2003-2004 - Cgglobal.com

Crompton Greaves Ltd.
ANNUAL REPORT
2003-04
Corporate Information
Board of Directors
K.K. Nohria Chairman
G. Thapar Vice-Chairman
S.M. Trehan Managing Director
S. Bisht
O. Goswami
S. Labroo
K. Thapar
Chief Financial Officer
B.R. Jaju
Company Secretary
W. Henriques
Registered Office
6th Floor, CG House
Dr. Annie Besant Road, Worli, Mumbai-400030
Auditors
Sharp & Tannan
Solicitors
Crawford Bayley & Co.
Bankers
ABN-Amro Bank N.V.
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
ICICI Bank Ltd.
Corporation Bank
Oriental Bank of Commerce
Standard Chartered Bank Ltd.
State Bank of India
Syndicate Bank
UCO Bank
Union Bank of India
Vijaya Bank
2

Crompton Greaves Limited (CG), a BM THAPAR Group Company, is one
of India's largest private sector enterprises engaged in the manufacture
and marketing of electrical engineering products.
Products
CG comprises four principal businesses: Power
Systems, Industrial Systems, Consumer Products
and Digital. Nearly two-third of its turnover
accrues from product lines in which it enjoys a
leadership position. CG is a single-point source
for a variety of electric equipment and
products. It addresses all the segments of the
power industry from complex industrial
solutions to basic household requirements. Its
product lines include:
Power Systems
Transformers, Switchgear and Engineering
Projects.
Industrial Systems
Motors, Alternators and Rail Transportation.
Consumer Products
Fans, Luminaires, Light Sources and Pumps.
Digital
Telecom Equipments.
Ownership
CG is a part of the BM Thapar Group.
Incorporated in 1937, CG is headquartered in a
self-owned landmark building at Worli,
Mumbai. As of 31st March, 2004, 52.44 per
cent of CG’s shareholding was owned by the
promoters (the BM Thapar Group holds 38.69
per cent shareholding; 13.75 per cent is held by
the foreign promoter). The balance
shareholding is broadly distributed between
mutual funds, institutional investors, bodies
corporate and general public.
Plants
CG’s manufacturing infrastructure covers 20
facilities across five states viz: Goa, Gujarat,
Karnataka, Maharashtra and Madhya Pradesh.
Presence
CG is the Indian market leader across a number
of product groups in the electrical engineering
sector. It enjoys an export presence across more
than 60 countries, which includes the emerging
South-East Asian and Latin American markets.
3

Milestones 2003-04
1
An 8 per cent increase in the
turnover from Rs. 1726.39
crores in 2002-03 to
Rs. 1861.05 crores in 2003-
04. After discounting the
de-growth in the Digital
segment and the revenues
from the Industrial
Electronics, Capacitor and
Informatics Divisions, whose
operations were suspended
last year, the effective growth
is 13 per cent.
3 5 7
A 151 per cent increase in the
profit after tax from
Rs. 28.17 crores in 2002-03 to
Rs. 70.83 crores in 2003-04.
A reduction in borrowings by
27 per cent, from Rs. 459
crores in 2002-03 to Rs. 334
crores in 2003-04.
Long term debt rating of
A+(Ind), assigned by FITCH
Ratings India; indicating
adequate credit quality and
timely repayment capacity.
A 170 per cent increase in A significant reduction in the
Profit before Exceptional interest liability by 40 per
Items and Tax from Rs. 31 cent, from Rs. 64.43 crores in
crores in 2002-03 to Rs. 83.69 2002-03 to Rs. 38.48 crores in
crores in 2003-04.
2003-04.
2 4
Upgradation of CG’s credit
rating from F1 to F1+ by
FITCH Ratings India, in respect
of its commercial paper/short
term debt programme. This
rating is the highest credit
rating that can be assigned to
this category of instrument.
6
An increase in the EBIDTA
return on capital employed:
from 22.7 per cent in 2002-03
to 27 per cent in 2003-04.
8
4

9
Earnings per share improved
from Rs. 5.38 per share to
Rs.13.52 per share.
11 13
The market capitalisation as An increase in the
on 31st March, 2004 was
Rs. 807 crores, an increase of
200 per cent over the previous
year.
Unexecuted Order Book from
Rs. 691 crores at the close of
2002-03 to Rs. 842 crores at
the close of 2003-04.
15
Profit before Interest and Tax
of the Industrial Systems
Group and Consumer
Products Group increased by
75 per cent to Rs. 40.80 crores
and by 25 per cent Rs. 53.62
crores respectively in
2003-04.
17
The Fans and Lighting
business acquired Superbrand
status, a Unique Recognition
amongst the country’s 134
selected brands by
Superbrands, UK.
CG declared a dividend of
Rs. 7/- per share in 2003-04
Increase in share price from
Rs. 51.40 as on 31st March,
(comprising an interim 2003 to Rs. 154.05 as on 31st
dividend of Rs. 3/- and a final March, 2004 on the Mumbai
dividend of Rs. 4/- per share).
Stock Exchange.
10 12
An increase in order input
from Rs. 1779 crores in 2002-
03 to Rs. 2120 crores in 2003-
04.
14
Exports of the Industrial
Systems Group increased
from Rs. 16.45 crores in 2002-
03 to Rs. 24.23 crores in
2003-04, an increase of 47
per cent.
16
CG has successfully
established manufacturing
facilities for 145 kV Gas
Insulated Switchgear in
collaboration with Hyundai,
Korea. The development and
subsequent testing of a
prototype of 145 kV, 40 kA,
2000A double bus
transmission line feeder bay is
in progress. The Industrial
Transformer Division at
Malanpur established a
unified system, incorporating
ISO 14001 and OHSAS 18001,
making it one of the few Units
in India to achieve this
distinction.
18
5

Performance
8 per cent turnover growth
13 per cent core sector growth
170 per cent increase in profit before
exceptional items and tax
151 per cent increase in the profit after tax
151 per cent improvement in earnings per share
70 per cent dividend for the year
6

Enablers
The enablers for this performance, were the
consistent initiatives taken by CG in the
following areas:
✜ Launching business-enhancing products and
services
✜ Diversifying product portfolio
✜ Sharpening technology insight to make
products reliable, value-added and low cost
✜ Investing in a quality reputation
✜ Stringent fiscal management
✜ Nurturing its human capital
✜ Improving its manufacturing facilities
✜ Deepening its distribution network
✜ Achieving market leadership in major product
segments
✜ Leveraging its Strong Brand Equity
✜ Encouraging professionalism in management
and attitude
The above drivers are elements of the long-term
strategy for growth, evolved by CG, the initial
impact of which is already reflected in the
performance of the year.
7

New revenue
streams
An ability to provide valueenhancing
products and
services is the most potent
revenue driver for a
company’s growth,
translating into enhanced
realisations and margins.
8

An increasing proportion of prospective sales of CG are likely to be brand-driven.
With this objective, CG continues its efforts at prudent de-risking through a predominant
focus on its core competence, the electrical engineering sector and
attaining a respectable international presence.
CG has shown preparedness in meeting evolving customer expectations through its
initiatives of continuous product creation, product upgradation and new markets.
CG has translated this into a number of business-strengthening actions:
❐
❐
❐
❐
❐
❐
❐
In-house R&D efforts, supplemented by technological tie-ups and consultancy
arrangements for product and process upgradation
An accelerated launch of new products representing new conveniences
Shift in client focus from electricity boards to private sector utilities and
corporates
Re-direction of efforts of the Power Systems Group towards the spares, servicing
and refurbishing business, which returned higher margins
Co-branding products with international manufacturers for exports
Endorsing processes and practices through confidence-enhancing international
certifications
Widening reach across countries and deepening reach within existing economies
In 2003-04, the Company created 44 new products and significant variants of its
existing products. This supplemented the Company’s revenues during the year and
will be an avenue for future growth.
CG achieved breakthrough performance in the exports of Switchgear in the European
and Far East markets against stiff competition from international companies. A wider
international footprint will help the Company reduce its dependence on the fortunes
of a handful of economies. It will also help the Company leverage the evolving
standards in specialised markets, towards better products and superior services.
9

Investing in a
reputation for quality
As countries and International
companies become increasingly
sensitive about product quality,
only those companies that can
demonstrate their commitment
to quality stand to attract
large and profitable contracts.
10

Aquality trustmark has emerged as CG’s biggest brand ambassador. This is
reflected through quality certifications for its products and services.
CG strengthened its quality commitment through the following initiatives:
✦
✦
✦
✦
✦
✦
Product approvals from KEMA (Netherlands), NEMA (USA), BASEEFA (UK), CESI
(Italy), DOE (Department of Energy, USA), CPRI (India) and conformity to ANSI,
CEMEP and IEEMA standards for its export market
Integration of the Six Sigma methodology in its manufacturing processes, with
the ultimate objective of achieving "Product Quality As Perceived By Customer"
for 10 of the Company’s products which has resulted in a manifold improvement
in the Critical to Quality (CTQ) parameters, with a substantial reduction in
defects. This methodology will be extended to other products of the Company in
the ensuing year
ISO 9001:2000 certification for 22 out of the Company’s 26 divisions/regions
ISO 14001 certification for Environment Management Systems for five divisions
The Industrial Transformer Division at Malanpur is amongst the few units in India
to have achieved both ISO 14001 and OHSAS 18001 (Certification for
Occupational Health and Safety Management System)
The Company’s Lighting Division is one of the few business units in India’s
lighting industry to achieve dual certifications of ISO 9001:2000 and ISO 14001
11

Stringent fiscal
management
In a continuously dynamic
business environment, the
more efficient companies
progressively limit offtake of
borrowed funds and there is a
shift in emphasis from funds
mobilisation to holistic fund
management.
12

Prudent fiscal management is central to CG’s strategic intent. This direction has been
achieved by a progressive reduction of the capital required to sustain the business and
an ongoing liquidation and substitution of high cost funds with low cost alternatives and
judicious funds management.
FISCAL MANAGEMENT ACHIEVEMENTS, 2003-04
✜ Upgradation to the highest credit rating of F1+ from F1, awarded by FITCH
Ratings India, in respect of its commercial paper/short term debt instruments
programme, for a higher quantum of Rs. 40 crores, as compared with Rs. 30
crores last year
✜
Long-term debt rating of A+(Ind), assigned by FITCH Ratings India; indicating
adequate credit quality and timely repayment capacity
✜ Borrowings declined by 27 per cent from Rs. 459 crores in 2002-03 to Rs. 334
crores in 2003-04
✜
Interest outflow significantly reduced by 40 per cent from Rs. 64.43 crores to Rs.
38.48 crores
✜ Debt-equity ratio strengthened from 1.6 to 1.0
✜
✜
✜
Gain on forex transactions of Rs. 6 crores, through an intelligent management of
forex exposure through various instruments
An improvement in the ROCE from 13.5 per cent in 2002-03 to 18.7 per cent in
2003-04
An improvement in the turnover: capital employed ratio from 2.11 in 2002-03 to
2.50 in 2003-04
13

Businessstrengthening
R&D
R&D forms the foundation
of product innovation and
is the essential requirement
for a modernised and
diversified product
portfolio.
14

Aconsistent research-directed growth has been an ongoing feature of CG’s business over
the last number of years, resulting in the absorption of world-class technologies
leading to advanced product development. A management structure that provides for
technology development at the corporate and divisional levels and progressive investment
in R&D have strengthened CG’s research initiative.
A collaborative working of divisional technologists and corporate analysts translated into
the development of several new products. For instance, in 2003-04, CG developed 15 new
products in the Power Systems segment, 12 in the Industrial Systems segment, 15 in the
Consumer Products segment and two in the Digital segment.
PIONEERING PRODUCTS COMMERCIALISED DURING 2003-04
✦ The only Indian Company to introduce the Polymer concrete product line in the areas
of Outdoor and Indoor Polycrete Encapsulated Vacuum Interrupters and various ratings
of Outdoor Vacuum Circuit Breakers with Polycrete Vacuum Interrupter poles
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Hermetically sealed distribution transformers with corrugated tank construction
NEMA range of Motors for North American markets
Flameproof Gas Group IIC Motors
Trailable version of Electric Point Machine for traction application
In addition to the above, a 420 kV Composite Insulator housed Current Transformer
and Capacitor Voltage Transformer, the first of its kind in India, is undergoing various
tests for future commercialisation
15

Economic
Value Added (EVA)
Crompton Greaves Limited reported a positive EVA of Rs. 19.86 crores for 2003-04,
an upward move with 67.88 per cent growth over 2002-03. This amply demonstrates
that the Company enhanced value for its shareholders.
The EVA is an internationally accepted value measurement tool. EVA measures the
profitability of a company after taking into account the cost of capital. It represents
the value added to shareholders by generation of operating profits (total pool of
profits) in excess of the cost of capital employed in the business.
25
20
15
11.83
12
19.86
10.18%
10
10
8
Rs. Crores
5
0
-5
3.70%
6
4
Percentage
-10
-15
(14.51)
2
-20
0.50%
0
2002
2003
2004
EVA (Rs. Crores)
PAT as %age to Average capital employed
16

Economic Value Added Analysis
Year Ended March 31 Unit 2004 2003 2002
1 Average capital employed (Rs. in cr) 695.58 761.93 831.11
2 Average debt (Rs. in cr) 396.44 514.97 599.02
3 Avg. debt/ Avg. capital employed 56.99% 67.59% 72.07%
4 Beta variant Number 1.9580 0.9618 1.7142
5 Risk free debt cost 6.00% 6.00% 7.30%
6 Market premium 7.00% 8.00% 8.00%
7 Cost of equity 19.71% 13.69% 21.01%
8 Cost of debt (post tax) 6.22% 7.91% 7.99%
9 Weighted average cost of capital 12.02% 9.79% 11.62%
10 PAT as a percentage to Average capital 10.18% 3.70% 0.50%
employed
11 Economic Value Added (EVA)
Operating profit before tax (Rs. in cr) 122.17 95.43 84.85
Less: Tax (Current and deferred tax) (Rs. in cr) (18.69) (9.03) (2.75)
Less: Cost of capital (Rs. in cr) (83.62) (74.57) (96.61)
Economic Value Added (Rs. in cr) 19.86 11.83 (14.51)
12Enterprise value
Market value of equity (Rs. in cr) 806.84 269.21 240.93
Less: Cash and cash equivalents (Rs. in cr) (76.15) (54.74) (61.20)
Add: Closing debt (Rs. in cr) 333.65 459.22 570.71
Enterprise value (Rs. in cr) 1,064.34 673.69 750.44
13Ratios
EVA as a percentage of Average capital employed 2.85% 1.55% -1.75%
Enterprise value/ Average capital employed Number 1.53 0.88 0.90
® EVA is a registered trademark of Sten Stewart & Co.
The figures above are based on Indian GAAP financial statements.
17

Directors’ Report
To
The Members,
The Directors present their Sixty-seventh Report with the audited accounts for the
year ended 31st March, 2004.
Operations
Your Company has maintained a steady pace of growth, in its business areas,
validating the effectiveness of its business strategies. The Company recorded a
turnover growth of 8 per cent this year. The profit after tax has increased
significantly by 151 per cent as compared with last year.
Financial Highlights
Particulars 31.03.04 31.03.03 Growth
Rs.crores Rs.crores %
(a) Gross Sales 1861.05 1726.39 8
(b) Less: Excise Duty 149.73 139.37
1711.32 1587.02
(c) Less: Operating Expenses 1553.75 1430.21
(d) Operating Profit 157.57 156.81
(e) Add: Dividend and Other Income 27.02 13.46
(f) Profit before Interest, Depreciation, Amortisation, 184.59 170.27
Exceptional Items and Taxes
(g) Less: Interest 38.48 64.43
(h) Profit before Depreciation, Amortisation, 146.11 105.84
Exceptional Items and Taxes
(i) Less: Depreciation 44.22 45.25
(j) Less: Miscellaneous Expenditure Amortised/ Charged 18.20 29.59
(k) Profit before Exceptional Items and Taxes 83.69 31.00 170
(l) Add: Exceptional Items (Net) 5.83 6.20
(m) Profit Before Tax 89.52 37.20 141
(n) Less: Provision for Current Year Tax 6.76 0.25
(o) Less: Provision for Deferred Tax 11.93 8.78
(p) Profit After Tax
carried to Profit & Loss Account 70.83 28.17 151
(q) Transfer to/from General Reserve -12.17 -2.76
(r) Interim Dividend -15.71 0.00
(s) Final Dividend -20.95 0.00
(t) Corporate Tax on Dividend -4.69 0.00
(u) Balance brought forward from previous year -13.49 -38.90
Balance Carried To Balance Sheet 3.82 -13.49
18

The Profit before Interest and Tax of the respective Business Groups, compared with
last year is given below:
(Rs. Crores)
SBU 2003-04 2002-03
Power Systems 64.03 63.04
Industrial Systems 40.80 23.37
Consumer Products 53.62 42.95
Digital -10.36 3.65
A detailed review of the operations and performance of each Business Group is
contained in the Management Discussion & Analysis Report, which forms a part of
this Report.
Dividend
The Board of Directors at its Meeting held on 28th October, 2003, declared an
Interim Dividend of Rs. 3/- per equity share (30 per cent) aggregating to a total
Dividend payout of Rs.15.71 crores; the Record Date for this purpose was 21st
November, 2003 and the Interim Dividend was paid on 24th November, 2003.
The Board of Directors recommends a Final Dividend of Rs. 4/- per equity share (40
per cent) for the year under review.
Thus the total Dividend for the year amounts to Rs. 7/- per equity share (70 per
cent).
Reserves
During the year, the Company implemented a Scheme of Capital Reduction, pursuant
to which an amount of Rs. 1,52,05,62,049/- out of the Securities Premium Account
was utilised for adjustment of the un-amortised miscellaneous expenditure, deferred
tax asset and carried forward debit balance in the Profit & Loss Account, as on 31st
July, 2003. The Scheme was approved by the Members at the last Annual General
Meeting held on 22nd July, 2003 and by the Hon’ble High Court of Judicature at
Mumbai by its Order dated 15th September, 2003.
The Reserves at the beginning of the year were Rs. 389.65 crores. The Reserves at the
end of the year are Rs. 288.11 crores, after making a provision of Rs. 10.27 crores on
account of Deferred Tax Liability.
Directorate
The Life Insurance Corporation of India withdrew its nomination of Mr PC Gupta’s
directorship on the Company’s Board of Directors, consequent to which Mr Gupta
ceased to be a Director with effect from 27th December, 2003. The Board places on
record its appreciation for the guidance, support and valuable contributions of Mr
Gupta during his tenure as a Director of the Company.
Mr G Thapar was appointed as Vice Chairman of the Company with effect from 27th
January, 2004. Mr Thapar retires by rotation at the forthcoming Annual General
Meeting, and being eligible, offers himself for re-appointment to the Board.
19

Mr S Labroo and Dr O Goswami were appointed as Additional Directors on the
Company’s Board of Directors with effect from 28th October, 2003 and 27th January,
2004 respectively. They hold office upto the date of the forthcoming Annual General
Meeting, and considering that the Company will benefit from their continuance as
Directors, their appointments are being recommended.
In terms of Clause 49 of the Listing Agreement with Stock Exchanges, the details of
the Directors to be re-appointed and appointed are contained in the accompanying
Notice of the forthcoming Annual General Meeting.
Research and Development
Sustenance and continuous enhancement of technological competitiveness of our
products and processes forms the basis for our Research and Development (R&D)
activities. This has resulted in development of new products and technologies, many
of which have already been commercialised. During the year, the R&D activities
focused on the development of new products and processes, and, improvement of
reliability, performance and cost effectiveness of present products and processes. Our
continuous investment in R&D has increased the competitive advantage of our
products and technologies in the domestic and international markets. Detailed
information on the new products and processes developed through R&D are
chronicled in the Annexure to this Report.
Subsidiary Companies
CG-PPI Adhesive Products Ltd and CTR Manufacturing Industries Ltd are subsidiaries
of CG Capital & Investments Ltd, which is a 100 per cent subsidiary of the Company.
Hence, in terms of the provisions of the Companies Act, 1956, these companies are
also the Company’s subsidiaries.
The Company has obtained an exemption under Section 212 of the Companies Act,
1956, from annexing to this Report, the Annual Reports of the above three subsidiary
companies for the year ended 31st March, 2004. However, if any Member of the
Company or its subsidiaries so desires, the Company will make available, the annual
accounts of the subsidiaries to them, on request. The same will also be available for
inspection at the Registered Office of the Company and of its subsidiaries, during
working hours upto the date of the Annual General Meeting.
Consolidation of Accounts
As required by Accounting Standards AS-21 and AS-23 of the Institute of Chartered
Accountants of India, the financial statements of the Company reflecting the
consolidation of the Accounts of the Company, its three Subsidiaries mentioned
above, and six Associate Companies, are annexed to this Report. The Associate
Companies are Brook Crompton Greaves Ltd, CG Lucy Switchgear Ltd, CG Maersk
Information Technologies Pvt Ltd, CG Smith Software Pvt Ltd, International
Components India Ltd and Hitachi CG Motor Engineering Pvt Ltd.
For the purposes of this disclosure, all Joint Venture Companies have been treated as
Associate Companies. These consolidated financial statements conform to the
requirements of both these Accounting Standards.
Conservation of Energy, Technology Absorption and
Foreign Exchange Earnings and Outgo
As required by the Companies (Disclosure of Particulars in the Report of Board of
Directors) Rules, 1988, the relevant data pertaining to conservation of energy,
20

technology absorption and foreign exchange earnings and outgo are given in the
prescribed format as an Annexure to this Report.
Particulars of Employees
The statement of particulars required pursuant to Section 217(2A) of the Companies
Act, 1956 read with the Companies (Particulars of Employees) (Amendment) Rules,
2002, forms a part of this Report. However, as permitted by the Companies Act,
1956, the Report and Accounts are being sent to all Members and other entitled
persons excluding the above Statement. Those interested in obtaining a copy of the
said Statement may write to the Company Secretary at the Registered Office and the
same will be sent by post. The Statement is also available for inspection at the
Registered Office during working hours upto the date of the Annual General Meeting.
Auditors’ Report & Certificate
The Company's explanations to the Auditors' observations in their Report have been
detailed in Notes Nos. 1, 27 and 34(a) in the Notes on Accounts contained in
Schedule B to the Accounts, which forms part of the Annual Report. The Auditors
have also certified the Company’s compliance of the requirements of Corporate
Governance in terms of Clause 49 of the Listing Agreement and the same is enclosed
as an Annexure to the Report on Corporate Governance.
Directors’ Responsibility Statement
The Directors would like to assure the Members that the financial statements for the
year under review conform in their entirety to the requirements of the Companies
Act, 1956.
The Directors confirm that:
♣ the Annual Accounts have been prepared in conformity with the applicable
Accounting Standards;
♣ the Accounting Policies selected and applied on a consistent basis, give a true
and fair view of the affairs of the Company and of the profit for the financial
year;
♣ sufficient care has been taken that adequate accounting records have been
maintained for safeguarding the assets of the Company; and for prevention and
detection of fraud and other irregularities;
♣ the Annual Accounts have been prepared on a going concern basis.
Auditors
The Company's Auditors, Sharp & Tannan, hold office upto the conclusion of the
forthcoming Annual General Meeting and, being eligible, are recommended for reappointment
on terms to be negotiated by the Audit Committee of the Board of
Directors. They have furnished the requisite certificate to the effect that their reappointment,
if effected, will be in accordance with Section 224(1B) of the
Companies Act, 1956.
Fixed Deposits
Currently, the Company has discontinued acceptance of fresh deposits and also
renewal of existing deposits. 500 persons had not claimed repayment of their
matured deposits amounting to Rs. 55.70 lacs as at 31st March, 2004. At the date of
this Report, an amount of Rs. 20.77 lacs therefrom has been claimed and repaid
and/or renewed.
21

Intime Spectrum Registry Limited continue to be the Company’s Registrars for all
matters related to the Company’s Fixed Deposit Scheme. The contact details of Intime
Spectrum are mentioned in the Report on Corporate Governance annexed hereto.
Share Registrar & Transfer Agent
The Company’s share registry function is being looked after by Sharepro Services,
which is a SEBI-registered Registrar & Transfer Agent. The contact details of Sharepro
Services are mentioned in the Report on Corporate Governance annexed hereto.
Investors are requested to address their queries, if any, in this regard, to Sharepro
Services; however, in case of difficulties, they are welcome to contact the Company’s
Investor Services Department, the contact particulars of which are contained in the
accompanying Notice of the forthcoming Annual General Meeting.
Health & Safety Policy
The Company accords high priority to the health, safety and environment of its
factories and establishments and has in place a Health & Safety Policy, which
addresses the regulatory requirements and includes preventive measures in respect
thereof. The Company’s Industrial Transformer Division at Malanpur received the
OHSAS 18001 Certification for its occupational health and safety management
system; the Company is planning certification of its other Divisions as well. Safety
awareness programmes are regularly undertaken, which, together with safety audits
and continual safety training form an integral part of the systems and processes
implemented in this area.
Listing Arrangements
After obtaining the approval of the Members at the last Annual General Meeting held
on 22nd July, 2003 and in accordance with the Securities and Exchange Board of
India (Delisting of Securities) Guidelines, 2003, the Company made an application for
delisting of its shares to Calcutta, Delhi and Madras Stock Exchanges. Delisting from
the Delhi and Madras Stock Exchanges has been approved; the Company’s approval
from the Calcutta Stock Exchange is expected shortly. Hence, the Company’s shares
are effectively listed and traded on the Mumbai and National Stock Exchanges. The
Company’s GDRs are listed on the London Stock Exchange. The payment of listing
fees is up-to-date.
Acknowledgements
The Directors take this opportunity to express their sincere appreciation for the
dedicated service and contributions of the employees towards the stability and
growth of the Company.
The Directors also thank all the members, dealers, customers, suppliers, financial
institutions, bankers and other business associates for their continued support
towards the efficient operations of the Company.
On behalf of the Board of Directors
Mumbai, 26th May, 2004
KK NOHRIA
Chairman
22

Annexure to
Directors’ Report
Under Section 217(1)(e) of the Companies Act, 1956
A. Conservation of Energy
(a) Energy conservation measures taken:
The thrust on energy conservation continued with increasing usage of natural
gas for heating, smart switching for lighting, controlling of air conditioning
loads, and maintenance of power factor upto 0.99.
The typical initiatives taken in changing over to energy efficient
manufacturing processes are:
Introduction of magnetic saver flux unit for canteen and thermopacs
Installation of automatic power factor correction and thyristorised
capacitor control panels
Installation of soft starter for 75 HP compressor motor
Optimisation of hydraulic power packs for machines
(b) Additional investments and proposals, if any, being implemented for
reduction in consumption of energy:
The captive generating unit running on gas procured for Baroda Lamps Works
Division, at an investment of Rs.300 lacs, will be operational in the year
2004-05.
(c) Impact of the measures at (a) and (b) for reduction of energy
consumption and consequent impact on the cost of production:
Through better energy efficient manufacturing process and better power
quality management, considerable cost savings have been achieved. This
saving, however, has no appreciable impact on the cost of goods as the
production processes are not energy intensive.
B. Technology Absorption
Research and Development (R&D)
1. Specific areas of significance in which R&D is carried out by the Company
During the year under review, R&D activities were focused on design analysis
and automation, development of new products and processes, and enhancing
reliability and performance of existing products.
2. Benefits derived as a result of the above R&D
New products developed
Power Systems
✜ Advanced static VAR compensator and active harmonic filter (STATCOM)
✜ Upgradation of Cast Resin dry type transformers upto 1600 kVA
✜ 420 kV current transformer and capacitor voltage transformer housed in
composite insulator – first time in India
23

✜
✜
✜
✜
✜
✜
✜
✜
✜
✜
✜
✜
❐
❐
❐
❐
❐
❐
❐
❐
❐
❐
❐
❐
72kV, 145kV and 170kV bushing, type tested at KEMA, Netherlands
230kV inductive voltage transformers and 230kV current transformers
conforming to ANSI standards
Standard voltage transformer for 50 Hz and 60 Hz, type tested at KEMA
Magnetic actuator mechanism for 25kV, single pole, SF6 circuit breaker
Upgradation of spring/spring SF6 gas circuit breaker upto 245 kV, 40 kA,
type tested at CESI-Italy
72.05 kV, 31.5/40 kA, spring/spring SF6 gas circuit breaker, type tested at
KEMA for IEC 62271-100
36 kV outdoor, 12kV and 36 kV indoor, polycrete encapsulated vacuum
interrupter, first time in India
12 kV, 20 kA, 1250 A and 36 kV, 26.3 kA, 2000 A, outdoor vacuum circuit
breakers with polycrete vacuum interrupter poles, type tested for short
circuit tests at CPRI- Bhopal
Range extensions: 12 kV polycrete current transformers – 5 frames, 36 kV
polycrete current transformers – 3 frames
12, 24 and 36 kV polycrete potential transformer
12 kV, indoor and outdoor vacuum contactor
12 kV damping reactor, a power quality product
Industrial Systems
Trailable version of electric point machine for traction application
875 kW, 4 pole, 6.6 kV safety motor with pre-start purging
3400kW, 4 pole, 6.6 kV slip ring motor
Extension of global series energy efficient motors – new frame GD450
Upto 1800 HP, 8 pole, 6.6 kV motors in frame KMR 560 for re-rolling mill
applications
Drip-proof range of low voltage internal slip-ring motors
Special 30 kW DC motor for dynamic breaking resistor application used in
Railways
0.8 PF 3/4 HP single-phase improved efficiency motors for petrol pumps
Improved version of motors for front-loading type washing machines
Pole stampings for windmill generator, segmental and pole stampings for
hydraulic and thermal generators, maximum width of 900 mm
Lightweight and compact 125 to 160 kVA brushless alternators, with
aluminium body construction
Six new signalling relays of different specifications for application in
Railways
24

✦
Consumer Products
Harmonic-free remote control regulator for fan
✦ Ceiling fans - improved version 24" Whirlwind, 48" HS Decora, 48"/56"
Whirlwind Decora, 48" Olga, 48"/56" Cool Breeze
✦ High-speed ceiling fans with metallic shade/lacquer coat, with and
without light – Neptune and Venus
✦ Plastic pedestal/wall fans – 16" Hi-Flo
✦ Decorative, aesthetic and cost effective luminaires for fluorescent lamps
(Mini Lite and Impression)
✦ Street Lights – Die-cast aluminium with better optical control (Citivision)
and staircase optics with better ingress protection (Acceleration)
✦ Landscape Lighting – for junction and garden lighting (Lotus) and post top
lantern with rotational moulded bowl (Orchid)
✦ Flood Lights – compact (Floodlux), economical (Twinlux), hoardings and
area lighting (Profile 1 and Profile 2)
✦ Energy Efficient Luminaires – low voltage 100V (Cromstart Plus), retrofit
gear to switch energy consumption based on need from 250W to 150W
between peak to off-peak hours (Street Smart), long-life energy efficient
VPIT open type fluorescent ballast (Ultra Low Loss)
✦ Reduced glare (Decor) and ultra-slim mirrorlite luminaires (Ecor)
✦ Emergency power packs for fluorescent tubelights
✦ Pumps – MBDL12 (1 HP) 1phase centrifugal moonset with riveted
impellers, CSA approved Mini II; Mini II R - 0.5 HP, cost effective 100 mm
and 78 mm borewell pumps, 150 mm Eco series submersible pumps
✦ 12.5 HP to 30.0 HP submersible moonset pumps for use in open wells
✦ De-watering pumps for solid handling and for effluent treatment plants
✦ 1.5 HP petrol-start-kerosene-run engine pumpset
Digital
• New version 2/34 Mbps Optimux system
• 2 Mbps optical modem that supports single mode and multi-mode optical
fibre with G.703, V.35, V.11 user interfaces for low capacity datacom
networks
New processes implemented
✦
✦
✦
✦
Improved impregnation process cycle for higher productivity of HT motors
Progression tooling for stamping laminations of medium frame motors
Modified heat treatment cycle for steel with high percentage of
phosphorus and silicon using CO/CO 2 environment
Modified coating process of oxide layer for insulation (blueing) of semi
processed steel by using dry steam
25

✦
Automated version of expandable mandrel for smoother boring of stator
core packs, to ensure uniform air gap and stator/rotor concentricity
Technology competence achieved
♣ A novel partial-discharge detection system for performance evaluation of
inverter fed induction motors
♣ Prediction of temperature rise of stator winding for three-phase induction
motor
♣ Design of low noise cooling fans for TEFC induction motors
♣ 3-D modeling of power transformers
♣ Analytical capability for power transformer’s electrical design for 3-D
leakage, field distribution, stray loss control, transient voltage and
circulating current distribution
♣ Analytical capability with solid-edge software to enhance 3-D design
capabilities of switchgear products
♣ Structural design of seismic withstand capability under dynamic
conditions by 3-D FEM on ‘ANSYS’ software for power transformer
♣ Design of point machines with different strokes and load parameters
♣ Design of special low RPM (250-RPM) DC motors in 500/3 frame
♣ Fastec auto-stitch tooling with auto skewing of rotor, using servo motor
and CNC controls for high speed lines
♣ Multi-part tooling for segmental and pole stampings upto width of 900
mm
Patents
During the year the Company filed one patent application. In addition to
this, five applications made in the previous years are pending registration.
3. Future plan of action
In the coming year, the Company’s focus will be on meeting increasing
customer demands for products that are eco-friendly, energy efficient and
with intelligent monitoring and control systems. Development of materials
and processes is another major area of activity to improve product
performance and to enhance productivity. Focus will also be on development
of packages and tools for design and performance prediction to enable faster
response to market requirements.
4. Expenditure on R&D
(Rs. Crores)
31st March, 2004
(a) Capital 2.86
(b) Revenue 13.25
(c) Total (a + b) 16.11
(d) Total R&D expenditure:
• as a percentage of total turnover 0.86 %
• as a percentage of profit before tax 18.00 %
26

Technology absorption, adaptation and innovation
1. Efforts and Benefits
Efforts by the Company’s in-house research and development team and
networking with the various collaborators have resulted in improved design,
development and production of the Company’s indigenous products and
processes and related cost effectiveness. This has led to increased
competitiveness and acceptability in markets, both in India and abroad. New
products on the anvil are intelligent electronic devices for power apparatus,
brushless DC motors for consumer appliances and pumps, wind generators and
dry type distribution transformers.
Import substitution during the year
Indigenisation of imported raw materials viz., HID discharge tubes, fluorescent
power for light sources.
2. Imported Technology
Year of Product Imported Status of
Import from Absorption
2001-2002 Gas Insulated Hyundai Heavy Industries In progress.
Switchgear Co. Ltd., Korea.
C. Foreign Exchange Earnings and Outgo
(a) Activities relating to exports; initiatives taken to increase exports; development
of new export markets for products and services; and export plans:
The Company’s activities and initiatives relating to exports are contained in
the Management Discussion and Analysis Report that forms a part of the
Annual Report.
(b) Total foreign exchange earned and used :
Rs. Crores
Total foreign exchange earned 282.60
Total foreign exchange used 111.80
On behalf of the Board of Directors
Mumbai, 26th May, 2004
KK NOHRIA
Chairman
27

Report on
Corporate Governance
1. Company’s Philosophy on Corporate Governance
Your Company continues to manage its business affairs with integrity,
openness and accountability to the best possible advantage of its shareholders,
whilst simultaneously balancing the interests of its other stakeholders.
As a reinforcement of this commitment, and as a formal expression thereof,
the Company:
♣
♣
has already codified a ‘Rules of Procedure for Management’, which
documents the decision-making levels with respect to areas of importance
in the Company’s day-to-day operations.
is in an advanced stage of finalising a ‘CG Values’ document, which
enshrines the five CG Values of Performance Excellence, Leading Edge
Knowledge, Nurturance, Customer Orientation and Intellectual Honesty.
Every CG employee is expected to practice with sincerity and consistency, the
principles contained in these two documents, as his/her contribution towards
the Company’s journey of good governance.
The Company’s systems are constantly reviewed and enhanced for greater
control, reliability and integration, better product and service quality, cost
efficiencies and information transparency. These endeavours are expected to
lead to higher operational efficiencies and optimise shareholder value in the
long term.
2. Board of Directors
As on 31st March, 2004, the Board of Directors comprised the Managing
Director and six Non-Executive Directors.
During the year, five Board Meetings were held, on 22nd April, 2003; 22nd
May, 2003; 22nd July, 2003; 28th October, 2003 and 27th January, 2004. The
Company’s last Annual General Meeting was held on 22nd July, 2003.
The particulars of Directors, their attendance during the financial year 2003-04
and also other Directorships (including Private Limited Companies, but excluding
28

Alternate Directorships) and Board Committee Representations of Public Limited
Companies are as under:
Name of the Particulars Attendance Other Board
Director Board Last Representations
Meetings AGM Directorships Committees
Mr KK Nohria Non-Executive; 5 ✓ 18 3
Chairman
Independent
Mr G Thapar Indian Promoter Nominee; 5 ✓ 10 6
Vice Chairman
Non-Executive
Mr SM Trehan Executive 5 ✓ 6 1
Managing Director
Mr S Bisht Institutional Nominee; 5 ✕ 2 3
Non-Executive; Independent
Dr O Goswami Non-Executive; 1 NA 4 5
(From 27.01.2004) Independent
Mr P C Gupta Institutional Nominee; 4 ✓ NA NA
(Upto 27.12.2003) Non-Executive; Independent
Mr S Labroo Non-Executive; 1 NA 13 1
(From 28.10.2003) Independent
Mr J Shaw Foreign Promoter Nominee; - NA NA NA
(Upto 22.05.2003) Non-Executive
Mr K Thapar Indian Promoter Nominee; 5 ✓ 11 5
Non-Executive
3. Audit Committee
The Audit Committee comprises four Independent Non-Executive Directors. After
withdrawal of Mr PC Gupta’s nomination by the Life Insurance Corporation of
India with effect from 27th December, 2003, Mr S Labroo and Dr O Goswami
were appointed as Members of the Audit Committee at the Board Meeting held
on 27th January, 2004. Presently, the Committee comprises Mr KK Nohria
(Chairman), Mr S Bisht, Dr O Goswami and Mr S Labroo. The Chief Financial
Officer, the Chief of Internal Audit and a representative of the Statutory Auditors
attend the meetings of the Audit Committee. The Company Secretary is Secretary
to the Committee.
During the year, besides the regular review of the financial reporting processes,
financial statements and internal control systems of the Company, the Audit
Committee focussed on the effective implementation of the rating system for the
Company’s Divisions, devised last year and issues arising therefrom. Other areas
for attention were materials consumption analysis, evaluation of the benefits
from e-sourcing, creditors analysis and review of risk exposure in various business
areas. The Committee held regular interactions with external Auditors to benefit
from their professional views on the Company’s Accounts.
During the financial year 2003-04, four Audit Committee Meetings were held on
22nd May, 2003, 22nd July, 2003, 28th October, 2003 and 27th January 2004.
29

The composition and details of attendance of the Audit Committee are as under:
Name of the Status No. of Meetings
Director
attended
Mr KK Nohria Chairman 4
Mr S Bisht Member 3
Dr O Goswami Member NA
(From 27.01.2004)
Mr PC Gupta Member 3
(Upto 27.12.2003)
Mr S Labroo Member NA
(From 27.01.2004)
4. Remuneration Committee & Directors’ Remuneration
Although not mandatory in terms of the Listing Agreement with Stock Exchanges,
the Company has a Remuneration Committee comprising three Non-Executive
Directors. After, the withdrawal of Mr PC Gupta’s nomination by the Life
Insurance Corporation of India, Mr G Thapar was appointed as member of the
Remuneration Committee at the Board Meeting held on 26th May, 2004.
Presently, the Committee comprises: Mr KK Nohria (Chairman), Mr S Bisht and Mr
G Thapar.
Although the Listing Agreement requires the Remuneration Committee to only
review the remuneration paid to Executive Directors, the Committee, as part of its
terms of reference, also reviews the remuneration of Senior Executives. During
the financial year, the Committee met on 22nd July, 2003, at which all the
members were present.
Executive Directors
The Members, at the 65th Annual General Meeting of the Company held on 28th
August, 2002, had approved a remuneration package comprising salary and a
basket of perquisites for Mr SM Trehan, Managing Director. In view of the
considerable improvement in the Company’s business operations and financial
position by virtue of Mr Trehan’s notable efforts, the Board of Directors have
proposed a revision to the remuneration package of the Managing Director as
indicated below:
(a) commencing with the year ended 31st March, 2004, the Managing Director be
entitled to earn performance incentive/commission, subject to a maximum of
six months’ salary;
(b) In addition to the above, an amount of Rs. 30 lacs be paid to the Managing
Director in recognition of his contributions as Managing Director, to the
Company’s financial and operational turnaround; such amount, be treated as
remuneration for the year ended 31st March, 2004.
The above proposals, approved by the Board of Directors, are being placed before
the Members, at the forthcoming Annual General Meeting of the Company.
Performance incentive/commission is a variable component of the remuneration
package; the Board of Directors have decided the actual amount for the year.
30

The details of remuneration paid to the Managing Director for the financial year
2003-04 is as under:
Salary Perquisites Retirement Performance Others Total
Rs. Rs. Benefits Incentive/ Rs. Rs.
Rs. Commission Rs.
Mr SM Trehan, 48,00,000 7,98,191 12,99,200 24,00,000* 30,00,000* 1,22,97,391
Managing Director
*The remuneration amounts under ‘Performance Incentive/Commission’ and
‘Others’ are subject to Members approval at the 67th Annual General Meeting.
A service contract exists with the Managing Director which contains his service
terms and conditions including remuneration, notice period, severance fees etc, as
approved by the Members.
Non-Executive Directors
The Members, at the 63rd Annual General Meeting of the Company held on 10th
August, 2000, approved payment of commission to Non-Executive Directors not
exceeding 1 per cent of the net profits of the Company per annum, computed in
the manner provided in Section 309(5) of the Companies Act, 1956. In terms of
this approval, the Board of Directors has decided the actual amount of
commission and its distribution amongst the Non-Executive Directors.
With effect from 27th January, 2004, as permitted by Article 113(2) of the
Company’s Articles of Association read with Notification No. GSR 580(E) dated
24th July, 2003, issued by the Department of Company Affairs, the sitting fees
paid to Non-Executive Directors were increased to Rs. 20,000/- per Board and
Committee Meeting, in the context of the increasing demands on the time of and
contributions required from Non-Executive Directors.
The details of remuneration paid to the Non-Executive Directors for the financial
year 2003-04 is as under:
Name of the Director Sitting Fees Commission Total
Rs. Rs. Rs.
Mr KK Nohria 1,00,000 2,25,000 3,25,000
Mr G Thapar 45,000 32,85,000 33,30,000
Mr S Bisht 75,000 2,25,000 3,00,000
Dr O Goswami 20,000 50,000 70,000
(From 27.01.2004)
Mr PC Gupta 40,000 1,80,000 2,20,000
(Upto 27.12.2003)
Mr S Labroo 5,000 50,000 55,000
(From 28.10.2003)
Mr K Thapar 45,000 32,85,000 33,30,000
The apportionment of commission to Mr G Thapar and Mr K Thapar is higher, in
view of their significant additional involvement in Company matters, as compared
to other Non-Executive Directors, in their role as members of the Management
Committee.
The Company presently does not have any Stock Option Plans or Schemes thereunder.
31

5. Shareholders/Investors Grievance Committee
The Committee comprises Mr KK Nohria (Chairman) and Mr SM Trehan, Managing
Director. Mr W Henriques, Company Secretary, has been designated by the Board
as the Compliance Officer. The Committee reviews the redressal of shareholders’
and investors’ complaints related to transfers and transmission of shares, nonreceipt
of annual reports, dividends and other share related matters, the
periodicity and effectiveness of the share transfer process, statutory certifications,
depository related issues and activities of the Registrar and Transfer Agent. In
addition to review by this Committee, the Company continues its existing practice
of reporting to the Directors at each Board Meeting, the number and category of
shareholder complaints received and the status of their resolution.
The Company has received six shareholders’ complaints during the financial year,
which were satisfactorily resolved; there are no outstanding complaints or shares
pending transfer as on 31st March, 2004.
6. General Body Meetings
The details of the last three Annual General Meetings are as under:
Financial Year Location Date Time
2000-2001 Patkar Hall, Mumbai 400 020 24th July, 2001 4.00 p.m.
2001-2002 Patkar Hall, Mumbai 400 020 28th August, 2002 3.30 p.m.
2002-2003 Patkar Hall, Mumbai 400 020 22nd July, 2003 3.30 p.m.
Special Resolutions transacted at the last three Annual General Meetings held on:
24th July, 2001
Location of the Register and Index of Members and Debenture Holders and
the other documents mentioned in Section 163 of the Companies Act, 1956,
being shifted from the Company’s Registered Office to any office of a Share
Transfer Agent registered with Securities and Exchange Board of India, within
Mumbai, if appointed.
28th August, 2002
• Re-appointment of Mr SM Trehan as Managing Director for a period of
three years from 3rd May, 2002 to 2nd May, 2005, as per terms and
conditions set out in the Explanatory Statement annexed to the
Resolution.
• Location of the Register and Index of Members and Debenture Holders and
other documents mentioned in Section 163 of the Companies Act, 1956,
at the Company’s Administrative Office situated at Kanjur Marg (East),
Mumbai 400 042, instead of at its Registered Office.
22nd July, 2003
• Amendment of the Company’s Articles of Association to permit utilisation
of Securities Premium Account for any application as permitted by Law
and approval to the Company for implementation of a Scheme of Capital
Reduction by utilising the Securities Premium Account for adjustment of
Miscellaneous Expenditure to the extent not written off or adjusted,
Deferred Tax Asset, and Debit balance in the Profit & Loss Account as at
32

31st March, 2003 and variations thereto upto 31st July, 2003.
• Voluntary delisting of the Company’s shares from the Calcutta Stock
Exchange Association Limited, Delhi Stock Exchange Association Limited
and Madras Stock Exchange Limited.
No Special Resolutions were implemented through postal ballot during the year
under review, nor are any Resolutions presently proposed.
7. Disclosures
✦
✦
Considering the size and nature of operations, there were no related party
transactions of a materially significant nature in terms of the Listing
Agreement with Stock Exchanges, that may have a potential conflict with the
interests of the Company at large.
The Company has complied with all requirements of the Listing Agreement
with Stock Exchanges as well as the Regulations and Guidelines prescribed by
SEBI. There were no penalties or strictures imposed on the Company by any
statutory authorities for non-compliance on any matter related to capital
markets, during the last three years.
8. Means of Communication
The Company’s quarterly results in the format prescribed by the Stock Exchanges
are approved and taken on record by the Board within the prescribed time frame,
and sent immediately to all Stock Exchanges on which the Company’s shares are
listed. These results are published in leading newspapers – The Economic Times,
Financial Express and Business Standard in English and the Maharashtra Times in
vernacular, and are also uploaded on the Electronic Data Information Filing And
Retrieval System, as required by the Listing Agreement with Stock Exchanges.
Information about the Company in general, its financial results, and other
information including official press releases can be accessed at the Company’s
website www.cglonline.com.
Meetings are held with institutional investors and research analysts, as necessary.
The Management Discussion and Analysis Report forms an integral part of the
Annual Report.
9. General Shareholder Information
✜ Annual General Meeting Thursday, 22nd July, 2004 at 3.30 p.m.
Date, time and venue Patkar Hall, Nathibai Thackersey Road, New Marine Lines, Mumbai 400 020
✜ Financial Calendar
First Quarter Results end July
Second Quarter Results end October
Third Quarter Results end January
Last Quarter Results and
Annual Audited Results May
✜ Dates of Book Closure 10th July, 2004 to 22nd July, 2004
✜ Dividend Payment Date In respect of both physical as well as shares in demat form, the final
dividend, if declared, will be paid before Friday, 30th July, 2004, to those
Members whose names appear in the Company records at the close of
the business hours on Friday, 9th July, 2004.
33

✜ Listing Details
After obtaining the approval from Members at the last Annual General Meeting
held on 22nd July, 2003, the Company made an application for delisting of its
shares to the Calcutta Stock Exchange, Delhi Stock Exchange and Madras Stock
Exchange. Approval from the Delhi and Madras Stock Exchanges have been
received and the approval from the Calcutta Stock Exchange is expected
shortly. Hence, the Company’s shares are effectively listed and traded on the
Mumbai and National Stock Exchanges only. The Company’s GDRs are listed on
the London Stock Exchange.
The details of the Stock Exchanges on which the Company’s shares are listed are
as under:
Name Address Stock Code
The Stock Exchange, Mumbai Phiroze Jeejeebhoy Towers, 500093
Dalal Street, Mumbai 400 001
National Stock Exchange of India Ltd Exchange Plaza, Bandra-Kurla Complex, CROMPGREAV
Bandra (E), Mumbai 400 051
The Company’s payment of listing fees are up-to-date.
International Securities Identification Number (ISIN)
INE067A01011 (NSDL & CDSL)
✜ Market Price Data – The Stock Exchange, Mumbai
Month Highest (Rs.) Lowest (Rs.) Closing (Rs.)
of the Month of the Month (1st trading day
of the Month)
April 2003 64.90 51.75 54.05
May 2003 66.50 55.35 61.00
June 2003 86.80 59.55 60.55
July 2003 87.50 70.00 83.60
August 2003 110.50 74.00 75.05
September 2003 117.00 88.00 105.55
October 2003 115.70 93.00 101.10
November 2003 142.60 108.00 109.60
December 2003 183.00 135.00 138.95
January 2004 176.90 136.20 168.50
February 2004 144.00 128.30 131.15
March 2004 165.75 131.25 157.25
✜ Share Performance Vs BSE Sensex
Crompton
Sensex
175
6000
Closing Share Prices in (Rs.)
125
75
5000
4000
3000
Sensex
25
1/4/03
2/5/03
2/6/03
1/7/03
1/8/03
1/9/03
1/10/03
3/11/03
1/12/03
1/1/04
3/2/04
1/3/04
31/3/04
2000
34

✜
Registrar and Agents
For Shares
The entire share registry activities of the Company are handled by a SEBI
registered Registrar & Transfer Agent - Sharepro Services. The contact details
of Sharepro Services are as under:
Sharepro Services
Unit: Crompton Greaves Ltd
912, Raheja Centre
Free Press Journal Road
Nariman Point, Mumbai 400 021
Tel: 22881568/69,22825163
Fax: 22825484
Email: sharepro_services@roltanet.com
For Fixed Deposits
The Registrar details are as under:
Sharepro Services
Unit: Crompton Greaves Ltd
Satam Estate, 3rd Floor,
Above Bank of Baroda,
Chakala, Andheri (E), Mumbai 400 099
Tel: 28215168/28215169
Fax: 28375646
Email: sharepro@vsnl.com
Intime Spectrum Registry Limited
C-13 Pannalal Silk Mills Compound, LBS Marg, Bhandup (West),
Mumbai 400 078.
Tel: 25923837
Fax: 25672693
Email: fd@intimespectrum.com
✜
Share Transfer System
The Company’s shares are compulsorily traded in dematerialised form. In the
case of transfers in physical form which are lodged at the Registrar & Transfer
Agent’s Office, these are processed within a maximum period of 30 days from
the date of receipt.
All share transfers and other share related issues are approved by a Director
authorised by the Board; approvals are on a weekly basis; during the financial
year 2003-04, 53 approvals were obtained.
The total number of shares in physical form transferred during the year under
review was 70,504.
✜ Distribution of Shareholding as on 31st March, 2004
No of shares No of shareholders % of shareholders
Up to 500 33,537 93.71
501 - 1000 1,318 3.69
1001 - 2000 501 1.40
2001 - 3000 151 0.43
3001 - 4000 58 0.16
4001 - 5000 34 0.09
5001 - 10000 76 0.21
10001 and above 110 0.31
35,785 100.00
35

✜ Categories of Shareholders on 31st March, 2004
Category No of shares of Rs.10/- each %
Promoters
* Indian (including persons acting in concert) 2,02,59,660 38.69
* Foreign 72,00,000 13.75
Indian Institutional Investors 36,38,415 6.95
Bodies Corporate 13,78,854 2.63
Foreign Institutional Investors 16,43,362 3.14
NRIs, OCBs, GDRs 10,35,724 1.98
Mutual Funds 1,10,28,179 21.07
General Public 59,29,936 11.31
Directors 2,52,526 0.48
5,23,66,656 100.00
✜
✜
✜
✜
Dematerialisation of Shares
As on 31st March, 2004, 96.31 per cent of the total shares of the Company
have been dematerialised.
Outstanding GDRs/Warrants or any Convertible Instruments
The outstanding GDRs are represented by underlying equity shares that are a
part of the existing equity capital. No convertible instruments are outstanding
as on 31st March, 2004, and therefore there will be no consequential impact
on equity.
Plant Locations
Detailed information on plant locations, products, establishments and service
centres with their contact details, is provided at the end of the Annual Report.
Address for Correspondence
Corporate Secretarial Department
The Corporate Secretarial Department is located at the Company’s Registered
Office situated at 6th Floor, CG House, Dr Annie Besant Road, Worli,
Mumbai 400 030.
Investor Services Department
In addition to the Share Registrar & Transfer Agent, our Investor Services
Department, which is located at the Company’s Registered Office, will be
happy to assist, in case investors experience any difficulties in their
interaction with Sharepro Services.
Contact person : Mr AR Patil, Deputy Manager - Corporate Secretarial
Time
: 2.00 pm to 5.00 pm (Mondays to Fridays)
Tel : 24237804, 24237805
Fax : 24237788
E-mail
: avinash.patil@cgl.co.in
✜
Non Mandatory Requirements
The Company has implemented the following non mandatory requirements
recommended under Clause 49 of the Listing Agreement:
✦
Chairman’s Office
A Chairman’s Office with requisite facilities is provided and maintained at
the Company’s expense for use by its Non-Executive Chairman. The
36

✦
Company also reimburses all expenses incurred in furtherance of the
Company’s business interests.
Remuneration Committee
A Remuneration Committee comprising three Non-Executive Directors is
already functional, for review and decisions on remuneration packages of
Executive Directors and Senior Executives of the Company.
Financial results as published in the newspapers are made available to the
Members on request.
On behalf of the Board of Directors
Mumbai, 26th May, 2004
KK NOHRIA
Chairman
Certificate on
Corporate Governance
To
The Members
Crompton Greaves Limited
CG House
Dr Annie Besant Road
Worli
Mumbai 400 030
Dear Sirs,
We have reviewed the implementation of the requirements of Corporate Governance
by the Company, as prescribed by the Listing Agreement with Stock Exchanges, for
the year ended 31st March, 2004, with the relevant records and other documents
maintained by the Company, furnished to us for our review and the report on
Corporate Governance as approved by the Board of Directors.
On the basis of the above and according to the information and explanations given
to us, in our opinion, the Company has complied with Clause 49 of the Listing
Agreement with Stock Exchanges, in respect thereof.
SHARP & TANNAN
Chartered Accountants
L. Vaidyanathan
Partner
Mumbai, 26th May, 2004 Membership No: 16368
37

Management
Discussion
and Analysis Report
Revenues grew 8
per cent whilst
profit after tax
accelerated by 151
per cent.
38

The Company is in the consolidation stage in its journey of growth. In 2003-04,
revenues grew 8 per cent to Rs. 1861.05 crores, whilst profit after tax accelerated by
151 per cent from Rs. 28.17 crores to Rs. 70.83 crores.
The Company’s primary businesses concentrate on the engineering sector. A growth
of these segments is largely linked to the national economic growth in general and
the performance of the manufacturing, power generation & agricultural sectors and
government expenditure in infrastructure in particular, all of which are showing signs
of recovery. In addition to specific corporate initiatives, this external impetus has also
played a role in the Company’s improved performance.
As at March 2003, the Company had certain amounts of Unamortised Miscellaneous
Expenditure, Deferred Tax Asset and Debit Balance of Profit & Loss Account in its
Balance Sheet. It was considered desirable that the Company’s financials for future
years reflect the realistic Financial Results arising out of operations, and the annual
amortised burden of such items be averted, thus resulting in better shareholder value.
To achieve this, the Company implemented a Capital Reduction Scheme, which was
approved by the Members at the last Annual General Meeting held on 22nd July,
2003 and by the Hon’ble High Court of Judicature at Mumbai by its Order dated 15th
September, 2003.
The Company’s business is divided into four Strategic Business Units. A comparative
performance table of the business units for the year under review is given below:
(Rs. Crores)
Power Industrial Consumer Digital
Systems Systems Products
Sales 755.32 439.70 611.88 54.15
PBIT 64.03 40.80 53.62 -10.36
Net Capital Employed 274.09 95.11 37.91 40.81
ROCE (%) 23.4 42.9 141.4 -25.4
Contribution to Company turnover (%) 40 24 33 3
Last years’ contribution (%) 40 22 31 7
Industrial
Systems
24%
Consumer
Products
33%
Industrial
Systems
22%
Consumer
Products
31%
% Sales 2003-04
% Sales 2002-03
Power
Systems
40%
Digital
3%
Power
Systems
40%
Digital
7%
The SBU-wise performance indicators for the last year have been recast wherever
necessary, to make them comparable with those of the year under review.
39

Power Systems
Performance of the SBU for the year
(Rs. Crores)
2003-04 2002-03
Sales 755.32 690.28
Net Sales (excl Excise) 698.38 640.20
Export Sales (CIF, incl deemed exports) 242.05 234.59
PBIT 64.03 63.04
Net Capital Employed 274.09 279.19
Unexecuted Order Book 670.65 567.93
ROCE 23.4% 22.6%
PBIT to Net Sales 9.2% 9.8%
This SBU is engaged in the business of Power and Distribution Transformers,
Switchgear and Turnkey projects. This SBU is the largest contributor to the
Company’s revenues.
The Company maintained its market dominance in the domestic market in its main
businesses of Transformers, HT Switchgear as well as Vacuum Interrupters through
superior technology and higher market acceptability.
(Rs. Crores)
Year Sales PBIT
2003-04 755.32 64.03
2002-03 690.28 63.04
2001-02 596.66 53.29
2000-01 440.89 -44.04
The Company is the only Indian Company to introduce the Polymer concrete product
line in the areas of Outdoor and Indoor Polycrete encapsulated Vacuum Interrupters
and various ratings of Outdoor Vacuum Circuit Breakers with Polycrete Vacuum
Interrupter poles. This eliminates the use of porcelain insulators with consequent
benefits for the Company’s Outdoor Breaker business. The first of its kind in India, 420
kV Composite Insulator housed Current Transformer and Capacitor Voltage
Transformer has also been developed. New technology for magnetic beam type yoke
shunts for Transformers was developed, which will result in significant reduction of
stray losses.
The Company’s marketing efforts towards the private sector, moving away from the
Electricity Boards gained further momentum during the year with a positive trend on
revenues and profits.
The Government’s Accelerated Power Development And Reform Programme (APDRP)
has benefitted the Company’s Medium Voltage Switchgear business substantially. The
Company bagged the prestigious order for renovation of Substations of the Madhya
Pradesh State Electricity Board worth Rs. 27 crores under the APDRP Programme.
Further to the initiatives taken last year, the Company has successfully established
facilities for the manufacture of 145 kV Gas Insulated Switchgear which are being
developed in collaboration with Hyundai, Korea. A proto-type of 145 kV, 40 kA,
2000A double bus transmission line feeder bay developed at the Company’s Nasik
Works is undergoing type tests at CPRI, Hyderabad.
Another thrust area for this SBU, was the shift in focus from product revenues to
revenues from spares, servicing and refurbishing business which returned higher
profit margins.
With firm price orders, this SBU witnessed considerable pressure on margins in view
of the unexpected sharp increases in prices of copper and steel and also imported
raw materials, due to the strengthening of the Euro. These however, were partially
off-set through reduced material consumption by improved product design, increased
40

productivity and cost reduction efforts.
Besides the core areas of transmission and distribution projects, the Engineering
Projects Division continues its diversification into power plant lighting, cabling and
earthing packages, with an increasing component of its turnover being derived from
these areas. Besides its core strength areas of 220 kV/400 kV substations, this
Division has also diversified into distribution projects of 33/11 kV substations
together with transmission lines. The Division has bagged the order for the first 400
kV substation in Bhutan, from the Tala Hydroelectric Power Corporation.
The physical exports of this SBU have declined as compared with last year, primarily
as a result of the appreciation of the Indian Rupee against the Dollar. Whilst the
physical exports (CIF) have reduced to Rs. 145.03 crores as compared with Rs. 173.19
crores last year, there was a quantum leap in the deemed exports which increased to
Rs. 97.02 crores as compared to Rs. 61.40 crores last year. The total exports therefore,
compared with last year, have increased from Rs. 234.59 crores to Rs. 242.05 crores.
The total SBU exports, as a percentage of sales is 32 per cent. Towards a more
dominant presence in the exports market, 230 kV Inductive Voltage Transformers and
230kV Current Transformers conforming to ANSI standards were developed and are
undergoing technical evaluation in the USA. A new design for Standard Voltage
Transformer has also been developed and is undergoing calibration at KEMA,
Netherlands.
The orders received during the year aggregated to Rs. 1074 crores versus Rs. 720
crores in the previous year, an increase of 49.2 per cent.
During the year the SBU executed several significant orders, notable among them :
Customer
Electricity Boards
Power Grid Corporation of India
North Delhi Power Limited
Indian Railways
Tata Companies
APtransco
Product
Power Transformers, Capacitor Voltage Transformers, F Ring
Main Units, Circuit Breakers and Substation Projects
Substation Projects
Hermetically sealed Distribution Transformers with
corrugated tank construction
Distribution Transformers
Power and Distribution Transformers
Power Transformers
Delhi Transco
Alstom Power India Limited
Techno Electric Corporation
Asea Brown Boveri Limited
Siemens Limited
Reliance Energy Limited
System Control
Exports to the Gulf, South and
Substation Project
Power Transformers and Vacuum Interrupters
Power Transformers and Circuit Breakers
Power Transformers
Current Transformers, Capacitor Voltage Transformers,
Circuit Breakers
F Ring Main Units, Circuit Breakers
Vacuum Interrupters and Polycrete Current Transformers
Power Transformers, Capacitor Voltage Transformers, Circuit
Central America, Far East, South Breakers, Current Transformers
Africa, South East Asia
The orders received
during the year
aggregated to
Rs.1074 crores
versus Rs. 720 crores
in the previous year,
an increase of
49.2 per cent.
The number of permanent employees with this SBU, which was 2157 at the
beginning of the year, decreased to 2012 at the year-end.
41

Industrial Systems
Performance of the SBU for the year
(Rs. Crores)
2003-04 2002-03
Sales 439.70 376.54
Net Sales (excl Excise) 381.52 324.55
Export Sales (CIF, incl deemed exports) 24.23 16.45
PBIT 40.80 23.37
Net Capital Employed 95.11 134.21
Unexecuted Order Book 163.95 112.85
ROCE 42.9% 17.4%
PBIT to Net Sales 10.7% 7.2%
This SBU is engaged in the manufacture and marketing of Electric motors –
Fractional Horse Power (FHP) Motors, Low Tension (LT) Motors, High Tension (HT)
Motors, DC Machines and Rail Transportation.
The earlier sluggish market conditions cease to be a cause of concern for this
Business Group.
The IEEMA certified Standard EFF1 High Efficiency LT Motors and Flameproof Gas
Group II C Motors introduced last year, fortified the Company’s market leadership in
the AC Motors segment due to the excellent market acceptance. To respond to the
increasing market demand for large frame motors, the Company successfully
introduced special larger frame motors – ND 355 LX and C 400. The Company also
relaunched its series of Super Drive Motors. The new focus markets during the year
were the cement industry and the telecom industry.
Supply chain management and value re-engineering were the thrust areas for the
HT Motors Division; however, the overall cost structures, specially personnel costs
continue to be a concern area, and negatively impact the profitability of this
Division.
The Stampings Division continued to expand during the year in response to needs
within the Company, as well as externally. The emphasis during the year was on
increased automation for which the necessary capital expenditure was incurred.
Towards deriving the benefits of logistics, as well as lower personnel costs, an
additional unit for manufacture of Stampings, is being set up at Ahmednagar with an
additional capacity of 5000 MT per annum. The significant process improvement from
gang slotting to progressive tooling, is a major shift, which has contributed
considerably to the reduction of costs for the Division.
The Rail Transportation Division, has stabilised itself as the largest player in the
Relays and Point Machines segment of railway business, the wide product variety
42

eing a contributing factor. Towards further strengthening its already prominent
market position, it marketed a trailable version of Electric Point Machine (used in
railways for track changing), Brushless Direct Current carraige fans and six more
versions of Relays.
Exports of this SBU as a percentage of turnover continue to be insignificant; however
in absolute terms, exports (CIF) have grown from Rs. 16.45 crores in 2002-03 to Rs.
24.23 crores in 2003-04. During the forthcoming year also, exports is an identified
growth area for this SBU. Towards International acceptability, as a confirmation of
product quality, the Company has already received the requisite International
certifications and approvals.
During the year, the NEMA range (conforming to National Electrical Manufacturers
Association, USA Standards) of LT Motors has successfully been customised and
introduced into the US and Canadian markets.
The Company has also received quality approvals for the AC Motors from
International consultants and project commissioners like Japan Gas Corporation
(refinery business leader) and Bechtel (International consultants for power and
refinery turnkey projects).
The orders received during the year aggregated to Rs.388 crores versus Rs. 363 crores
in the previous year.
(Rs. Crores)
Year Sales PBIT
2003-04 439.70 40.80
2002-03 376.54 23.37
2001-02 345.25 19.88
2000-01 349.92 -11.19
During the year the SBU executed several significant orders, notable among them :
Customer
Indian Railways
Integral Coach Factory
Whirlpool India Limited, Godrej, Electrolux Kelvinator
Limited and Matsushita Washing Machines (India) Limited
Larsen & Toubro Limited
Videocon International, Carrier Aircon India Limited,
Hitachi Home & Life Solutions Limited and United
Comfort Products Limited
Newage Electrical India Limited
Enercon India Limited
VA Tech Hydro India Pvt. Limited
Exports to Middle East, South East Asia, North
America, Canada
Product
Electric Point Machines and
Traction Motors, Relays
Electrics for Tower Cars
Washing Machine Motors
Flameproof Motors
Airconditioner Motors
Steel Stampings
Steel Stampings
Pole Stampings
LT Motors
CG has received
quality approvals
for AC Motors
from International
consultants and
project commissioners
like Japan Gas
Corporation and
Bechtel.
The number of permanent employees with this SBU, which was 1438 at the
beginning of the year, decreased to 1378 at the year-end.
43

Consumer Products
Performance of the SBU for the year
(Rs. Crores)
2003-04 2002-03
Sales 611.88 533.35
Net Sales (excl Excise) 579.45 504.08
Export Sales (CIF, incl deemed exports) 15.54 13.43
PBIT 53.62 42.95
Net Capital Employed 37.91 105.69
Unexecuted Order Book 1.87 0.84
ROCE 141.4% 40.6%
PBIT to Net Sales 9.3% 8.5%
The Fans and
Lighting business
acquired
Superbrand status,
a Unique
Recognition
amongst the
country’s 134
selected brands by
Superbrands, UK.
The business operations of this SBU are divided into three segments: Fans, Lighting
which consist of Light Sources and Luminaires, and Pumps. In 2003-04, it accounted
for 33 per cent of the Company’s revenues, making it the second largest revenue
earner for the Company. A significant portion of this turnover has resulted from a
regular launch of new products, to respond to different customer segments, together
with a conscious branding emphasis, through effective media campaigns. The
increased revenues together with better price management and customer service
were the drivers for success of this SBU. During the year, concerted attention was
given to strengthening the dealer network in general through several dealer
conferences, technical workshops, participation in symposia, as well as providing
software and training to speciality customers in design of lighting systems, in our
efforts to create business partnerships.
The Fans Division, as a conscious approach, concentrated on offering superior fans
with improved performance characteristics at affordable prices. Low priced ceiling
fans were targeted at the rural and semi-urban segments, whilst simultaneously
addressing the niche markets with aesthetic needs, with an entire new range of
decorative fans.
During the year, the Lighting Division restructured its product mix from GLS lamps to
energy efficient CFL lamps, which have a greater demand in the present environment.
44

It has also responded to the market requirement of energy saving lighting systems
through its T5 range of luminaires, which produce 30 per cent more light than
comparable products, for both commercial and residential applications.
The Fans and Lighting business acquired Superbrand status, a Unique Recognition
amongst the country’s 134 selected brands by Superbrands, UK. The Light Sources
Division is one of the few business Units in India’s lighting Industry to achieve dual
certification of ISO 9001:2000 and ISO 14001.
Although the Pumps Division has grown during the year, it continues to experience
intense competition from the unorganised sector. Efforts however continue, to
achieve lower costs in all product offerings. The Mini – II pumps received approval
from CSA, Canada which will facilitate International sales.
(Rs. Crores)
Year Sales PBIT
2003-04 611.88 53.62
2002-03 533.35 42.95
2001-02 491.89 41.75
2000-01 462.93 2.32
As mentioned in last year’s Annual Report, exports is not a thrust area for this SBU.
However, to maintain a presence in the International market, prestigious orders for
fans continue to be pursued.
The orders received during the year aggregated to Rs. 621 crores versus Rs. 533
crores in the previous year.
During the year the SBU executed several significant orders, notable among them :
Customer
Reliance Energy Limited
Bharat Heavy Electricals Limited
Kumbhmela - Ujjain, Nasik and Haridwar
National Stock Exchange of India Limited
Rashtrapati Bhavan
BSES Rajdhani Power Limited
Municipal Corporation of Delhi
Product
Street Lights and Sodium Vapour Lamps
Mirror Optics and Well Glass
Street Lights and Sodium Vapour Lamps
Façade Lighting
Illumination of tennis court
Street Lights
Open Well and Submersible Pumpsets
The number of permanent employees with this SBU, which was 957 at the beginning
of the year, decreased to 770 at the year-end, mainly on account of re-grouping of
certain functions between the Consumer Products Group and Corporate.
45

(Rs. Crores)
Year Sales PBIT
2003-04 54.15 -10.36
2002-03 126.22 3.65
2001-02 168.05 8.99
2000-01 124.59 -1.96
Digital
Performance of the SBU for the year
(Rs. Crores)
2003-04 2002-03
Sales 54.15 126.22
Net Sales (excl Excise) 51.97 118.19
Export Sales (CIF, incl deemed exports) 3.96 2.19
PBIT -10.36 3.65
Net Capital Employed 40.81 36.83
Unexecuted Order Book 5.50 9.24
ROCE -25.4% 9.9%
PBIT to Net Sales -19.9% 3.1%
This SBU is engaged in the business of EPABX, Telephone Instruments and
Telecommunication-Switching, Transmission and Access products. During the year,
the priority on legacy products and dependence on BSNL and MTNL as prime
customers, has been reduced with additional thrust on other customers such as
Railways, Indian Oil, Corporate System Integrators and Valued Added Service
Providers. The sales for the year were approximately 50 per cent from new markets
and new customers. Despite these efforts, the primary concern for this SBU remains
the category of market demand, which is steadily moving upwards towards mobile
communication. This SBU has de-grown by approximately 50 per cent as compared
with last year.
During the year the SBU executed several significant orders, notable among them :
Customer
BSNL
Midas Communication Technologies Limited
Indian Railways
Defence
Neyveli Lignite Corporation Limited
Product
Switching equipment : AN-RAX, conversion
kits and Central & Digital Base modules;
EPABX systems
CorDECT equipment
STM-1 and Primary Mux equipment and
EPABX systems
Bandwidth Multiplexer equipment and
EPABX systems
EPABX systems
The number of permanent employees with this SBU, which was 331 at the beginning
of the year, decreased to 268 at the year-end.
46

Exports
Total exports during the current year were Rs. 286 crores (CIF, including deemed
exports of Rs. 101 crores) compared with Rs. 267 crores (including deemed exports of
Rs. 64 crores). Although physical exports declined during the current year, the surge
of domestic projects with export benefits resulted in a significant increase of 58 per
cent in deemed exports. This year was marked by the successful entry of the
Switchgear Group into the lucrative European market despite stiff International
competition. Other breakthrough entries for Switchgear were the Far East markets.
The Transformer Group continues to focus on its traditional markets and during the
year also successfully executed projects in additional countries within these markets.
The LT Motors Division achieved its highest ever annual exports sales of
approximately Rs. 16.47 crores through supplies to other motor manufacturers and
OEMs in South America, North America, Middle East and South East Asia. The
Unexecuted Order Book at the year end for physical exports was Rs. 180 crores, 13
per cent higher than Rs. 160 crores as at last year end, thus confirming the potential
for growth in physical exports for next year.
Joint Ventures
The brief particulars of the Company’s Joint Ventures as at 31st March, 2004, are
annexed as information to the Members.
Credit Rating
The improved operational and financial performance of the Company enabled it to
upgrade its credit rating from F1 to F1+, awarded by FITCH Ratings India, in respect
of its commercial paper/short term debt instruments programme, for a higher
quantum of Rs. 40 crores, as compared with Rs. 30 crores last year. This rating is the
highest credit rating that can be assigned to this category of instrument. In addition
to the above, FITCH also assigned an A+ (Ind) rating to the Company’s proposed long
term debt programme; this rating indicates adequate credit quality and timely
repayment capacity.
Treasury Management
The aggressive treasury management actions, initiated last year continued with
further intensity during the year, with the dual objectives of reducing borrowings and
also the average cost of borrowings. The above initiatives have resulted in reduction
of borrowings from Rs. 459 crores, to Rs. 334 crores, a net reduction of 27 per cent.
This has been a significant contributing factor in improving the Company’s debtequity
ratio from 1.6 last year to 1.0 this year. The interest and other financial costs
have also reduced considerably, from Rs. 64.43 crores last year to Rs. 38.48 crores
this year, a net reduction of 40 per cent. This has resulted in a favourable impact on
FITCH Ratings India
upgraded CG’s
credit rating from
F1 to F1+ for
short-term debt
instruments, the
highest credit
rating for this
category.
47

the Company’s interest coverage ratio which, has improved from 2.7 times last year,
to 4.7 times this year. During the year under review, several treasury actions were
initiated for proficient management of cash flow surpluses and also leveraging its
exposure in foreign currency which has resulted in substantial forex earnings of Rs. 6
crores. Efficiency in working capital management reduced the net working capital
from Rs. 283 crores at last year end to Rs. 246 crores at this year end, despite an
enhanced level of operations during the year.
The above treasury management actions will be further strengthened by long term
loans from foreign lenders which have already been negotiated at attractive interest
rates, to meet the Company’s funding requirements for prospective growth
opportunities.
Human Resources
To consolidate the performance culture across the Company, the Performance
Management System thus far applicable to Executives, has also been extended to
Staff. To improve the capability profile of new Executives, the Company has focused
on recruiting only professionals. Towards receiving Executive feedback on a variety of
issues, for the first time, an Executive Engagement Survey was conducted in
partnership with the Gallup Organisation, an International firm specialised in this
area. This survey manifested strengths as well as weaknesses. The Company is in the
process of initiating actions for addressing weak areas of Executive Engagement.
During the year, the methodology for Grading of Divisions has been strengthened,
and also extended to include Financial Parameters as well as Non-Financial Enablers.
In addition to its efforts last year, this year witnessed a further emphasis on filling up
key vacancies with professionals in the younger age groups. To improve its
performance capabilities, the scrutiny and quantum of sub-optimal performers has
intensified.
Net working capital
declined from
Rs. 283 crores to
Rs. 246 crores
despite an
enhanced level of
operations during
the year.
In furtherance of its philosophy to induct professional youth, this year, the Company
recruited 48 Engineers, from Institutes of repute. The Company’s training initiatives
during the year included Programmes on Marketing Strategy and Execution, Six
Sigma for its Divisional and Regional teams, Appraiser Training, Executive
Engagement Training and Behavioural Event Interview Techniques, to strengthen the
Executive promotion process. In the area of CGPS, the training initiatives were
extended to strengthen Applicator capabilities across the Company and productivity
enhancement through engineering methods. During the year, through the cooperation
of its workers and Unions, the Company concluded long term Wage
Settlements at five of its Divisions, with a unified emphasis on increase in labour
productivity.
Six Sigma
The Company has made considerable progress towards integration of the Six Sigma
methodology in its manufacturing processes, with the ultimate objective of achieving
"Product Quality As Perceived By Customer". This methodology was actively pursued
during the year under review for 10 of the Company’s products for which, Critical To
Quality (CTQ) characteristics were identified based on market feedback. In addition to
Divisional teams, for authenticity of data, Regional teams have also been trained in
the Six Sigma methodology for proper capture of the Customer’s Voice. In addition,
for these selected products, stringent control measures have been introduced with
suppliers, to ensure that inputs support the Six Sigma quality. These efforts have
resulted in a manifold improvement in the CTQs with a substantial reduction in
48

defects. The plan for the ensuing year, is to extend this methodology to other
products of the Company. Towards this end, a second phase of training and
implementation has already been initiated.
Quality Certifications
During the year, an additional eight of the Company’s Divisions have upgraded to ISO
9001:2000 version of Quality Management System Certification. Hence, presently 22
out of the Company’s 26 Divisions/Regions are accredited with ISO 9001:2000
Certification. Out of these, five Divisions are also accredited with ISO 14001
Certification for their Environment Management Systems. The Industrial Transformer
Division at Malanpur is amongst the few Units in India to have achieved both ISO
14001 and OHSAS 18001 Certification for Occupational Health and Safety
Management System.
To increase the acceptability of the Company’s products in the International market,
many of these continue to be tested and certified at prestigious institutes like KEMA
(Netherlands), NEMA (USA), BASEEFA (UK), CESI (Italy), DOE (Department of Energy,
USA), CPRI (India) and conform to ANSI, CEMEP and IEEMA standards.
The Company’s
e-sourcing efforts
resulted in a
material costs
savings of
Rs. 4.78 crores.
Productivity Enhancement Initiatives
Having adequately established the Crompton Greaves Productivity System (CGPS) at
all the Company’s Divisions, the thrust for the year under review was going beyond
these norms, to improve productivity further, through worker co-operation and
focussed engineering methods. The scope of coverage with respect to operations and
employees has been enlarged for coverage of ancillary manufacturing operations and
also non-permanent employees for better monitoring of productivity and manpower
utilisation. A self-audit mechanism has been initiated, which together with Corporate
Audits and Senior Management Reviews ensure effective implementation. Software
capability is also being expanded for better Management Information Systems on
CGPS. To support the thrust on engineering method improvements, capital
expenditure on Plant and Machinery during the year has been significantly stepped
up to enable long-term improvement in productivity capabilities.
E-sourcing Initiatives
During the year, the Company’s e-sourcing efforts resulted in a material costs savings
of Rs. 4.78 crores, achieving a success rate of 50 per cent of the total savings
identified through quick/full source events. Capacitors, bearings, paints, cartons,
stampings were some of the products obtained through e-sourcing. However in view
of the increasing price fluctuations of basic raw materials like copper, steel,
aluminium etc. the Company could not achieve the desired savings in these areas
although these remain the thrust area for the Company.
IT Initiatives
During the year, the Company’s IT further strengthened its role as a business partner,
concentrating its efforts on areas that would strengthen reporting systems for
actions, to improve profitability. The Inventory Management System was
comprehensively redesigned, and the Order Management System was also
strengthened through a web-based software to enable dealers to monitor their order
status online. Considerable investments have also been made in hardware and
software, to respond to the Company's ever increasing IT needs; a changeover has
been effected from an NT-based system to a Unix-based system; the network
49

infrastructure has also been upgraded. The Company has also redesigned its website
with several additional user-friendly features. The expanded coverage of the website
and ease of use, has already yielded the desired response, as evidenced by the
increased access to this website by customers, dealers and business associates.
Internal Control Systems
The Management Reporting System on various business performance indicators is
considered adequate, and enables corrective action by Management, through a
mechanism of regular reviews. Competition is also studied to facilitate evaluation of
the Company’s performance as compared with competitors. The Company’s Systems
and Processes in all areas are regularly reviewed by the Internal Audit and their
reports are placed for consideration by the Audit Committee of the Board of
Directors, which has met four times during the year. The rating system for its
Divisions/Regions initiated last year, has been strengthened during the year.
Outlook
The growth in the Power Sector and the Industrial growth in general having
accelerated, gives reasonable certainty for demand augmentation of transmission
and distribution equipment, which augurs well for the Power Systems Group. The
Government’s APDRP Programme will also be a considerable driver for the Switchgear
business. Power Systems already has a substantial export presence for transformers.
The year ahead, will witness Switchgear’s efforts at breakthrough exports. The setting
up of new Industries and OEMs in the medium and large sectors, is expected to
realise additional demand for the Industrial Systems Group. LT Motors have already
equipped themselves with several International Certifications, which has yielded
them a manifold increase in exports; the International market capture will be
intensified during the forthcoming year. The threat from the small scale and
unorganised sectors will continue for the Consumer Products Group; however, the
challenge for this Group, will be to access customer segments with higher disposable
incomes, the housing sector, the architect segment, the energy cost conscious
consumers and also the huge demand for exterior lighting from large projects.
On behalf of the Board of Directors
Mumbai, 26th May, 2004
KK NOHRIA
Chairman
Joint Ventures
Period : April 2003 to March 2004
(Rs. Crores)
Sr Name of Company Turnover PBT Subscribed CG %
No Capital Holding
1 Brook Crompton Greaves Ltd @ 11.70 0.67 16.00 49.00
2 CG Lucy Switchgear Ltd 17.10 4.69 1.20 50.00
3 Hitachi CG Motor Engineering Pvt Ltd 0.03 (0.09) 1.60 49.00
4 Paxonet Communications Inc, USA + ** 8.29 (4.54) 6.50 20.00
5 Power Equipment Ltd, Dubai # # # #
@ Financial Period 1st January, 2003 to 31st December, 2003
+ Investment in US $ @ US $ : Rs. 43.64 ** Provisional # Activities suspended
50

Ten Years'
Financial Highlights
(Rs. Crores)
Year Ended 31st March,
Unit 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995
EARNINGS
Total Income 1888.07 1739.85 1615.84 1383.19 1690.54 1693.91 1594.55 1517.69 1496.22 1080.81
Gross Sales 1861.05 1726.39 1601.85 1378.33 1674.56 1682.46 1583.53 1508.81 1480.73 1078.23
Net Sales 1711.32 1587.02 1478.57 1254.34 1525.83 1554.91 1459.14 1394.99 1386.12 1002.34
EBIDTA (#) 184.59 170.27 156.67 -43.57 35.35 165.02 135.07 149.40 166.21 114.38
PBT 89.52 37.20 6.88 -72.91 -146.32 24.12 20.62 30.76 80.04 59.08
PAT 70.83 28.17 4.13 -73.16 -146.57 23.12 21.52 30.76 64.04 42.58
Dividend % 70 - - - - 25 25 25 50 35
Dividend Pay-out 36.66 - - - - 13.05 13.05 12.55 22.16 14.51
WHAT THE COMPANY OWNED
Gross Block (Incl. Capital WIP) 801.22 791.96 773.44 768.88 770.04 712.12 648.81 543.99 445.62 338.36
Net Block (Incl. Capital WIP) 368.46 393.93 415.69 450.65 479.02 475.01 455.02 388.05 321.45 234.16
Investments 69.93 73.96 94.86 119.57 116.57 111.26 100.07 79.36 73.19 68.15
Net Current Assets, 246.01 282.52 298.22 323.20 620.98 696.65 651.14 574.78 437.73 286.83
Loans & Advances @
Net Assets Employed 684.40 750.41 808.77 893.42 1216.57 1282.92 1206.23 1042.19 832.37 589.14
WHAT THE COMPANY OWED
Borrowings @ 333.65 459.22 570.71 627.32 851.01 734.62 648.53 474.29 435.93 218.79
NET WORTH OF THE COMPANY
Share Capital 52.37 52.37 52.37 52.37 52.37 52.15 52.15 52.03 45.39 44.26
Reserves & Surplus 288.11 403.14 403.80 410.33 410.96 522.01 518.69 529.81 366.34 343.29
Profit and Loss Account 0.00 -13.49 -38.90 -137.87 -62.77 0.00 0.00 0.00 0.00 0.00
Shareholders' Funds 340.48 442.02 417.27 324.83 400.56 574.16 570.84 581.84 411.73 387.55
Tangible Net Worth (# #) @ 340.48 291.19 238.06 266.10 365.56 548.30 557.70 567.90 396.44 370.35
RATIOS
Book Value Per Share Rs. 65.02 55.61 45.46 50.81 69.81 105.15 106.93 109.13 87.33 83.63
Earnings Per Share Rs. 13.52 5.38 0.79 -13.97 -27.99 4.43 4.13 5.91 14.11 9.62
Cash Earnings Per Share Rs. 25.99 21.35 14.98 -0.78 -14.82 16.29 13.38 13.79 20.41 13.78
Current Ratio 1.38:1 1.49:1 1.54:1 1.62:1 2.04:1 2.47:1 2.37:1 2.23:1 1.93:1 1.81:1
Debt Equity Ratio 0.98:1 1.58:1 2.40:1 2.36:1 2.33:1 1.34:1 1.16:1 0.84:1 1.10:1 0.59:1
EBIDTA / Net Sales % 10.79 10.73 10.60 -3.47 2.32 10.61 9.26 10.71 11.99 11.41
Return On Tangible Net Worth % 20.80 9.67 1.73 -27.49 -40.09 4.22 3.86 5.42 16.15 11.50
Fixed Assets Turnover Ratio Times 4.64 4.03 3.56 2.78 3.19 3.27 3.21 3.59 4.31 4.28
( # ) EBIDTA = Earnings Before Interest, Depreciation, Tax, Miscellaneous Expenditure Amortised/Charged and
Exceptional Items.
( # # ) Tangible Net Worth = Shareholders' Funds - Miscellaneous Exps. (Unamortised) - Deferred Tax Asset
@ Remittances in transit and Technical know-how (unamortised) have been re-grouped.
51

Auditor’s Report
To the Shareholders of Crompton Greaves Limited
We have audited the attached Balance Sheet of CROMPTON GREAVES LIMITED, as at
31st March 2004, the Profit and Loss Account and also the Cash Flow Statement for
the year ended on that date annexed thereto. These financial statements are the
responsibility of the Company’s management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with the auditing standards generally
accepted in India. Those Standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In accordance with the provisions of section 227 of the Companies Act 1956, we
report that:
1. As required by the Companies (Auditor’s Report) Order, 2003 issued by the
Central Government of India in terms of sub-section (4A) of section 227 of the
Companies Act, 1956, we enclose in the Annexure a statement on the matters
specified in paragraphs 4 and 5 of the said Order.
2. Further to our comments in the annexure referred to above, we report that:
a) We have obtained all the information and explanations, which to the best
of our knowledge and belief were necessary for the purposes of our audit ;
b) In our opinion, proper books of account as required by law have been kept
by the Company so far as appears from our examination of those books ;
c) The Balance Sheet, Profit and Loss Account and Cash Flow Statement dealt
with by this report are in agreement with the books of account ;
d) In our opinion, the Balance Sheet, Profit and Loss Account and Cash Flow
Statement dealt with by this report comply with the Accounting Standards
referred to in sub-section (3C) of section 211 of the Companies Act, 1956 ;
e) On the basis of the written representations received from the Directors, as
on 31st March, 2004 and taken on record by the Board of Directors, we
report that none of the Directors is disqualified as on 31st March, 2004
from being appointed as a Director in terms of clause (g) of sub-section (1)
of Section 274 of the Companies Act, 1956 ;
52

f) No provision has been made in the accounts in respect of
(See Note No.1 of Schedule B)
Rs. Crores
(i) Excise demands 4.20
(net after income tax saving Rs.2.69 crores)
(ii) Sales tax demands 2.92
(net after income tax saving Rs.1.87 crores)
We report that, had the observations made by us in item (f) above been
considered, the Profit Before Tax for the year would have been Rs.89.48 crores
(as against the reported figure of Rs.89.52 crores), credit balance in the Profit
and Loss Account would have been Rs.4.97 crores (as against the reported figure
of Rs.12.09 crores), the Current Liabilities and Provisions would have been
Rs.655.37 crores (as against the reported figure of Rs.648.25 crores).
Subject to the foregoing, in our opinion and to the best of our information and
according to the explanations given to us, the said accounts, read together with the
Significant Accounting Policies as per Schedule A and
(a)
(b)
Note No.27 of Schedule B regarding rebate on pre-payment of certain sales tax
deferred liabilities credited to Capital Reserve based on expert’s opinion.
Note No.34 (a) of Schedule B regarding disclosure of transactions with related
parties given based on legal opinion on which we have placed reliance and
Other notes appearing in Schedule B, give the information required by the Companies
Act, 1956, in the manner so required and give a true and fair view in conformity with
the accounting principles generally accepted in India:
(a)
(b)
(c)
In the case of the Balance Sheet, of the state of affairs of the company as at
31st March, 2004;
In the case of the Profit and Loss Account, of the profit for the year ended on
that date; and
In the case of the Cash Flow Statement, of the cash flows for the year ended on
that date.
SHARP & TANNAN
Chartered Accountants
L. Vaidyanathan
Partner
Mumbai, 26th May, 2004 Membership No: 16368
53

Annexure to
Auditor’s Report
(Referred to in paragraph 1 of our Report of even date)
Re: CROMPTON GREAVES LIMITED
(i) (a) The Company is maintaining proper records to show full particulars
including quantitative details and situation of all fixed assets.
(b) As explained to us, the assets have been physically verified by the
management in accordance with a phased programme of verification, which
in our opinion, is reasonable, considering the size and nature of its business.
The frequency of verification is reasonable and no material discrepancies
have been noticed on such physical verification.
(c) During the year, the Company has not disposed off major part of the fixed
assets. According to the information and explanations given to us, we are of
the opinion that the sale of the said part of fixed assets has not affected
the going concern status of the Company.
(ii) (a) As explained to us, inventory has been physically verified by the
management at reasonable intervals during the year. In our opinion, the
frequency of such verification is reasonable.
(b) The procedures of physical verification of inventories followed by the
management are, in our opinion, reasonable and adequate in relation to the
size of the Company and the nature of its business.
(c) The Company is maintaining proper records of inventory. The discrepancies
noticed on verification between the physical stocks and the book records
which were not material, have been properly dealt with in the books of
account.
(iii) (a) The Company had taken loans from two other companies covered in the
register maintained under section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs.6.40 crores and the yearend
balance of loans taken from such parties was Rs.2.75 crores. There are
three companies covered in the register maintained under section 301 of
the Companies Act, 1956 to which the Company has granted loans. The
maximum amount involved during the year was Rs.15.91 crores and the
year-end balance of loans granted to such parties was Rs.8.88 crores.
(b) In our opinion, the rate of interest and other terms and conditions on which
loans have been taken from / granted to companies, firms or other parties
listed in the register maintained under section 301 of the Companies Act,
1956 are not, prima facie, prejudicial to the interest of the Company.
(c) The Company is regular in repaying the principal amounts as stipulated and
has been regular in the payment of interest. The parties have repaid the
principal amounts as stipulated and have been regular in the payment of
interest.
(d) There is no overdue amount of loans taken from or granted to companies,
firms or other parties listed in the register maintained under section 301 of
the Companies Act, 1956.
(iv) In our opinion and according to the information and explanations given to us,
there are adequate internal control procedures commensurate with the size of
the Company and the nature of its business with regard to purchase of
inventory, fixed assets and with regard to the sale of goods. During the course of
our audit, we have not observed any continuing failure to correct major
weaknesses in internal controls.
54

(v) (a) According to the information and explanations given to us, we are of the
opinion that the transactions that need to be entered into the register
maintained under section 301 of the Companies Act, 1956 have been so
entered.
(b) In our opinion and according to the information and explanations given to
us, the transactions made in pursuance of contracts or arrangements entered
in the register maintained under section 301 of the Companies Act, 1956 and
exceeding the value of rupees five lakhs in respect of any party during the
year have been made at prices which are reasonable having regard to
prevailing market prices at the relevant time.
(vi) In our opinion and according to the information and explanations given to us, the
Company has complied with the provisions of sections 58A and 58AA of the
Companies Act, 1956 and the Companies (Acceptance of Deposits) Rules, 1975
with regard to the deposits accepted from the public. We have been informed by
the Company that no order has been passed by the Company Law Board.
(vii) In our opinion, the Company has an internal audit system commensurate with the
size and nature of its business.
(viii)In our opinion and according to the information and explanations given to us, the
Company is maintaining accounts and records as prescribed by the Central
Government under Section 209(1)(d) of the Companies Act, 1956 in respect of
electric fans, motors, power driven pumps and electric lamps and we are of the
opinion that prima-facie the prescribed accounts and records have been made
and maintained.
(ix) (a) The Company is regular in depositing with appropriate authorities undisputed
statutory dues including provident fund, investor education and protection
fund, employees’ state insurance, income tax, sales tax, wealth tax, customs
duty, excise duty, cess and other material statutory dues applicable to it.
(b) According to the information and explanations given to us, no undisputed
amounts payable in respect of income tax, wealth tax, sales tax, customs
duty, excise duty and cess were in arrears, as at 31st March, 2004 for a
period of more than six months from the date they became payable.
(c) According to the information and explanations given to us, the dues of sales
tax, income tax, customs duty, wealth tax, excise duty and cess which have
not been deposited on account of disputes and the forum where the dispute
is pending are as under :
Rs. Crores
Sr. Name of the Statute Nature of Disputed Forum where Dispute
No. the Dues Amount (Net of is pending
Payments made)
1 The Central Excise Excise Duty 15.40 Commissioner(A)
Act, 1944 Demands and CEGAT
2 Income Tax Act, 1961 Income Tax 10.58 High Court, Supreme
& Interest
Court, ITAT and CIT (A)
3 Sales Tax Acts Sales Tax Dues 2.92 Tribunal and
& Interest
Dy. Commissioner
Appeals
55

(x) The Company does not have accumulated losses and has not incurred cash losses in
the current financial year covered by our audit and the immediately preceding
financial year.
(xi) In our opinion and according to the information and explanations given to us, the
Company has not defaulted in repayment of dues to a financial institution, bank or
debenture holders.
(xii) During the year, the Company has not granted loans and advances on the basis of
security by way of pledge of shares, debentures and other securities.
(xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund /
society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor’s
Report) Order, 2003 are not applicable to the Company.
(xiv) According to the information and explanations given by the management, the
Company is not dealing in or trading in shares, securities, debentures and other
investments except for investment in Mutual Funds. The Company has maintained
proper records and timely entries have been made and the investments are held in
the name of the Company.
(xv) In our opinion, the terms and conditions on which the Company has given
guarantees for loans taken by others from banks or financial institutions are not
prejudicial to the interest of the Company.
(xvi) In our opinion, the Term loans have been applied for the purpose for which they
were raised.
(xvii) According to the information and explanations given to us and on an overall
examination of the Balance Sheet of the Company, we report that no funds raised
on short-term basis have been used for long-term investment. No long-term funds
have been used to finance short-term assets except permanent working capital.
(xviii)The Company has not made preferential allotment of shares to parties and
companies covered in the register maintained under section 301 of the Companies
Act, 1956 during the year.
(xix) During the financial year, the Company did not issue any debentures. Hence, the
provisions of Clause 4(xix) of the Companies (Auditor’s Report) Order, 2003
regarding creation of security for debentures are not presently applicable to the
Company.
(xx) The Company has not raised any money by way of public issues during the year.
Accordingly, the provisions of Clause 4(xx) of the Companies (Auditor’s Report)
Order, 2003 on the end use of money are not presently applicable to the Company.
(xxi) According to the information and explanations given to us, no fraud on or by the
Company has been noticed or reported during the course of our audit.
SHARP & TANNAN
Chartered Accountants
L. Vaidyanathan
Partner
Mumbai, 26th May, 2004 Membership No: 16368
56

Crompton Greaves Ltd.
Balance Sheet
as at 31st March, 2004
As at
As at
Schedule 31-03-2004 31-03-2003
Rs. Crores Rs. Crores Rs. Crores
SOURCES OF FUNDS
Shareholders’ Funds
Capital 1 52.37 52.37
Reserves and Surplus 2 288.11 389.65
340.48 442.02
Loan Funds
Secured Loans 3 253.73 315.56
Unsecured Loans 4 79.92 143.66
333.65 459.22
Deferred Tax Liability 5 10.27 0.00
684.40 901.24
APPLICATION OF FUNDS
Fixed Assets
Gross Block 6 790.35 785.02
Less : Depreciation 432.76 398.03
Net Block 357.59 386.99
Capital Work-in-Progress 10.87 6.94
368.46 393.93
Investments 7 69.93 73.96
Deferred Tax Asset 5 0.00 81.12
Current Assets, Loans & Advances
Inventories 8 174.26 193.15
Sundry Debtors 9 526.85 475.06
Cash and Bank Balances 10 76.15 54.74
Loans and Advances 11 117.00 133.48
894.26 856.43
Less: Current Liabilities & Provisions
Liabilities 12 610.39 557.35
Provisions 13 37.86 16.56
648.25 573.91
Net Current Assets 246.01 282.52
Miscellaneous Expenditure 14 0.00 69.71
(to the extent not written off or adjusted)
684.40 901.24
Significant Accounting Policies
[A]
Notes on Accounts
[B]
The Schedules referred to above and the notes
attached, form an integral part of the Accounts
Mumbai, 26th May, 2004 Mumbai, 26th May, 2004
As per our report attached.
SHARP & TANNAN B. R. Jaju S. M. Trehan
Chartered Accountants Chief Financial Officer Managing Director
58
L. Vaidyanathan W. Henriques K. K. Nohria
Partner Secretary Chairman
Membership no 16368

Crompton Greaves Ltd.
Profit and Loss Account
for the year ended 31st March, 2004
Schedule 2003-04 2002-03
Rs. Crores Rs. Crores
INCOME
Gross Sales 1861.05 1726.39
Less: Excise Duty 149.73 139.37
Net Sales 1711.32 1587.02
Other Income 15 27.02 13.46
1738.34 1600.48
EXPENDITURE
Materials 16 1206.11 1084.39
Staff and Welfare 17 136.40 136.71
Manufacturing, Selling and Administration 18 211.24 209.11
Interest and Commitment Charges 38.48 64.43
Depreciation 6 44.22 45.25
Miscellaneous Expenditure Amortised / Charged 18.20 29.59
(Refer Note 8)
1654.65 1569.48
Profit Before Exceptional Items and Tax 83.69 31.00
Exceptional Items (Net) (Refer Note 32) 5.83 6.20
Profit Before Tax 89.52 37.20
Provision For Taxation
Current Tax -6.76 -0.25
Deferred Tax 5 -11.93 -8.78
Profit After Tax 70.83 28.17
Brought Forward Loss from Previous Year -13.49 -38.90
Transfer to (-)/ from General Reserve -7.08 0.24
Transfer to Doubtful Debts Reserve -5.09 -3.00
Interim Dividend -15.71 0.00
Final Dividend -20.95 0.00
Corporate Tax On Dividend -4.69 0.00
Balance Carried To Balance Sheet 3.82 -13.49
Earnings Per Share (Basic and Diluted)
- Excluding Exceptional Items Rs. 12.41 4.20
- Including Exceptional Items Rs. 13.52 5.38
Significant Accounting Policies
Notes On Accounts
[A]
[B]
The Schedules referred to above and the notes
attached, form an integral part of the Accounts
Mumbai, 26th May, 2004 Mumbai, 26th May, 2004
As per our report attached.
SHARP & TANNAN B. R. Jaju S. M. Trehan
Chartered Accountants Chief Financial Officer Managing Director
L. Vaidyanathan W. Henriques K. K. Nohria
Partner Secretary Chairman
Membership no 16368
59

Crompton Greaves Ltd.
Schedules forming part of Balance Sheet
As at
As at
31-03-2004 31-03-2003
Rs. Crores Rs. Crores
SCHEDULE 1: CAPITAL
Authorised
6,00,00,000 Equity Shares of Rs.10 each 60.00 60.00
Issued And Subscribed
5,23,75,116 Equity Shares of Rs.10 each 52.37 52.37
Paid Up
5,23,66,656 Equity Shares of Rs.10 each 52.37 52.37
Add: Forfeited Shares
8,460 Equity shares of Rs.10 each 0.00 0.00
Rs.32175 partly paid
52.37 52.37
Of the above, following equity shares were allotted:
3,87,200 pursuant to a contract without
payment being received in cash
1,62,00,000 as fully paid up Bonus Shares by capitalisation
of General Reserve and Securities Premium Account
14,76,566 as fully paid up pursuant to schemes of amalgamation
66,13,750 as underlying shares to an international offering of
Global Depository Receipts (GDRs) in US Dollars
As at Additions Deductions As at
31-03-2003 31-03-2004
Rs. Crores Rs. Crores Rs. Crores Rs. Crores
60
SCHEDULE 2: RESERVES & SURPLUS
Capital Reserve 0.00 19.12 (a) 0.00 19.12
Securities Premium Account 379.82 0.00 152.06 (b) 227.76
General Reserve 0.00 10.74 (c) 0.00 10.74
Revaluation Reserve 17.40 0.00 1.41 (d) 15.99
Government Subsidy 0.10 0.15 0.00 0.25
Investment Allowance (Utilised) Reserve 0.78 0.00 0.06 (e) 0.72
Debenture Redemption Reserve 5.00 0.00 3.60 (f) 1.40
Doubtful Debts Reserve 24.00 5.09 0.00 29.09
Less: Doubtful Debts per contra -23.96 -5.09 0.00 -29.05
403.14 30.01 157.13 276.02
Surplus in Profit & Loss Account -13.49 17.31 0.00 3.82
Transferred from Securities Premium Account 0.00 8.27 (b) 0.00 8.27
-13.49 25.58 0.00 12.09
Total 389.65 55.59 157.13 288.11
Previous year 364.90 25.75 1.00 389.65
Notes:
(a) Rebate on prepayment of certain deferred sales tax liability (Refer Note 27)
(b) Adjustment on account of capital reduction scheme (Refer Note 28)
(c) Transferred from Profit & Loss Account Rs 7.08 crores as per Companies (Transfer of Profits to
Reserve) Rules, 1975 in view of interim and final dividend, Debenture Redemption Reserve Rs 3.60
crores and Investment Allowance (Utilised) Reserve Rs 0.06 crores
(d) Depreciation on revaluation of fixed assets, recouped from Revaluation Reserve Rs 0.30 crores and
Revaluation Reserve written back on assets disposed off Rs 1.11 crores
(e) Transferred to General Reserve since no longer required as per Income Tax Act, 1961
(f) Transferred to General Reserve (Refer Note 31)

Crompton Greaves Ltd.
Schedules forming part of Balance Sheet
SCHEDULE 3: SECURED LOANS
As at
As at
31-03-2004 31-03-2003
Rs. Crores Rs. Crores
Debentures:
(Privately placed with Financial Institutions)
13.50% Secured Non-Convertible Debentures of Rs.100 each
(a) 50,00,000 (VIII Series) redeemable in 18 equal
quarterly instalments due from 15th June, 2000 5.55 16.67
(b) 50,00,000 (IX Series) reedemable in 3 equal
semi-annual instalments due from 1st September, 2002 0.00 16.67
Rupee Term Loans
(a) From Banks 56.75 48.73
(b) From Financial Institutions 12.50 51.45
Cash Credit / Working Capital Demand Loans
From Banks:-
(a) Rupee Loans / Cash Credit 0.00 53.33
(b) Foreign Currency Loans 178.93 128.71
253.73 315.56
As at
As at
31-03-2004 31-03-2003
Rs. Crores Rs. Crores
SCHEDULE 4: UNSECURED LOANS
Fixed Deposits 51.70 72.53
(Repayable within a year Rs. 14.79 Crores;
Previous year Rs.20.52 Crores)
Commercial Paper 0.00 10.00
(Maximum amount outstanding at any time during the year
Rs.10 Crores; Previous year Rs.30 crores)
Inter-corporate Deposits
From Subsidiaries 0.00 3.65
(Maximum amount outstanding at any time during the year
Rs.3.65 Crores; Previous year Rs.3.65 crores)
From Others 2.75 0.00
(Maximum amount outstanding at any time during the year
Rs.2.75 Crores; Previous year Rs.Nil)
Others
a) Interest free Sales Tax Loans and Special Incentive
Loans from Central / State Governments 25.47 56.00
b) Arrears of Preferential Dividend 0.00 0.05
(Due within one year Rs Nil; Previous year Rs.0.05 crores)
c) From Others 0.00 1.43
79.92 143.66
61

Crompton Greaves Ltd.
Schedules forming part of Balance Sheet
SCHEDULE 5: DEFERRED TAX ASSET / LIABILITY (-)
As at
As at
31-03-2004 31-03-2003
Rs. Crores Rs. Crores
Deferred tax asset 81.12 89.90
Less: Adjusted against Securities Premium Account 79.46 0.00
Less: Incremental liability charged to Profit & Loss Account 11.93 8.78
-10.27 81.12
SCHEDULE 6: FIXED ASSETS & DEPRECIATION
GROSS BLOCK (at Cost/Professional Valuation) DEPRECIATION NET BLOCK
As at Additions Deductions As at As at On For the As at As at As at
1-04-2003 31-03-2004 1-04-2003 Deductions Year 31-03-2004 31-03-2004 31-03-2003
Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores Rs. Crores
Land
Freehold 15.19 0.04 0.92 14.31 0.00 0.00 0.00 0.00 14.31 15.19
Leasehold 14.75 0.18 3.72 11.21 2.30 0.78 0.14 1.66 9.55 12.45
Buildings 197.32 2.83 9.39 190.76 41.79 2.55 4.89 44.13 146.63 155.53
Plant & Equipment 454.93 19.72 6.32 468.33 275.88 2.94 32.82 305.76 162.57 179.05
Railway Siding 0.02 0.00 0.00 0.02 0.01 0.00 0.00 0.01 0.01 0.01
Furniture & Fixtures 92.78 5.85 3.07 95.56 72.44 2.60 5.38 75.22 20.34 20.34
Vehicles 10.03 1.51 1.38 10.16 5.61 0.92 1.29 5.98 4.18 4.42
Sub-total 785.02 30.13 24.80 790.35 398.03 9.79 44.52 432.76 357.59 386.99
Capital Work-in-Progress
Buildings 2.14 0.77 0.40 2.51 2.51 2.14
Plant & Equipment 3.44 4.70 2.79 5.35 5.35 3.44
Intangible Assets -
Others
Technical Know-how 1.36 1.65 0.00 3.01 3.01 1.36
Sub-total 6.94 7.12 3.19 10.87 0.00 0.00 0.00 0.00 10.87 6.94
As at 31-03-2004 791.96 37.25 27.99 801.22 398.03 9.79 44.52 432.76 368.46
As at 31-03-2003 773.44 30.78 12.26 791.96 357.75 5.31 45.59 398.03 393.93
(a) Buildings include cost of shares in Co-operative Societies
(b) Gross Block includes Cost of Land & Buildings Rs. 25.50 crores (Previous year Rs.26.61 crores) added on revaluation of these assets on 30/06/1985
(c) Depreciation 31-03-2004 31-03-2003
Rs. Crores
Rs. Crores
Depreciation on fixed assets 44.52 45.59
Less: Transferred from revaluation reserve 0.30 0.34
44.22 45.25
62

Crompton Greaves Ltd.
Schedules forming part of Balance Sheet
SCHEDULE 7: INVESTMENTS
LONG TERM (At Cost)
No. of Shares/ As at As at
Debentures/Units 31-03-2004 31-03-2003
Fully paid up of
Rs.10 each unless
otherwise specified Rs. Crores Rs. Crores
Government and Trust Securities
1 Central Government Securities
10.18% GOI 2026 of Rs. 100 each 39000 0.49 0.49
2 State Government Guaranteed Bonds
10.50% APSDL 2011 of Rs. 100 each 22000 0.25 0.25
3 US 64 Bonds of Rs. 100 each* 167210 1.81 1.63
(On Conversion of US 64 Units)
(Previous year 1630000 units of
Rs 10 each)
2.55 2.37
Trade Investments
Subsidiary companies
1(a) CG Capital & Investments Limited 9500000 9.50 9.50
1(b) CG Capital & Investments Limited
(7% Non-Convertible, Non-Cumulative
Redeemable Preference Shares) 43928044 43.93 43.93
53.43 53.43
Joint Ventures
1 Brook Crompton Greaves Limited 7840000 7.84 7.84
(Formerly CG Brook Hansen Electric
Motors Limited)
2 CG Lucy Switchgear Limited 599993 0.60 0.60
3 CG Maersk Information Technologies 131803 0.16 0.16
Private Limited
4 CG Smith Software Pvt. Limited 9600 0.01 0.01
5 Hitachi CG Motor Engineering Pvt. Ltd 784000 0.78 0.78
6 International Components India Limited 85500 0.09 0.09
7 PAXONET Communications INC.USA 3000000 1.08 1.08
of US $ 0.10 each (Formerly Core El
Microsystems Inc.USA)
8 Power Equipment Limited of US $ 10 each 20600 0.00 0.84
(Current Year - Rs 10)
10.56 11.40
Associate Companies
1 Radiant Electronics Ltd 190000 0.00 0.00
(Current Year - Rs 10; Previous Year - Rs 10)
0.00 0.00
63

Crompton Greaves Ltd.
Schedules forming part of Balance Sheet
SCHEDULE 7 (Contd.): INVESTMENTS
No. of Shares/ As at As at
Debentures/Units 31-03-2004 31-03-2003
Fully paid up of
Rs.10 each unless
otherwise specified Rs. Crores Rs. Crores
Others
1 Ballarpur Industries Limited 0 0.00 4.05
(Previous year - 1119459 shares)
2 CG CoreEl Logic Systems Limited 1810000 1.81 1.81
(7% Non-Convertible, Non-Cumulative
Redeemable Preference Shares)
3 English Indian Clays Limited 120000 0.60 0.60
4 Kale Consultants Limited 4200 0.00 0.00
(Current year Rs.6000; Previous year Rs.6000)
5 Nicco Corporation Limited* 66078 0.03 0.01
2.44 6.47
Other Investments
1 Dinette Exclusive Club Private Limited 5500 0.06 0.06
(Share of Rs.100 each)
2 IDBI Limited* 142720 0.83 0.23
(Including 53520 Bonus Shares)
3 UTI Unit Scheme 2002 88215 0.06 0.00
(Previous Year Nil units)
0.95 0.29
Total 69.93 73.96
31-03-2004 31-03-2003
Book Value Market Value Book Value Market Value
Rs. Crores Rs. Crores Rs. Crores Rs. Crores
Quoted Investments 4.02 5.41 7.27 7.34
Unquoted Investments 65.91 0.00 66.69 0.00
Total 69.93 5.41 73.96 7.34
* Diminution provided during financial year ended 31.03.2003 recouped to the extent of rise in the value
of Investments as per AS - 13
64

Crompton Greaves Ltd.
Schedules forming part of Balance Sheet
SCHEDULE 7 (Contd.): INVESTMENTS
2003-04 2003-04 2002-03 2002-03
Nos. Rs. Crores Nos. Rs. Crores
1 SHARES/SECURITIES PURCHASED
DURING THE YEAR
Central Government Securities Bonds
of Rs 100 each 0 0.00 39000 0.49
State Government Guaranteed Bonds
of Rs 100 each 0 0.00 22000 0.25
US 64 Bonds 4210 0.04 0 0.00
UTI Unit Scheme 2002 Units 88215 0.06 0 0.00
English Indian Clays Limited 0 0.00 120000 0.60
HDFC Liquid Fund - Growth 0 0.00 4192028 5.00
C 52 Chola Liquid Fund - Cumulative 15292665 19.00 0 0.00
C 152 Chola Liquid Inst. Plus Cumulative 4302488 5.50 0 0.00
Deutsche Bank Monthly Fund 3000000 3.00 0 0.00
IL & FS Liquid Account - Institutional Plan 19464739 22.50 0 0.00
J 13 JM High Liquidity Fund Growth Plan 19573644 33.00 0 0.00
J 57 JM High Liquidity Fund 263918657 273.06 0 0.00
Institutional Plan - Growth
NLFG CANLIQUID Fund - Growth 7156723 7.99 0 0.00
GCFG Grindlays Cash Fund - Growth 4781199 5.50 0 0.00
Reliance Monthly Fund 10000000 10.00 0 0.00
379.66 6.34
2 SHARES/SECURITIES SOLD/ 2003-04 2003-04 2002-03 2002-03
DISPOSED DURING THE YEAR Nos. Rs. Crores Nos. Rs. Crores
CG Capital & Investments Ltd
(Preference Shares) 0 0.00 9500000 9.50
CG-Newage Electricals Ltd 0 0.00 760000 0.76
CG Comnet Ltd 0 0.00 30 0.00
CG Global Ltd 0 0.00 30 0.00
CG Hometech Ltd 0 0.00 30 0.00
Ballarpur Industries Limited 1119459 4.05 0 0.00
CG CoreEl Programmable Solutions Pvt. Ltd. 0 0.00 9700 0.01
HDFC Liquid Fund - Growth 0 0.00 4192028 5.00
C 52 Chola Liquid Fund - Cumulative 15292665 19.00 0 0.00
C 152 Chola Liquid Inst. Plus - Cumulative 4302488 5.50 0 0.00
Deutsche Bank Monthly Fund 3000000 3.00 0 0.00
IL & FS Liquid Account - Institutional Plan 19464739 22.50 0 0.00
J 13 JM High Liquidity Fund Growth Plan 19573644 33.00 0 0.00
J 57 JM High Liquidity Fund
Institutional Plan - Growth 263918657 273.06 0 0.00
NLFG CANLIQUID Fund - Growth 7156723 7.99 0 0.00
GCFG Grindlays Cash Fund - Growth 4781199 5.50 0 0.00
Reliance Monthly Fund 10000000 10.00 0 0.00
383.60 15.27
65

Crompton Greaves Ltd.
Schedules forming part of Balance Sheet
31-03-2004 31-03-2003
Rs. Crores Rs. Crores Rs. Crores Rs. Crores
SCHEDULE 8: INVENTORIES
(At lower of Cost or Net Realisable Value)
Stores, spare parts and packing materials 3.31 3.18
Raw materials 49.33 51.26
Work-in-Process - Manufacturing 53.01 50.88
Finished goods 34.21 40.13
139.86 145.45
Work-in-Progress - Contracts
At cost 10.98 14.35
At realisable sales value 143.31 109.71
Less: Progress payments 119.89 76.36
23.42 33.35
34.40 47.70
174.26 193.15
As at
As at
SCHEDULE 9: SUNDRY DEBTORS
Unsecured
Debts outstanding for a period exceeding six months
As at
As at
31-03-2004 31-03-2003
Rs. Crores Rs. Crores Rs. Crores
Considered good 155.16 129.59
Considered doubtful 29.05 23.96
Less: Doubtful debts reserve per contra -29.05 -23.96
Other Debts
0.00 0.00
Considered good 371.69 345.47
526.85 475.06
66
31-03-2004 31-03-2003
Rs. Crores Rs. Crores
SCHEDULE 10: CASH AND BANK BALANCES
Cash on hand 0.68 0.21
Cash at Bank:
On Current Account 8.58 0.76
On Fixed Deposit Account 5.90 10.05
(including interest accrued thereon)
Remittances in transit 60.99 43.72
76.15 54.74
As at
As at

Crompton Greaves Ltd.
Schedules forming part of Balance Sheet
SCHEDULE 11: LOANS AND ADVANCES
(Unsecured, Considered Good, unless otherwise stated)
As at
As at
31-03-2004 31-03-2003
Rs. Crores Rs. Crores
Advances recoverable in cash or in kind or for value to be received 103.72 119.84
Advances to Subsidiaries 8.88 0.11
Balances with excise, customs etc. 4.40 6.50
Inter-corporate deposits with subsidiary companies 0.00 7.03
(Including interest accrued Rs. Nil; Previous year Rs.0.03 crores)
(Maximum amount outstanding during the year Rs.7.03 crores;
Previous year Rs.7.04 crores)
117.00 133.48
SCHEDULE 12: CURRENT LIABILITIES
As at As at
31-03-2004 31-03-2003
Rs. Crores Rs. Crores Rs. Crores
Sundry Creditors:
(a) Due to Small Scale Industrial Undertaking (s) 81.45 90.10
(b) Due to Others 488.33 424.17
(c) Due to Subsidiaries 2.11 1.99
571.89 516.26
Investor Education and Protection Fund
(a) Unpaid Dividend 0.23 0.14
(b) Unpaid Matured Fixed Deposit 0.55 1.22
0.78 1.36
Interest accrued but not due on loans 1.32 0.77
Other Liabilities:
(a) Security Deposit 2.04 5.04
(b) Others 34.36 33.92
36.40 38.96
610.39 557.35
67

Crompton Greaves Ltd.
Schedules forming part of Balance Sheet
SCHEDULE 13: PROVISIONS FOR:
As at
As at
31-03-2004 31-03-2003
Rs. Crores Rs. Crores
Gratuity 3.05 5.25
Leave encashment 6.65 7.78
Proposed Dividend 20.95 0.00
Corporate tax on Dividend 2.68 0.00
Provident Fund 0.86 0.84
Insurance, Pension and similar Staff benefits 3.67 2.69
37.86 16.56
SCHEDULE 14: MISCELLANEOUS EXPENDITURE
(To the extent not written off or adjusted)
As at
As at
31-03-2004 31-03-2003
Rs. Crores Rs. Crores Rs. Crores
Voluntary Retirement Scheme
Opening Balance 59.48 79.02
Add : Additions during the year 1.95 5.67
Less : Charged during the year 7.47 25.21
Less : Adjusted against Securities Premium Account 53.96 0.00
Closing Balance 0.00 59.48
Testing fees
Opening Balance 5.23 3.68
Add : Additions during the year 1.48 3.41
Less: Charged during the year 0.82 1.86
Less: Adjusted against Securities Premium Account 5.89 0.00
Closing Balance 0.00 5.23
Technical know-how
Opening Balance 5.00 6.61
Add : Additions during the year 0.30 0.91
Less: Charged during the year 0.82 2.52
Less: Adjusted against Securities Premium Account 4.48 0.00
Closing Balance 0.00 5.00
0.00 69.71
68

Crompton Greaves Ltd.
Schedules forming part of Profit & Loss Account
SCHEDULE 15: OTHER INCOME
Income from
2003-04 2002-03
Rs. Crores Rs. Crores
a) Lease Rent 1.55 1.63
b) Business Service Centres 6.85 6.51
(TDS deducted Rs. 0.16 crores; Previous year Rs.0.18 crores) 8.40 8.14
Income from Investments 1.49 0.35
Exchange Gain (Net) 6.17 0.00
Profit on sale of fixed assets (Net) 2.42 3.19
Miscellaneous Income 8.54 1.78
27.02 13.46
SCHEDULE 16: MATERIALS
Opening Stock
2003-04 2002-03
Rs. Crores Rs. Crores Rs. Crores
Raw materials 51.26 46.49
Work-in-Process
Manufacturing 50.88 47.67
Contracts 14.35 19.16
116.49 113.32
Finished Goods 40.13 44.83
156.62 158.15
Add: Purchases 1215.72 1096.40
(including Trading Goods Rs.391.95 crores;
Previous Year Rs.278.39 crores)
Less: Scrap Sales 18.70 13.54
Less: Closing Stock
1197.02 1082.86
1353.64 1241.01
Raw Materials 49.33 51.26
Work-In-Process
Manufacturing 53.01 50.88
Contracts 10.98 14.35
113.32 116.49
Finished Goods 34.21 40.13
147.53 156.62
1206.11 1084.39
69

Crompton Greaves Ltd.
Schedules forming part of Profit & Loss Account
SCHEDULE 17: STAFF & WELFARE
2003-04 2002-03
Rs. Crores Rs. Crores
Salaries, Wages and Bonus 110.08 107.53
Provident Fund and Family Pension Scheme Contributions 8.14 7.88
Superannuation Fund Contributions 2.20 1.98
Gratuity (including contributions to Fund Rs.3.05 crores; 3.61 6.86
Previous year Rs.6.32 crores)
Workmen and Staff Welfare 12.37 12.46
136.40 136.71
SCHEDULE 18: MANUFACTURING, SELLING &
ADMINISTRATION
2003-04 2002-03
Rs. Crores Rs. Crores Rs. Crores
Stores and Spare Parts 13.08 12.63
Power and Fuel 19.93 19.93
Repairs
Buildings 1.92 2.18
Plant and machinery 6.23 5.89
Others 3.09 3.45
11.24 11.52
Forwarding, Godown and Packing 45.52 48.24
Advertising 6.97 7.33
Auditors’ Remuneration
Statutory audit fees 0.28 0.28
Tax audit fees 0.08 0.06
Taxation (Rs. Nil ; Previous year Rs.15,000) 0.00 0.00
Certification 0.06 0.03
Other Services 0.13 0.08
Expenses Reimbursed (including Service Tax) 0.09 0.10
0.64 0.55
Rent 4.61 4.54
Rates and Taxes 9.48 10.22
Insurance 4.60 3.59
Bad Debts 7.44 1.56
Vehicle Maintenance 1.21 1.33
Travelling 16.39 14.84
Professional Charges 7.17 7.65
Technical Service Fees 0.49 1.64
Exchange Premium / Difference 0.00 2.42
Miscellaneous Expenses 62.44 61.09
Directors’ Fees 0.03 0.03
211.24 209.11
70

Crompton Greaves Ltd.
Significant Accounting Policies
SCHEDULE [ A ]
1 BASIS OF PRESENTATION
The accounts have been prepared using historical cost convention, except for the revaluation of certain
fixed assets, in accordance with the Generally Accepted Accounting Principles (GAAP) on the accrual basis
and in accordance with the Accounting Standards referred to in Section 211(3C) and other provisions of
the Companies Act 1956. Insurance and other claims are accounted for as and when admitted by the
appropriate authorities.
The preparation of accounts under GAAP requires management to make estimates and assumptions that
affect the reported amounts of assets & liabilities and disclosures of contingent liabilities as at the date of
the financial statements and the reported amounts of revenues and expenses during the year. Actual
results could differ from those estimates. Any revisions to accounting estimates is recognised prospectively
in the current and future periods.
2 FIXED ASSETS
(a)
(b)
(c)
(d)
(e)
(f)
Fixed assets are stated at cost, except for land and buildings added prior to 30th June 1985 which
are stated at revalued cost as at that date based on technical expert’s evaluation report.
Expenditure relating to existing fixed assets is added to the cost of the assets where it increases the
performance / life of the assets as assessed earlier.
Fixed assets are eliminated from financial statements, either on disposal or when retired from active
use. Such assets are removed from fixed asset records on disposal. Generally, such retired assets
are disposed off soon thereafter.
Pre-operative expenses for the projects incurred till the projects are ready for commercial production
are capitalised.
Internally manufactured / constructed fixed assets are capitalised at factory cost including excise
duty wherever applicable.
Lumpsum fees paid for acquisition of technical knowhow relating to Plant & Machinery is capitalised
as intangible asset.
(g) i) Machinery spares which are specific to particular item of Fixed Assets and whose use is irregular
are capitalised as part of the cost of machinery.
ii)
Machinery spares which are not specific to a particular item of Fixed Assets but can be used
generally for various items of Fixed Assets are treated as inventory and charged to Profit and
Loss Account as and when issued for consumption in the ordinary course of operation.
3 INVESTMENTS
Current Investments are carried at lower of cost or market value. The determination of carrying costs of
such investments is done on the basis of specific identification. Long term investments are carried at cost
after providing for any diminution in value, if such diminution is of a permanent nature.
4 INVENTORIES
Inventories are valued at the lower of cost or net realisable value after providing for obsolescence and
damage as under:-
(a) Raw materials, packing materials : At Cost, on FIFO/Weighted average basis
stores & spares and construction
material
(b) Work-in-Process : At Cost plus appropriate production overheads
(c) Construction Work-in-Progress : At Cost till a certain percentage of completion and thereafter
realisable value
(d) Finished goods : At Cost, plus appropriate production overheads, including
excise duty paid/payable on such goods.
71

Crompton Greaves Ltd.
72
SCHEDULE [ A ] (Contd.)
5 FOREIGN CURRENCY TRANSACTIONS
(a) Foreign currency transactions are recorded at the exchange rate prevailing at the time of transactions.
(b) Foreign currency current assets and liabilities are converted at the contracted / year end rate, as
applicable.
(c) Exchange difference on account of acquisition of fixed assets are adjusted to carrying cost of fixed
assets. Other exchange differences are adjusted in the Profit & Loss Account.
(d) The cost of forward exchange contracts is spread over the period of the contract.
6 REVENUE RECOGNITION
Revenues from sales and services is recognised in terms of contract with customers. Revenues from
construction contracts is recognised based on percentage completion after providing for expected losses.
7 RETIREMENT BENEFITS
(a) Provident fund and superannuation contributions are accrued each year in terms of contracts with the
employees.
(b)
Provisions for gratuity and leave encashment are determined and accrued on the basis of actuarial
valuation.
8 DEPRECIATION
(a)
(b)
(c)
(d)
(e)
Depreciation on the fixed assets is provided at the rates and in the manner specified in Schedule XIV
of the Companies Act, 1956, on written down value method other than on buildings and plant and
equipment which are depreciated on a straight line method.
Building constructed on leasehold land are depreciated at normal rate as prescribed in Schedule XIV
of the Companies Act, 1956 where the lease period of land is beyond the life of the building.
Lumpsum amounts paid for leasehold land are amortised and charged to depreciation over the
primary lease periods except where the option of refund is available.
In the case of revalued assets the difference between the depreciation based on revaluation and the
depreciation charged on historical cost is recouped out of revaluation reserve.
The intangible assets are amortised over its estimated useful life.
9 BORROWING COSTS
Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are
capitalised as part of the cost of such assets. A qualifying asset is an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale. All other borrowing costs are
recognised as expense in the period in which they are incurred.
10 TAXES ON INCOME
(a) Tax on income for the current period is determined on the basis of estimated taxable income and tax
credits computed in accordance with the provisions of the Income Tax Act, 1961 and based on the
expected outcome of assessments / appeals.
(b) Deferred tax is recognised on timing difference between the accounting income and the estimated
taxable income for the period and quantified using the tax rates and laws enacted or substantively
enacted on the balance sheet date.
(c) Deferred tax assets which arise mainly on account of unabsorbed losses or unabsorbed depreciation
are recognised and carried forward only to the extent that there is virtual certainty supported by
convincing evidence that sufficient future taxable income will be available against which such deferred
tax assets can be realised.
11 CONTINGENCIES AND EVENTS OCCURRING AFTER THE BALANCE SHEET DATE
(a)
(b)
Accounting for contingencies (gains and losses) arising out of contractual obligations, are made only
on the basis of mutual acceptances.
Where material events occurring after the date of balance sheet are considered upto the date of
approval of the accounts by the Board of Directors.

Crompton Greaves Ltd.
Notes On Accounts
SCHEDULE [B] 2003-04 2002-03
Rs. Crores Rs. Crores
1 No provision has been made for
(a) Excise Duty demands which have been disputed
by the Company (Net of income tax) 2.69 8.51
(b) Sales tax demands which have been disputed by
the Company (Net of income tax) 1.87 1.83
2 Contingent liability, not provided for, in respect of
(a) Claims against the Company not acknowledged as
debts (Net of income tax) 0.55 0.65
(b) Show Cause Notice issued by the Custom
Authorities for levy of penalty under Section 127
of the Customs Act which have been disputed by Amount not Amount not
the Company Ascertainable Ascertainable
(c) Bills discounted 38.78 65.70
(d) Guarantees to bankers, financial institutions and
others on behalf of Associate Companies 7.17 9.62
(e) Income tax appeals/reference applications made
by the income tax department against the orders
passed by the Appellate Authorities in favour of the
Company in case the ultimate decision is against
the Company 9.86 9.36
(f) Excise matters in dispute decided in favour of the
Company at Appellate Level for which the Department
is in Appeal before CEGAT. 7.18 6.22
3 Provision for tax for the year represents wealth tax
provision made under Wealth Tax Act, 1957 0.20 0.25
4 Estimated amount of contracts remaining to be
executed on Capital Account and not provided for
(Net of advances) 14.44 2.71
5 Sales include
(i)
Increase / Decrease ( - ) in construction
work-in-progress:
Closing work-in-progress 143.31 109.71
Less: Opening work-in-progress 109.71 43.54
33.60 66.17
and are net of:
(i) Brokerage and commission 9.46 10.22
(ii) Cash discount 8.40 7.34
6 Disclosure under AS-7 (Revised) “Construction Contracts”
(i) Contract revenue recognised for the year 149.97 145.48
(ii) Advance received 14.36 7.20
(iii) Retentions 41.02 27.00
(iv) Amount of Contract costs incurred 136.06 138.05
7 Following expenses have been capitalised during the year
(a) Materials 1.00 0.44
(b) Staff and welfare 0.83 1.14
(c) Manufacturing expenses 0.69 1.05
8 Miscellaneous expenditure amortised upto 31st July 2003
relates to (Refer Note 28 below)
(a) Testing Fees 0.82 1.86
(b) Payments under Voluntary Retirement Schemes 7.47 25.21
(c) Technical Know-How Fees 0.82 2.52
9.11 29.59
73

Crompton Greaves Ltd.
74
SCHEDULE [B] (Contd.) 2003-04 2002-03
Rs. Crores Rs. Crores
9 Effects of changes in foreign exchange rates:
{Gain (+) / Loss (-) }
Exchange difference charged to Profit & Loss Account
(i) On account of forward contracts taken during the
year pertaining to future accounting period -0.01 -0.04
(ii) Others 6.18 -2.38
6.17 -2.42
10 Interest and commitment charges include interest on
(a) Fixed loans 18.98 30.07
(b) Debentures 2.79 8.17
(c) Others 17.78 28.11
(d)
39.55 66.35
Less: Interest income (including tax deducted at
source Rs.0.16 crores; Previous year Rs.0.20 crores) 1.07 1.92
38.48 64.43
11 Advances recoverable in cash or in kind or for value
to be received include:
(a) Advances to associate company pending allotment of
shares - Globalstar India Satellite Services Private Limited 1.16 1.16
(b) Rent deposit with Directors 0.20 0.20
(c) Due by an Officer Rs.Nil (Previous year Rs.Nil
(Maximum amount outstanding at any time during
the year Rs.Nil; Previous year Rs.7170) 0.00 0.00
12 Value of imports (On C.I.F. basis)
(a) Raw materials 75.60 79.90
(b) Spare parts 0.71 0.74
(c) Capital goods 5.11 1.45
(d) Trading goods 17.35 24.81
13 Expenditure in foreign currency
(a) Technical assistance / Service fee 0.13 0.62
(b) Professional charges 0.50 0.14
(c) Interest 0.16 0.21
(d) Others 9.76 11.79
14 Remittance in Foreign Currency on account of Dividend (Interim):-
(a) Number of Non-resident Shareholders 505 -
(b) Number of Shares held 8266008 -
(c) Amount of Dividend 2.48 -
(d) Year to which dividend relates 2003-04 -
15 Earnings in foreign currency
(a) Export of goods on F.O.B. basis including deemed
exports Rs.100.95 crores (previous year Rs.63.94 crores) 279.85 260.92
(b) Service Revenue 1.64 0.37
(c) Others 1.11 0.31
16 Arrears of preferential dividend of an amalgamated
company payable in nine equal installments in terms of
BIFR Order and the Scheme of Amalgamation. 0.00 0.05
17 Excise duty included in the value of closing finished goods inventory 1.93 2.99
18 Interest on delayed payments to small scale industrial
undertakings (gross) 0.17 0.53
19 Expenditure on Research & Development
(a) Capital 2.86 1.51
(b) Revenue 13.25 13.08

Crompton Greaves Ltd.
SCHEDULE [B] (Contd.)
20 Raw Materials Consumed: Unit Quantity 2003-04 Quantity 2002-03
Rs. Crores
Rs. Crores
Ferrous Metals Ton 32526 198.41 35164 181.86
Non-ferrous Metals Ton 10402 170.13 11659 161.61
Chemicals, Oils and Paints K.Ltr 9971 34.40 8345 30.02
Wires, Pipes, Tubes and
Cables K.Mtr 13111 14.75 13691 15.01
Components M.Pc 534 387.10 549 408.04
Others 20.91 16.70
825.70 813.24
21 Consumption of Raw Material and Percentage 2003-04 Percentage 2002-03
Spare Parts: of total of total
Consumption Rs. Crores Consumption Rs. Crores
Raw Materials:
Imported 9.88 81.58 11.56 94.01
Indigenous 90.12 744.12 88.44 719.23
825.70 813.24
Spare Parts:
Imported 27.15 0.41 25.66 0.29
Indigenous 72.85 1.10 74.34 0.84
1.51 1.13
22 Sales Unit Quantity 2003-04 Quantity 2002-03
Rs. Crores
Rs. Crores
a) Transformers,
Reactors and
Accessories thereof Nos 8646 397.50 7338 337.71
b) Switchgears, Control
Equipments and
Accessories thereof Nos 152552 266.12 110516 227.43
c) Motors, Alternators
and Pumps Nos 860024 412.46 1112656 355.28
d) Electrical steel
Stampings and
Laminates M.Ton 2362 15.26 2205 12.16
e) Electric Fans,
Ventilation Control
Systems Nos 2562632 231.09 1893562 206.86
f) Electric Lamps M.Nos 39 85.40 36 78.42
g) Communication,
Computer system
Software and
Accessories 21.96 108.69
h) Service Revenue 30.63 46.94
I) Others 400.63 352.90
1861.05 1726.39
1 Quantitative figures for Sales are after exclusion of inter-divisional transfers, capitalisation/captive
consumption, samples, etc.
2 Sales include Excise Duty Rs.149.73 crores (Previous year Rs.139.37 crores)
75

Crompton Greaves Ltd.
SCHEDULE [B] (Contd.)
23 Details of licensed capacity, installed capacity and actual production during the year of each class of
goods manufactured :
Sl. Products Unit Licensed Capacity *Installed Capacity @Actual Production
No. 2003-04 2002-03 2003-04 2002-03 2003-04 2002-03
1 Transformers, KVA 90,00,000+(l) 90,00,000+(l) 1,85,00,000 1,85,00,000 1,31,17,016 1,13,60,460
Reactors and Nos 19,687 19,687 17,800 50,750 8,654 6,765
Accessories +(c)+(f)+(l) +(c)+(f)+(l) +(c)+(f) +(c)+(f)
thereof
2 Switchgear, Nos 1,22,000 72,000 2,47,000 2,01,550 1,74,720 1,18,417
Control + (l) + (l)
Equipment &
Accessories
thereof
3(a) Motors, HP 14,39,250+(l) 14,39,250+(l) 42,98,570 42,07,104 28,91,502 19,42,261
Alternators Nos 1,98,835+(l) 1,98,835+(l) 16,19,500 16,76,500 8,64,824 9,18,907
and Pumps MW Nil 120 Nil 120 Nil Nil
(b) Electrical Steel MT 7,500+(l) 7,500+(l) 10,000 10,000 10,102 9,593
Stamping &
Laminates
4 Electric Fans, Nos 10,00,000 10,00,000 28,50,000 28,56,000 17,11,694 17,45,368
Ventilation, & +(l)+(r) +(l)+(r)
Pollution Control
Systems
5 Lighting - M.Pcs 19.46+(I) 19.46+(I) 68 88 30 32
Electric Lamps
6 Communication,
Computer Rs. 4 crores 4 crores Nil 4 crores Nil Nil
Systems, Software Nos. 4,75,000+(l) 4,75,000+(l) 3,83,000 3,83,000 5,094 27,269
& Accessories Lines 1,20,000+(l) 1,20,000+(l) 3,80,000 3,80,000 NIL 1,13,500
7 Other Items Rs. (l) (l) Nil 10 crores Nil Nil
Nos. 24,00,250 24,00,350 24,05,550 24,05,970 32,856 9,18,164
System 700 700 700 700 Nil Nil
* Installed Capacities are as certified by the Managing Director on which Certificate the Auditors have placed reliance.
@ The production figures are as per returns submitted to Department of Industrial Development.
(c) To the extent required for Switchgear manufacture and supply to Associates.
(f) To the extent required for captive use.
(h) Within the overall existing licenced capacity of Motor Control Gear.
(l) Under the liberalised Industrial Policy of Government of India, the Company got the capacities approved by way of
Acknowledgements against the IEMs submitted by it.
(r) Registered; Capacity not specified.
76

Crompton Greaves Ltd.
SCHEDULE [B] (Contd.)
24 INVENTORIES
Products Unit 2003-04 2002-03 2001-02
Quantity Value Quantity Value Quantity Value
Rs.Crores Rs.Crores Rs.Crores
a) Transformers,
Reactors and
Accessories
thereof Nos 88 2.74 80 2.26 44 1.22
b) Switchgears,
Control
Equipment
and
Accessories
thereof Nos 392 0.25 837 0.88 587 1.49
c) Motors,
Alternators
and
Pumps Nos 8072 3.27 11787 6.33 32267 12.38
d) Electrical
steel
stampings
and
Laminations M.Ton 382 2.51 406 2.68 483 2.70
e) Electric fans
Ventilation
control
systems Nos 76639 6.10 85193 7.48 117849 9.20
f) Electric
Lamps M.Nos 1.32 3.23 1.93 4.32 1.85 2.70
g) Communication
computer
system,
Software and
Accessories 3.84 3.41 2.81
h) Others 12.27 12.77 12.33
34.21 40.13 44.83
25 Secured Loans - Securities are as under :-
(a) The Debentures (VIII Series) aggregating Rs.5.55 crores (Previous year Rs.16.67 crores ) are secured
by first charge / mortgage over specific movable / immovable properties of the Company
(b) The Debentures (IX Series) aggregating Rs.Nil (Previous year Rs.16.67 crores) are secured by first
charge on specific immovable properties of the company and specific movable assets of the company.
(c) Term loans from banks and financial institutions amounting to Rs.69.25 crores (Previous year Rs.100.18
crores) are secured by way of equitable mortgage of land and building and by way of hypothecation
of specific plant and equipment.
(d) Cash Credit / Working Capital Demand Loans from Banks aggregating to Rs.178.93 crores (Previous
year Rs.182.04 crores) includes Rs.178.93 crores Foreign Currency Loans (Previous year Rs.128.71
crores) are secured by hypothecation of stocks and book debts, present & future.
26 Names of suppliers being Small Scale Industrial Undertakings to whom the Company owes a sum which is
outstanding for more than thirty days as on 31st March 2004 are as per annexure. The Information
regarding small scale industrial undertakings has been determined to the extent such parties have been
identified on the basis of information available with the company.
77

Crompton Greaves Ltd.
SCHEDULE [B] (Contd.)
27 During the year, the Company prepaid certain deferred sales tax liabilities in accordance with the scheme
formulated by the State Government of Maharashtra for such optional prepayments. Based on an expert’s
opinion, the resultant surplus of Rs.19.12 crores, representing the excess of the recorded liability over the
amount paid has been credited to “Capital Reserve”.
28 Pursuant to the approval by shareholders at the Annual General Meeting held on 22nd July 2003, the
company had filed petition in the High Court of Judicature at Mumbai and the said High Court had
approved the Capital Reduction vide its Order dated 15th September 2003. Accordingly, the balances of
the undermentioned accounts as on 31st July 2003 have been adjusted against the Securities Premium
Account:
Rs. Crores
(i) Voluntary retirement scheme 53.96
(ii) Technical know how 4.48
(iii) Testing fees 5.89
(iv) Deferred tax asset 79.46
(v) Debit balance in Profit & Loss Account 8.27
152.06
29 The company, with effect from 1st August 2003, has charged to Profit and Loss Account the entire
expenditure on voluntary retirement scheme, as against amortising these expenditure over five years as in
the past. Had these amounts been amortised as in the past, profit before tax for the year would have been
Rs.95.54 crores (as against the reported figure of Rs.89.52 crores), reserves and surplus would have
been Rs.294.13 crores (as against the reported figure of Rs.288.11 crores).
30 The Company has charged to the profit and loss account Rs.8.46 crores (Previous year Rs. 20.95 crores)
under voluntary retirement scheme (VRS) in respect of closed units / closed departments of certain
running units. The company, based on legal opinion, has not considered this amount as deduction for the
purpose of computation of net profits for managerial remuneration. The Company has been legally advised
that for the purpose of calculating profit / loss under Sections 349/350, depreciation should not be
included in the excess of expenditure over income.
31 (a) During the year 13.50% Secured Non-Convertible Debentures (IX series) were fully redeemed and
instalments pertaining to 13.50% Secured Non-Convertible Debenture (VIII Series) were paid as per
stipulation.
(b) In view of the above, no amount is required to be transferred to Debenture Redemption Reserve (DRR)
in accordance with the General Circular No.9/2002 dated 18-04-2002 issued by the Department of
Company Affairs. The amount outstanding to the credit of DRR as on 31-03-2004 was in excess of
the requirements amounting to Rs.3.60 crores has been transferred to the credit of General Reserve.
32 Exceptional items in the Profit & Loss account pertain to :
(a)
2003-04 2002-03
Rs. Crores Rs. Crores
Profit on sale of investment in CG Newage Electrical Ltd and
lumpsum in lieu thereof 0.00 20.90
(b) Diminution in Value of Advances -3.25 -2.73
(c)
Decline in value of certain Long Term Investments net of
write back of earlier decline Rs.0.75 crores -0.09 -11.97
(d) Profit on sale of Land & Building situated at Worli 4.80 0.00
(e) Profit on sale of Land & Building situated at Bhandup 4.37 0.00
5.83 6.20
78

Crompton Greaves Ltd.
SCHEDULE [B] (Contd.)
33 (a) In view of the set off of accumulated losses / unabsorbed depreciation available to the company
under section 72A of the Income Tax Act, 1961 there is no tax liability on the company except u/s
115JB of the Act for which necessary provision has been made.
(b) Deferred Tax assets & liabilities are attributable to the following items:
Rs. Crores
Deferred tax Charge(-)/ Deferred tax
Particulars assets/ Credit assets/
(liabilities) as
(liabilities) as
at 01.04.2003 at 31.03.2004
Deferred Tax Asset
Expenses allowable for tax purposes when paid/
on payment of TDS 4.34 -2.57 1.77
Unabsorbed carried forward tax losses/depreciation 130.70 -25.30 105.40
Others 4.52 10.38 14.90
139.56 -17.49 122.07
Deferred Tax Liability
Difference between Tax and Book written down value 56.56 3.68 52.88
Expenditure under Voluntary retirement scheme of
earlier years 1.88 1.88 0.00
58.44 5.56 52.88
81.12 -11.93 69.19
Note:
The deferred tax liability is computed after netting off adjustments made to Securities Premium Account as
per scheme of capital reduction sanctioned by High Court of Judicature at Mumbai (Refer Note 28 above).
34 (a) In respect of disclosure under “Accounting Standard 18” regarding reporting of related party
transactions, the company has obtained legal opinion for matters required to be disclosed under the
said Standard and accordingly information required under the Standard has been given.
(b) Disclosures as required by Accounting Standard 18 “Related Party Disclosure” in respect of transactions
for the year ended 31st March 2004 are as under:-
1 Relationships:
i) Subsidiaries:
a) CG Capital & Investments Limited is the 100% subsidiary of the company.
b) CG PPI Adhesive Products Limited.
CG Capital & Investments Limited holds 81.42% of Equity Share Capital in this Company
c) CTR Manufacturing Industries Limited.
CG Capital & Investments Limited holds 82.06% of Equity Share Capital in this Company
ii) Associates:
a) Brook Crompton Greaves Limited
b) CG Actaris Electricity Management Limited
c) CG Lucy Switchgear Limited
d) CG Maersk Information Technologies Private Limited
e) CG Smith Software Private Limited
f) Hitachi CG Motor Engineering Private Limited
g) International Components India Limited
h) Karamchand Thapar (Africa) Limited, Mauritius
i) Paxonet Communications Inc. USA
j) Power Equipment Limited, Dubai
iii)
k) Radiant Electronics Limited
Key Management Personnel
Mr SM Trehan - Managing Director
iv) Relatives of Managing Director :
a) Mrs Mira Trehan
b) Mr Amitoj Trehan
c) Ms Ritambhara Trehan
d) Dr Om Prakash Trehan
e) Mrs Vimla Trehan
f) Mrs Navnidhi Nagrath
g) Mrs Madhur Chopra
79

Crompton Greaves Ltd.
SCHEDULE [B] (Contd.)
2 The following transactions were carried out with the related parties in the ordinary course of business:
2003-04 2002-03
Rs. Crores
Sl Transactions Subsidiaries Associate Total Subsidiaries Associate Total
No Companies Companies
1 Purchases of goods 11.47 9.17 20.64 6.56 8.18 14.74
2 Sales of goods &
service revenue 0.03 0.51 0.54 0.02 10.79 10.81
3 Interest expense 0.36 0.93 1.29 0.00 0.50 0.50
4 Dividend received 0.00 0.96 0.96 0.00 0.00 0.00
5 Commission received 0.00 0.01 0.01 0.00 0.02 0.02
6 Rent income 0.00 0.03 0.03 0.00 0.06 0.06
7 Interest income 0.48 0.00 0.48 0.76 0.00 0.76
8 Due to related parties
as at year end 2.11 9.60 11.71 1.99 7.73 9.72
9 Due from related parties
as at year end 0.00 0.12 0.12 0.06 0.36 0.42
10 Loan/ Inter corporate
deposits taken Balance
as at year-end 0.00 2.75 2.75 3.65 0.00 3.65
11 Loan/ Inter corporate
deposit placed Balance
as at year-end 8.88 0.00 8.88 7.14 0.00 7.14
3 Remuneration to Managing Director, Key Managerial Personnel Rs.1.96 crores (Previous year Rs.0.68
crores)
4 Transactions with relatives of Managing Director Rs.Nil (Previous year Rs.Nil)
80
35 Earnings per share (EPS) computed in accordance with Accounting Standard 20 “Earnings Per Share”
Particulars 2003-04 2002-03
No. of Shares issued of Rs.10/- each 52366656 52366656
Basic and Diluted EPS
(a) EPS excluding exceptional items
Numerator
Profit/(Loss) for the year after tax Rs. 650019351 219714185
(b) EPS including exceptional items
Numerator
Profit / (Loss) for the year after tax Rs. 708357568 281735038
(c) Denominator
Weighted average number of equity shares Nos 52366656 52366656
(d) Earnings per Share ( Basic & Diluted )
= Numerator / Denominator
(i) Excluding exceptional items Rs. 12.41 4.20
(ii) Including exceptional items Rs. 13.52 5.38

Crompton Greaves Ltd.
SCHEDULE [B] (Contd.)
36 The disclosure in respect of Segment information for the year ended 31st March, 2004
I Primary Segments (Business Segment)
Rs.Crores
Power Consumer Industrial Digital Eliminations/ Total
Particulars System Products System Unallocable 2003-04
Expenditure/
Assets*
Segment Revenue 755.32 611.88 439.70 54.15 0.00 1861.05
Add: Inter segment Revenue 0.25 1.75 14.14 0.06 -16.20 0.00
Total 755.57 613.63 453.84 54.21 -16.20 1861.05
Segment Results 64.03 53.62 40.80 -10.36 0.00 148.09
Less: Interest 38.48
Less: Other Unallocable
Expenditure Net of
Unallocable Income 20.09
Profit before tax 89.52
Capital Employed:
Segment Assets 558.47 183.69 215.88 60.45 314.16 1332.65
Segment Liabilities 284.38 145.78 120.77 19.64 77.68 648.25
Net Assets 274.09 37.91 95.11 40.81 236.48 684.40
Capital Expenditure 16.31 1.70 9.30 0.56 -7.71 20.16
Depreciation 15.91 8.43 14.08 1.22 4.58 44.22
Non Cash Expenditure 2.47 3.16 3.11 0.13 0.24 9.11
* Unallocable Assets comprise Assets and Liabilities which cannot be allocated to the segments.
Tax Credit Asset/Liability not considered in Capital Employed above.
Rs.Crores
Power Consumer Industrial Digital Eliminations/ Total
Particulars System Products System Unallocable 2002-03
Expenditure/
Assets*
Segment Revenue 690.70 532.94 376.54 126.21 0.00 1726.39
Add: Inter segment Revenue 0.02 0.98 15.89 0.03 -16.92 0.00
Total 690.72 533.92 392.43 126.24 -16.92 1726.39
Segment Results 63.04 42.95 23.37 3.65 0.00 133.01
Less: Interest 64.43
Less: Other Unallocable
Expenditure Net of
Unallocable Income 31.38
Profit before tax 37.20
Capital Employed:
Segment Assets 508.85 233.70 247.97 87.46 316.05 1394.03
Segment Liabilities 229.66 128.01 113.76 50.63 51.85 573.91
Net Assets 279.19 105.69 134.21 36.83 264.20 820.12
Capital Expenditure 12.81 -0.13 7.12 0.66 3.55 24.01
Depreciation 15.00 9.56 13.96 2.60 4.13 45.25
Non Cash Expenditure 6.73 11.88 8.99 1.20 0.79 29.59
* Unallocable Assets comprise Assets and Liabilities which cannot be allocated to the segments.
Tax Credit Asset/Liability not considered in Capital Employed above.
81

Crompton Greaves Ltd.
SCHEDULE [B] (Contd.)
II
Secondary Segment (Geographical Segment)
(a)
The distribution of the company’s sales by geographical market is as under:
Rs. Crores
Sales Revenue: 2003-04 2002-03
India 1673.47 1519.40
Outside India 187.58 206.99
Total 1861.05 1726.39
82
(b) The company’s tangible fixed assets are located entirely in India.
III Segment Identification, Reportable Segment and Definition of each Reportable Segment:
(i) Segment Revenue and Results
The expenses which are not directly attributable to any business segment are shown as unallocable
expenditure
(ii) Segment Assets and Liabilities
Segment assets include all operating assets used by the business segment and mainly consist of
fixed assets, debtors and inventories. Segment liabilities primarily include creditors and other
liabilities. Common Assets and Liabilities which cannot be allocated to any of the segments are
shown as a part of unallocable assets / liabilities.
(iii) Primary / Secondary Segment Reporting Format:
1 The risk-return profile of the Company’s business is determined predominantly by the nature
of its products and services. Accordingly, the business segment constitutes the primary
segment for disclosure of segment information.
2 In respect of secondary segment information, the Company has identified its geographical
segments as (a) Domestic and (b) Overseas. The secondary segment information has been
disclosed accordingly.
(iv) Segment Identification:
Business segments have been identified on the basis of the nature of products / services, the
risk-return profile of individual business, the organizational structure and the internal reporting
system of the Company.
(v) Reportable Segments:
Reportable segments have been identified as per the quantitative criteria specified in “Accounting
Standard-17 Segment Reporting” issued by the Institute of Chartered Accountants of India.
(vi) Primary Segment
In the opinion of the management, the business segment comprises the following :
(a) Power Systems : Transformer, Switchgear, Turnkey Projects
(b) Consumer Products : Fans, Luminaires, Light Sources and Pumps
(c) Industrial Systems : Electric Motors and Alternators
(d) Digital : Telecommunication
37 (a) The Company has not entered into any Finance / Operating Lease as specified in AS-19 “Leases”. The
Company has however taken various residential/commercial premises and plant & machinery under
cancellable operating lease. These lease agreeements are normally renewed on expiry.
(b) The lease agreements provide for an option to the company to renew the lease period at the end of
the non-cancellable period.
(c) There are no exceptional / restrictive covenants in the lease agreements.
38 Disclosure in respect of Joint Ventures:-
For the purposes of disclosure pertaining to AS-27, all Joint Venture Companies have been considered as
Associates since these Joint Venture Companies do not fulfill the criterian specified in AS-27.

Crompton Greaves Ltd.
SCHEDULE [B] (Contd.)
39 Managerial Remuneration :
Computation of Net Profits in accordance with the provisions of Section 349 of the Companies Act, 1956
Rs. Crores
Particulars 2003-04 2002-03
Computation of Net Profits in accordance with
the provisions of Section 349 of the
Companies Act, 1956
Net Profit Before Tax as per Profit & Loss Account 89.52 37.20
Add:
VRS for Closed Units
(Refer Note 30 above) 8.46 20.95
Bounties on prepayment of sales tax
deferral liability 19.12 0.00
Managerial remuneration 1.96 0.68
Directors sitting fees 0.03 0.03
Revenue profit on sale of fixed assets 8.86 3.19
Government subsidy received 0.15 0.10
Advance written off 3.25 41.83 2.73 27.68
Less: Profit on sale of investments 4.38 8.93
Profit on sale of fixed assets 11.59 15.97 3.19 12.12
Less: Excess of expenditure over income
As calculated under section 349
Brought forward from previous years
(Refer Note 30 above) 42.09 140.10
Net Profit / Loss (-) in terms of Section 349 73.29 -87.34
Net profit for the purpose of Sec. 309
Maximum remuneration as per Sec.309 @ 5%
Rs.73.29 crores
Rs. 3.66 crores
Remuneration to Managing Director / Directors
Rs. crores
charged to accounts : 2003-04 2002-03
(a) Salaries and incentives 1.75 0.46
(b) Contribution to provident and other funds 0.13 0.14
(c) Other perquisites 0.08 0.08
1.96 0.68
Based on the Expert’s opinion, Net Loss for the purposes of Managerial Remuneration in accordance with
Section 349 has been re-computed for the financial year 2002-03.
40 The management has suspended the operations w.e.f. 22nd April 2003 in respect of the following
Divisions:-
(a) Capacitor-Pune, (b) Industrial Electronics-Satpur, Nasik and (c) Digital (Informatics)-Bangalore.
83

Crompton Greaves Ltd.
SCHEDULE [B] (Contd.)
41 There are no amounts due and outstanding to be credited to Investor Education and Protection Fund.
42 Miscellaneous income includes profit on sale of investment Rs.4.47 crores (Previous year Rs.Nil).
43 Particulars in respect of Loans and Advances in the nature of loans as required by the Listing Agreement:-
Rs. Crores
Name of the Company Balance as on Maximum
outstanding during
31.03.2004 31.03.2003 2003-04 2002-03
A. Loans and advances in the nature of
loans given to subsidiaries:-
CG Capital & Investments Limited 8.88 0.00 8.88 0.00
CG PPI Adhesive Products Limited 0.00 4.02 4.02 4.03
CTR Manufacturing Industries Limited 0.00 3.01 3.01 3.01
B. Loans and advances in the nature of loans
given to associates 0.00 0.00 0.00 0.00
C. Loans and advances in the nature of loans
where repayment schedule is not specified
DBH International Limited 1.75 1.75 1.75 1.75
CG Capital & Investments Limited 8.88 0.00 8.88 0.00
D. Loans and advances in the nature of loans
where interest is not charged
CG Capital & Investments Limited 8.88 0.00 8.88 0.00
44 Prior year figures have been reclassified where necessary to confirm with the current year’s presentation.
84

Crompton Greaves Ltd.
Balance Sheet Abstract and Company’s General Business Profile
Additional information, as required under Part IV of Schedule VI to The Companies Act, 1956
I Registration Details:
Registration Number 2641
State Code 11
Balance Sheet Date 31st March, 2004
II Capital Raised during the year: Rs.’000
Public issue —
Rights issue —
Bonus issue —
Private placement —
On amalgamation for consideration other than cash —
III Position of Mobilisation and Deployment of Funds: Rs.’000
Total Liabilities 6844108
Total Assets 6844108
Sources of Funds:
Paid up capital 523699
Reserves and surplus 2881176
Secured loans 2537334
Unsecured loans 799199
Deferred tax liability 102700
Application of Funds:
Net fixed assets 3684608
Investments 699297
Net current assets 2460203
IV Performance of the Company : Rs.’000
Turnover (including Other Income) 18880702
Total expenditure 18043783
Profit before exceptional items and tax 836919
Profit before tax 895257
Profit after tax 708357
Earning per share (Rs.) 13.52
Dividend rate %
Interim 30%
Final 40%
V
Generic names of the principal products, services of the Company:
Product Description
Item Code No.
(ITC Code)
Transformers 85.04
Switchgears and power control equipment 85.35
Fans, light sources and luminaires 84.14
Electrical motors and alternators 85.01
Telecom 85.17
Mumbai, 26th May, 2004 Mumbai, 26th May, 2004
As per our report attached.
SHARP & TANNAN B. R. Jaju S. M. Trehan
Chartered Accountants Chief Financial Officer Managing Director
L. Vaidyanathan W. Henriques K. K. Nohria
Partner Secretary Chairman
Membership no 16368
85

Crompton Greaves Ltd.
Annexure to Schedule B (Refer Note No. 26) : List of Small Scale Industrial Undertakings
86
1 A.J.SERVICES
2 ABSOSIL PRODUCTS
3 ALERT ENGG ENTERPRISES
4 ALPHA INDUSTRIES
5 ALWAYE ENGINEERING
6 ANURADHAR ENGINEERING WORKS
7 APEX LUMINAIRES PVT.LTD.
8 APM PLAST
9 ARISTO FOILS MFG. CO
10 ASHOKA ELECTRONICS
11 ASHWINI INDUSTRIES.
12 ASSOCIATED COMML. ENTERPRISES
13 ASSOCIATED TELECOM PRODUCTS
14 ATVUS INDUSTRIES
15 AUDLER & MANUFACTURING CO.
16 BARODA BUSHING
17 BARODA BUSHING AND INSULATIONS
18 BESTLITE ELECTRICALS P.LTD
19 BHAGWATI STEEL WORKS
20 BHARAT CORUB INDS
21 BHARTI MECHANICALS WORKS
22 BHAVNA INDUSTRIAL CORPORATON
23 BHAWANI INDUSTRIES
24 BHAWANI UDYOG
25 CAPS & CAPS PVT.LTD.
26 CHAKRADHAR ENGG P LTD
27 CHIRAG ENGINEERING
28 CHURI ELECTROMECH
29 COMET BRASS PRODUCTS
30 CONWELD ENGINEERING SERVICES
31 CORTICA MFG. INDS
32 DASHMESH ENG WORKS
33 ELECTRO MECHANICALS
34 ELECTROCRAFT ENTERPRISES
35 ENN KAY ENGINEERING COMPANY
36 EVERGREEN ENGG CO LTD-WORKS III
37 EVERGREEN ENGINEERING CO. LTD.-II
38 EVONNE
39 FALLS INDS
40 FIBER GLASS INSULATION
41 FORWARD ENGINEERING INDUSTRIES
42 GEE CEE OSWAL ENTERPRISES
43 GENERAL ELECTRO MECH
44 GLASS FIBRE AND ALLIED IND
45 GLOSTAR ELECT. PVT. LTD,
46 GOVIK ELECTRICALS P LTD
47 GUPTA INDUSTRIAL CORPORATION
48 HARGOBIND ELECTRICALS
49 HEMANT ENGINEEREING WORKS
50 HINDUSTAN FORGING
51 HITECH AGRO INDUSTRIES
52 HUPEN ELECTROMECH P LTD
53 INDIAN CABLE TRANS CORPN
54 INDIAN METALS AND ALLOYS
55 INTERFACE DEVICES
56 JOY ENGINEERING
57 JUPITER ENGG WORKS
58 JYOTI RUBBER ENGINNER
59 JYOTI STEELS
60 K.C.FIXTURES
61 KANPUR LACE WORKS
62 KAPOOR INSULATION(P) LTD.
63 KAY FLURO ELECTRONICS PVT. LTD.
64 KAYLITES ELECTRICALS PVT. LTD.
65 KHANDELWAL INDUSTRIES
66 KIRAN UDYOG
67 KRISHNA METAL WORKS
68 LATHA PLASTRONICS
69 LEOTECH
70 M.K.LIGHTING EQUIPMENT PVT. LTD.
71 MAGNA INDUSTRIES
72 MANDA ENGINEERING
73 MANIXON INDUSTRIAL CORPORATION
74 MASCOT INDUSTRIES
75 MAXWEL MAGNETICS
76 MEET ENGG PVT. LTD.
77 MERLIN MACHINEFABRIK
78 METAPLAST INDS
79 MINERVA ENGINEERING TOOLS
80 MULVIR INDUSTRIES
81 N S ENTERPRISES
82 NAVBHARAT ELECTRONICS CO
83 NEEPIROSE INDUSTRIES
84 NEO ENGG WORKS
85 NEW KRISHNA METAL ARTS
86 NEW POTNIS ENGINEERING WORKS
87 NEXO INDS P LTD
88 NISHITA INDUSTRIES
89 NKM CABLES & STRIPS(P) LTD.
90 OM RAMNATH SONTOSHI ENTERPRISES
91 PACKWOOD INDUSTRIES
92 PADMA ENGINEERING
93 PALLAVI ENTERPRISE
94 PAN INTERNATIONAL
95 PARAGON ASSOCIATES
96 PARAMOUNT SALES & PRODUCTS
97 PERMALI WALLACE LIMITED
98 POLORIES CABLES
99 POPULAR RUBBER PRODUCTS
100 POWER ELECTRONICS & CONTROL
101 POWER ENGINEERING CO.
102 PRADEEP SALES
103 PRECIOUS DIE WORKS
104 PRECIOUS PLASTICS
105 PRECISION ENGRS
106 PRECITECH COMPONENTS
107 PREMIER AUTOMATS
108 R INDUSTRIES
109 R K ENTERPRISES
110 R K LIGHTING PVT. LTD.
111 RAJ PRECISION PRODUCTS
112 RAJAT PRODUCTS
113 RAMKRISHNA INDUSTRIES
114 RANE & SONS
115 RAVIKIRAN CERAMICS
116 REDEMA
117 REKHA ENGINEERING
118 RENOWN ENGINEERING CO.
119 ROLLIFLEX INDUSTRIES
120 ROTOMAG MOTORS & CONTROLS
121 RUBBER CENTRE
122 S V INDUSTRIES
123 SANDHYA ENTERPRISES
124 SANGHVI INDUSTRIES
125 SAPTSHRINGI ENGG
126 SATISH INDS
127 SHAILESH ENGINEERING CO.
128 SHAILESH ENGINEERING CO. UNIT 2
129 SHAKTI ENTERPRISES
130 SHANKAR BRAZING WORKS
131 SHARDA ELECTRICALS
132 SHIVAM METALS
133 SHRADDHA ENGINEERS
134 SHREE ENGINEERING CORPORATION
135 SHREE LAKSHMI INDUSTRIES
136 SHREE RUBBER WORKS
137 SHREE SWAMI SAMARTH ENGG.
138 SHRI DATTA INDUSTRIES
139 SHRI ELECTRO SERVICES
140 SHRI KRISHNA ENGG & CONTRS.
141 SIDDHIVINAYAK ELECTRICALS
142 SKYTECH ENGINEERING
143 SM ASSOCIATES
144 STANRO RUBBER ENGINEERS
145 STAR SCEENERS
146 STEEL FAB ENGINEERS
147 STEEL TECH ENGINEERS
148 SUKRUT UDHYOG
149 SUMMIT ENGINEERING
150 SUNDEEP PRODUCTS
151 SUPREME ELECTRICALS
152 SURENDRA ENGG. WORKS
153 SURYODAYA ENGG INDUSTRIES
154 TECH MECH ENTERPRISE
155 TECHNO ENGINEERS
156 THERMAL TR. PRODUCTS
157 THRIARR POLYMERS
158 TOOL COMPLEX
159 TRANSVICK INDUSTRIES
160 TREVENI CONDUCTORS PVT LTD
161 UNITECH ENGINEERS
162 UNITED ENGINEERING CO.
163 UNITED INDL. COMPONENTS
164 UTSAV ELECTROMECH P LTD
165 V.N.BOLINJKAR & SONS
166 VAIBHAV INDUSTRIES
167 VARSHA INDUSTRIES
168 VCPI
169 VEEKAY ENTERPRISES
170 VICTORY LUMINAIRES
171 VIJAYA ENGINEERING WORKS
172 VIKASH MITUL BIRLA PAPER
173 VIPUL TOOLS CENTRE
174 VISSION ENGINEERS
175 VISWAJEET INDUSTRIES
176 VISWAS TRADING CORPORATION
177 WOOD SPOT
178 YASH TRADING CO.
179 YASHDA CHEMICALS
180 YASHLAXMI ENGG. FABRICATION
181 YOGYA ENTERPRISES

Crompton Greaves Ltd.
Cash Flow Statement
for the year ended 31st March, 2004
[A]
[B]
CASH FLOWS FROM OPERATING ACTIVITIES
2003-04 2002-03
Rs.’000
Rs.’000
Net profit before Tax and Exceptional Items 836,919 310,014
Depreciation 442,207 452,596
Interest (net) 384,854 644,281
Investment income -14,855 -3,463
Miscellaneous Expenditure written off 32,006 43,794
Profit(-)/Loss(+) on sale of investments -44,695 0
Exchange Premium -61,658 24,214
Profit(-)/Loss(+) on sale of fixed assets -24,212 -31,928
Employee Voluntary Retirement Scheme 150,013 252,057
863,660 1,381,551
Operating profit before working capital changes 1,700,579 1,691,565
Adjustments for:
Trade and other receivables -418,840 -17,133
Inventories 188,761 -149,051
Trade and other payables 518,763 161,231
Leave encashment provision -11,361 15,642
277,323 10,689
Cash generated from / (used in) operations 1,977,902 1,702,254
Direct taxes Paid (-) / Refund received (+) 8,975 25,032
Cash flow before exceptional items 1,986,877 1,727,286
Advance written off -32,500 -27,300
Employee Voluntary Retirement Scheme Incurred -94,821 -56,606
Miscellaneous Expenditure Incurred -33,355 -43,270
-160,676 -127,176
Cash generated from / (used in) operations [A] 1,826,201 1,600,110
CASH FLOWS FROM INVESTING ACTIVITIES
Add: Inflows from investing activities
Sale of fixed assets 254,841 53,499
Sale of investments (Gross) 3,880,665 361,678
Government Subsidy Received 1,500 1,000
Investment income 14,855 3,463
Less: Outflows from investing activities
4,151,861 419,640
Purchase of fixed assets -340,587 -261,655
Purchase of investments -3,796,460 -63,495
-4,137,047 -325,150
Net cash generated from / (used in) investing activities [B] 14,814 94,490
87

Crompton Greaves Ltd.
[C] CASH FLOWS FROM FINANCING ACTIVITIES
Add: Inflows from financing activities
Secured loans 0 0
Unsecured loans 0 533,495
Less: Outflows from financing activities
0 533,495
Secured Loans -587,134 -517,181
Unsecured Loans -443,753 0
Interim Dividend paid -156,233 0
Corporate tax on Dividend -20,128 0
Interest paid (net) -379,445 -644,281
-1,586,693 -1,161,462
Net cash generated from / (used in) financing activities [C] -1,586,693 -627,967
NET CHANGES IN CASH AND CASH EQUIVALENTS (A+B+C) 254,322 1,066,633
Cash and cash equivalents - Opening balance -1,309,523 -2,376,156
Cash and cash equivalents - Closing balance -1,055,201 -1,309,523
BREAK UP OF CASH AND CASH EQUIVALENTS
Cash and bank balances 761,578 547,429
Bank overdraft -1,789,279 -1,820,452
Inter corporate deposits payable -27,500 -36,500
-1,055,201 -1,309,523
NOTES:
1 The cash flow statement has been prepared under the indirect method as set out in Accounting
Standard - 3 “Cash Flow Statements” issued by The Institute of Chartered Accountants of India except in
case of dividend, purchase and sale of investments which have been considered on the basis of actual
movements of cash and cash equivalents with corresponding adjustments in assets and liabilities.
2 Additions to fixed assets are stated inclusive of movements of capital work-in-progress between the
beginning and the end of the year and treated as part of investing activities.
3 Figures for the previous year have been re-grouped/re-classified wherever necessary.
Mumbai, 26th May, 2004
2003-04 2002-03
Rs.’000
Rs.’000
B. R. Jaju W. Henriques S. M. Trehan K. K. Nohria
Chief Financial Officer Secretary Managing Director Chairman
AUDITOR’S CERTIFICATE
We have examined the attached cash flow statement of Crompton Greaves Limited for the year ended 31st
March 2004. The statement has been prepared by the Company in accordance with the requirements of Clause
32 of the Listing Agreement with the Stock Exchanges and is based on and in agreement with the corresponding
Profit and Loss Account and Balance Sheet of the Company covered by our report of 26th May, 2004 to the
members of the company.
Mumbai, 26th May, 2004
SHARP & TANNAN
Chartered Accountants
88
L. Vaidyanathan
Partner
Membership No. 16368

Crompton Greaves Ltd.
Statement under Section 212 of the Companies Act, 1956
Statement in accordance with the provisions of Section 212 of the Companies Act, 1956
Name of the Subsidiary CG Capital CG-PPI CTR
and Adhesive Manufacturing
Investments Products Industries
Limited Limited Limited
1 Financial year of the subsidiary ended on 31.03.2004 31.03.2004 31.03.2004
2 Extent of interest of the Company in
subsidiary at the end of the Financial Year
of each
(a) Face value Rs. 10 10 100
(b) Number of shares held by:
i) Crompton Greaves Ltd Nos. 9500000 — —
ii) CG Capital and Investments Ltd Nos. — 3175520 228098
(c) Shareholding percent
i) Crompton Greaves Ltd % 100 — —
ii) CG Capital and Investments Ltd % — 81.42 82.06
3 (a) Net aggregate amount of profits less
losses so far as they concern members
of the Company and not dealt with, in
the Company’s account
(b)
(i) For the Financial Year ended
31-03-2004 Rs. Crores 3.69 0.69 0.71
(ii) For the previous financial years
since it became a subsidiary Rs. Crores (2.05) 4.02 3.44
Net aggregate amount of profits less
losses so far as they concern members
of the Company and dealt with, in the
Company’s account
(i)
(ii)
For the Financial Year ended
31-03-2004 Rs. Crores NIL NIL NIL
For the previous financial years
since it became a subsidiary Rs. Crores NIL 2.06 NIL
Mumbai, 26th May, 2004
B. R. Jaju W. Henriques S. M. Trehan K. K. Nohria
Chief Financial Officer Secretary Managing Director Chairman
89

Crompton Greaves Ltd.
Consolidated Financial Statements
Auditor’s Report to the Shareholders of Crompton Greaves Limited
We have audited the attached Consolidated Balance Sheet of CROMPTON GREAVES LIMITED, its Subsidiaries
and Associates as at 31 st March, 2004, the Consolidated Profit and Loss Account for the year then ended on
that date annexed thereto and the Consolidated Cash Flow Statement for the year ended on that date These
financial statements are the responsibility of the Company’s Management Our responsibility is to express an
opinion on these financial statements based on our audit
We conducted our audit in accordance with generally accepted auditing standards in India These Standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are prepared, in all material respects, in accordance with an identified financial reporting framework
and are free of material misstatements An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement
presentation We believe that our audit provides a reasonable basis for our opinion
We did not audit the financial statements of CTR Manufacturing Industries Limited, CG Capital & Investments
Limited and CG Maersk Information Technologies Private Limited, whose financial statements reflect total
assets of Rs6387 crores as at 31 st March, 2004 and total revenues of Rs4181 crores for the year ended on
that date These financial statements have been audited by other auditors whose reports have been furnished
to us, and our opinion, in so far as it relates to the amounts included in respect of the subsidiaries, is based
solely on the report of the other auditors
We report that the Consolidated Financial Statements have been prepared by the Company in accordance with
the requirements of Accounting Standard (AS) 21 on “Consolidated Financial Statements”, AS 23 on “Accounting
for investments in Associates in Consolidated Financial Statements” and AS 27 on “Financial reporting of
interests in Joint Ventures” issued by The Institute of Chartered Accountants of India and on the basis of the
separate audited financial statements of Crompton Greaves Limited, its Subsidiaries and Associates included in
the Consolidated Financial Statements except for the accounts of CG Actaris Electricity Management Limited,
since the accounts are in the process of being compiled and audited for the year ended 31 st March 2004
We further report that no provision has been made in the accounts in respect of
(see Note no 2 of Schedule “B”)
Rs Crores
(a) Excise demands 454
(net after income tax saving Rs303 crores)
(b) Sales tax demands 292
(net after income tax saving Rs187 crores)
We report that, had the observations made by us in items (a) and (b) above been considered, the Profit Before
Tax for the year would have been Rs9551 crores (as against the reported figure of Rs9555 crores), credit
balance in the Retained Earnings would have been Rs2308 crores (as against the reported figure of Rs3054
crores), the Current Liabilities & Provisions would have been Rs66483 crores (as against the reported figure
of Rs65737 crores)
Subject to the foregoing, in our opinion and to the best of our information and explanation given to us, and on
the consideration of the separate audit reports on individual audited financial statements of Crompton Greaves
Limited, its Subsidiaries and Associates, read together with the significant accounting policies as per Schedule
A and
Note no 13 of Schedule B regarding rebate on prepayment of certain sales tax deferred liabilities credited to
Capital Reserve based on expert’s opinion and
Note no 19 of Schedule B regarding disclosure of transactions with related parties is given based on legal
opinion on which we have placed reliance and other notes appearing in Schedule B:
90
a) The Consolidated Balance Sheet gives a true and fair view of the consolidated state of affairs of Crompton
Greaves Limited, its Subsidiaries and Associates as at 31 st March 2004;

Crompton Greaves Ltd.
b) The Consolidated Profit and Loss Account gives a true and fair view of the consolidated results of
operations of Crompton Greaves Limited, its Subsidiaries and Associates for the year ended on that
date; and
c) The Consolidated Cash Flow Statement gives a true and fair view of the cash flows of Crompton Greaves
Limited, its Subsidiaries and Associates for the year ended on that date
SHARP & TANNAN
Chartered Accountants
L Vaidyanathan
Partner
Mumbai, 26th May, 2004 Membership no 16368
91

Crompton Greaves Ltd.
Consolidated Balance Sheet
as at 31st March, 2004
As at
As at
Schedule 31-03-2004 31-03-2003
Rs Crores Rs Crores Rs Crores
SOURCES OF FUNDS
Shareholders’ Funds
Capital 1 5237 5237
Reserves and Surplus 2 29705 39967
34942
45204
Minority Interest 3 247 227
Loan Funds
Secured Loans 4 25730 31872
Unsecured Loans 5 8151 14201
33881
46073
Deferred Tax Liability 6 1189 000
70259
91504
APPLICATION OF FUNDS
Fixed Assets
Gross Block 7 81103 80510
Less : Depreciation 44388 40813
Net Block 36715 39697
Capital Work-in-progress 1109 717
37824
40414
Goodwill on Consolidation 159 159
Investments 8 7530 6095
Deferred Tax Asset 6 000 7898
Current Assets, Loans & Advances
Inventories 9 17894 19762
Sundry Debtors 10 53651 48265
Cash and Bank Balances 11 8019 5676
Loans and Advances 12 10919 14271
90483
87974
Less: Current Liabilities & Provisions
Liabilities 13 61948 56386
Provisions 14 3789 1664
65737
58050
Net Current Assets 24746 29924
Miscellaneous Expenditure 15 000 7014
(to the extent not written off or adjusted)
70259
91504
Significant Accounting Policies
[A]
Notes On Accounts
[B]
The Schedules referred to above and the Notes
attached, form an integral part of the Accounts
Mumbai, 26th May, 2004 Mumbai, 26th May, 2004
As per our report attached
SHARP & TANNAN B R Jaju S M Trehan
Chartered Accountants Chief Financial Officer Managing Director
92
L Vaidyanathan W Henriques K K Nohria
Partner Secretary Chairman
Membership no 16368

Crompton Greaves Ltd.
Consolidated Profit and Loss Account
for the year ended 31st March, 2004
Schedule 2003-04 2002-03
Rs Crores Rs Crores
INCOME
Gross Sales 189462 175750
Less: Excise Duty 15552 14460
Net Sales 173910 161290
Other Income 16 3110 1485
177020
162775
EXPENDITURE
Materials 17 121786 109571
Staff and Welfare 18 14270 14222
Manufacturing, Selling and Administration 19 21710 21424
Interest and Commitment Charges 3890 6513
Depreciation 7 4528 4626
Miscellaneous Expenditure Amortised / Charged 1864 2981
(Refer Note 8)
168048
159337
Profit Before Exceptional Items And Tax 8972 3438
Exceptional Items (Net) (Refer Note 17) 583 312
Profit Before Tax 9555 3750
Provision For Taxation
Current Tax -828 -190
Deferred Tax 6 -1141 -881
Profit After Tax 7586 2679
Taxation Adjustment of Earlier Years -002 000
Transfer to Doubtful Debts Reserve -524 -343
Interim Dividend -1571 000
Final Dividend -2095 000
Corporate Tax on Dividend -469 -005
2925
2331
Minority Interest -027 -012
Profit / Loss (-) After Tax and Minority Interest 2898 2319
Share of Profit / Loss (-) of Associate Companies -567 -379
Balance Carried To Balance Sheet 2331 1940
Earnings Per Share (Basic and Diluted)
- Excluding Exceptional Items Rs 1223 377
- Including Exceptional Items Rs 1335 437
Significant Accounting Policies
[A]
Notes on Accounts
[B]
The Schedules referred to above and the Notes
attached, form an integral part of the Accounts
Mumbai, 26th May, 2004 Mumbai, 26th May, 2004
As per our report attached
SHARP & TANNAN B R Jaju S M Trehan
Chartered Accountants Chief Financial Officer Managing Director
L Vaidyanathan W Henriques K K Nohria
Partner Secretary Chairman
Membership no 16368
93

Crompton Greaves Ltd.
Schedules
forming part of Consolidated Balance Sheet
As at
As at
31-03-2004 31-03-2003
Rs Crores Rs Crores
SCHEDULE 1: CAPITAL
Authorised
6,00,00,000 Equity Shares of Rs10 each 6000 6000
Issued and Subscribed
5,23,75,116 Equity Shares of Rs10 each 5237 5237
Paid Up
5,23,66,656 Equity Shares of Rs10 each 5237 5237
Add: Forfeited shares
8,460 Equity shares of Rs10 each 000 000
Rs32175 partly paid
5237
5237
Of the above, following equity shares were allotted:
3,87,200 pursuant to a contract without
payment being received in cash
1,62,00,000 as fully paid up Bonus Shares by capitalisation
of General Reserve and Securities Premium Account
14,76,566 as fully paid up pursuant to schemes of amalgamation
66,13,750 as underlying shares to an international offering of
Global Depository Receipts (GDRs) in US Dollars
SCHEDULE 2: RESERVES AND SURPLUS
As at Additions Deductions As at
31-03-2003 31-03-2004
Rs Crores Rs Crores Rs Crores Rs Crores
Capital Reserve 034 1912 (a) 000 1946
Capital Redemption Reserve 017 000 000 017
Securities Premium Account 37982 000 15206 (b) 22776
Revaluation Reserve 1777 000 141 (c) 1636
Government Subsidy 044 015 000 059
Investment Allowance (Utilised) Reserve 079 000 006 (d) 073
Debenture Redemption Reserve 500 000 360 (e) 140
Doubtful Debts Reserve (Net) 004 000 000 004
40437 1927 15713 26651
Retained Earnings -470 2697 (f) 000 2227
Transferred from Securities
Premium Account 000 827 (b) 000 827
-470 3524 000 3054
Total 39967 5451 15713 29705
Notes:
(a) Rebate on prepayment of certain deferred sales tax liability (Refer Note 13)
(b) Adjustment on account of capital reduction scheme (Refer Note 14)
(c) Depreciation on revaluation of fixed assets, recouped from Revaluation Reserve Rs031 crores and
Revaluation Reserve written back on assets disposed off Rs110 crores
(d) Transferred to Retained Earnings since no longer required as per Income Tax Act, 1961
(e) Transferred to Retained Earnings (Refer Note 16)
(f) Transferred from Debenture Redemption Reserve Rs360 crores, Investment Allowance (Utilised) Reserve
Rs006 crores and Balance carried from Profit & Loss Account Rs2331crores
94

Crompton Greaves Ltd.
Schedules
forming part of Consolidated Balance Sheet
As at
As at
31-03-2004 31-03-2003
Rs Crores Rs Crores
SCHEDULE 3: MINORITY INTEREST
Opening Balance 227 215
Add: Share of Profit for the year 027 012
Less: Dividends to Minority -007 000
Less: Share of Revaluation Reserve Recoupment 000 000
(Rs19163; Previous Year Rs19090)
247
227
As at
As at
31-03-2004 31-03-2003
Rs Crores Rs Crores
SCHEDULE 4: SECURED LOANS
DEBENTURES:
(Privately placed with Financial Institutions)
1350% Secured non-convertible debentures of Rs100 each
(a)
(b)
50,00,000 (VIII Series) redeemable in 18 equal
quarterly instalments due from 15th June, 2000 555 1667
50,00,000 (IX Series) redeemable in 3 equal
semi-annual instalments due from 1st September, 2002 000 1667
RUPEE TERM LOANS
(a) From Banks 5675 4873
(b) From Financial Institutions 1250 5145
CASH CREDIT / WORKING CAPITAL DEMAND LOANS
From Banks:-
(a) Rupee Loans / Cash Credit 357 5649
(b) Foreign Currency Loans 17893 12871
25730
31872
95

Crompton Greaves Ltd.
Schedules
forming part of Consolidated Balance Sheet
SCHEDULE 5: UNSECURED LOANS
As at
As at
31-03-2004 31-03-2003
Rs Crores Rs Crores
Fixed Deposits 5170 7253
(Repayable within a year Rs1479 Crores;
Previous year Rs2052 Crores)
Commercial Paper 000 1000
(Maximum amount outstanding at any time during the year
Rs10 crores; Previous year Rs30 crores)
Inter - Corporate Deposits 275 000
(Maximum amount outstanding at any time during the year
Rs275 crores; Previous year RsNil)
Others
a) Interest free Sales Tax Loans and Special
Incentive Loans from Central / State Governments 2706 5800
b) Arrears of Preferential Dividend 000 005
(Due within one year Rs Nil; Previous year Rs005 crores)
c) From Others 000 143
8151
14201
As at
As at
31-03-2004 31-03-2003
Rs Crores Rs Crores
SCHEDULE 6: DEFERRED TAX ASSET / LIABILITY (-)
Deferred tax asset 7898 8779
Less: Adjusted against Securities Premium Account 7946 000
Less: Incremental Liability charged to Profit & Loss Account 1141 881
-1189 7898
96

Crompton Greaves Ltd.
Schedules
forming part of Consolidated Balance Sheet
SCHEDULE 7: FIXED ASSETS & DEPRECIATION
GROSS BLOCK (at Cost/Professional Valuation) DEPRECIATION NET BLOCK
As at Additions Deductions As at As at On For the As at As at As at
1-04-2003 31-03-2004 1-04-2003 Deductions Year 31-03-2004 31-03-2004 31-03-2003
Rs Crores Rs Crores Rs Crores Rs Crores Rs Crores Rs Crores Rs Crores Rs Crores Rs Crores Rs Crores
Land
Freehold 1541 005 092 1454 000 000 000 000 1454 1541
Leasehold 1490 018 372 1136 237 078 015 174 962 1253
Buildings 20026 287 939 19374 4280 255 497 4522 14852 15746
Plant & Equipment 47004 1992 632 48364 28393 294 3361 31460 16904 18611
Furniture & Fixtures 9408 600 308 9700 7321 261 552 7612 2088 2087
Vehicles 1041 177 143 1075 582 096 134 620 455 459
Sub-total 80510 3079 2486 81103 40813 984 4559 44388 36715 39697
Capital Work-in-Progress
Buildings 233 078 043 268 268 233
Plant & Equipment 348 470 278 540 540 348
Intangible Assets--Others
Technical Know-how 136 165 000 301 301 136
Sub-total 717 713 321 1109 000 000 000 000 1109 717
As at 31-03-2004 81227 3792 2807 82212 40813 984 4559 44388 37824
As at 31-03-2003 79306 3153 1233 81227 36685 533 4661 40813 40414
Depreciation 31-03-2004 31-03-2003
Rs Crores Rs Crores
Depreciation on fixed assets 4559 4661
Less: Transferred from revaluation reserve 031 035
4528 4626
97

Crompton Greaves Ltd.
Schedules
forming part of Consolidated Balance Sheet
SCHEDULE 8: INVESTMENTS
As at
As at
31-03-2004 31-03-2003
Rs Crores Rs Crores Rs Crores
LONG TERM (At Cost)
Government & Trust Securities* 256 238
Fully paid Equity / Preference Shares and Debentures* 4603 2619
Associate Companies
(Under Equity Method)
Cost of Investments 2207 2207
Add: Share of Capital Reserves 047 047
Add: Opening Bal of Other Reserves 984 1363
Add: Share of Profit (+) / Loss (-) during the year -189 -379
Less: Dividends received -378 000
2671
3238
7530
6095
* Diminution provided during financial year ended
31032003 recouped to the extent of rise in the
value of Investments as per AS - 13
SCHEDULE 9: INVENTORIES
(At lower of Cost or Net Realisable Value)
As at
As at
31-03-2004 31-03-2003
Rs Crores Rs Crores Rs Crores Rs Crores
Stores, spare parts and packing 338 331
materials
Raw materials 5271 5407
Work-in-Process - Manufacturing 5418 5227
Finished goods 3427 4027
14454
14992
Work-in-Progress - Contracts
At cost 1098 1435
At realisable sales value 14331 10971
Less: Progress payments 11989 7636
2342
3335
3440
17894
4770
19762
98

Crompton Greaves Ltd.
Schedules
forming part of Consolidated Balance Sheet
As at
As at
31-03-2004 31-03-2003
Rs Crores Rs Crores Rs Crores
SCHEDULE 10: SUNDRY DEBTORS
Unsecured
Debts outstanding for a period exceeding six months
Considered good 15615 13093
Considered doubtful 2999 2457
Less: Doubtful debts reserve per contra -2987 -2457
012
000
Other Debts
Considered good 38024 35172
53651
48265
SCHEDULE 11: CASH AND BANK BALANCES
As at
As at
31-03-2004 31-03-2003
Rs Crores Rs Crores
Cash on hand 074 025
Cash at Bank:
On Current Account 1111 203
On Fixed Deposit Account 735 1076
(including interest accrued thereon)
Remittances in transit 6099 4372
8019
5676
SCHEDULE 12: LOANS AND ADVANCES
(Unsecured, Considered Good, unless otherwise stated)
As at
As at
31-03-2004 31-03-2003
Rs Crores Rs Crores
Advances recoverable in cash or in kind or for value to be received 10476 12911
Balances with excise, customs etc 443 658
Inter-corporate deposits 000 702
(including interest accrued thereon RsNil; Previous Year Rs002 crores)
(Maximum amount outstanding during the year Rs702 crores;
Previous Year Rs704 crores)
10919
14271
99

Crompton Greaves Ltd.
Schedules
forming part of Consolidated Balance Sheet
SCHEDULE 13: CURRENT LIABILITIES
Sundry Creditors:
As at
As at
31-03-2004 31-03-2003
Rs Crores Rs Crores Rs Crores
(a) Due to Small Scale Industrial Undertaking (s) 8404 9037
(b) Due to Others 49476 42960
57880
51997
Investor Education and Protection Fund
(a) Unpaid Dividend 024 016
(b) Unpaid Matured Fixed Deposit 055 122
079
138
Interest accrued but not due on loans 135 078
Other Liabilities:
(a) Security Deposit 204 504
(b) Others 3650 3669
3854
61948
4173
56386
As at
As at
31-03-2004 31-03-2003
Rs Crores Rs Crores
SCHEDULE 14: PROVISIONS FOR :
Gratuity 305 525
Leave encashment 668 781
Proposed Dividend 2095 000
Corporate Tax on Dividend 268 005
Provident Fund 086 084
Insurance, Pension and similar Staff benefits 367 269
3789
1664
100

Crompton Greaves Ltd.
Schedules
forming part of Consolidated Balance Sheet
SCHEDULE 15: MISCELLANEOUS EXPENDITURE
(To the extent not written off or adjusted)
Voluntary Retirement Scheme
As at
As at
31-03-2004 31-03-2003
Rs Crores Rs Crores Rs Crores
Opening Balance 5948 7902
Add: Additions during the year 195 567
Less: Charged during the year 747 2521
Less: Adjusted against Securities Premium Account 5396 000
Closing Balance 000 5948
Testing fees
Opening Balance 523 367
Add: Additions during the year 148 342
Less: Charged during the year 082 186
Less: Adjusted against Securities Premium Account 589 000
Closing Balance 000 523
Technical know-how
Opening Balance 543 727
Add: Additions during the year 030 091
Less: Charged during the year 125 275
Less: Adjusted against Securities Premium Account 448 000
Closing Balance 000 543
000
7014
101

Crompton Greaves Ltd.
Schedules
forming part of Consolidated Profit and Loss Account
2003-04 2002-03
Rs Crores Rs Crores
SCHEDULE 16: OTHER INCOME
Income from
a) Lease Rent 155 163
b) Business Service Centres 685 651
(TDS deducted Rs016 crores; Previous year Rs018 crores) 840 814
Income from Investments 525 035
(TDS deducted Rs019 crores; Previous year Rs015 crores)
Exchange Gain (Net) 617 000
Profit on Sale of Fixed Assets (Net) 242 319
Miscellaneous Income 886 317
3110
1485
SCHEDULE 17: MATERIALS
2003-04 2002-03
Rs Crores Rs Crores Rs Crores
102
Opening Stock
Raw Materials 5407 4993
Work-in-Process
Manufacturing 5227 4920
Contracts 1435 1917
12069
11830
Finished Goods 4027 4508
16096
16338
Add: Purchases (including Trading Goods) 122774 110683
Less: Scrap Sales 1870 1354
120904
109329
137000
125667
Less: Closing Stock
Raw Materials 5271 5407
Work-In-Process
Manufacturing 5418 5227
Contracts 1098 1435
11787
12069
Finished Goods 3427 4027
15214
16096
121786
109571

Crompton Greaves Ltd.
Schedules
forming part of Consolidated Profit and Loss Account
SCHEDULE 18: STAFF & WELFARE
2003-04 2002-03
Rs Crores Rs Crores
Salaries, Wages and Bonus 11475 11216
Provident Fund and Family Pension Scheme Contributions 845 819
Superannuation Fund Contributions 231 200
Gratuity (including contributions to Fund) 422 714
Workmen and Staff Welfare 1297 1273
14270
14222
2003-04 2002-03
Rs Crores Rs Crores Rs Crores
SCHEDULE 19: MANUFACTURING, SELLING
& ADMINISTRATION
Stores and Spare Parts 1349 1306
Power and Fuel 2061 2067
Repairs
Buildings 214 227
Plant and machinery 637 597
Others 315 350
1166
1174
Forwarding, Godown and Packing 4612 5059
Advertising 702 738
Auditors’ Remuneration
Statutory audit fees 030 030
Tax audit fees 008 006
Taxation (RsNil; Previous Year Rs15000) 000 000
Certification 006 003
Other Services 013 008
Expenses Reimbursed (including Service Tax) 010 011
067
058
Rent 472 454
Rates and Taxes 960 812
Insurance 468 370
Bad Debts 756 181
Vehicle Maintenance 138 150
Travelling 1685 1532
Professional Charges 773 786
Technical Service Fees 049 182
Exchange Premium / Difference 000 242
Miscellaneous Expenses 6448 6309
Directors’ Fees 004 004
21710
21424
103

Crompton Greaves Ltd.
Significant Accounting Policies
Schedule (A)
1 Basis of presentation of Financial Statements
(i) The Financial Statements of the subsidiaries used in the consolidation are drawn upto the same
reporting date as that of the parent Company, ie year ended 31st March, 2004
(ii)
The accounts have been prepared using historical cost convention except for the revaluation of
certain fixed assets and on the basis of a going concern, in accordance with Section 211 (3C) and
other provisions of the Companies Act, 1956, with revenue recognised and expenses accounted on
accrual, including for committed obligations
Insurance and other claims are accounted for as and when admitted by the appropriate authorities
2 Principles of Consolidation
(i) The financial statements of the parent company and its subsidiaries have been consolidated on a line
by line basis by adding together the book values of like items of assets, liabilities, incomes and
expenses after eliminating intra-group balances, intra-group transactions and unrealised profits resulting
therefrom
(ii)
(iii)
(iv)
The financial statements of the parent company and its subsidiaries have been consolidated using
uniform accounting policies for like transactions and other events in similar circumstances
The excess of cost to the parent company of its investment in each of the subsidiary over its share of
equity in the respective subsidiary, on the acquisition date, is recognised in the financial statements
as Goodwill on Consolidation and carried in the Balance Sheet as an asset Negative goodwill is
recognised as Capital Reserve on Consolidation
Investments in Associate Companies have been accounted under the Equity Method as per Accounting
Standard 23 “Accounting for Investments in Associates in Consolidated Financial Statements”, issued
by the Council of the Institute of Chartered Accountants of India
Under the Equity Method of Accounting the investment is initially recorded at cost, identifying any
goodwill / capital reserve arising at the time of acquisition The carrying amount of investment is
adjusted thereafter for the post acquisition change in the investor’s share of net assets of the
investee The consolidated statement of Profit & Loss reflects the investor’s share of the results of
the operations of the investee
3 The company has disclosed only such Policies and Notes from the individual financial statements, which
fairly present the needed disclosures Lack of homogeneity and other similar considerations made it
desirable to exclude some of them, which in the opinion of the management, could be better viewed, when
referred from the individual financial statements
104

Crompton Greaves Ltd.
Notes on Accounts
Schedule (B)
2003-04 2002-03
Rs Crores Rs Crores
1 A In terms of AS 21 and AS 23 the Country of Proportion of Proportion of
consolidated financial statements Incorporation Ownership Interest Ownership Interest
present the consolidated accounts of % %
Crompton Greaves Limited with its
following Subsidiaries and Associates
Subsidiaries
(a) CG Capital & Investments Limited India 10000 10000
(b) CG PPI Adhesive Products Limited India 8142 8142
(c) CTR Manufacturing Industries Limited India 8206 8206
Associates
(a) Brook Crompton Greaves Limited India 4900 4900
(b) CG Actaris Electricity Management Limited India 4900 4900
(c) CG Lucy Switchgears Limited India 5000 5000
(d)
CG Maersk Information Technology
Private Limited India 5000 5000
(e) CG Smith Software Private Limited India 5000 5000
(f) Hitachi CG Motor Engineering Private Limited India 4900 4900
(g) International Components India Limited India 5000 5000
B
In case of CG Maersk Information Technology Private Limited
financial statements drawn upto 31st December 2003 have
been considered There were no material adjustments required
for any significant events or transactions between the associate
and any of the other group companies between the said date
and 31st March 2004
C For the purpose of consolidation in accordance with AS 23,
Certain Associates which do not fulfill the criterion specified in
the said Accounting Standard have been excluded Investments
in such Associates have been accounted for in accordance with
AS 13 The list of Associates not included in the Consolidated
Financial Statements are as under
(a) Karamchand Thapar (Africa) Limited, Mauritius
(b) Paxonet Communications Inc USA
(c) Power Equipment Limited, Dubai
(d) Radiant Electronics Limited
DFor the purposes of disclosure pertaining to AS 27, all Joint
Venture Companies have been considered as Associates since
these Joint Ventures Companies do not fulfill the criterion
specified in the Accounting Standard
E
Since the accounts of CG Actaris Electricity Management Limited
are in the process of being compiled and audited, for the year
ending 31st March, 2004, the same have not been considered
for consolidation but accounted for in accordance with AS 13
105

Crompton Greaves Ltd.
Schedule (B) (Contd)
2003-04 2002-03
Rs Crores Rs Crores
2 No provision has been made for
(a)
(b)
Excise Duty demands which have been disputed by the Company
(Net of income tax) 303 885
Sales tax demands which have been disputed by the Company
(Net of income tax) 187 183
3 Contingent liability, not provided for, in respect of
(a)
(b)
Claims against the Company not acknowledged as debts
(Net of income tax) 055 065
Show Cause Notice issued by the Custom Authorities for levy of
penalty under Section 127 of the Customs Act which have been Amount not Amount not
disputed by the Company Ascertainable Ascertainable
(c) Bills discounted 3950 6683
(d) Guarantees by the Company for obligations to other persons 136 1971
(e)
(f)
Guarantees to bankers, financial institutions and others on behalf
of Associate Companies 717 962
Income tax appeals/reference applications made by the income
tax department against the orders passed by the Appellate
Authorities in favour of the Company in case the ultimate decision
is against the Company 986 936
(g) Excise matters in dispute decided in favour of the Company at
Appellate Level for which the Department is in Appeal before
CEGAT 718 628
4 Provision for tax for the year represents wealth tax provision made
under Wealth Tax Act, 1957 020 025
5 Estimated amount of contracts remaining to be executed on Capital
Account and not provided for (Net of advances) 1484 306
6 Sales include
(a)
Increase / Decrease ( - ) in construction work-in-progress:
(i) Closing work-in-progress 14331 10971
(ii) Less: Opening work-in-progress 10971 4354
and are net of:
3360
6617
(b) Brokerage and commission 946 1040
(c) Cash discount 840 734
7 Disclosure under AS - 7 (Revised) “Construction Contracts”
(a) Contract revenue recognised for the year 14997 14548
(b) Advance received 1436 720
(c) Retentions 4102 2700
(d) Amount of Contract costs incurred 13606 13805
106

Crompton Greaves Ltd.
Schedule (B) (Contd)
2003-04 2002-03
Rs Crores Rs Crores
8 Miscellaneous expenditure amortised upto 31st July 2003 relates to
(Refer Note 14 below)
(a) Testing Fees 082 186
(b) Payments under Voluntary Retirement Schemes 747 2521
(c) Technical Know-How Fees 126 274
9 Effects of changes in foreign exchange rates {Gain (+) / Loss (-)}:
955
2981
Exchange difference charged to Profit & Loss Account
(a) On account of forward contracts taken during the year -001 -004
pertaining to future accounting period
(b) Others 618 -238
617 -242
10 Interest and commitment charges include interest on
(a) Fixed loans 1898 3020
(b) Debentures 279 817
(c) Others 1854 2868
4031
6705
(d) Less: Interest income (including tax deducted at source
Rs023 crores; Previous year Rs027 crores) 141 192
3890
6513
11 Advances recoverable in cash or in kind or for value to be received
include:
(a) Advances to associate company pending allotment of shares -
Globalstar India Satellite Services Private Limited 116 116
(b) Rent deposit with Directors 020 020
(c) Due by an Officer RsNil ( Previous year Rs30000) (Maximum
amount outstanding at any time during the year RsNil; 000 000
Previous year Rs157170 )
12 Arrears of preferential dividend of an amalgamated company payable
in nine equal installments in terms of BIFR Order and the Scheme of 000 005
Amalgamation
13 During the year, the Company prepaid certain deferred sales tax liabilities in accordance with the scheme
formulated by the State Government of Maharashtra for such optional prepayments Based on an expert’s
opinion, the resultant surplus of Rs1912 crores, representing the excess of the recorded liability over the
amount paid has been credited to “Capital Reserve”
14 Pursuant to the approval by shareholders at the Annual General Meeting held on 22nd July 2003, the
company had filed petition in the High Court of Judicature at Mumbai and the said High Court had
approved the Capital Reduction vide its Order dated 15th September 2003 Accordingly, the balances of
the undermentioned accounts as on 31st July 2003 have been adjusted against the Securities Premium
Account:-
107

Crompton Greaves Ltd.
Schedule (B) (Contd)
Rs Crores
(i) Voluntary retirement scheme 5396
(ii) Technical know how 448
(iii) Testing fees 589
(iv) Deferred tax asset 7946
(v) Debit balance in the Profit & Loss Account 827
15206
15 The company, with effect from 1st August 2003, has charged to Profit and Loss Account the entire
expenditure on voluntary retirement scheme, as against amortising this expenditure over five years as in
the past Had these amounts been amortised as in the past, profit before taxes for the year would have
been Rs10157 crores (as against the reported figure of Rs9555 crores) reserves and surplus would
have been Rs30307 crores (as against the reported figure of Rs29705 crores)
16 (a) During the year 135% Secured Non-Convertible Debentures (IX series) were fully redeemed and
instalments pertaining to 135% secured non-convertible Debentures (VIII Series) were paid as per
stipulation
(b) In view of the above, no amount is required to be transferred to Debenture Redemption Reserve (DRR)
in accordance with the General Circular No9/2002 dated 18/04/2002 issued by the Department of
Company Affairs The amount outstanding to the credit of DRR as on 31-03-2004 was in excess of
the requirements amounting to Rs360 crores, has been transferred to the credit of General Reserve
2003-04 2002-03
17 Exceptional items in the Profit & Loss account pertain to : Rs Crores Rs Crores
(a)
Profit on sale of investment in CG Igarashi Motors Ltd and
CG Newage Electrical Ltd and lumpsum in lieu thereof 000 3032
(b) Diminution in Value of Advances -325 -273
(c)
Decline in value of certain Long Term Investments net of write
back of earlier decline Rs075 crores -009 -1197
(d) Loss on sale of other investments 000 -1250
(e) Profit on sale of Land & Building situated at Worli 480 000
(f) Profit on sale of Land & Building situated at Bhandup 437 000
18 (a) In view of the set off of accumulated losses / unabsorbed depreciation available to the company
under Section 72A of the Income Tax Act, 1961 there is no tax liability on the company except u/s
115JB of the Act for which necessary provision has been made
583
312
108

Crompton Greaves Ltd.
Schedule (B) (Contd)
(b) Deferred Tax assets & liabilities are attributable to the following items :
Rs Crores
Particulars Deferred tax Deferred tax
assets/
assets/
(liabilities)
(liabilities)
as at
as at
31-03-2004 31-03-2003
Deferred Tax Asset
Expenses allowable for tax purposes when paid/on payment
of TDS 222 437
Unabsorbed carried forward tax losses / depreciation 10540 13070
Others 1491 453
Deferred Tax Liability
12253
13960
Difference between Tax and Book written down value 5496 5874
Expenditure under voluntary retirement scheme of earlier years 000 188
5496
6062
Net Deferred Tax Asset / Liability (-) 6757 7898
Note:
The deferred tax liability is computed after netting off adjustments made to securities premium
account as per scheme of capital reduction sanctioned by High Court of Judicature at Mumbai (Refer
Note 14 above)
19 (a) In respect of disclosure under “Accounting Standard 18” regarding reporting under related party
transactions, the company has obtained legal opinion for matters required to be disclosed under the
said Standard and accordingly information required under the Standard has been given
(b) Disclosures as required by Accounting Standard 18 “Related Party Disclosure” in respect of transactions
for the year ended 31st March, 2004 are as under :
1 Relationships:
i) Associates :
a) Brook Crompton Greaves Limited
b) CG Actaris Electricity Management Limited
c) CG Lucy Switchgear Limited
d) CG Maersk Information Technologies Private Limited
e) CG Smith Software Private Limited
f) Hitachi CG Motor Engineering Private Limited
g) International Components (India) Limited
h) Karamchand Thapar (Africa) Limited, Mauritius
i) Paxonet Communications Inc USA
j) Power Equipment Limited, Dubai
k) Radiant Electronics Limited
109

Crompton Greaves Ltd.
Schedule (B) (Contd)
ii)
iii)
Key Management Personnel
Mr SM Trehan - Managing Director
Relatives of Managing Director
a) Mrs Mira Trehan
b) Mr Amitoj Trehan
c) Ms Ritambhara Trehan
d) Dr Om Prakash Trehan
e) Mrs Vimla Trehan
f) Mrs Navnidhi Nagrath
g) Mrs Madhur Chopra
2 The following transactions were carried out with the related parties in the ordinary course of
business:
Rs Crores
2003-04 2002-03
Sl Associate Associate
No Transactions Companies Companies
1 Purchases of goods 917 005
2 Sales of goods and service revenue 051 977
3 Interest expense 093 000
4 Dividend received 096 000
5 Commission received 001 000
6 Rent income 003 000
7 Due to related parties as at year-end 960 000
8 Due from related parties as at year-end 012 000
9 Inter corporate deposits/Loans taken
Balance as at the year end 275 000
10 Inter corporate deposits/Loans placed
Balance as at the year end 000 000
3 Remuneration to Managing Director, Key Managerial Personnel 196 068
110

Crompton Greaves Ltd.
Schedule (B) (Contd)
20 Earnings per share (EPS) computed in accordance with Accounting Standard 20 “Earnings Per Share”
Particulars 2003-04 2002-03
No of shares issued of Rs10/- each Nos 52366656 52366656
Basic and Diluted EPS
(a) EPS excluding exceptional items
Numerator
Profit/(Loss) for the year after tax, Minority Interest Rs 640675138 197657706
and Share of Profit (Loss) of Associate Companies
(b) EPS including exceptional items
Numerator
Profit/(Loss) for the year after tax, Minority Interest Rs 699013355 228918338
and Share of Profit (Loss) of Associate Companies
(c) Denominator
Weighted average number of equity shares Nos 52366656 52366656
(d) Earnings per Share (Basic & Diluted)
= Numerator / Denominator
(i) Excluding exceptional items Rs 1223 377
(ii) Including exceptional items Rs 1335 437
21 The disclosure in respect of Segment information for the year ended 31st March, 2004
I Primary Segments (Business Segment) Rs Crores
Particulars Power Consumer Industrial Digital Others Eliminations/ Total
System Products System Unallocable 2003-04
Expenditure/
Assets*
Segment Revenue 78004 62073 43970 5415 000 000 189462
Add: Inter segment
Revenue 1119 230 1414 006 000 -2769 000
Total 79123 62303 45384 5421 000 -2769 189462
Segment Results 6592 5494 4080 -1036 368 000 15498
Less: Interest
3890
Less: Other
Unallocable
Expenditure Net of
Unallocable Income
2053
Profit Before Tax
9555
Capital Employed:
Segment Assets 58041 19424 21588 6045 5417 25481 135996
Segment Liabilities 29290 14885 12077 1964 000 7768 65984
Net Assets 28751 4539 9511 4081 5417 17713 70012
Capital Expenditure 1684 179 930 056 000 -771 2078
Depreciation 1660 880 1408 122 000 458 4528
Non Cash
Expenditure 291 316 311 013 000 024 955
*Unallocable Assets comprise Assets and Liabilities which cannot be allocated to the segments
Tax Credit Asset/Liability not considered in Capital Employed above
111

Crompton Greaves Ltd.
Schedule (B) (Contd)
Rs Crores
Particulars Power Consumer Industrial Digital Others Eliminations/ Total
System Products System Unallocable 2002-03
Expenditure/
Assets*
Segment Revenue 71325 54150 37654 12621 000 000 175750
Add: Inter segment
Revenue 592 166 1589 003 000 -2350 000
Total 71917 54316 39243 12624 000 -2350 175750
Segment Results 6558 4395 2337 365 -116 000 13539
Less: Interest
6513
Less: Other
Unallocable
Expenditure Net of
Unallocable Income
3276
Profit Before Tax
3750
Capital Employed:
Segment Assets 51573 24759 24797 8746 000 31781 141656
Segment Liabilities 23625 12801 11376 5063 000 5185 58050
Net Assets 27948 11958 13421 3683 000 26596 83606
Capital Expenditure 1337 -013 712 066 000 355 2457
Depreciation 1587 970 1396 260 000 413 4626
Non Cash
Expenditure 695 1188 899 120 000 079 2981
*Unallocable Assets comprise Assets and Liabilities which cannot be allocated to the segments
Tax Credit Asset/Liability not considered in Capital Employed above
112
II
III
Secondary Segments (Geographical Segment)
(a)
(b)
The distribution of the company’s sales by geographical market is as under:
Rs Crores
Sales Revenue: 2003-04 2002-03
India 170704 155051
Outside India 18758 20699
Total 189462 175750
The company’s tangible fixed assets are located entirely in India
Segment Identification, Reportable Segment and Definition of each Reportable Segment:
(i)
(ii)
Segment Revenue and Results
The expenses which are not directly attributable to any business segment are shown as unallocable
expenditure
Segment Assets and Liabilities
Segment assets include all operating assets used by the business segment and mainly consist of
fixed assets, debtors and inventories Segment liabilities primarily include creditors and other liabilities
Common Assets and Liabilities which cannot be allocated to any of the segments are shown as a part
of unallocable assets / liabilities

Crompton Greaves Ltd.
Schedule (B) (Contd)
(iii)
Primary / Secondary Segment Reporting Format:
1 The risk-return profile of the Company’s business is determined predominantly by the nature of its
products and services Accordingly, the business segment constitutes the primary segment for
disclosure of segment information
2 In respect of secondary segment information, the Company has identified its geographical
segments as (a) Domestic and (b) Overseas The secondary segment information has been
disclosed accordingly
(iv) Segment Identification:
Business segments have been identified on the basis of the nature of products / services, the riskreturn
profile of individual business, the organisational structure and the internal reporting system of
the Company
(v) Reportable Segments:
Reportable segments have been identified as per the quantitative criteria specified in Accounting
Standard-17 “Segment Reporting” issued by The Institute of Chartered Accountants of India
(vi) Primary Segment
In the opinion of the management, the business segment comprises the following :
(a) Power Systems : Transformer, Switchgear, Turnkey Projects
(b) Consumer Products : Fans, Luminaires, Light Sources and Pumps
(c) Industrial Systems : Electric Motors and Alternators
(d) Digital : Telecommunication
22 (a) The Company has not entered into any Finance / Operating Lease as specified in AS-19 “Leases” The
Company has however taken various residential/commercial premises and plant & machinery under
cancellable operating lease These lease agreements are normally renewed on expiry
(b) The lease agreements provide for an option to the company to renew the lease period at the end of
the non-cancellable period
(c) There are no exceptional / restrictive covenants in the lease agreements
23 Miscellaneous income includes profit on sale of investments Rs447 crores (Previous year Rs Nil)
24 Prior year figures have been reclassified where necessary to confirm with the current year’s presentation
25 Figures pertaining to the Subsidiary Companies have been reclassified wherever necessary to bring them
in line with the Parent Company’s financial statements
Mumbai, 26th May, 2004 Mumbai, 26th May, 2004
As per our report attached
SHARP & TANNAN B R Jaju S M Trehan
Chartered Accountants Chief Financial Officer Managing Director
L Vaidyanathan W Henriques K K Nohria
Partner Secretary Chairman
Membership no 16368
113

Crompton Greaves Ltd.
Consolidated Cash Flow Statement
for the year ended 31st March, 2004
2003-04 2002-03
Rs ’000 Rs ’000
114
[A] CASH FLOWS FROM OPERATING ACTIVITIES
Net profit before tax and exceptional items 897319 343870
Depreciation 452825 462579
Interest (net) 389001 651283
Investment Income -52456 -3465
Miscellaneous Expenditure written off 36357 46063
Profit(-)/Loss(+) on sale of investments -44695 0
Exchange Premium -61700 24230
Profit(-)/Loss(+) on sale of fixed assets -24188 -31929
Employee Voluntary Retirement Scheme 150013 252057
845157 1400818
Operating profit before working capital changes 1742476 1744688
Adjustments for:
Trade and other receivables -276177 13871
Inventories 186777 -140407
Trade and other payables 551543 171680
Leave encashment provision -11280 15621
450863 60765
Cash generated from (+)/used in (-) operations 2193339 1805453
Direct taxes Paid (-) / Refund received (+) -8010 -19501
Cash flow before exceptional items 2185329 1785952
Advance written off -32500 -27300
Employee Voluntary Retirement Scheme Incurred -94821 -56606
Miscellaneous Expenditure Incurred -33355 -43271
Minority Interest in Share of profits -2742 -1186
Share of Profit (+)/Loss (-) of Associate Companies -56748 -43817
-220166 -172180
Cash generated from / (used in) operations [A] 1965163 1613772
[B] CASH FLOWS FROM INVESTING ACTIVITIES
Add: Inflows from investing activities
Sale of fixed assets 254994 53585
Sale of investments (Gross) 3882565 532327
Government Subsidy Received 1500 1000
Change in Minority Interest 2016 1167
Change in Investment in Associate Companies 56748 43817
Investment income 52456 3465
4250279 635361
Less: Outflows from investing activities
Purchase of fixed assets -347211 -268708
Purchase of investments -4038960 -218493
-4386171 -487201
Net cash generated from/(used in) investing activities [B] -135892 148160
[C] CASH FLOWS FROM FINANCING ACTIVITIES
Add: Inflows from financing activities
Secured loans 0 0
Unsecured loans 0 323514
0 323514
Less: Outflows from financing activities
Secured Loans -587134 -535215
Unsecured Loans -447906 0

Crompton Greaves Ltd.
Interim Dividend paid -156359 0
Corporate Tax on Dividend -20628 0
Interest paid (net) -383331 -651283
-1595358 -1186498
Net cash generated from/(used in) financing activities [C] -1595358 -862984
NET CHANGES IN CASH AND CASH EQUIVALENTS (A+B+C) 233913 898948
Cash and cash equivalents - Opening balance -1284426 -2183374
Cash and cash equivalents - Closing balance -1050513 -1284426
BREAK UP OF CASH AND CASH EQUIVALENTS
Cash and bank balances 801971 567575
Bank overdraft -1824984 -1852001
Inter corporate deposit payable -27500 0
-1050513 -1284426
NOTES:
1 The cash flow statement has been prepared under the indirect method as set out in Accounting
Standard - 3 “Cash Flow Statement” issued by The Institute of Chartered Accountants of India except in
case of dividend, purchase and sale of investments which have been considered on the basis of actual
movements of cash and cash equivalents with corresponding adjustments in assets and liabilities
2 Additions to fixed assets are stated inclusive of movements of capital work-in-progress between the
beginning and the end of the year and treated as part of investing activities
3 Figures for the previous year have been re-grouped/re-classified wherever necessary
2003-04 2002-03
Rs ’000 Rs ’000
Mumbai, 26th May, 2004
BR Jaju W Henriques S M Trehan K K Nohria
Chief Financial Officer Secretary Managing Director Chairman
AUDITOR’S CERTIFICATE
We have examined the attached cash flow statement of Crompton Greaves Limited for the year ended 31st
March, 2004 The statement has been prepared by the Company in accordance with the requirements of
Clause 32 of the Listing Agreement with the Stock Exchanges and is based on and in agreement with the
corresponding Profit and Loss Account and Balance Sheet of the Company covered by our report of 26th May,
2004 to the members of the Company
Mumbai, 26th May, 2004
SHARP & TANNAN
Chartered Accountants
L Vaidyanathan
Partner
Membership no 16368
115

Products and Services
Power Systems
Transformers
• Power Transformers
• Distribution Transformers
• Amorphous Core Transformers
• Dry Type Transformers
• Locomotive Transformers
• Traction Transformers
• Furnace Transformers
• Rectifier Transformers
• Series and Shunt Reactors
Switchgear
• OIP Instrument Transformers upto 400 kV
• Condenser Bushings
• Coupling/Grading Capacitors
• Vacuum Circuit Breakers upto 36kV
• Gas Circuit Breakers upto 400 kV
• On-load Tap Changers
• Lightning Arresters
• Vacuum Interrupters upto 52 kV, 40 kA
• MV & LV Vacuum Contactors upto 12 kV
and 400A
• Gas Insulated Switchgear (GIS)
• Unitised Substation
• Power Quality Solutions
• Dry type outdoor Instrument Transformers
upto 36 kV
• Polycrete Bushings upto 36kV and 3150A.
• Polycrete support Insulators upto 36 kV
Engineering Projects
• Systems Engineering
• Projects on turnkey basis from concept to
commissioning: Power Generation,
Transmission & Distribution – 400 Volts to
400 kV
• Industrial Electrification for Process
Industries, Power, Cement, Paper,
Metallurgy, Steel, Petrochemicals, etc.
• Control and Automation Projects for
Substations
• Railway Traction Substations
• Railway Overhead Electrification
Industrial Systems
Motors
• AC Motors from 7 Watts to 10 Megawatts –
All types including Flame Proof and
Increased Safety
• DC Motors
• Alternators / AC Generators
• Stampings & Laminations, Tools
Rail Transportation
• Traction Motors & Alternators
• Traction Controls for Diesel Electric
Multiple Units
• Carriage fans
Signalling Products
• Signalling Relays
• Point Machines
• Data Logger
Consumer Products
Lighting
Lamps
• Fluorescent Tube Lights, Compact
Fluorescent & T5 Lamps
• Incandescent Lamps
• Reflux Lamps, Reflux Systems
• High Pressure Mercury/Sodium Vapour
Lamps
• Metal Halide Lamps
• Halogen Lamps
Luminaires and Accessories
• Mirror Optics
• Streetlights, Floodlights
• Domestic, Commercial
• Industrial
116

• High Masts
• Lighting Electronics
• Special Lighting
Fans
• Ceiling Fans in various models
• Table, Pedestal and Wall Mounting Fans in
metal and plastic
• Kitchen Fresh Air Fans
• Cooler Kits
• Industrial Fans: Exhaust Fan and Air
Circulator
• Special Purpose Fans
Pumps
• Centrifugal Monoblock Pumpsets
- Single/Two Stage
• Self Priming Pumpsets – Monobloc and
Coupled
• Submersible Pumpsets for 78,100, 150, 200
& 250mm borewell
• Jet Centrifugal Pumpsets – Single or Multi
Stage
• De-watering Pumpsets
• Vertical In-line Pumpsets
• Open well Submersible Pumpsets
• Diesel Engines & Diesel Engine driven
Pumpsets
• Compressor Borewell Pumpsets
• Tank Compressor
International
• Exports of all Crompton Greaves
manufactured and factored products
directly and via global EPCs operating from
India.
Digital
Switching (D4)
• 200 Ports C-DOT Rural Automatic
Exchanges (TAX)
• 400 - 1400 Ports C-DOT Single Base
Module RAX
• C-DOT MAX-L Exchanges of Capacities upto
10K lines
• C-DOT MAX-XL Exchanges of Capacities
upto 40K Lines
• Network Synchronisation Equipment (NSE)
• Huawei D-TAX Exchange of Capacity upto
800K lines
Transmission (D4)
• 2/8 Mbps Optimux Equipments
• 2/8 Mbps Optimux in 1+1 Hot Standby
Mode
• 2/34 Mbps Optimux Equipment
• TDMA-PMP Digital MARR Systems
• Optical Modems at 8 Mbps
• STM-1 & STM4 equipments
• Free Space Optics Equipment
Access Products (D4)
• CorDECT – Wireless Local Loop Equipments
• High-bit-rate Digital Subscriber Loop
(HDSL) systems
• CDMA (Code Division Multiple Access)
Handsets
• DLC on SDH’s (Digital Loop Carrier on SDH)
• Multiplexer Equipment
Private Switching (D3)
• Coral Range of EPABX Systems of capacities
up to 6000 ports with CTI and ACD facilities
• Call Centers
• VOIP Range products
• Video Conferencing products
Telephone Instruments
Various models of Basic, Premium, Feature
and CLI Phones
• Basic: Maestro, EasyTalk, Crystal
• Premium: Free Talk, Memory Talk
• Feature: Plan (1+1)
• CLI phones: Clip I, Clip II & Blue Line
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Establishments
Registered Office
CG House,6th floor, Dr. Annie Besant Road,
Worli, Mumbai 400 030.
Tel. (022) 24237777, Fax (022) 24237788
Works
Power Systems
• Kanjur, Bhandup, Mumbai 400 042
Tel: (022) 25782974, Fax: (022) 55558305
e-mail: vinod.masson@cgl.co.in
• A3, MIDC Area, Ambad, Nashik 422 010
Tel: (0253) 2382271/75
Fax: (0253) 2381247
e-mail: dileep.patil@cgl.co.in
• D2-MIDC, Waluj, Aurangabad 411 136
Tel: (0240) 2554662/2554371-72
Fax: (0240) 2554697
e-mail: venkatesh.r@cgl.co.in
• T1+T2 MPAKVN Industrial Area
Malanpur (Dist. Bhind) Madhya
Pradesh 477 716
Tel: (07539) 283502-7, Fax: (07539) 283585
e-mail: vijaykumar.sabnis@cgl.co.in
• Plot No. 29-32 New Industrial Area No. 1
AKVN, Mandideep 462 046 M.P.
Tel: (07480) 233306/40/48
Fax: (07480) 233149
e-mail: sanjay.dabir@cgl.co.in
Industrial Systems
• Kanjur, Bhandup, Mumbai 400 042
Tel: (022) 55558000
Large & Traction Machines Division
Fax: (022) 25783845
e-mail: lmd@cgl.co.in
Stampings Division
Fax(022) 25787970
e-mail: vijay.salhotra@cgl.co.in
• A/6-2, MIDC Industrial Area
Ahmednagar 414111
Tel: (0241) 2777372, Fax: (0241) 2777508
e-mail: subhash.gupta@cgl.co.in
• D-5 Industrial Area MPAKVN
Mandideep 462 046 M.P.
Tel: (07480) 233116, 233118
Fax: (07480) 503119
e-mail: raina@cgl.co.in
• 11B, Industrial Area 1, Pithampur 454 775
Dist: Dhar M.P.
Tel: (07292) 253194, 253258, 253197
Fax: (07292) 253211
e-mail: sd_lapalikar@cgl.co.in
• D-2-21,22,23 Tivim Industrial Estate
Karaswada, Bardez, Goa 403 526
Tel: (0832) 2257639, 2257409
Fax: (0832) 2257207
e-mail: ramchandra.sagar@cgl.co.in
• 196-198, Kundaim Industrial Estate
Kundaim, Ponda, Goa 403 115
Tel: (0832) 2395510, Fax: (0832) 2395377
e-mail: mukesh.gupta@cgl.co.in
Consumer Products
• Luminaire Division, 2nd floor, Central
Building, Kanjur Marg (East)
Mumbai 400 042
119

Tel: (022) 55558000
Fax: (022) 25787283/25783027
e-mail: vijay.mujumdar@cgl.co.in
• Baroda Lamp Works, Kural Village, Padra
Taluka, Padara–Jambusar Road
Dist Baroda 391 430, Gujarat
Tel: (02662) 242323/242278
Fax: (02662) 242326
e-mail: raj.ray@cgl.co.in
• A-28, MIDC, Ahmednagar 414111
Tel: (0241) 2777152, 2777155, 2778040
Fax: (0241) 2777893
e-mail: uhm@cgl.co.in
• 214-A Kundaim Industrial Estate, Kundaim
Goa 403 115
Tel: (0832) 2395206, 2395246
Fax: (0832) 2395305
e-mail: adam.aga@cgl.co.in
• Plot No. 1 Goa IDC Industrial Estate
Bethora, Ponda, Goa 403 409
Tel: (0832) 2330005, 2330203, 2330235
Fax: (0832) 2330155
e-mail: subroto.mukherjee@cgl.co.in
Digital
• Public Switching, Transmission & Access
Division, No.10A, Jigani Industrial Area
Jigani, Anekal Taluk Bangalore–562 106
Tel No.: (080) 7825201 / 7825206 / 7825207
Fax No.: (080) 7825205 / 7825202 / 7825210
e-mail: g.govindappa@cgdigital.biz
International Division
• "Jagruti", 2nd floor, Kanjurmarg (East)
Mumbai 400 042
Tel: (022) 55558931, 55558365
Fax: (022) 25774066, 25780456
e-mail: cgi@cgl.co.in
Engineering Projects Division
• Bombay Mutual Building, 4th floor, 232
NSC Bose Road, Chennai 600 001
Tel: (044) 25341941
Fax: (044) 2531048, 25342024
e-mail : mehta.s@cgl.co.in
Regional Sales Offices
Northern Region
• Jaipur: Church Road, PO Box 173
Jaipur 302 001
Tel: (0141) 2376919, 2376307, 2365604
Fax: (0141) 2365371
e-mail: omprakash.sharma@cgl.co.in
• Jalandhar: 416-417, 3rd Floor, Prestige
Chambers, GT Road, Jalandhar 144 001
Tel: (0181) 2459467, 2459478, 2223801
5083744, Fax: (0181) 2226342
e-mail: Puneet.Dhawan@cgl.co.in
• Lucknow: Saran Chambers II
3rd Floor, 5 Park Road, Lucknow 226 001
Tel: (0522) 2239443, 2237007/8, 2237426
Fax: (0522) 2237009
e-mail: Chandra.Srivastava@cgl.co.in
• New Delhi: Vandana Building, 11 Tolstoy
Marg, New Delhi 110 001
120

Tel: (011) 23354514/15, 23730445
23352161/2
Fax: (011) 23324360, 23352134
e-mail: vinesh.kumar@cgl.co.in
• New Delhi: Rail Transportation
Systems Division, Vandana Building
11, Tolstoy Marg, New Delhi 110 001
Tel: (011) 23352147, Fax: (011) 23352134
e-mail: harsh.dhingra@cgl.co.in
• New Delhi: Digital-Rishyamook Building
Block B, 2nd Floor, 85 A, Punchkuin Road
New Delhi 110 001
Tel: (011) 23348236
23348240/23348425/426
Fax: (011) 23744954
Eastern Region
• Kolkata: 50 Chowringhee Road
Kolkata 700 071
Tel: (033) 22829681-85
Fax: (033)22829942 (Marketing)
(033) 22824818 (Mktg.&Finance)
e-mail: mailadmin@cal.cgl.co.in
• Kolkata: Digital – Eastern Region
50, Chowringhee Road, Kolkata 700 071
Tel: (033) 22829681- 85/22827761
Fax: (033) 22829942
• Bhubaneswar: Janpath Tower 3rd floor
Ashok Nagar Unit II, Bhubaneswar 751 009
Tel: (0674) 2531128, 2531429, 2531277
2533647, Fax: (0674) 2533521
e-mail: bibhu.bhuyan@cgl.co.in
Western Region
• Ahmedabad: 909-916, Sakar II, Near Ellis
Bridge Police Station, Ahmedabad 380006
Tel: (079) 26581729, 26582780, 26587328
Fax: (079) 26586047
e-mail: rakesh.vatsa@cgl.co.in
• Indore: 103-B, Apollo Trade Centre, 2B
Rajgarh Kothi, Mumbai-Agra Road
Indore 452 001
Tel. (0731) 2498269, 2498271, 2498276
Fax: (0731) 5067146
e-mail: sagar.mobhe@cgl.co.in
• Pune: Surya Bhavan, 5th floor, Fergusson
College Road, Pune 411 005
Tel: (020) 25534675–77
Fax: (020) 25534684
e-mail: sudhir.kane@cgl.co.in
• Mumbai: Western Region, Kanjur Marg
(East), Mumbai 400 042
Tel: (022) 55558000
Fax: (022) 55558669, 25795158
e-mail: raghuvir.rao@cgl.co.in
• Nagpur (Satellite Office), 3, West High
Court Road, Lal Bahadur Shastri Chowk
Dharampeth, Nagpur 440 010
Tel: (0712) 2531271, 2560870-71
Fax: (0712) 2537196
e-mail: ajay.vsharma@cgl.co.in
Digital: Kanjur Works, Kanjur Marg (East)
Mumbai - 400 042
Tel: (022) 25787733/25787636
Fax: (022) 25784122
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Southern Region
• Chennai: ‘Crompton House’ 3, Dr. MGR
Salai (Kodambakkam High Road)
Nungambakkam, Chennai 600 034
Tel: (044) 28257375
Fax: (044) 28231973/1974
e-mail: tahilyani.dd@cgl.co.in
• Bangalore: First Floor, Janardhana Towers
562/640, Bannerghetta Road, Bilekahalli
Bangalore 560 076
Tel: (080) 51391908/909
Fax: (080) 51391900
e-mail: ukil.b@cgl.co.in
• Cochin: Cherupushpam Building, 5th floor
300-6, Shanmugham Road, Ernakulam
Cochin 682 031
Tel: (0484) 2370860 – 63, 2360240
Fax: (0484) 2373738
e-mail: anandkumar.n@cgl.co.in
• Secunderabad: Minerva House, 4th floor
94, Sarojini Devi Road, Secunderabad 500 003
Tel: (040) 27847270, 27847090
Fax: (040) 27842921
e-mail: ramesh.kumar@cgl.co.in
• Digital: 562/640, Janardhan Towers,
1st floor, Bilekahalli, Bannerghatta Road
Bangalore-560 076
Tel: (080) 51292390-99
Fax: (080) 51292389
e-mail: praveen.rajpal@cgdigital.biz
Service Centres
Northern Region
• 56, Rama Road, New Delhi
Tel: (011) 25173139, 25173149, 25916311
Fax: (011) 25173148
e-mail: vimal.gogia@cgl.co.in
• Church Road, P.O. Box 173, Jaipur 302 001
Tel: (0141) 2365604, Fax: (0141) 2365371
e-mail: omprakash.sharma@cgl.co.in
• Village Khajuria, Outside Jalandhar Octroi
Post, Jalandhar – Phagwara Road
Jalandhar 144 001
Tel: (0181) 2632199, 2632187
e-mail: puneet.dhawan@cgl.co.in
• Plot No. 1, Industrial Area, Phase-1
Chandigarh 160 002
Tel: (0172) 2657402, 2659764
e-mail: puneet.dhawan@cgl.co.in
• C-22, Transport Nagar, Lucknow 226 012
Tel: (0522) 2432345
e-mail: chandra.srivastava @cgl.co.in
Eastern Region
• 21, R N Mukherjee Road, Kolkata-700 001
Tel: (033) 22489160 22488911
Fax: (033) 22489737
e-mail: mailadmin@cal.cgl.co.in
• Janpath Tower (Basement), Ashok Nagar
Unit II, Bhubaneswar 751 009
Tel: (0674) 2531128, 2531429, 2531277,
2533647, Fax: (0674) 2531592
e-mail: ajoy.mahapatra@cgl.co.in
• Vishwasadan, Behind Jeevan Deep Bldg.
East of Narmada Apartments, Exhibition
Road, Patna 800 001
Tel: (0612) 2239405
e-mail: swapan.bera@cgl.co.in
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Western Region
• 909-916, Sakar II, Near Ellis Bridge Police
Station, Ahmedabad 380 006
Tel: (079) 26581729
Fax: (079) 26586047
e-mail: suman.tailor@cgl.co.in
• 103-B, Apollo Trade Centre, 2B, Rajgarh
Kothi, Mumbai-Agra Road, Indore 452 001
Tel: (0731) 2498269, 2498271, 2498276
Fax: (0731) 5067146
e-mail: amul.chhajed@cgl.co.in
• Surya Bhavan, 5th floor, Fergusson College
Road, Pune 411 005
Tel: (020) 25534675–77
Fax: (020) 25534684
e-mail : anil.jagade@cgl.co.in
• Western Region, Kanjur Marg (East)
Mumbai 400 042
Tel: (022) 55558000
Fax: (022) 55558669
e-mail : subhash.rege@cgl.co.in
• 3, West High Court Road, Lal Bahadur
Shastri Chowk, Dharampeth
Nagpur 440 010
Tel: (0712) 2531271, 2560870-71
Fax: (0712) 2537196
e-mail: vipin.sahu@cgl.co.in
Southern Region
• No. 26, 2nd Main Road, Trustpuram
Chennai 600 024
Tel: (044) 24724096
e-mail: narayan.vs@cgl.co.in
• 20, II Main Road, New Timber Yard Layout
Mysore Road, Bangalore 560 026
Tel: (080) 6755723 / 6755727
Fax: (080) 6755723
e-mail: ukil.b@cgl.co.in
• No. 9C Jigani Industrial Area, Jigani Anekal
Taluk, Bangalore 562 106
Tel: (080) 7825203, 7826057, 7826421
Fax: (080) 7825205
• 1st floor, 132, Industrial Area, Rasulpura
Secunderabad 500 003
Tel: (040) 27905398, 55269001
e-mail: ramesh.kumar@cgl.co.in
• 35/1872, South Janata Road, Palarivattom
Cochin 682 025
Tel: (0484) 2338102, 2338856
e-mail: anandkumar.n@cgl.co.in
• Sree Rajalakshmi Plaza
658, Dr. Rajendra Prasad Road
(100 Feet Road), Gandhipuram
Coimbatore 641037
Tel: (0422) 2521829/830
Fax: (0422) 2525334
e-mail: admincbt@mail.cgl.co.in
• 29-2-22 Rama Mandiram Street
Governorpet, Vijayawada 520 002
Telefax: (0866) 5595144.
• Telecom Business, Private Switching
Division, 9-C, Industrial Area, Jigani, Anekal
Taluk, Bangalore-562106
Tel: (080) 7825203
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