WBG, with its current operations and tie-ups with leading technology providers world-wide, is geared to capitalise on these opportunities. It has a complete range of solutions for meeting the entire gamut of opportunities / requirements and is uniquely positioned itself to provide all high technology Water and Waste water solutions.

CONTINGENT LIABILITIES

a) Claims against the Company not acknowledged as debts

Particulars

As on 30.09.2010

Rs. in millions

i) Claims which are being contested by the Company and in respect of which the Company has paid amounts aggregating to 85.57 Million under protest pending final adjudication of the cases:

Particulars	Amount of Contingent Liability	Amount Paid
Sales Tax	48.000	22.980
Excise Duty	151.120	58.880
Others	50.380	3.710

The outflow arising from these claims is uncertain and is after adjusting likely reimbursement of 12.02 Millions from customers in respect of Central Excise demands on account of denial of benefit under Notification No.6/2000.

249.500

ii) The Company is contingently liable in respect of short provision against disputed income tax liabilities of 464.780 Millions against which 365.840 Millions stands paid, mostly through adjustment and the balance amount has been stayed till disposal of first appeal. The disputed income tax liability includes 374.510 Millions towards unrealized incentives. In the event such liability finally materialises, 353.610 Millions will be adjusted against the corresponding capital reserve. In case the said incentives are ultimately not realized, a deduction from taxable income to that extent would be available to the Company in subsequent years.

464.780

iii) Differential cane price for the sugar season 2007-08 pending disposal of the matter by the Hon’ble Supreme Court. As against price of 1250/MT advised by the State Government, the Company had accounted for and discharged its liability at 1100/MT in accordance with the interim order passed by the Supreme Court.

789.560

iv) Indeterminate liability arising from claims / counterclaims/Interest in arbitration/court cases, claims alleging infringement of technical know-how/copyrights, claims of some employees/ex-employees and in respect of service tax, if any, on certain activities of the Company which are being contested by the Company.

--

b) Guarantees/surety given on behalf of

(i) Subsidiary Company

(Including Nil for availing of credit facilities, against which dues outstanding Nil)

0.100

(ii) Other companies

4.000

c) The amounts represent the best possible estimates arrived at on the basis of available information. The uncertainties, possible payments and reimbursements are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants, as the case may be, and therefore can not be predicted accurately. The Company engages reputed professional advisors to protect its interests and has been advised that it has strong legal position against such disputes.

The amounts represent guarantees given in the normal course of operations of these companies and are not expected to result in any loss to the Company on the basis of such companies fulfilling their ordinary commercial obligations.

UNAUDITED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31ST MARCH 2011

(Rs. in millions)

Particulars	Quarter Ended	6 Months Ended
	31.03.2011	31.03.2011
	Unaudited	Unaudited
1(a). Net Sales / Income from Operations	4550.100	9122.100
(b). Other Operating Income	29.800	46.500
2. Expenditure
a) (Increase)/Decrease in stock in trade and work in progress	(5102.700)	(5383.000)
b) Consumption of raw materials	6912.300	10409.600
c) Purchase of traded goods	274.200	371.700
d) Employees Cost	345.600	663.300
e) Depreciation	189.400	383.400
f) Other expenditure	703.500	1229.300
g) Off-Season expenses (Net)	873.800	933.000
h) Total	4196.100	8607.300
3. Profit/(Loss) from Operations before Other Income, Interest & Exceptional Items (1-2)	383.800	561.300
4. Other Income	35.600	45.500
5. Profit/(Loss) before Interest & Exceptional Items (3+4)	419.400	606.800
6. Interest Expense	236.300	406.100
7. Profit/(Loss) after Interest but before Exceptional Items ( 5-6)	183.100	200.700
8. Exceptional Items (Net) - Gain / (Loss )	41.500	41.500
9. Profit / (Loss) from Ordinary Activities before Tax (7+8)	224.600	242.200
10. Tax Expense (Net of MAT credit entitlement )	(10.700)	(9.300)
11. Net Profit/( Loss) after Tax (9-10)	235.300	251.500
12. Paid up Equity Share Capital (Face Value Re.1/-)	257.900	257.900
13. Paid up Debtg Capital *	--	1000.000
14. Reserves excluding Revaluation Reserves
15. Debenture Redemption Reserve	--	150.000
16. Earning per share (not annualised)
- Basic - Rs.	0.91	0.98
- Diluted - Rs.	0.91	0.98
17. Debt Equity Ratio**	--	1.14
18. Debt Service Coverage Ratio***	--	0.79
19. Interest Service Coverage Ratio****	--	2.49
20. Public Shareholding
- Number of shares	82557617	82557617
- Percentage of shareholding	32.01	32.01
21. Promoters and promoter group Shareholding
a) Pledged / Encumbered
- Number of Shares	12050000*	12050000*
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	6.87	6.87
- Percentage of shares (as a % of the total share capital of the company)	4.67	4.67
b) Non- encumbered *
- Number of Shares	163272533	163272533
- Percentage of shares (as a % of the total shareholding of promoter and promoter group)	93.13	93.13
- Percentage of shares (as a % of the total share capital of the company)	63.32	632.32

· * Paid up Debt Capital represents Non convertible privately placed listed Debentures

· ** Debt Equity Ratio: Total Loans funds/Net worth

· *** Debt Service Coverage Ratio: Profit before interest, tax, depreciation, amortisation and exceptional items/(Interest expenses + Amount of long term loans repaid during the year excluding towards prepayments/ Debt substitution)

· **** Interest Service Coverage Ratio: Profit before interest, tax, depreciation, amortisation and exceptional items / Interest expenses

Notes:

· In view of the seasonal nature of Company's sugar business, the performance results may vary from quarter to quarter.

· i) The Scheme of Arrangement (Scheme) under Section 391-394 of the Companies Act, 1956, between subject, Triveni Turbine Limited (TTL) and their respective shareholders and creditors has been approved by Hon'ble Allahabad High Court vide its Order dated 19th April, 2011 and has become effective from 21st April, 2011. Pursuant to the Scheme, the steam turbine business of TEIL (Demerged Undertaking), including all assets and liabilities thereof, stands transferred to and vested in TTL with effect from the appointed date as on 1st October, 2010. Consequently, the financials of the Company for the half year and quarter ended 31st March, 2011 do not include the financials of the Demerged Undertaking and are thus not comparable with those of the previous period/s.

ii) The business of the Demerged Undertaking has been carried out by the Company in trust and on behalf of TTL till the effective date of the demerger. The unaudited financial results (subjected to limited review by its auditors) of the Demerged Undertaking for the quarter and half year ended 31st March, 2011 are provided as under:

(Rs. in millions)

	Quarter Ended 31st March 2011	Half year ended 31st March 2011
Net Turnover	1629.800	3051.100
Profit Before Interest and Tax	351.400	664.600

SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

(Rs. in millions)

Particulars	Quarter Ended	6 Months Ended
	31.03.2011	31.03.2011
	Unaudited	Unaudited
1. Segment Revenue
[Net Sale/Income from each segment]
(a) Sugar
Sugar	3567.700	7449.700
Co-Generation	705.700	1054.700
Distillery	340.700	468.900
(b) Engineering
Steam Turbine	--	--
Gears	340.200	566.000
Water	433.200	817.300
(c) Others	51.000	93.600
Total	5438.500	10450.200
Less : Inter segment revenue	888.400	1328.100
Net Sales	4550.100	9122.100
2. Segment Results [Profit /(Loss) before tax and interest]
(a) Sugar	7.800	67.100
Sugar	246.200	356.600
Co-Generation	71.500	82.900
Distillery
(b) Engineering
Steam Turbine	--	--
Gears	143.000	212.800
Water	56.200	92.400
(c) Others	(0.500)	0.300
Total	524.200	812.100
Less : i) Interest Expense	236.300	406.100
ii) Exceptional Items (Net) - (Gain)/Loss	(41.500)	(41.500)
iii) Other Unallocable Expenditure [Net of Unallocable Income]	104.800	205.300
Total Profit/(Loss) Before Tax	224.600	242.200
3. Capital Employed [Segment Assets - Segment Liabilities]
(a) Sugar
Sugar	16059.300	16059.300
Co-Generation	2020.000	2020.000
Distillery	1425.600	1425.600
(b) Engineering
Steam Turbine	--	--
Gears	682.200	682.200
Water	953.600	953.600
(c) Others	23.100	23.100
Capital Employed in Segments	21163.800	21163.800
Add : Unallocable Assets less Liabilities [including investments]	2011.400	2011.400
Total	23175.200	23175.200

STATEMENT OF ASSETS AND LIABILITIES AS AT 31^ST MARCH 2011

(Rs. in millions)

Particulars	As at 31.03.2011 Unaudited
Shareholders' Funds :
(a) Capital	257.900
(b) Reserves and Surplus	10240.900
Loan Funds	11832.600
Deferred Tax Liability (Net)	1004.300
Total	23335.700
Fixed Assets (Net, including CWIP)	11118.000
Investments	111.100
Current Assets, Loans and advances
(a) Inventories	9732.900
(b) Sundry Debtors	1850.000
(c) Cash & Bank Balances	160.700
(d) Other Current Assets	714.200
(e) Loans and Advances	3146.600
Less : Current Liabilities and Provisions
(a) Liabilities	2819.800
(b) Provisions	678.000
Miscellaneous Expenditure (Not Written Off or Adjusted)	--
Total	23335.700

· In accordance with the Scheme:

o The shareholders of the Company are being allotted one fully paid up equity share of Rs.1/- each of TTL for every one equity share of Rs.1/- each fully paid-up held by them in the Company as on the record date i.e. 4th May, 2011. Consequently, TTL shall cease to be a subsidiary of the Company.

o Out of the existing investment of the Company of 100,000,000 equity shares of Rs.1/- each in the paid up share capital of TTL, 28,000,000 equity shares of Rs.1/- each stand converted into 2,800,000, 8% redeemable preference shares of Rs.1/- each fully paid up. Accordingly the Company now holds 21.83% of the Post-Demerger Equity Share Capital of TTL.

o The investment of the Company in the equity share capital of GE Triveni Limited (GETL), a joint venture between the Company and GE Infrastructure Holdings Mauritius Limited, an affiliate of GE, to the extent of 50% plus one equity share, stands transferred to TTL. Consequently GETL has ceased to be the subsidiary of the Company and is now a subsidiary of TTL.

o The excess of the value of liabilities over the value of assets of the Demerged Undertaking transferred to TTL, amounting to Rs.284.300 millions has been credited to Capital Reserve.

· Exceptional items comprises profit of Rs.41.500 millions from the sale of an unproductive immovable property of the Company.

· The figures of the previous periods under various heads have been regrouped to the extent necessary.

· The above results were reviewed and recommended for adoption by the Audit Committee and approved by the Board of Directors of the Company at their respective meetings held on 9th and 10th May, 2011. The statutory auditors have carried out a limited review of the financial results.

· There were no investor complaints pending at the beginning of the quarter. The Company received 18 investor complaints during the quarter ended 31st March, 2011 and all the complaints were resolved.

Fixes Assets

· Freehold Land

· Leasehold Land

· Building and Roads

· Railway Siding

· Plant and Machinery

· Furniture and Fixture

· Computers

· Vehicles

WEB DETAILS

BUSINESS DESCRIPTION

Subject is an India-based company, which provides manufacturing and engineering solutions conglomerate with operations in sugar, steam turbines, gears and water treatment sectors. The Company operates in three segments: sugar, engineering and others. The sugar segment includes sugar, co-generation and distillery operations. The engineering segment comprises the manufacture of steam turbines and speed gears, and water/wastewater treatment. The others segment includes the trading of various packaged fast moving consumer goods (under its brand name), including sugar. It is a manufacturer of white crystal sugar, having an aggregate sugarcane crushing capacity of 61,000 tons crushed per day (TCD) spread over seven manufacturing plants situated in the State of Uttar Pradesh. It exports power to the State grid and has installed capacity of 68 megawatts spread over Khatauli and Deoband sugar mills. Effective October 1, 2010, it demerged its steam turbine business. For the fiscal year ended 30 September 2010, subject's revenues increased 19% to RS22.88B. Net income increased 60% to RS697.5M. Revenue reflect an increase in income from sugar, higher income from Engineering and an increase in income from other segment. Net income was offset by an increase in consumption of raw materials, higher employees cost and an increase in depreciation expenses.

BOARD OF DIRECTORS

MR. MAHENDRA K. DAGA - INDEPENDENT NON-EXECUTIVE DIRECTOR

Mr. Mahendra K. Daga is Independent Non-Executive Director of subject. He is an arts graduate from St. Xavier's College, Kolkata. Mr. Daga is an industrialist with business experience. He has been the Managing Director of Somany-Pilkington and is currently the Chairman and Managing Director of Orient Ceramics and Industries Limited. He is a fellow of the Institute of Materials, UK and the British Institute of Management, UK. Some of the other companies where he serves as a board member include Orient Ceramics and Industries Limited, Orient Rave Mercantile Limited, Freesia Investment and Trading Company Limited, Amarawati Tea Company Limited, Team Investment and Trading Company Private Limited and Indian Council of Ceramic Tiles and Sanitaryware.

Education

BA , St. Xaviers College, Kolkata

MR. F. C. KOHLI - INDEPENDENT NON-EXECUTIVE DIRECTOR

Mr. F. C. Kohli is Independent Non-Executive Director of subject. He was Credited as 'Father of Information Technology' revolution in India. He is an Electrical Engineering graduate from Queen's University, Canada with a Masters in Science degree from the Massachusetts Institute of Technology, USA. He was conferred with an Honorary Doctorate in Engineering from the University of Waterloo, Canada; from Robert Gordon University, Aberdeen, UK; Indian Institute of Technology, Bombay, India; and the University of Roorkee, Uttar Pradesh. He was also conferred the Degree of Engineering (Honoris Causa) by Jadavpur University, Kolkata. Dr. Kohli is a distinguished fellow of various professional bodies, such as the Institute of Electrical and Electronic Engineers, New York; the Institute of Electrical Engineers, London and the Institute of Engineers, India. He has also served as the Deputy Chairman of Tata Consultancy Services. He was conferred the honorary title of Padma Bhushan in 2002, by the Government of India. He has received numerous other awards and recognitions, including the Dadabhai Naoroji Memorial Award, 2000 and the Economic Times Lifetime Achievement Award, 2002. Some of the other companies where he serves as a board member include WTI Advanced Technology Limited, Tata Infotech Limited, Tata Elxsi Limited, Tata Technologies (Pte.) Limited, HOT V Inc., USA, Technosoft SA, Switzerland, Sun F and C Asset Management (India) Private Limited, Aerospace Systems Private Limited and Media Lab Asia.

Education

MS , Massachusetts Institute of Technology

Electrical Engineering, Queen's University

MR. NIKHIL SAWHNEY - NON-EXECUTIVE DIRECTOR

Mr. Nikhil Sawhney is Non-Executive Director of subject. He served as Executive Director of the Company till May 10, 2011. He has a Bachelors degree in Arts and a Masters degree in Arts from the Emmanuel College, University of Cambridge, UK and a Masters degree in Business Administration from the Wharton School of Business, University of Pennsylvania, USA. Mr. Sawhney has worked in India and overseas in the fields of finance, consumer goods, engineering products and capital markets. He worked with Flexibox Limited, Manchester, UK in 1996 as a Marketing Analyst, with Nomura International, London, UK in 1997 as a Capital Markets and Sales Analyst, with ING Barings, London, UK in 1998 as a Corporate Finance Analyst, and with Nestle USA, Los Angeles, USA in 2003 as a Marketing Associate. He has been associated with the company since October 1, 1999.

Education

M Business Administration, Wharton School of Business at the University of Pennsylvania

M Art, Emmanuel College

B Art, Emmanuel College

MR. R. C. SHARMA - INDEPENDENT NON-EXECUTIVE DIRECTOR

Mr. R. C. Sharma is Independent Non-Executive Director of subject. He holds a degree in Masters of Arts from Delhi University. Mr. Sharma has worked with Ceat Tyres India Limited for close to 22 years and retired as a senior executive. He has experience in marketing and sales. He also serves on the board of SHR Properties (Private) Limited.

Education

MA , University of Delhi

PRESS RELEASES

INDIA'S TRIVENI TURBINE MAKES POST-DEMERGER DEBUT ON BOURSES

MUMBAI, October 31Asia Pulse - Trading in shares of heavy electrical equipment maker Triveni Turbine (BSE:533655) on Friday began in the Indian stock market after the company got listed on the bourses as a separate entity pursuant to its demerger from Triveni Engineering and Industries (BSE:532356).

The stock opened at its intra-day peak of Rs.45(US$0.90) Friday at the BSE, but could not sustain the momentum and closed at Rs.37.70 a piece. In the intra-day trade, it touched a low of Rs.30.

Similar movement was witnessed on the National Stock Exchange, where it ended the trade at Rs.38 a piece. At the NSE, the stock began trading at Rs.43.50, also its intra-day high, and touched a low of Rs.30.

Triveni Turbine was demerged from Triveni Engineering and industries with effect from April 21, 2011.

Under the scheme of demerger, shareholders of Triveni Engineering and Industries got one share of Triveni Turbine for every one equity share held by the parent company.

At the end of on Friday's trade, Triveni Turbine's market value stood at Rs.12430.000 millions, while that of Triveni Engineering and Industries was Rs.5930.000 millions.

Shares of Triveni Engineering on Friday rose by 2.22 per cent to Rs.23.

During the July-September quarter of the current fiscal year year, Triveni Turbine clocked a net sales of Rs.1820.000 millions and a net profit of Rs.243.000 millions.

The company, a market leader in steam turbines up to 30 MW, has an order book of 4690.000 millions. Triveni Turbine's manufacturing facility is located in Bangalore with capacity to produce 80-100 steam turbines a year.

PUBLISH AUDITED RESULTS

India, October 28 -- Triveni Engineering and Industries Limited has informed the Exchange that the Company will publish audited financial results for the financial year 2010-11 ended on September 30, 2011 within sixty days of the end of financial year. The Company will therefore, not be publishing unaudited financial results for the last quarter of the said financial year.

9M FY 11 NET SALES AT RS.13270.000 MILLIONS

EBITDA at Rs.1230.000 millions with margin of 9.3% PAT at Rs.39.000 millions

Important Business Announcements:

· Triveni signed low speed Gear Technology License Agreement with Lufkin

· Triveni partners with CII in setting up CII-Triveni Water Institute

Business Performance in 9M FY 11:

· Sugar Business turnover flat year on year

· Sugar realisation remained volatile during the quarter - showing upward movement in July 2011

· Gears business turnover and profitability growth of 19% and 24% with high PBIT margins at 36%

· Modest turnover growth in Water business. Expect substantial scaling up in the Q4.

· Gears and Water order book - increase of 82% to Rs.5870.000 millions year on year

Noida, August 1, 2011: Triveni Engineering and Industries Limited (‘Triveni’), one of India’s leading companies engaged in the manufacture of sugar together with value addition of its by-products through co-generation of power and production of Ethanol and ENA and engineered-to-order mechanical equipments, such as high speed gears and water and wastewater treatment equipment, today announced its performance for the quarter /nine-months ended 30th June 2011 (Q3 / 9M FY 11).

PERFORMANCE OVERVIEW: Q3FY 11 V/S Q3FY 10

(Q3 FY 11 – April - June 2011); (Q3 FY 10 – April - June 2010)

(Quarterly results are not comparable as the current quarter does not include the financials of Steam Turbine business, which stands demerged from 01.10.2010 to TTL).

· Net Sales at Rs.4150.000 millions

· EBITDA of Rs.215.000 millions

· Profit after tax (PAT) at Rs.(212.000) millions

· The sugar businesses incurred losses due to lower sugar prices and more than proportionate sale of levy sugar and minimal operations of Co-generation and Distillery

· Engineering businesses (Gears and Water) shown a growth of 25% in turnover while the PBIT growth has been 30%. Gears business continues to maintain high PBIT margins at 31%, an increase of 5% quarter over quarter.

PERFORMANCE OVERVIEW: 9MFY 11 V/S 9MFY 10

(9M FY 2011 – October– June 2011); (9M FY 10 – October – June 2010)

(Nine month results are not comparable as the current period does not include the financials of Steam Turbine business, which stands demerged from 01.10.2010 to TTL).

· Net Sales at Rs.13270.000 millions

· EBITDA at Rs.1230.000 millions

· Profit before Interest and Tax (PBIT) at Rs.619.000 millions

· Profit after tax (PAT) at Rs.39.000 millions

· Turnover and PBIT growth of 16% and 18% for the Engineering Businesses to further improve in Q4.

· Profitability of Sugar business impacted due to mismatch between realization prices and the costs. Sugar prices, started moving upwards since July’ 2011.

Commenting on the Company’s financial performance, Mr. Dhruv M. Sawhney, Chairman and Managing Director, Triveni Engineering and Industries Limited, said:

“The Company achieved a significant break-through in our gears business. The signing of the Technology License Agreement with Lufkin for entering into niche engineered- to- order high technology low speed gear applications will enable our gears business to further expand its product portfolio as Lufkin is one of the foremost players in this business world- wide. This association will help us launch products in many of the fastest growing segments of Indian Industry expeditiously.

Another recent key event is Triveni partnering with CII for setting up of CII-Triveni Water institute. This is first of its kind, and is conceived to be a Centre of Excellence for the Water Sector with the active participation of all stakeholders. Triveni felt the need for supporting the mission of water management and conservation, better technology introduction and training and development of requisite technical manpower for all stakeholders of the water economy, so as to meet the growing concerns of water and waste water management.

The performance of the business during the quarter and the nine month period has been below our expectations, owing to the sugar losses. Sugar prices had been lower than anyone's forecast despite the fundamentals being strong and international prices being much higher, for the first time in the past few decades. However, we are pleased that sugar prices have improved subsequent to the quarter ending and cane planting has been much higher than last year, which augers well for the viability of this sector in the coming year. The engineering businesses during the quarter showed better performance both in terms of turnover and profitability and are expected to also show improved results in Q4.

For the information of our shareholders who have been allotted shares in Triveni Turbine Limited (TTL) pursuant to the Scheme of arrangements, TTL has received in-principle approval from BSE and NSE and is awaiting permission of SEBI for the listing of the equity shares of TTL.

ANNUAL GENERAL MEETING

India, January 27 -- Triveni Engineering and Industries Limited has submitted to the Exchange a copy of notice of Annual General Meeting of the members of the company to be held on Febuary 18, 2011

TRIVENI ENGINEERING ENTERS INTO NEW LICENCE PACT WITH LUFKIN INDUSTRIES

India, January 17 -- Triveni Engineering and Industries has entered into a new license agreement with US-based oilfield services firm -- Lufkin Industries -- for its gear business. The new license agreement, which will cover manufacturing of extended range of gear boxes for turbines and mechanical drives, is valid for 12 years. Triveni Engineering is engaged in the business of manufacturing sugar, steam turbines and projects and engineering activities. The company posted a net profit of Rs.172.500 millions for the quarter ended September 30, 2010 against Rs.682.200 millions for the quarter ended September 30, 2009, plunging by 74.71%. Its net sales for the reporting quarter has increased by 6.12% to Rs.5873.600 millions from Rs.5534.900 millions for the same quarter of the previous fiscal.

CMT REPORT (Corruption, Money Laundering & Terrorism]

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

1] INFORMATION ON DESIGNATED PARTY

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

2] Court Declaration :

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

3] Asset Declaration :

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

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

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

Charges or investigation registered against subject: None

7] Criminal Records

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

8] Affiliation with Government :

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

9] Compensation Package :

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

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

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

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

CONTRAVENTION

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

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.50.27
UK Pound	1	Rs.80.07
Euro	1	Rs.68.45

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	8
PAID-UP CAPITAL	1~10	7
OPERATING SCALE	1~10	7
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	7
--PROFITABILIRY	1~10	6
--LIQUIDITY	1~10	7
--LEVERAGE	1~10	7
--RESERVES	1~10	7
--CREDIT LINES	1~10	7
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	YES
--LISTED	YES/NO	YES
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		63

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

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