2007-2008 - Cgglobal.com

CROMPTON GREAVES LIMITED 

ANNUAL REPORT 2007-2008 

CONTENTS 

CONSOLIDATED 

FINANCIAL 

HIGHLIGHTS 

04 CHAIRMAN’S 

07 

LETTER 

CORPORATE 

INFORMATION 

08 MANAGEMENT 

30 

DISCUSSION 

AND ANALYSIS 

TEN YEARS’ 

FINANCIAL 

HIGHLIGHTS 

32 DIRECTORS’ 

44 

REPORT 

CORPORATE 

GOVERNANCE 

52 ADDITIONAL 

58 

SHAREHOLDER 

58 

INFORMATION 

102 

FINANCIALS 

CG STANDALONE 

CG CONSOLIDATED 

140 PRODUCTS 

143 

& SERVICES 

ESTABLISHMENTS

REVENUE 

RS. BILLION 

EARNINGS 

RS. BILLION 

OPERATING 

EBIDTA 

21 

38 

EARNINGS BEFORE INTEREST, 

REVENUE 

43 

PERCENT PERCENT DEPRECIATION, TAX AND 

PERCENT 

AMORTIZATION 

PAT 

PROFIT AFTER TAX 

59.34 

71.81 

8.12 

4.10 

5.88 

2.87 

FY2007 FY2008 FY2007 FY2008 FY2007 FY2008 

NET SALES 

PBT 

21 

PROFIT BEFORE TAX 

& SERVICES 41 44 

PERCENT PERCENT 

PERCENT 

PAT* 

*PROFIT AFTER TAX, 

MINORITY INTEREST & SHARE 

OF ASSOCIATE COMPANIES 

56.40 

68.32 

6.15 

4.07 

4.36 

2.82 

FY2007 FY2008 FY2007 FY2008 FY2007 FY2008 

2 ANNUAL REPORT 2007–2008 CROMPTON GREAVES LIMITED

RETURNS 

PERCENT 

23 

PERCENT 

25.90 

ROCE 

RETURN ON CAPITAL 

EMPLOYED 

31.79 

2007–2008 

CONSOLIDATED 

FINANCIAL 

HIGHLIGHTS 

Relentless quest for greater global opportunities, business growth, 

operational efficiency and input costs management has been the 

hallmark for the Company during 2007-08. 

07 

PERCENT 

FY2007 


RONW 

RETURN ON NET WORTH 

With the acquisition of the Ireland based Microsol Group, having its 

facilities in UK and USA, and engaged in the business of providing 

substation automation and retrofitting solutions, the Company is 

rapidly moving towards its objective of becoming a “full solutions 

provider”. 

Acquisition of our JV Partner’s voting stake in the Indonesia based PT 

Pauwels Trafo Asia has further enhanced the Company’s capabilities of 

catering to the fast growing Asian markets. 

30.91 

32.97 

CG Power Systems’ business scaled new heights in new product 

development, enhanced its capacities and entered unchartered new 

markets and territories. 

Innovative product development, focus on quality, forging key 

alliances and enhanced marketing efforts has resulted in the Industrial 

Systems and Consumer Products businesses delivering admirable 

performances during the year. 



CONSOLIDATED FINANCIAL HIGHLIGHTS 3

CHAIRMAN’S 

LETTER 

Over the past few years, Crompton Greaves has been executing various initiatives and 

leveraging its acquisitions to consistently deliver superior corporate performance. These 

have all come into play in 2007-08 with your Company achieving its best ever results in 

71 years of its existence. 

Let me share with you some of the key 

consolidated financial numbers. 

$ Net sales and income from services 

increased by over 21% to reach Rs.68.3 billion. 

This translates to a top-line of US$ 1.7 billion. 

$ Each of the businesses has done very well. 

Power Systems saw gross sales increasing by 

21% to Rs.48.2 billion in 2007-08, or US$ 1.2 

billion. Industrial Systems grew by 23% to 

Rs.11 billion, or US$ 275 million; and Consumer 

Products increased revenues by 17% to Rs.11.7 

billion, or US$ 291 million. 

The Management of your Company and 

I, believe that top-line growth must be 

accompanied by significant increase in profits. I 

am happy to inform you that Crompton Greaves’ 

profits have grown considerably in 2007-08, 

with a sizeable increase in profitability. Here are 

some consolidated numbers for 2007-08: 

$ Operating EBIDTA grew by 54% to Rs.7.4 

billion or US$ 185 million. Consequently, the 

ratio of operating EBIDTA to net sales increased 

by 230 basis points — from 8.6% in 2006-07 to 

10.9% in 2007-08. 

$ Profits after tax (PAT), net of minority interests 

and share of associate companies grew by 44% 

to Rs.4.1 billion, or US$ 101 million. 

$ Earnings per share (EPS) on a fully diluted 

basis increased from Rs.7.69 in 2006-07 to 

Rs.11.10 in 2007-08. Cash EPS stood at Rs.14.60. 


$ Return on net worth (RONW) rose by 210 

basis points to 33%. 

$ Return on capital employed (ROCE) increased 

by 590 basis points to 31.8% in 2007-08. 

These are excellent results and exemplify 

how Crompton Greaves has been consistently 

growing shareholder value over the last eight 

years. Given the execution excellence of your 

Company’s Management, I am sure that we will 

see more such results in the years ahead. 

Up to 2007-08, Crompton Greaves’ focus 

was to substantially increase operational 

efficiencies and reduce unit costs across all 

the businesses — especially its two major 

overseas acquisitions, Pauwels and Ganz. 

While Management will never take its eyes off 

achieving greater productivity growth and 

higher ROCE, you will now see a subtle change 

in strategic emphasis. With capital efficiency, 

inventory turns and cost minimisation firmly 

embedded in the DNA of Crompton Greaves, 

your Company will focus more on achieving 

even higher growth. We expect this to occur 

both inorganically as well as through strategic 

acquisitions. 

Microsol has been one such acquisition, 

which your Company purchased in May 2007. 

With a substantial presence in Europe, Microsol 

provides automated solutions for medium and 

high voltage substations. With Microsol, we can 

now become a full solutions provider. 

Going forward, I expect to see more such 

strategic, technology based acquisitions — of 

small, medium and large enterprises in the rest 

of the world as well as India. 

As we acquire more global entities, we will 

have to master the art of managing these 

across diverse geographies, markets and work 

cultures. Part of this involves putting in place 

uniform processes and reporting systems — 

and doing so by adopting best practices across 

all entities. This is being done. 

The task of managing a truly global MNC, 

however, is more than having common 

processes and reporting systems. It involves 

creating global managers — who can be as 

efficient and comfortable in running a business 

out of Mandideep, near Bhopal, as in Winnipeg 

in Canada, Bogor in Indonesia, Mechelen in 

Belgium or Tapioszele in Hungary. 

As a part of the Avantha Group, your Company 

has begun taking significant steps in creating 

such a best-in-class global managerial cadre. 

At the group level, we will be choosing 50 such 

people across different businesses, training 

them for global leadership and posting them 

to international assignments, to expedite 

managerial cross-fertilisation. Our aim is to have 

a team of 200 cross-functional global managers 

across the Avantha Group to lead key tasks in 

India and elsewhere. 

A year and a half ago, few would have 

believed that the global economy would be 

where it is today. As I write this letter, the US may 

well get into a recession. In any event, US GDP 

growth for 2008 is not expected to be greater 

than 1.2%. The UK too is slowing down, with a 

growth forecast of 1.5% to 1.8% for 2008. So too 

is the Euro zone, which is expected to 

With capital efficiency, inventory turns and 

cost minimisation firmly embedded in the 

DNA of Crompton Greaves, your Company 

will focus more on achieving even higher 

growth. We expect this to occur both 

inorganically as well as through strategic 

acquisitions 

CHAIRMAN’S LETTER 5

Your Company has begun taking significant 

steps in creating a best-in-class global 

managerial cadre. Our aim is to have a team 

of 200 cross-functional global managers 

across the Avantha Group 

grow by no more than 1.7% in 2008. The only 

beacons of growth are some key emerging 

economies led by China and India, and the oil 

and commodity producing nations. China is 

expected to grow by over 10% in 2008; India 

by somewhere between 7.5% and 8%; Russia 

by over 7%; and the major Latin American 

economies by over 5%. 

Your Company, therefore, will need to achieve 

higher growth and profitability at a time 

when the overall global economic scenario 

has become bearish and more volatile. This 

is a challenge. It involves careful selection of 

markets, portfolio rebalancing and increasing 

the share of business in those emerging 

economies which have large capital outlays 

for infrastructure spends. It also involves 

reorienting Consumer Products — a successful 

cash generating business — into becoming 

a truly consumer-brand-marketing driven 

enterprise. Your Company’s Management is 

seized of this strategic emphasis. 

Given your Company’s inherent managerial 

strengths, I am sure these initiatives will be 

successfully executed. 

As a responsible global organisation, 

Crompton Greaves has the obligation to 

lessen its carbon footprint throughout the 

world. This is important in itself; it also makes 

good business sense. We are in the process of 

studying how this can be done for the Group as 

a whole. Once, we are certain of our approach, 

you will see us rolling out several key initiatives 

in this area. 

I thank all employees of your Company — 

Crompton Greaves, Pauwels, Ganz and Microsol 

— for the excellent work that they have done in 

delivering such superior results. Knowing their 

capabilities, and the drive of your Company’s 

Senior Management, I am confident that they 

will do even better next year. 

Let me also thank you for supporting your 

Company. You will agree, I am sure, that 

Crompton Greaves has rewarded your support 

by delivering superior long term shareholder 

value. 

With kind regards 

Yours sincerely 

GAUTAM THAPAR 

Chairman 


CORPORATE 

INFORMATION 

Board of Directors 

CHAIRMAN 

G Thapar 

CHIEF FINANCIAL OFFICER 

BR Jaju 

MANAGING DIRECTOR 

SM Trehan 

COMPANY SECRETARY 

W Henriques 

NON-EXECUTIVE, INDEPENDENTS 

S Bayman 

O Goswami 

S Labroo 

M Pudumjee 

SP Talwar 

V von Massow 

AUDITORS 

SOLICITORS 

BANKERS 

Union Bank of India 

State Bank of India 

Sharp & Tannan 

Crawford Bayley & Co. 

IDBI Bank Ltd 

ICICI Bank Ltd 

Corporation Bank 

ABN Amro Bank NV 

Bank of Maharashtra 

Standard Chartered Bank 

Canara Bank 

Calyon Bank 

Senior Management Team 

REGISTERED OFFICE 

6th Floor, CG House, Dr. Annie 

Besant Road , Worli, Mumbai 400 030 

FIRST ROW, LEFT TO RIGHT JG KULKARNI, VP-CG Power (Asia); SM TREHAN, Managing Director and W HENRIQUES, Company Secretary, Legal Counsel & Global Head-Human Resources 

SECOND ROW, LEFT TO RIGHT M VERMA, VP-Lighting & International; BR JAJU, CFO and DS PATIL, CEO-CG Power 

STANDING, LEFT TO RIGHT AN RAVICHANDRAN, VP-Fans, Appliances & Pumps; F ROBBERECHTS, VP-CG Power (Europe, Middle East & Africa); M SCHILLEBEECKX, VP-CG Power (Americas); 

AK RAINA, VP-Large & Traction Machines & Stampings and M KELLY, CFO-CG Power 

CORPORATE INFORMATION 7

MANAGEMENT 

DISCUSSION 

& ANALYSIS 

Seeking greater global opportunities, 

growing its various businesses, increasing 

capacities, improving operational 

efficiencies and controlling input costs at 

a time of high commodity prices — these 

have been some of the focus areas for 

Crompton Greaves during 2007-08 

Overview 

Over the last five years, Crompton Greaves 

Ltd (‘Crompton Greaves’ or ‘the Company’) 

has successfully executed several initiatives: 

creating synergies, integration, growth and a 

transformation from being a first-rate Indian 

company to a world leader in its business lines. 

Thus, despite operating in an increasingly 

competitive global environment, the Company 

has been consistently reaping benefits from 

these efforts and achieving higher growth and 

profitability. 

As stated in last year’s Annual Report, 

Crompton Greaves, through its 100% 

subsidiary CG International BV (Netherlands), 

had executed an agreement in May 2007 to 

purchase the shares of Microsol Holdings 

Limited (‘Microsol’) for an enterprise value of € 

10.50 million. The purchase was completed on 

28 May 2007. Thus, the consolidated financials 

of Crompton Greaves reflect Microsol’s 

performance from that date. Headquartered 

in Ireland and with a substantial presence in 

Europe, Microsol provides automated solutions 

for medium and high voltage substations — for 

new units as well as for retrofitting. Automated 

solutions was one of the missing pieces in the 

Crompton Greaves’ portfolio. With Microsol, 

the Company can now become a full solutions 

provider. Moreover, since Microsol’s solutions 

are based on open architecture software, 

these can be aligned to any product, including 

those of competitors — thus making it an ideal 

platform for retrofitting of substations. 

To enhance its strengths even further, in 

February 2008, the Company, through CG 

International BV, acquired the balance 40% 

voting share capital in PT Pauwels Trafo Asia, 

Indonesia, for US$ 10.70 million. Therefore, with 

effect from 13 February 2008, the Company, 

through its subsidiaries now owns 100% of the 

voting share capital of PT Pauwels Trafo Asia. 

Seeking greater global opportunities, 

growing its various businesses, increasing 

capacities, improving operational efficiencies 

and controlling input costs at a time of high 

commodity prices — these have been some of 

the focus areas for Crompton Greaves during 

2007-08. The consolidated financial results on 

the next page reflect the Company’s successes 

in these endeavours. 

Strategic Business Units 

Crompton Greaves has three Strategic Business 

Units (SBUs) : Power Systems, Industrial Systems 

and Consumer Products. Chart A gives the 

comparative shares of business of the three 

SBUs on a consolidated global basis for 2007-08 

compared with 2006-07. 


Power Systems 

CONSOLIDATED PERFORMANCE 

Power Systems (or CG Power) includes the 

combined global transmission and distribution 

businesses, and is the largest revenue generator 

for Crompton Greaves. This SBU manufactures 

power transformers, distribution transformers, 

extra high voltage (EHV) and medium voltage 

(MV) circuit breakers, gas insulated switchgear 

(GIS), EHV and MV instrument transformers, 

lightning arrestors, isolators, vacuum 

interrupters and electronic energy meters. In 

addition to designing and manufacturing these 

substation equipment, CG Power provides 

end-to-end turnkey solutions for transmission 

and distribution (T&D) through customised 

substation projects. 

To capitalise on global growth opportunities 

and to enable seamless integration of the best 

design and manufacturing practices across the 

world, Power Systems has built and acquired 

multiple manufacturing facilities in India and 

overseas. These are at: 

IN INDIA 

$ KANJUR MARG (MUMBAI), MALANPUR 

AND MANDIDEEP (MADHYA PRADESH) Power 

and Distribution transformers. 

$ NASHIK AND AURANGABAD 

(MAHARASHTRA), BANGALORE (KARNATAKA) 

EHV and MV circuit breakers, EHV and MV 

instrument transformers, vacuum interrupters, 

isolators, lightning arrestors, power quality 

products and solutions and electronic energy 

meters. 

CHART 

A 

Share of Revenue, by Business 

SHARE OF TOTAL, % | RS. MILLION 

 

Rs 39,896 mn 

POWER 

 

Rs 9,940 mn 

CONSUMER 

 

Rs 8,971 mn 

INDUSTRIAL 

 

$ GURGAON (HARYANA) Engineering Projects 

Division (EPD). 

OVERSEAS 

$ MECHELEN (BELGIUM) The biggest plant 

of Pauwels. It manufactures large distribution 

transformers, custom-made medium and large 

power transformers, mobile substations and is 

engaged in contracting. 

$ CAVAN (IRELAND) Smaller single-phase 

and three-phase distribution transformers and 

micro-substations. 

$ CHARLEROI (BELGIUM) The services 

division of Pauwels. 

$ WASHINGTON (MISSOURI, USA) Threephase 

& pad-mounted transformers, unitized 

substations and small power transformers. 

$ WINNIPEG (CANADA) Medium and large 

power transformers up to 575 MVA, mobile 

substations and high voltage direct current 

(HVDC) converter transformers. 

$ BOGOR (INDONESIA) Power transformers 

from 10 MVA to 260 MVA. 

$ TAPIOSZELE (HUNGARY) The Ganz plant 

manufactures transformers, GIS and engages in 

contracting and services. It also manufactures 

traction motors (see section on Industrial 

Systems). 

$ DUBLIN (IRELAND), JARROW (UK), 

SEYMOUR (CONNECTICUT, USA) AND EAGLE 

(IDAHO, USA) These Microsol facilities focus on 

the manufacture of substation and distribution 

automation products and systems; and project 

delivery and sales management for Europe, the 

Middle East and the US markets. 

Rs 797 mn 

2006–07 OTHERS 

2007–08 

 

Rs 48,243 mn 

POWER 

 

Rs 11,668 mn 

CONSUMER 

 

Rs 11,044 mn 

INDUSTRIAL 

 

Rs 1,119 mn 

OTHERS 

Consolidated Financial Highlights 

for 2007-08 

GROSS SALES AND INCOME from services 

grew by 21% to Rs.71,814 million in 2007-08 

(US$ 1.79 billion). This translates to a threeyear 

compounded annual growth rate 

(CAGR) of 29%. 

CG POWER (i.e. the transformer, switchgear 

and engineering projects business of 

Crompton Greaves) grew by 21% to 

Rs.48,243 million (US$ 1.20 billion) in 2007-08. 

INDUSTRIAL SYSTEMS increased its 

revenues by 23% to Rs.11,044 million (US$ 

275 million). 

CONSUMER PRODUCTS grew by 17% to 

Rs.11,668 million (US$ 291 million). 

OPERATING EBIDTA (operating earnings 

before interest, depreciation, taxation and 

amortisation) for the Company increased by 

54% to Rs.7,439 million (US$ 185 million) in 

2007-08. Including non-operating income, 

the EBIDTA was Rs.8,116 million (US$ 202 

million). 

PBT (Profit before tax) increased by 41% to 

Rs.6,152 million (US$ 153 million) in 2007-08. 

PAT (Profit after tax) net of minority interests 

and share of associate companies, grew by 

over 44% from Rs. 2,817 million in 2006-07 to 

Rs. 4,067 million (US$ 101 million) in 2007-08. 

CONSOLIDATED ROCE (Return on capital 

employed) based on year-end capital rose 

from 26% in 2006-07 to 32% in 2007-08. 

CONSOLIDATED RONW (return on net 

worth) increased from 31% in 2006-07 to 

33% in 2007-08. 

CONSOLIDATED EPS (earnings per share) 

on fully diluted basis rose from Rs.7.69 in 

2006-07 to Rs.11.10 in 2007-08. Cash EPS 

increased from Rs.11.20 to Rs.14.60 over the 

same period. 

NOTES For 2007-08, US$1 = Rs.40.12; for 2006-07, 

US$1 = Rs.43.47. Figures for 2006-07 have been regrouped 

wherever necessary in order to make them comparable with 

those of 2007-08. 

MANAGEMENT DISCUSSION AND ANALYSIS 9

Key Performance Indicators of 

CG Power 

GROSS SALES of CG Power increased to 

Rs.48,243 million in 2007-08 — a growth 

of over 21% during the year, on the back 

of a 43% growth during the previous 

year. This translates to US$ 1.20 billion of 

revenue. 

PBIT (profit before interest and taxation) 

of CG Power increased by 34% to Rs.4,372 

million in 2007-08. 

ROCE Despite a 13% growth in capital 

employed, CG Power’s ROCE (return on 

capital employed) grew from 27% in 

2006-07 to 31% in 2007-08. 

UEOB (unexecuted order book) increased 

by over 14% to Rs.46,535 million as on 31 

March 2008 (US$ 1.16 billion). 

CHART 

B 

Consolidated Sales of 

CG Power 

RS. MILLION 

21% 

48,243 

TABLE 

01 

WE VALUE CUSTOMER COMMITMENTS THE PICTURE DEPICTS 

COMBINED FINANCIAL PERFORMANCE OF CG POWER 

YEAR ENDED 31 MARCH, IN RS. MILLION FY 2007 FY 2008 GROWTH 

GROSS SALES 39,896 48,243 21% 

PBIT 3,272 4,372 34% 

CAPITAL EMPLOYED 12,305 13,959 13% 

UNEXECUTED ORDER BOOK 40,694 46,535 14% 

NOTES Microsol was acquired on 28 May 2007. Therefore, the consolidated figures for 2007-08 is including 10 months for Microsol. 

Figures for 2006-07 have been regrouped wherever necessary in order to make them comparable with those of 2007-08. 

39,896 



The key performance indicators of CG Power 

are detailed in Table 1 above. This includes the 

performance of CG Power’s Indian operations, 

as well as that of the international divisions: 

Pauwels, Ganz (excluding motors) and Microsol. 

Global statistics suggest an enormous growth 

potential for the CG Power business. Here is 

some data: 

$ The International Energy Agency estimates 

that between now and 2030, world demand 

for primary energy will rise from 11.4 billion to 

about 17.7 billion tonnes of oil equivalent, and 

74% of this increase would be accounted for by 

India and China. 

$ The current per capita electricity 

consumption in India is at 625 kWh, versus 

12,200 kWh in the US and 2,150 kWh in China. 

Moreover, peak shortage of power in India 

has increased from 12% in 2003 to over 16% in 

2007-08. Thus there is considerable head room 

for growth in the power sector — and with it, 

the demand for transmission and distribution 

equipment and solutions. 

Given the synergies of size, global reach, 

operational excellence and technical expertise 

within CG Power, this SBU of Crompton Greaves 

is well poised to exploit these opportunities and 

continue with its double-digit growth in the 

coming years. 

FINANCIAL PERFORMANCE: THE 

INDIAN POWER SYSTEMS BUSINESS 

The performance of the standalone Indian 

Power Systems operations for 2006-07 and 

2007-08 is given in Table 2. 

CG Power’s Indian operations showed a 

topline growth of 13% over last year to reach 

Rs.19,633 million. This translates to a 3-year 

CAGR of 27%. Year-on-year PBIT grew by 40% to 

Rs.2,577 million. 


CG Power’s Indian operations showed a 

topline growth of 13% over last year to 

reach Rs.19,633 million. This translates 

to a 3-year CAGR of 27% 

Return on year-end capital employed 

(ROCE) was at 63% — a quantum jump 

over last year’s figure of 43% 

PAUWELS CANADA DISPATCHING A TRANSFORMER TO PACIFICORP IN TOUGH WINTER CONDITIONS 

TABLE 

02 

PERFORMANCE OF THE INDIAN POWER SYSTEMS BUSINESS 


GROSS SALES 17,412 19,633 13% 

PBIT 1,835 2,577 40% 

CAPITAL EMPLOYED 4,266 4,099 -4% 

UNEXECUTED ORDER BOOK 17,044 17,086 - 

CHART 

C 

Gross Sales of Indian 

Power Systems Business 

RS. MILLION 

13% 

19,633 

Return on year-end capital employed (ROCE) 

was at 63% — a quantum jump over last year’s 

figure of 43%. This improvement in ROCE bears 

testimony to the efforts that CG Power has put 

in place during 2007-08 in reducing its working 

capital needs and creating better operational 

efficiencies across all its product lines. It needs 

to be noted that a 40% growth in PBIT has 

been achieved with a 4% reduction in capital 

employed. 

The unexecuted order book (UEOB) is at 

Rs.17,086 million, which translates to over 10 

months’ of current sales. 

FINANCIAL PERFORMANCE: 

OVERSEAS POWER SYSTEMS 

BUSINESS 

Established over 60 years ago in Belgium, 

the Pauwels Group (‘Pauwels’) is a leader in 

the design and manufacture of three-phase 

distribution and power transformers, in the 

production and retrofitting of substations and 

in providing integrated solutions and services 

for the international transmission & distribution 

market. 

Ganz has a history of 125 years of being 

a quality supplier to the Hungarian heavy 

electrical industry. It is in the business of 

contracting and sub-contracting turnkey 

solutions in power transmission and 

distribution (including servicing and retrofitting 

power plants), substations and industrial 

electrical systems. It also manufactures power 

transformers, GIS upto 245 KV, high-voltage 

asynchronous and traction motors at its plant 

in Tapioszele, Hungary. Ganz is also engaged in 

substation contracting services. 

Microsol was established in 1986 and 

has a technological edge in the substation 

automation business. Over the years, it has 

expanded into a full line developer and supplier 

of automation equipment and solutions, as well 

17,412 




CHART 

D 

Gross Sales of Overseas 

Power Systems Business 

RS. MILLION 

28% 

29,597 

TABLE 

03 

PERFORMANCE OF THE OVERSEAS POWER SYSTEMS BUSINESS 


GROSS SALES 23,199 29,597 28% 

PBIT 1,437 1,795 25% 

CAPITAL EMPLOYED 8,039 10,135 26% 


NOTE Year-on-year figures are not strictly comparable, since 2006-07 did not have Microsol performance figures 

23,199 



The Overseas Power Systems business has 

shown 28% topline growth over 2006-07 

to reach Rs. 29,597 million in 2007-08 

(US$ 738 Million) 

as network enabled products. Microsol’s 

customers are a mixture of major utilities, 

government and military agencies as well as 

global OEMs. It also has complete hardware 

development capabilities to produce 

customised interface boards. As mentioned 

earlier, Crompton Greaves acquired Microsol on 

28 May 2007. 

The overall performance of the overseas 

Power Systems business is detailed in Table 3. 

The overseas Power Systems business has 

shown 28% topline growth over 2006-07 to 

reach Rs.29,597 million in 2007-08 (US$ 738 

million). Better realisation, greater capacity 

utilisation and rationalisation of material costs 

have resulted in a 25% year-on-year growth 

of PBIT to Rs.1,795 million in 2007-08 (US$ 45 

million). Simultaneously, orders have increased: 

the UEOB has increased by nearly 25% to 

Rs.29,449 million (US$ 734 million), representing 

nearly 12 months of current sales. 

KEY DEVELOPMENTS IN CG POWER 

2007-08 saw several significant developments 

in CG Power. Given below are a few: 

$ PRODUCT DEVELOPMENT: CG POWER 

IN INDIA CG Power’s Kanjur Marg plant built 

and supplied 220 / 220 KV, 200 MVA unit ratio 

transformers for National Aluminium Company 

Limited (NALCO) and 230 / 220 KV, 250 MVA 

for TNB, the state electricity board of Malaysia. 

International acceptance of this new product 

bodes well for its future prospects. Additionally, 

the plant manufactured and supplied to Bokaro 

Steel Plant its largest furnace transformer at 33 

KV / 46 MVA. CG Power’s Mandideep plant built 

for the first time in India a 765 KV / 260 MVA 

single phase generating transformer — which 

was supplied to the National Thermal Power 

Corporation (NTPC) for its plant at Sipat, in 

Chhattisgarh. 

The distribution transformer division at 

Malanpur and Mandideep, developed foil 

wound transformers based on Pauwels 

technology, which reduce material quantity 

and costs while enhancing efficiency levels. 

It is an example of cross-border absorption 

of best-in-class manufacturing practices and 

technologies. For the first time, the division 

developed a 132 KV / 23 MVA class low power 

transformer, as well as a 5 MVA single phase 

locomotive transformer. 

CG Power’s Nashik and Aurangabad plants 

have developed a 67 KV and a 138 KV ANSI 

bushing, which are both being tested for the 

US markets. These products have high global 

acceptability and strong export prospects. 

The switchgear division has been developing 

several products for export markets: a 170 KV, 

40 KA SF6 circuit breaker for South East Asia 

and a 245 KV, 40 KA, 60HZ SF6 circuit breaker 

for Brazil. It also produced a 36-245 KV 

disconnecter, which was supplied to Australia, 

Peru and Ecuador. 

$ PRODUCT DEVELOPMENT: PAUWELS, GANZ 

AND MICROSOL CG Power, through Pauwels, 

is involved in the development of Unipower 

— a common software enabled companywide 

global platform for the design of power 

transformers. The idea behind this project is to 

facilitate quicker and more optimal designs; 

spread these lessons across various facilities; 

and substantially reduce response time to 

customers. There has been good progress in the 

Unipower project throughout 2007-08. There 

is also a common global design platform for 

distribution transformers called DesDT. 

There were several new products / services 

offered by Pauwels during the year, such as 

transformers filled with FR3 cooling liquid 

(natural ester); the prototype of a 5.5 MVA 

converter transformer for RATP, the French 

metro; and the prototype of a 6.2 MVA bioSLIM® 

transformer for an offshore wind park. 

Pauwels comfortably retains its No.1 position 

as the manufacturer of SLIM® transformers for 

wind power and wind park installations. It is also 

considered a global market leader in the design 

and sales of mobile substations up to 220 kV. 

Ganz’s tank shop in Szolnok (Hungary) is 

being developed as a resource centre for the 

production of tanks used for transformers 

for Europe, Middle East and Africa (the EMEA 

region). Plans are being executed so that the 


Szolnok facility becomes a strategic enabler for 

the EMEA business. 

During 2007-08, Microsol has had several 

wins, two of which are highlighted here. 

First, it introduced a submersible control 

box (RCAM–E) for underground distribution 

switches. This not only helped it to secure orders 

from NSTAR, the Boston based utility, but has 

also made it the automation solution of choice 

for all NSTAR underground switch applications. 

Second, Microsol has successfully become the 

remote telemetry unit (RTU) automation of 

choice for the entire Amtrak electrified corridor 

from Washington DC to Boston. 

Microsol has also developed an IEC 61850 

interface for its XCell product range. This opens 

the new IEC 61850 based substation market to 

the Company and provides an upgrade path 

for existing customers to the new IEC 61850 

standard. Consequently, Microsol has started 

participating in some pilot projects based on 

IEC 61850 and are in some substantial tenders 

based on that standard. 

capacity by 38%, including adding three vertical 

winding machines and a foil winding machine. 

It has also developed two strategic vendors: one 

for high quality corrugated fin-wall tanks (the 

first time such a vendor has been developed 

in India) and another for the built-core of the 

transformer. 

The switchgear division reaped benefits from 

capacity enhancements made in 2006-07, and 

has developed strategic vendors for its 300 

KV CT/IVT products. Product outsourcing and 

alternate vendor development have helped the 

division enhance productivity and reduce costs. 

Production of circuit breakers was enhanced 

by over 40%, in large part due to the addition of 

nine assembly and test pads in the plant. 

Mandideep plant built for the first time 

in India a 765 KV / 260 MVA single phase 

generating transformer — which was 

supplied to the National Thermal Power 

Corporation (NTPC) for its plant at Sipat, 

in Chhattisgarh 

$ CAPACITY ENHANCEMENT AND VENDOR 

DEVELOPMENT: INDIA AND ABROAD For 

CG Power, 2007-08 saw major developments 

in two areas: increase in capacity of its Indian 

operations and strategic vendor development. 

The SBU has taken a conscious decision 

to identify areas that can be outsourced 

to strategic vendors, who will work in 

manufacturing important components 

according to Crompton Greaves’ performance 

and quality standards and controls. 

Simultaneously, ‘brownfield’ expansions at 

existing units have helped the SBU to grow 

capacity in order to address the growing 

demands of the global market. 

The Kanjur Marg plant commissioned a 

new Vapour Phase Drying Oven. Two new 

vendors were identified for transformer tank 

construction and development according 

to international standards. Thanks to these 

measures, manufacturing capacity went up by 

almost 15%, and resulted in a 20% growth in 

production volumes. 

The Mandideep plant has also developed 

a strategic vendor for the manufacture of the 

winding and core coil assembly. This is expected 

to increase manufacturing capacity and reduce 

costs. 

Significant expansions have taken place at the 

Malanpur plant. This division, which has shown 

the highest sales growth among the CG Power 

plants in India, has increased manufacturing 

ASSEMBLY OF A 420 KV SF6 CIRCUIT BREAKER AT THE NASHIK SWITCHGEAR DIVISION 


There was a breakthrough in selling of 

wind power transformers in the Americas, 

when the first 38 units of 2300 kVA SLIM® 

transformers were sold to Enercon for the 

Ripley Wind Farm in Canada 

In Pauwels, too, there have been several 

capacity increasing initiatives in 2007-08. 

Investments were made in the Indonesian plant 

to raise capacities. This involved setting up a 

floating core coil assembly platform; installing a 

second drying oven; and a heavy duty vacuum 

pump. The distribution transformer facility at 

Cavan (Ireland) increased efficiency by 5% at 

little or no cost, and also added additional shifts 

in the bottleneck areas to increase output. The 

distribution transformer facility in the US is in 

the midst of an expansion programme which 

will facilitate manufacture of 10MVA through 60 

MVA medium power transformers up to 138 KV, 

650 KV BIL. 

$ DEVELOPING NEW MARKETS AND 

CUSTOMERS The SBU’s power transformer 

division achieved 32% growth over last year 

in its international orders. Export orders were 

obtained from eight new countries, including 

Greece, Trinidad, Qatar, Jordan and Ecuador. The 

division also supplied a new product: 2 X 

250 MVA 230/220 KV transformers for the 

Singapore and Malaysian power grids. Oman 

and Guatemala were countries where the 

division supplied equipment for the first time. 

Pauwels continued enjoying successes in the 

wind power industry, especially in Southern 

Europe, mainly Spain, where several new 

customers signed on to the SLIM® or bioSLIM® 

solution throughout 2007-08. In addition, there 

was a breakthrough in selling of wind power 

transformers in the Americas, when the first 38 

units of 2300 kVA SLIM® transformers were sold 

to Enercon for the Ripley Wind Farm in Canada. 

Ganz’s transformers have also been getting 

new orders in Europe — in Spain, Belgium, 

Ireland and the UK. 

Ganz is executing one of its largest single GIS 

orders for the Steel Authority of India Limited’s 

Bhilai steel plant for 10 bays of 220 KV GIS and 

16 bays of 132 KV GIS. It also obtained an order 

for Power Grid Corporation of India Ltd for the 

supply of three bays of 132 KV GIS. In addition, 

the division became an approved vendor for 

customers such as Delhi Metro Rail Corporation, 

Reliance Energy, Torrent Power and the Nuclear 

Power Corporation of India. International 

marketing of switchgear also received a boost 

with new orders from Italy, Malaysia, Chile, 

Spain, Canada, Myanmar and Vietnam. 

A SLIM® TRANSFORMER BEING INSTALLED INSIDE THE WORLD’S HIGHEST TURBINE IN THE NORTHERN 

PART OF GERMANY 

Ganz is executing one of its largest single 

GIS orders for the Steel Authority of India 

Limited’s Bhillai steel plant for 10 bays of 

220 KV GIS and 16 bays of 132 KV GIS 


Industrial Systems 

The Company’s Industrial Systems SBU 

manufactures the following categories of 

products: 

$ High tension (HT) motors 

$ Railway transportation equipment 

$ Low tension (LT) motors 

$ Direct current (DC) motors 

$ Railway signalling equipment 

$ Fractional horse power (FHP) motors 

$ Alternators 

$ Stampings 

Its facilities are located at following locations: 

$ MADHYA PRADESH Mandideep (HT motors 

and rail transportation equipment) and 

Pithampur (railway signalling equipment). 

$ MAHARASHTRA Kanjur Marg (stampings) 

and Ahmednagar (LT motors, alternators and 

stampings). 

TABLE 

04 

PERFORMANCE OF THE INDUSTRIAL SYSTEMS BUSINESS 

$ GOA Bardez (LT motors) and Kundaim (FHP 

motors). 

$ HUNGARY Tapioszele (rotating machines). 

Table 4 gives the financial performance of the 

Industrial Systems Group. 

In spite of growing the operations by over 

23%, the division’s year-end capital employed 

decreased by 17% to Rs.1,618 million. This has 

resulted in a significant growth in ROCE: 121% 

in 2007-08, versus 67% in the previous year. The 

division’s UEOB increased by 26% to Rs.4,247 

million, which translates to over 4 months’ 

current sales. 

During the year, the HT and LT motors divisions 

created additional capacity which helped in 

growing production. The cement sector has 

been the prime customer for the Company’s slip 

ring induction motors, with Crompton Greaves’ 

products having very high acceptance among 

the end users. The division is now concentrating 


GROSS SALES 8,971 11,044 23% 

PBIT 1,302 1,956 50% 

CAPITAL EMPLOYED 1,954 1,618 -17% 


CHART 

Key Performance Indicators of 

the Industrial Systems Business 

PBIT grew by over 50% to Rs.1,956 million 

— in the process growing faster than last 

year’s rate of 40% growth. 

GROSS SALES increased by 23% over the 

previous year to reach Rs.11,044 million; 

a three-year CAGR of 27%. 

E 

Gross Sales of Industrial 

Systems Business 

RS MILLION 

23% 

11,044 

8,971 

STATOR WINDINGS OF AC INDUCTION MOTORS AT LT MOTORS DIVISION, AHMEDNAGAR 




The fans manufacturing plant at Baddi 

produced 80,000 units in March 2008, with 

a target to produce 1 million units during 

2008-09 

TABLE FAN ASSEMBLY LINE AT THE FANS DIVISION, GOA 

on high value added large rating motors. It 

has also undertaken a number of measures to 

reduce material cost. 

2007-08 saw a number of new products 

introduced by the SBU, as well as some 

significant developments. Some of these were: 

$ Development of traction motor type 

C1001TM for diesel electric locomotives 

approved by the Railway Designs and Standards 

Organisation. This has opened up a new market 

for the SBU. 

$ Development of largest rating horizontal 

motors (3,700 KW) and vertical motors (2,675 

KW) and extending the 11KV HT machines 

range upto 2500 KW. 

During 2007-08, the SBU also executed a 

number of prestigious orders for Indian as well 

as overseas customers. The HT Motors division 

supplied equipment to Indian Oil Corporation 

at Panipat, as well as for a Kenyan cement plant 

and DC Motors for Turkey and North America. 

The stampings division showed 17% volume 

growth in 2007-08, which came about mainly 

due to the installation of four high speed 

notching machines at Ahmednagar. The 

Ahmednagar plant, which started in 2006-07 

with a capacity of 7,500 tonnes per year, is now 

capable of producing 10,000 tonnes. During the 

year, it developed the tooling to deliver export 

orders as well as to prestigious Indian customers 

such as Cummins Generators and Larsen & 

Toubro. The division has over 20% market-share 

in the stampings business. 

Consumer Products 

Crompton Greaves’ Consumer Products 

business supplies fans, pumps, lighting 

equipment (light sources and luminaires) and 

a range of electrical household appliances. The 

SBU has the following facilities: 

$ Bethora and Kundaim (Goa): Fans. 

$ Baddi (Himachal Pradesh): Fans. 

$ Kanjur Marg (Maharashtra): Luminaires. 

$ Ahmednagar (Maharashtra): Pumps. 

$ Vadodara (Gujarat): Light sources. 

The financial performance of the SBU is given 

in Table 5. 

In 2007-08, the SBU achieved gross sales 

of Rs.11,668 million, which was 17% over the 

previous year’s figures. PBIT grew at an even 

higher rate of 27% — to reach Rs.1,208 million. 

2007-08 is the first year in which Consumer 

Products has crossed Rs.10 billion in gross sales 

and Rs.1 billion in PBIT. This SBU contributes to 

16% of the Company’s topline as well as PBIT. 

Consumer Products also generated the highest 

return on capital employed for the Company — 

138% in 2007-08. 

Revenue from fans and appliances has grown 

by 24%, compared to the overall industry 

growth of 16% — a testimony to the robustness 

of the Company’s fans business. This comes 

on the back of similar growth in the last five 

years which has made this business’ 5-year 

CAGR greater than the industry average. It is 

now the second largest exporter of fans from 

India — up from third position last year. The fans 

manufacturing plant at Baddi produced 80,000 

units in March 2008, with a target to produce 1 

million units during 2008-09. 

The appliances division (sells products such as 

geysers, mixers, grinders, electric irons, toasters 

and emergency lanterns) has also shown 

appreciable growth. Its products are visible 

in retail chains in India as well as in Dubai and 

Muscat. As a part of its product development 

exercise, the division has launched 600 VA, 800 

VA and 1,400 VA ‘pure sine wave’ Home UPS. 

After winning the Gold Award for 2006, both 

the Goa units won the Frost & Sullivan (India) 

Manufacturing Excellence Platinum Awards 

in 2007, which is the highest level of awards in 

its category. The division has started a Product 

Development Centre at Goa, which focusses 

on bringing new products to the market, 

increasing product efficiencies and reducing 

material costs. 


CHART 

F 

Gross Sales of Consumer 

Products Business 

RS. MILLION 

17% 

11,668 

9,940 

HI-TECHNOLOGY HYDRAULIC BALANCING FACILITY USED IN PUMP MANUFACTURING ENSURING LONG 

SERVICE LIFE OF PUMPS 

TABLE 

05 

PERFORMANCE OF THE CONSUMER PRODUCTS BUSINESS 


GROSS SALES 9,940 11,668 17% 

PBIT 955 1,208 27% 

CAPITAL EMPLOYED 776 877 13% 



In a year where the domestic pump industry 

(excluding industrial pumps) grew at 6%, 

Crompton Greaves’ pumps outperformed the 

market. The Company dominates the pump 

market with over 20% share in the domestic 

segment. During 2007-08, the division 

continued its focus on gaining volume in the 

agricultural pumps segment and launched 

a new series of pumps: OS series open-well 

submersible pumps, improved 6” submersible 

pumps, light-weight diesel engine coupled 

pumps and monobloc pumps exceeding 

20HP. The focus on agricultural pumps has 

helped the division double its market share 

in this segment within two years. In 2007-08, 

the pumps division identified a new facility at 

Ahmednagar (Maharashtra), which will allow for 

substantial capacity increases to cater to rising 

future demand. 

The lighting division, which manufactures 

light sources and supplies luminaires, grew by 

18% over last year — outperforming market 

growth of 14%. The Company’s products 

command about 12% market-share, up a 

percentage point from last year. The maximum 

growth potential for this business is in compact 

fluorescent lamps (CFL), which is growing at 

over 25% annually in quantitative terms; and in 

high-end Light Emitting Diode (LED) lighting 

systems. 

The division’s export efforts during the 

previous two years has been showing signs of 

success, with exports reaching Rs.61 million. 

A significant achievement was to bag a 

prestigious Rs.45 million order from Reliance 

Energy for the supply of 37,000 street lighting 

luminaires for Mumbai, which was successfully 

executed within three months. The division also 

won a contract of Rs.35 million for supplying 

light sources and luminaires for the Delhi Metro. 

It has also entered into the area of CCTV and 

surveillance equipment. 

2007-08 is the first year in which Consumer 

Products has crossed Rs.10 billion in gross 

sales and Rs.1 billion in PBIT. 

Consumer Products also generated the 

highest return on capital employed for the 

Company — 138% in 2007-08 


Human Resources (HR) 

Crompton Greaves has always fostered an 

integrated approach towards HR — that of 

aligning its human capital in all its facets with 

business and organisational transformation. 

Hence, the HR imperatives at Crompton Greaves 

encompass a wider canvas. It consists of HR 

management; productive and harmonious 

industrial relations; raising productivity through 

the Crompton Greaves Production System 

(CGPS); business excellence initiatives; and 

influencing the Company’s thrust on Corporate 

Social Responsibility. 

During the year, in a first-of-its-kind 

endeavour, the Company successfully 

implemented a variable pay scheme for its 

leadership level management based on 

CROMPTON GREAVES MANAGEMENT DEVELOPMENT CENTRE, MULSHI FOCUSES ON DEVELOPING AND 

NURTURING THE SKILLS AND TALENTS OF ITS EMPLOYEES 

Crompton Greaves’ future efforts will be 

focused on a unified global philosophy and 

approach to human capital management 

During the year, the Company successfully 

implemented a variable pay scheme for its 

leadership level management based on 

Economic Value Added (EVA) 

Economic Value Added (EVA). The scheme is 

unique in that the EVA parameters are linked 

with performance thresholds of a chosen group 

of competitors rather than the Company’s own 

internal targets. The result has been a greater 

linkage of performance and variable rewards 

with how the Company performs vis-à-vis its 

competitors. 

Integration of the business leadership in 

HR processes, receives continuous attention 

of Corporate HR and senior management. 

Quarterly “HR Summits” were initiated during 

the year to create greater ownership and 

accountability for human capital and to 

stimulate major changes in HR policies. The 

purpose of these Summits is to achieve greater 

business leadership involvement and, thus, 

yield better transformational and peoplecentric 

results. 

As with all companies worldwide, talent 

retention at Crompton Greaves continues 

to be a challenge. While attrition levels are 

no worse than comparable companies in 

the manufacturing industry, the company is 

giving even greater emphasis on building a 

talent pipeline, enriching job roles, providing 

challenging career paths and a satisfying work 

environment which promotes professionalism, 

openness and freedom to innovate, with 

minimum hierarchical intervention. It is 

expected that these initiatives will keep attrition 

to minimal levels. 

To address changes in the market 

environment and create a better link between 

job roles and remuneration structures, the 

Company retained the services of a major HR 

consulting firm. Based on its recommendations, 

Crompton Greaves has considerably realigned 

remuneration structures for its executives at 

various levels. Meritocracy and differentiation 

— based on consistency of performance and 

potential, continue to be the guiding force for 

deciding remuneration levels. 

Employee engagement and feedback are 

key metrics for the Company’s HR initiatives. 

These are implemented through a variety 

of mechanisms, such as ‘open houses’ with 

the senior management, the Performance 

Management System, and involvement of 

a large number of employees in Companywide 

initiatives. To demonstrate its sincerity 

in receiving feedback, in 2007-08 the senior 

leadership team volunteered and participated 

in a 360-degree feedback programme. 

CGHR4U, the Company’s HR Portal, continues 

to grow in strength and has become a truly 

HR Life Cycle Management System. Existing 

modules are being further strengthened for 

content and user-friendliness. During the 

year, new modules were added in the area of 

complete automation of appraisal process, 

i.e. from goal setting to pay-outs; movement 

of employees — transfers, deputation and 

unauthorized cessation; and the entire 

recruitment cycle. 

The integration of CGHR4U with the 

Company’s remuneration systems has enabled 

Crompton Greaves to issue its executives 

their annual salary certificates in e-form. The 

Company will also be providing its executives 

the facility to e-file their Income Tax Returns as 

yet another employee-friendly measure. 

Training and development continues to 

receive serious attention. A well designed 

and full corporate training calendar ensures 


egular programmes at the units as well as at 

the Company’s state-of-the-art Management 

Development Centre at Mulshi, near Pune. 

The training calendar is prepared based on the 

feedback from the units as well as a training 

needs analysis derived from its Performance 

Management System. These actions are 

further supplemented by sponsoring high 

performing–high potential executives for 

training at reputed management institutes, 

both in India and abroad. 

Having achieved 133% of work content/CGPS 

norms at all its manufacturing units, across 

India, the Company’s focus has been to start 

productivity enhancing CGPS actions at the 

foreign locations. These have been activated at 

Indonesia, Hungary and Belgium. 

To strengthen the performance from its 

technician workforce in India, Crompton Greaves 

has launched a creative incentive scheme at most 

of its units. This scheme has built-in productivity, 

quality, attendance and grade factors, with 

appropriate multipliers, to enable technicians 

to earn rewards in addition to their fixed wages, 

while delivering enhanced productivity. 

With the operations of the units outside 

India having stabilised and well on the path 

of growth, Crompton Greaves’ future efforts 

will be focused on a unified global philosophy 

and approach to human capital management. 

The method will acknowledge the benefits of 

common frameworks while accepting that each 

location may have its special characteristics 

which need customised solutions. 

Corporate Social Responsibility (CSR) 

It is the Crompton Greaves’ expressed intention 

that it will conduct its business and achieve 

commercial success, together with social 

responsibility to the communities that surround 

its locations and society at large. The Company’s 

CSR efforts during 2007-08 have continued 

to revolve around its CSR Statement of Intent, 

which focuses on three areas: the Workplace, 

the Communities and the Environment. 

AT THE WORKPLACE 

Crompton Greaves’ efforts have focused on 

health and safety. These involve periodic 

medical check-ups for all its employees, and an 

innovative hospitalisation insurance scheme 

together with a serious illness coverage. Its 

commitment to spreading its message on HIV/ 

AIDS has been widely demonstrated through 

an articulated HIV/AIDS Policy which was 

released on 1 August 2007. During the year, the 

Company has installed 17 condom vending 

machines at its various plants. 

Crompton Greaves has also chosen three days 

every year, to be dedicated to CSR, with the 

intense involvement of all employees. These are: 

THE WORLD ENVIRONMENT DAY, 5 JUNE. 

In 2007, activities included an intensified tree 

plantation drive in the immediate vicinities of 

the plants, talks on environment and videos 

on global warming, creation of compost 

vermiculture pits, as well as 

The Company’s CSR efforts during 

2007-08 have continued to revolve around 

its CSR Statement of Intent, which focuses 

on three areas: the Workplace, 

the Communities and the Environment 

BLOOD DONATION BY EMPLOYEES OF BANGALORE BRANCH AND ENERGY METERS UNIT, JIGANI 

SAPLINGS BEING PLANTED ON WORLD 

ENVIRONMENT DAY, IN THE ZP SCHOOL COMPOUND, 

OF RATANPUR VILLAGE, MANDIDEEP 


During 2007-08, Crompton Greaves received 

the prestigious Greentech Gold Award, 

2007– a recognition for the Company’s 

environmental management systems and 

development of green products and process 

technologies 

quiz and painting competitions and street plays 

to spread the ‘Green’ message to the greatest 

extent possible. 

BLOOD DONATION DAY, 1 OCTOBER. Blood 

Donation Camps were organised at all the 

Company’s units and office locations through 

various reputed blood banks. Wide publicity 

to the event and strong management support 

resulted in approximately 1,100 bottles of blood 

being donated by the employees. 

WORLD AIDS DAY, 1 DECEMBER. The Company 

renewed its dedication to be considerate to 

employees afflicted with HIV/AIDS, and to 

continuously create increased awareness about 

the illness. The activities included organisation 

of a rally, distribution of literature and thematic 

cultural programmes for employees as well as 

casual labour, truckers and the surrounding 

communities. 

IN THE COMMUNITIES 

The Company continues to make its presence 

felt in the communities which surround its units 

through support for projects and sponsorship 

of identified causes based on a Needs Analysis. 

Given below are some the activities that took 

place during 2007-08: 

AT THE S6 DIVISION (AURANGABAD) The first 

phase of Project Surya has been completed, 

which has illuminated the village of Shevta with 

10 solar street lights. These not only serve the 

village community, but have provided students 

of the village with lighting to study at night. 

AT THE M7 DIVISION (MANDIDEEP) This 

Division has adopted the village of Ratanpur. 

During the year, to improve the safety of 

students at the local school, a huge transformer 

was shifted from the centre of the school 

ground and re-installed at a safe distance 

outside. The bore-well pipeline has been 

completely re-laid and now encircles the entire 

village, resulting in fairer distribution of water 

to all. Four solar streetlights have been also 

installed on a pilot basis. The unit continues 

to help the local community in mobilising 

panchayat (local self-government) funds. 

AT THE T3 DIVISION (MANDIDEEP) This 

Division has adopted the village of Gurari 

Ghat which adjoins Ratanpur. It is working on 

finishing the construction of the middle school 

which was left in an incomplete state, and to 

create a drainage system. 

AT THE T2 DIVISION (MALANPUR) Traffic 

congestion in the main area of Malanpur has 

been a concern for many years. Responding to 

this need, the Division has renovated the traffic 

island and beautified it. 

FOCUS ON WOMEN EMPLOYMENT The 

Southern Regional Office at Chennai has 

collaborated with the Rotary Club to increase 

skills among the women of the village of 

Mathur. Three batches of sewing classes have 

already been completed and the women have 

been given sewing machines. 

Besides these initiatives, every manufacturing 

unit of Crompton Greaves is actively engaged 

in reaching out to the communities around 

them by organising periodical health checkups, 

eye camps, provision of free medicines 

and upgrading the facilities of several schools 

and orphanages in their locations by providing 

the Company’s products, computers and other 

benefits. 

PUMPS DIVISION, AHMEDNAGAR DONATING BLANKETS AND CLOTHES TO THE INMATES OF THE LEPROSY 

HOME, AHMEDNAGAR 

WITH THE ENVIRONMENT 

Energy savings, reduction of waste, re-use/ 

recycling of materials are key pillars in this 

area. Every manufacturing unit of Crompton 

Greaves has the ISO 14001 and OHSAS 18001 

certification. With its focus on reduction of 

pollution, the Company has also self-initiated a 

PUC Certification check for all vehicles entering 

its plant complexes. At some plants, windmills 

have been installed on a trial basis, which 

supply energy to the internal pathways within 

the complex. 


During 2007-08, Crompton Greaves received 

the prestigious Greentech Gold Award, 

2007, in the Engineering Sector. This is a 

recognition for the Company’s environmental 

management systems and development of 

green products and process technologies. The 

award acknowledged the Company’s efforts in 

developing eco-friendly products, packaging 

and processes, such as dry type transformers, 

BLDC motors and fans, CFL lamps and energy 

efficient luminaires, reduction of heating cycles 

by more than 50% through new brazing and 

sintering process technologies and premium 

efficiency motors as well as motors for ecofriendly 

vehicles. 

AFFIRMATIVE ACTION (AA) 

As a signatory to the Confederation of Indian 

Industry (CII) Code on Affirmative Action, 

the Company has made a conscious effort 

to promote the progress and betterment of 

AA candidates through several dedicated 

programmes which have the potential 

to increase skill sets and consequently 

employability. During the year, the Company’s 

actions have concentrated on the following: 

WORKING WITH UNIVERSITIES TO COACH 

STUDENTS Crompton Greaves continues its 

sponsorship of AA students from: 

$ Maulana Azad College of Technology, 

Bhopal. 

$ KK Wagh College of Engineering, Nasik. 

$ Goa College of Engineering, Goa. 

Through this initiative, the Company’s senior 

executives, supported by sponsored external 

faculty contribute to teaching these students 

about various core processes in Crompton 

Greaves’ various lines of business. These include 

factory visits as well as an exposure to modern 

concepts of Six Sigma, CGPS and SAP. 

STRENGTHENING COMPETENCE FOR 

ENTRANCE EXAMS This project was initiated 

last year by the LT Motors Division, Ahmednagar, 

and received an overwhelming response. 

Therefore, a second batch has been started, for 

25 AA students to better equip them for the CET 

Examination. 

ITI SPONSORSHIPS 

$ AT NASIK The first batch of 25 AA students 

completed their six-month electrician course 

in September 2007. The entire batch has been 

either employed by industry or started their 

own businesses. The Company also supported 

A SESSION BEING CONDUCTED AT THE FINISHING SCHOOL CLASSES FOR AFFIRMATIVE ACTION STUDENTS 

the candidates by providing them with 

comprehensive tool kits. The Joint Certification 

by the Government of India and Germany 

under the Indo-German Bilateral Agreement 

has resulted in a high level of credibility to this 

programme. Given the strong response, the 

Company sponsored a second batch, which has 

already commenced training on 2 March 2008. 

$ AT GWALIOR At T2 Division, the chosen path 

has been vigorous shop-floor training of 24 AA 

candidates in the manufacture of distribution 

transformers. This exposure was for six months, 

and has considerably enhanced employability 

levels. 

$ AT AHMEDNAGARThe Pumps Division has 

sponsored 23 students to attend six month 

courses at the local ITI, in the areas of lathe 

machines, electrical wiring, welding/fabrication, 

and mechanical/diesel operations. 

FINISHING SCHOOL CLASSES In collaboration 

with the CII, the Company has committed to 

sponsor a batch of 30 students to a three month 

finishing school programme to impart the 

soft-skills needed and help the students gain 

confidence to face life in industry. 


In 2007-08, Six Sigma was extended to 

suppliers to improve and sustain product 

quality from the supplier 

Six Sigma at Crompton Greaves 

Crompton Greaves has defined Six Sigma as, “A 

vigorous, scientific, data driven, breakthrough 

methodology focused on product quality 

improvement as perceived by customers.” The 

objective of the Six Sigma drive is to achieve 

major quality improvements and, in doing so, 

bring about a cultural change from judgmental 

to data-based decisions. 

The journey started in June 2002 by creating 

a core committee of all Vice Presidents of the 

Company, headed by the Managing Director. 

Business unit heads were nominated as 

Champions, with the role to drive Six Sigma in 

their Divisions. 22 best employees of different 

Divisions were designated as Black Belts and 

were trained for Six Sigma methodology by an 

international expert. 

The first set of Six Sigma projects have 

been directed at elimination of defects 

in product, as reported by customers. 

Initially, 10 projects were selected involving 

transformers, condenser bushings, vacuum 

interrupters, motors and fans. In the first year 

the improvement was from a base level of 2.3σ 

to 4.8σ. 

The drive was expanded to all Divisions 

by training 25 more employees for the Black 

Belt course. By March 2006, the Company 

completed 130 Black Belt projects across a wide 

range of products from all its Divisions. In 2006- 

07, the Six Sigma initiative was restructured to 

speed up the drive to achieve the goal of all 

products being of Six Sigma quality. 

A new three-step review system was 

formalised to monitor the status of Six Sigma 

projects. This involved fortnightly review of each 

project by the Champions; monthly reviews 

by the SBU heads; and quarterly reviews by the 

core committee and the Managing Director. In 

addition, the Managing Director visits one of 

the Divisions every month to review progress of 

the Six Sigma initiatives. 

A web based portal has been developed in 

the marketing and support services function to 

collect data on product performance. Using this 

data, 78 Black Belt projects were selected and 

completed in 2006-07. 

In 2007-08, Six Sigma was extended to the 

suppliers. To improve and sustain product 

quality from the suppliers, a Company-wide 

activity called Supplier Quality Policy (SQP) was 

begun. SQP is a process for supplier selection 

and assessment based on technical parameters. 

In the first phase, assessments have been 

completed for 425 critical suppliers across all 

Divisions; and wherever warranted, necessary 

corrective actions have been taken. 

During the year, the Company also undertook 

the following initiatives: 

$ KNOWLEDGE MANAGEMENT FOR SIX 

SIGMA (KMSS) This software was implemented 

to monitor the entire cycle of a Six Sigma 

Project. It stores data, analysis and results of 

projects. 

$ TRAINING Crompton Greaves has started its 

own Six Sigma Training Centre. During 2007-08, 

20 candidates have been trained as Black Belts 

and 84 as Green Belts. 

$ ACHIEVEMENTS 20 Black Belts with their 

Divisional teams completed 92 projects in 

2007-08. Teams used the Six Sigma method to 

obtain Five-Star BEE Rating for 36W Power Lux 

fluorescent tube light — the first in India to 

achieve this. 

Improvements in product quality arising out 

of Six Sigma initiatives have been recognized 

and appreciated by many key customers — 

industrial as well as domestic consumers. 

For 2008-09, the team has planned 110 Six 

Sigma Black Belt projects, and 650 Green Belt 

projects. 

VACUUM INTERRUPTERS UNDERGOING VACUUM BRAZING PROCESS AS A PART OF THE SIX SIGMA DRIVE FOR 

ENHANCEMENT OF PRODUCT QUALITY 


Research and Development (R&D) 

R&D is an important business enabler for the 

Company. The Crompton Greaves Global 

R&D Centre, which has over 30 years of work 

to its credit, is manned by 130 people — of 

whom 16 hold doctorates and 77 more are 

qualified technical personnel. Recognised by 

Department of Scientific & Industrial Research, 

Government of India (DSIR), both for electronics 

and electrical R&D work, the department has 18 

technical areas of expertise. 

R&D VISION 

The Company’s R&D vision for 2015 is as follows: 

$ 25% of the Company’s revenue shall 

be generated through new product 

developments. 

$ Five breakthrough platform technologies 

shall be developed for the Company. 

$ Product Development Cycle time (PDC time) 

shall be comparable to best-in-class. 

$ 1,000 Intellectual Property Rights (IPR) are to 

be filed by 2015. 

$ R&D shall focus the shift towards intelligent 

products and solutions. 

To achieve all of this, the Company envisions 

scaling up its R&D budget gradually to reach 4% 

of sales. 

INTELLECTUAL PROPERTY RIGHTS 

(IPRS) 

IPRs have, over the past few years, been a focus 

area for the Global R&D Centre at the Company. 

Starting with 18 IPRs filed in 2004-05, the 

current year saw a quantum increase in IPRs 

filed by the Company. In 2007-08, Crompton 

Greaves’ Global R&D Centre filed a total of 212 

IPRs: 63 for patents, 144 for design IPRs and 5 for 

trademarks. 

THE COMPANY BAGGED THE “NATIONAL AWARD FOR THE BEST R&D EFFORTS” IN 2007 FOR ITS OUTSTANDING 

ACHIEVEMENTS IN THE ELECTRICAL ENGINEERING SECTOR FROM THE DSIR 

COMPETENCY ENHANCEMENT & 

TECHNICAL TRAINING 

Recognising the need for competency 

enhancement, the Global R&D Centre 

inaugurated the CG Technical Training School 

in January 2008 to enhance the competency 

of Crompton Greaves’ engineers in a very 

structured way. 250 people from the Company’s 

operations across the globe will be enhancing 

their product technology expertise in the 

next five years. The first two batches of the first 

course have already been conducted. 

AWARDS AND RECOGNITION 

During the year, Crompton Greaves’ Global 

R&D Centre was certified for ISO 27001. It is 

the only Information Security Management 

System (ISMS) certified engineering R&D centre 

in India. It bagged the National Award in 2007 

for the best R&D efforts. At ‘Elecrama 2008’, 

the Company won the category ‘Best Product 

Competition (Indian Exhibitors)’ for its ‘Dream 

Transformer’. It also won the ‘Golden Peacock 

Innovation Award’ for its web-based real time 

condition monitoring system. 

The Crompton Greaves Global R&D Centre, 

which has over 30 years of work to its credit, 

is manned by 130 people — of whom 16 

hold doctorates and 77 more are qualified 

technical personnel 

Crompton Greaves’ Global R&D Centre filed 

a total of 212 IPRs: 63 for patents, 144 for 

design IPRs and 5 for trademarks 

SUSTAINABILITY 

The Global R&D Centre also believes in 

sustainability and the future of renewable 

energy sources. While identifying wind energy 

as an area of focus for technology development, 

the Global R&D Centre installed two windmills 

at Kanjur Marg, which can produce upto 

270 kWh per month — enough to light the 

streetlights of the facility. 


The Company has a well-defined disaster 

recovery plan for accessing critical 

application from its secondary site at 

Chennai. On trials, the system can ‘go 

live’ in less than two hours from a system 

breakdown situation 

Information Technology 

INFRASTRUCTURE AND DISASTER 

RECOVERY 

Crompton Greaves has a robust IT infrastructure 

and network across all its manufacturing and 

marketing locations. The SAP platform is ably 

supported by hardware using the latest Multi- 

Protocol Label Switch, enabling the IT networks 

to deliver a wide variety of advanced, valueadded 

services over a single infrastructure with 

efficient connectivity and ease of maintenance 

and diagnosis. 

The Company’s principal data centre houses 

all the servers that run critical applications, such 

as SAP, Business Warehouse, Dealer Portal, After- 

Sales Service Portal, CGHR4U and Six Sigma. The 

Company has a well-defined disaster recovery 

plan for accessing critical application from its 

secondary site at Chennai. On trials, data has 

been re-accessed in less than 30 minutes, and 

the system can ‘go live’ in less than two hours 

from a system breakdown situation. 

BUSINESS INTELLIGENCE WAREHOUSE 

Implemented last year, the Company’s Business 

Intelligence Warehouse (BIW) has been 

working smoothly. Using COGNOS and the 

SAP data warehouse, it makes effective analysis 

of sales trends, debtors’ management, dealer 

performance and inventory patterns. The 

reports are auto-distributed to business heads 

and regional heads at regular intervals, which, in 

turn, enable them to make informed decisions 

and mid-course corrections, wherever needed. 

ONLINE ORDERING PORTAL FOR 

TRADED PRODUCTS 

The Company’s SAP based online ordering and 

integrated dealer portal, allows dealers and 

customers to place orders online and then track 

them right up to delivery. It has been enhanced 

with the introduction of an integrated online 

sales support request processing system. 

This allows price authorisations to be made 

directly at the customer end for most standard 

products, extends the concept of ‘self service’ 

and ensures faster response to dealers and 

customers. 

HR PORTAL 

This initiative has been discussed in the Human 

Resources section earlier in the chapter. 

E-PAYMENTS 

Crompton Greaves has implemented an 

electronic payment processing system across 

the Company, which ties up with a banking 

partner. It allows the Company to manage 

working capital funds more efficiently, 

since only the required amount of funds are 

transferred to the bank for effecting payment. 

There are also administrative benefits in this 

exercise, since the cheques are printed and 

issued by the bank. Vendor satisfaction is also 

an important outcome of this exercise, since 

the vendor gets confirmation immediately after 

transfer of funds through the online payment 

advice sent to his email address. 

PT INC. PLANT, USA SPECIALIZED IN MANUFACTURE OF SMALL POWER TRANSFORMERS IS AMIDST AN 

EXPANSION PROGRAMME FOR ENHANCEMENT OF THE RANGE UPTO 60 MVA 


Financial Performance 

We first highlight Crompton Greaves’ 

standalone results, after which we discuss the 

financial performance of Pauwels, Ganz and 

Microsol and, finally, the consolidated financials 

for the Company as a whole. 

STANDALONE PERFORMANCE 

The standalone performance of Crompton 

Greaves for the year ended 31 March 2008 is 

detailed in Table 6. Table 7 gives the key ratios 

(profitability, assets efficiency and leverage 

ratios) of the standalone entity for 2006-07 and 

2007-08. 

GROSS SALES grew by more than 15% over the 

previous year to reach Rs.42,226 million. Net 

sales increased by 15% to Rs.38,758 million. 

MATERIAL & OPERATING COSTS Despite the 

pressure of rising input costs, a combination 

of better supply chain efficiencies, intelligent 

procurement management and vendor 

development has meant that material costs 

have grown by 10.4% (compared to a 39.2% 

increase in material costs during the previous 

year). Consequently, materials, manufacturing 

and operating expenses as a percentage to net 

sales have dropped from 75.1% in 2006-07 to 

72.2% in 2007-08, resulting a net return of 2.9% 

on net sales. 

OPERATING EBIDTA Operating earnings before 

interest, taxes, depreciation and amortisation 

(operating EBIDTA) grew by 42% over the 

previous year to Rs.4,838 million. 

Thanks to a 15% topline growth and 

significant operating efficiencies, operating 

EBIDTA to net sales margin increased by 230 

basis points: from 10.2% in 2006-07 to 12.5% in 

2007-08. 

NOI Non-operating income for 2007-08 almost 

doubled to Rs.696 million. Hence, EBIDTA 

including NOI as a percentage to net sales grew 

310 basis points from 11.2% in 2006-07 to 14.3% 

in 2007-08. 

OPERATING PROFIT BEFORE TAXES (operating 

PBT) witnessed 53% growth over last year 

to reach Rs.4,160 million. PBT including NOI 

increased by 58% to reach Rs.4,857 million. 

TAX LIABILITIES grew by 50% over last year to 

Rs.1,717 million (2006-07: Rs.1,146 million). 

TABLE 

06 

STANDALONE PERFORMANCE OF CROMPTON GREAVES 

YEAR ENDED 31 MARCH, IN RS. MILLION FY 2007 FY 2008 

GROSS SALES & SERVICES 36,599.8 42,226.0 

LESS: EXCISE DUTY 2,923.7 3,468.4 

NET SALES AND SERVICES 33,676.1 38,757.6 

MATERIAL, MANUFACTURING & OPERATING EXPENSES 25,284.2 28,000.1 

STAFF EXPENSES 1,742.6 2,009.9 

SELLING & ADMINISTRATION EXPENSES 3,231.0 3909.7 

OPERATING EBIDTA 3,418.3 4,837.9 

OTHER NON-OPERATING INCOME (NOI) 348.8 696.3 

EBIDTA INCLUDING NOI 3,767.1 5,534.2 

INTEREST & COMMITMENT CHARGES 303.5 271.1 

DEPRECIATION, AMORTISATION & IMPAIRMENT 393.6 406.6 

OPERATING PBT 2,721.2 4,160.2 

PBT INCLUDING NOI 3,070.0 4,856.5 

LESS: PROVISION FOR TAX 

CURRENT TAX 840.0 1,520.6 

DEFERRED TAX 264.8 146.7 

FRINGE BENEFIT TAX 41.5 50.0 

PAT 1,923.7 3,139.2 

TRANSFER (TO) / FROM DOUBTFUL DEBTS RESERVE 89.6 161.4 

B/F FROM PREVIOUS YEAR 1,814.1 3,097.6 

TRANSFER TO GENERAL RESERVE (192.4) (313.9) 

DIVIDEND (INCLUDING CDT) (537.4) (686.2) 

BALANCE CARRIED FORWARD TO THE BALANCE SHEET 3,097.6 5,398.1 

BASIC AND DILUTED EPS (IN RS.: PER RS.2 SHARE) 5.3 8.6 

NOTE Figures for 2006-07 have been regrouped wherever necessary in order to make them comparable with those of 2007-08. 

TABLE 

07 

STANDALONE PERFORMANCE OF CROMPTON GREAVES — KEY RATIOS 

YEAR ENDED 31 MARCH FY 2007 FY 2008 

PROFITABILITY RATIOS 

OPERATING EBIDTA / NET SALES 10.2% 12.5% 

EBIDTA WITH NOI / NET SALES 11.2% 14.3% 

PBT / NET SALES 9.1% 12.5% 

RONW 28.5% 33.7% 

ROCE (AT YEAR-END CAPITAL EMPLOYED) 34.4% 47.9% 

CASH ROCE 38.4% 51.7% 

EPS (RS. PER SHARE OF RS.2 EACH) 5.3 8.6 

CASH EPS (RS. PER SHARE OF RS.2 EACH) 7.0 10.1 

ASSETS EFFICIENCY 

NET SALES TO GROSS WORKING CAPITAL (TIMES) 2.3 2.3 

NET SALES TO NET WORKING CAPITAL (TIMES) 8.1 10.7 

LEVERAGE RATIOS 

TOTAL DEBT TO EQUITY 0.4 0.1 

INTEREST COVERAGE 12.4 20.4 


PROFIT AFTER TAX Despite the increase in 

tax liabilities, profit after tax (PAT) grew 63% to 

Rs.3,139 million. 

ROCE Notwithstanding increase in fixed assets, 

return on capital employed showed a sharp 

improvement from 34.4% in 2006-07 to 47.9% 

in 2007-08. This has been brought about by two 

factors. First, a control on debtors and inventory, 

which shows up in the improved asset turns 

(the number of times net working capital has 

turned during the year) — and has improved 

from 8.1 times in 2006-07 to 10.7 times in 2007- 

08. Second, an increase in profitability, which 

can be seen from the PBT to net sales ratio, 

which improved from 9.1% in 2006-07 to 12.5% 

in 2007-08. 

LEVERAGE RATIOS also showed improved 

substantially during 2007-08. Debt-equity 

ratio dropped from 0.4 to 0.1, while the interest 

coverage ratio (indicating the standalone 

entity’s capability to service debt) increased 

from 12.4 to 20.4. Interest costs, in absolute 

terms, have actually reduced in 2007-08, in spite 

of its growth in operations, thus underscoring 

the standalone entity’s ability to optimally 

utilise its working capital and fixed assets. 

GANZ SPECIALISES IN GIS UPTO 145KV DEPICTED IN THE PICTURE IS A 145 KV COMPACT GIS SUBSTATION 

READY FOR ENERGIZATION 

TABLE 

08 

PERFORMANCE OF PAUWELS, GANZ AND MICROSOL 

YEAR ENDED 31 MARCH FY 2007 FY 2007 FY 2008 FY 2008 

RS. MILLION US$ MILLION RS. MILLION US$ MILLION 

GROSS SALES & SERVICES 23,321.9 536.5 30,061.5 749.3 

NET SALES & SERVICES 23,321.9 536.5 30,061.5 749.3 

OPERATING EBIDTA 1,375.4 31.6 2,251.0 56.1 

OTHER NON-OPERATING INCOME (NOI) 671.5 15.4 224.8 5.6 

EBIDTA INCLUDING NOI 2,046.9 47.0 2,475.8 61.7 

INTEREST & COMMITMENT CHARGES 263.4 6.1 379.8 9.5 

DEPRECIATION, AMORTISATION & 

IMPAIRMENT 

554.4 12.8 820.9 20.5 

OPERATING PBT 557.6 12.7 1,050.3 26.1 

PBT INCLUDING NOI 1,229.1 28.1 1,275.1 31.7 

LESS: PROVISION FOR TAXES 

CURRENT TAX 259.4 6.0 434.3 10.8 

DEFERRED TAX 74.8 1.7 (111.5) (2.8) 

PAT 894.9 20.4 952.3 23.7 

MINORITY INTEREST (43.8) (1.0) (51.4) (1.3) 

SHARE OF PROFIT/(LOSS) OF ASSOCIATES (1.0) 0.0 0.8 0.0 

TRANSFERRED FROM INVESTMENT GRANT 16.4 0.4 1.4 0.0 

BALANCE CARRIED FORWARD TO THE 

BALANCE SHEET 

866.5 19.8 903.1 22.4 

NOTES Since Microsol was acquired on 28 May 2007, the 2007-08 figures from the date of acquisition have been considered while 

consolidating the financials. In the case of Pauwels and Ganz, the full year’s figures have been taken into account. 

For 2007-08 US$1 = Rs.40.12; for 2006-07, US$1 = Rs.43.47. 

PAUWELS, GANZ AND MICROSOL 

PERFORMANCE (CG INTERNATIONAL 

BV: CONSOLIDATED) 

The consolidated financial performance of 

the Pauwels group of companies, Ganz and 

Microsol is reported in Table 8. 

GROSS SALES of the Company reached 

Rs.30,062 million (US$ 749.3 million) in 2007-08, 

representing a 29% growth over the previous 

year. 

OPERATING EBIDTA at Rs.2,251 million (US$ 

56.1 million) reflects a 64% rise over last year’s 

figures. 

OPERATING PBT for 2007-08 was at Rs.1050 

million (US$ 26.1 million). In rupee terms, it 

represented an almost 88% rise over 2006-07. In 

US dollars terms, the growth was 206% over the 

previous year. Including non-operating income, 

PBT for 2007-08 grew by 4% to Rs.1275 million 

(2006-07: Rs. 1,229 million). 

PAT Profit after taxes has grown 6% during 

2007-08 to reach Rs. 952.3 million. In US dollars, 

PAT for 2007-08 was US$ 23.7 million. 


CONSOLIDATED PERFORMANCE 

The consolidated financials of Crompton 

Greaves are detailed in Table 9. Table 10 gives 

the key ratios (profitability, assets efficiency 

and leverage ratios) of Crompton Greaves 

(Consolidated) for 2006-07 and 2007-08. 

CONSOLIDATED NET SALES of the Company 

reached Rs.68,323 million (US$ 1,703 million) in 

2007-08, representing a 21% growth over the 

previous year and a three-year CAGR of 29%. 

OPERATING EBIDTA at Rs.7,439 million (US$ 

185.4 million) reflects a 54% rise over last year’s 

figures, and a 3-year CAGR of nearly 52%. 

OPERATING PBT for 2007-08 was at Rs.5,475 

million (US$136.4 million). In rupee terms, it 

represented an almost 66% rise over 2006-07. 

In US dollar terms, the growth was 79% over the 

previous year. Including non-operating income, 

PBT for 2007-08 grew by 41% to Rs.6,152 million 

(2006-07: Rs.4,360 million). 

PROVISIONS FOR TAXES in 2007-08 increased 

from Rs.1,495 million (US$ 34.4 million) to 

Rs.2,054 million (US$ 51.2 million) — an 

increase of 37%. This was in spite of additional 

depreciation of Rs.308 million during 2007-08. 

PROFIT AFTER TAXES (PAT), which increased 

by nearly 24% last year, has grown a further 43% 

during 2007-08 to reach Rs.4,098 million. In US 

dollars, PAT for 2007-08 was US$ 102.1 million. 

EARNINGS PER SHARE (EPS) increased from 

Rs.7.69 in 2006-07 to Rs 11.10 in 2007-08. 

TABLE 

09 

CONSOLIDATED PERFORMANCE OF CROMPTON GREAVES 

YEAR ENDED 31 MARCH FY 2007 FY 2007 FY 2008 FY 2008 

RS. MILLION US$ MILLION RS. MILLION US$ MILLION 

GROSS SALES & SERVICES 59,340.4 1,365.1 71,813.8 1,790.0 

LESS: EXCISE DUTY 2,944.8 67.7 3,490.4 87.0 

NET SALES & SERVICES 56,395.6 1,297.4 68,323.4 1,703.0 

MATERIAL, MANUFACTURING & 

OPERATING EXPENSES 38,619.4 888.4 45,660.4 1,138.1 

STAFF EXPENSES 7,171.5 165.0 7,968.1 198.6 

SELLING & ADMINISTRATION EXPENSES 5,776.5 132.9 7,256.0 180.9 

OPERATING EBIDTA 4,828.2 111.1 7,438.9 185.4 

OTHER NON-OPERATING INCOME (NOI) 1,051.4 24.2 677.0 16.9 

EBIDTA INCLUDING NOI 5,879.6 135.3 8,115.9 202.3 

INTEREST & COMMITMENT CHARGES 565.8 13.0 700.9 17.5 

DEPRECIATION, AMORTISATION 

& IMPAIRMENT 954.2 22.0 1,262.6 31.5 

OPERATING PBT 3,308.2 76.1 5,475.4 136.4 

PBT INCLUDING NOI 4,359.6 100.3 6,152.4 153.3 

LESS: PROVISION FOR TAX 

CURRENT TAX 1,113.4 25.6 1,970.4 49.1 

DEFERRED TAX 339.5 7.8 33.5 0.8 

FRINGE BENEFIT TAX 41.7 1.0 50.3 1.3 

PAT 2,865.0 65.9 4,098.2 102.1 

MINORITY INTEREST (47.1) (1.1) (48.1) (1.2) 

SHARE OF PROFIT/(LOSS) OF ASSOCIATES (0.5) 0.0 17.1 0.4 

PAT AFTER MINORITY INTEREST & 

SHARE OF ASSOCIATES 2,817.4 64.8 4,067.2 101.3 

TRANSFER (TO) / FROM DOUBTFUL DEBTS 

RESERVE 90.9 2.1 161.4 4.0 

DIVIDEND (INCLUDING CDT) (538.5) (12.4) (686.2) (17.0) 

BALANCE CARRIED FORWARD TO THE 

BALANCE SHEET 2,369.8 54.5 3,542.4 88.3 

NOTE Since Microsol was acquired on 28 May 2007, the 2007-08 figures from the date of acquisition have been considered while 

consolidating the financials. 

TABLE 

10 

CONSOLIDATED PERFORMANCE OF CROMPTON GREAVES — KEY RATIOS 

YEAR ENDED 31 MARCH FY 2007 FY 2008 

PROFITABILITY RATIOS 

OPERATING EBIDTA / NET SALES 8.6% 10.9% 

EBIDTA WITH NOI / NET SALES 10.4% 11.9% 

PBT / NET SALES 7.7% 9.0% 

RONW 30.9% 33.0% 

ROCE (TERMINAL) 25.9% 31.8% 

CASH ROCE (TERMINAL) 30.9% 37.6% 

EPS (RS. PER SHARE OF RS.2 EACH) 7.7 11.1 

CASH EPS (RS. PER SHARE OF RS.2 EACH) 11.2 14.6 

ASSETS EFFICIENCY 

NET SALES TO GROSS WORKING CAPITAL (TIMES) 1.9 2.0 

NET SALES TO NET WORKING CAPITAL (TIMES) 8.0 9.0 

LEVERAGE RATIOS 

TOTAL DEBT TO EQUITY 1.0 0.7 

INTEREST COVERAGE RATIO 10.4 11.6 


Internal Control Systems and their 

Adequacy 

Crompton Greaves has a proper and adequate 

system of internal controls at all plants, divisions, 

sales offices and the corporate headquarters 

to ensure that its assets are safeguarded and 

protected against loss from unauthorised use 

or disposition and that transactions are reliably 

authorised, accurately recorded and reported 

quickly. 

The internal control systems are defined 

alongwith clear authority limits. These 

systems are designed to ensure accuracy and 

reliability of accounting data, for maintaining 

accountability of assets, operational efficiency 

and adherence to prescribed management 

policy. 

The Company’s internal controls are 

supplemented by extensive internal audits 

conducted across the entire financial year. 

These are executed according to an annual 

plan that is approved by the Audit Committee. 

The internal audit findings are first presented 

to Management; thereafter, along with the 

Management’s observations, escalated to 

the Audit Committee. In addition to the 

usual transaction-based internal audits, the 

Company’s internal audit department explores 

avenues of cost control, identifies potential 

financial leakages and recommends remedial 

measures and deterrent actions. It also 

undertakes risk based audits at its international 

locations — the methodology of which is 

in the process of being adopted for all the 

Indian operations as well. The internal audit 

departments — both in India and abroad — 

regularly interact with the Company’s statutory 

auditors. 

In addition, prior approval is taken from the 

internal audit department before effecting any 

changes in authorisation in the SAP system. 

The role, scope and functions of the internal 

audit department are regularly reviewed by the 

Audit Committee. 

ASSEMBLY SHOP WITH INCREASED CAPACITY AT HT MOTORS DIVISION, MANDIDEEP 


Risk Identification and Mitigation 

Crompton Greaves has a well-defined and 

structured risk management policy that 

identifies key risks, develops mitigation plans 

and monitors these on a continuous basis. The 

Risk Management Committee of the Board 

of Directors reviews these risk reports and 

risk mitigation measures on a quarterly basis 

and suggests changes wherever deemed 

appropriate. The Company has a Corporate 

Risk Management Department, which has the 

day-to-day responsibility of implementing risk 

policies and risk mitigation measures. 

At the operational level, Standard Operating 

Procedures and guidelines have been framed, 

with a clear focus towards risk mitigation. 

Individual process and risk owners have 

been identified and given the responsibility 

of minimising risk in day-to-day activities. 

Divisional risk committees review these 

practices and benchmark them against ‘bestin-class’ 

practices of comparable organisations 

in order to fine tune the procedures and 

guidelines. The risk management committees 

and the risk managers take responsibility to 

ensure that risk policies are implemented at the 

operations level. 

CAUTIONARY STATEMENT 

The Management of Crompton Greaves has 

prepared and is responsible for the financial 

statements that appear in this report. These 

are in conformity with accounting principles 

generally accepted in India and, therefore, 

include amounts based on informed 

judgements and estimates. The Management 

also accepts responsibility for the preparation 

of other financial information that is included 

in this report. Statements in this Management 

Discussion and Analysis Report describing the 

Company’s objectives, projections, estimates 

and expectations may be ‘forward looking 

statements’ within the meaning of applicable 

laws and regulations. The Management has 

based these forward looking statements on its 

current expectations and projections about 

future events. Such statements involve known 

and unknown risks, significant changes in 

political and economic environment in India or 

key markets abroad, tax laws, litigation, labour 

relations, exchange rate fluctuations, interest 

and other costs and may cause actual results to 

differ materially. 

SM TREHAN 


Mumbai, 23 May 2008 


TEN YEARS’ 

FINANCIAL HIGHLIGHTS 

1999 

2000 

2001 

2002 

2003 

2004 

2005 

2005 

2006 

2006 

2007 




EARNINGS 

YEAR ENDED 31 MARCH, RS. MILLION 

TOTAL INCOME 16939.10 16905.40 13831.90 16158.40 17398.50 18880.70 21796.66 22002.54 27713.10 44115.51 36948.51 60393.18 42922.29 72490.80 

GROSS SALES AND SERVICE 16824.60 16745.60 13783.30 16018.50 17263.90 18610.50 21527.80 21718.36 27385.83 43462.98 36599.76 59340.39 42225.98 71813.78 

NET SALES AND SERVICE 15549.10 15258.30 12543.40 14785.70 15870.20 17113.20 19725.06 19886.86 25205.93 41265.10 33676.04 56395.60 38757.56 68323.37 

EBIDTA* 1650.20 353.50 -435.70 1566.70 1702.70 1845.90 1899.87 1942.77 2653.42 3895.01 3767.09 5879.58 5534.22 8115.93 

PBT 241.20 -1463.20 -729.10 68.80 372.00 895.20 1248.15 1284.44 1947.98 2773.17 3070.03 4359.56 4856.52 6152.39 

PAT 231.20 -1465.70 -731.60 41.30 281.70 708.30 1147.85 1171.21 1630.48 2320.27 1923.73 2865.00 3139.22 4098.22 

DIVIDEND % 25.00 - - - - 70.00 70.00 70.00 70.00 70.00 70.00 70.00 80.00 80.00 

DIVIDEND PAY-OUT 130.50 - - - - 366.56 366.56 366.56 366.61 366.61 471.29 471.29 586.51 586.51 

WHAT THE COMPANY OWNED 


GROSS BLOCK 

INCLUDING CAPITAL WIP 7121.20 7700.40 7688.80 7734.40 7919.60 8012.20 8193.95 8254.84 8614.84 17328.73 9586.89 23352.21 10781.00 27329.87 

NET BLOCK 

INCLUDING CAPITAL WIP 4750.10 4790.20 4506.50 4156.90 3939.30 3684.60 3514.90 3547.15 3637.90 5402.92 4333.76 10872.70 5152.96 12444.05 

INVESTMENTS 1112.60 1165.70 1195.70 948.60 739.60 699.30 772.09 825.70 1021.31 650.98 1351.09 644.60 1943.29 934.32 

NET CURRENT ASSETS 6966.50 6209.80 3232.00 2982.20 2825.20 2460.10 2946.19 2974.99 3313.25 5711.97 4134.25 7081.72 3609.31 7593.38 

NET ASSETS EMPLOYED 12829.20 12165.70 8934.20 8087.70 7504.10 6844.00 7233.18 7347.84 7972.46 11765.87 9819.10 18599.02 10705.56 20971.75 

* Earnings Before Interest, Tax, Depreciation, Amortisation and Exceptional Items. CONSOLIDATED STANDALONE 


1999 

2000 

2001 

2002 

2003 

2004 

2005 

2005 

2006 

2006 





WHAT THE COMPANY OWED 


BORROWINGS 7346.20 8510.10 6273.20 5707.10 4592.20 3336.50 3145.36 3145.36 2497.69 4221.90 2700.33 9044.72 875.59 8419.51 

TOTAL LIABILITIES 12097.60 14470.80 11494.80 11269.40 10331.30 9819.00 9117.70 9142.26 10521.31 19697.82 13174.53 31392.81 13828.52 34842.52 

NET WORTH OF THE COMPANY 


SHARE CAPITAL 521.50 523.70 523.70 523.70 523.70 523.70 523.70 523.70 523.70 523.70 733.17 733.17 733.17 733.17 

RESERVES & SURPLUS 5220.10 4109.60 4103.30 4038.00 4031.40 2881.10 3564.12 3665.91 4840.07 7330.08 6009.80 8955.32 8574.30 12284.68 

SHAREHOLDERS' FUNDS 5741.60 4005.60 3248.30 4172.70 4420.20 3404.80 4087.82 4189.61 5363.77 7853.78 6742.97 9688.49 9307.47 13017.85 

TANGIBLE NET WORTH* 5483.00 3655.60 2661.00 2380.60 2911.90 3404.80 4087.82 4189.61 5363.77 7427.42 6742.97 9270.31 9307.47 12429.74 

RATIOS 

YEAR ENDED 31 MARCH 

BOOK VALUE 

PER SHARE IN RS. 15.02 9.97 7.26 6.49 7.94 9.29 11.15 11.43 14.63 20.26 18.39 25.29 25.39 33.91 

EARNINGS PER SHARE IN RS. 0.63 -4.00 -2.00 0.11 0.77 1.92 3.13 3.27 4.45 6.35 5.25 7.69 8.56 11.10 

CASH EARNINGS 

PER SHARE IN RS. 2.33 -2.12 -0.11 2.14 3.05 3.71 4.28 4.43 5.96 8.80 7.04 11.35 10.07 14.63 

CURRENT RATIO 2.47:1 2.04:1 1.62:1 1.54:1 1.49:1 1.38:1 1.49:1 1.5:1 1.41:1 1.37:1 1.39:1 1.32:1 1.28:1 1.29:1 

DEBT EQUITY RATIO 1.34:1 2.33:1 2.36:1 2.40:1 1.58:1 0.98:1 0.77:1 0.75:1 0.47:1 0.57:1 0.4:1 0.98:1 0.09:1 0.68:1 

EBIDTA / NET SALES % 10.61 2.32 -3.47 10.60 10.73 10.79 9.63 9.77 10.53 9.44 11.19 10.43 14.28 11.88 

RETURN ON TANGIBLE 

NET WORTH % 4.22 -40.09 -27.49 1.73 9.67 20.80 28.08 27.96 30.40 31.24 28.53 30.91 33.73 32.97 

FIXED ASSETS 

TURNOVER RATIO TIMES 3.27 3.19 2.78 3.56 4.03 4.64 5.61 5.61 6.93 7.64 7.77 5.19 7.52 5.49 

*Tangible Net Worth = Shareholders’ Funds - Miscellaneous Expenditure (Unamortised) - Deferred Tax Asset CONSOLIDATED STANDALONE 

TEN YEARS’ HIGHLIGHTS 31

DIRECTORS’ 

REPORT 

To, 

The Members, 

Your Directors are pleased to present their 

Seventy First Annual Report on the business 

and operations of the Company and the 

accounts for the Financial Year ended 31 March 

2008. 

Creation of the Avantha Group 

During the year, the Company joined together 

with other companies led by Mr Gautam Thapar, 

to create a new Brand Identity - the Avantha 

Group. The US$ 3 billion Avantha Group has 

business interests in diverse areas including 

pulp and paper, horticulture & food processing, 

farm forestry, chemicals, infrastructure, power 

transmission and distribution equipment 

and information technology. Steered by Mr 

Gautam Thapar and supported by strong 

professional management teams worldwide, 

Avantha demonstrates strong leadership 

globally and has emerged as a focused 

Organisation, leveraging its knowledge, 

leadership and operations, for the Group’s 

continuous endeavours to increase value for all 

its stakeholders. 

This initiative aims at identifying 

commonalities and articulating the elements 

that provide synergy across Group companies. 

This event is a significant milestone for 

the companies led by Mr Gautam Thapar, 

collaborating for higher ambitions, by 

leveraging mutual strengths. 

The name Avantha has Indo-European origins. 

In Sanskrit the word “avni” means “the earth” 

and “tha” comes from “sthapna” which means 

“to establish”. Together they represent stability 

and a strong foundation. In French, “avancer” 

means “to advance”, which represents forward 

movement and growth. 

The name Avantha represents the strong 

foundation that the Group gives the individual 

companies for advancement, growth and 

diversification. The Group Brand will be 

an umbrella brand – over and above the 

Company’s brand. Your Company will therefore 

retain its name and logo. The Group identity will 

positively impact the Company’s positioning in 

the eyes of our stakeholders and also influence, 

as well as, articulate the overarching Culture 

and Values that will be the bonding force 

amongst the several Group companies. 

Operations 

The manufacturing sector has been averaging 

9% growth during 2004 – 2007. India’s 

manufacturing base, which is the fourth-largest 

amongst emerging economies, is among the 

fastest growing, and has witnessed greater 

investments as a proportion of Gross Domestic 

Product than any country, except China. 

Indian manufacturers, with the tremendous 

expertise gained in the domestic market, are 


progressively spreading their wings to reach 

out to Global markets. Indian Corporates have 

been actively taking aggressive steps through 

both Acquisitions and Greenfield investments 

abroad. All these initiatives are boosting “Brand 

India” in the Global arena. 

During the first half of 2007-08, the cumulative 

expansion of industrial output was approx. 

9.70%. Manufacturing output expanded by 

10.40% during the same period and the rate 

of expansion of electricity generation was at 

7.20%. 

Since August 2007, the World financial 

markets and US as well as European lenders 

have been adversely affected as the subprime 

mortgage phenomenon unraveled. 

Considerable pressure continues on the prices 

of oil, food and other raw materials, which 

indicates that inflation management in 2008-09 

will be a greater challenge. The variations in 

related Global prices, which exhibit volatility 

based on changes in the exchange rate, are an 

important force which has, and will continue 

to impinge on the competitiveness of Indian 

manufacturing and its future profitability. 

In anticipation, your Company has already 

intensified its marketing efforts to address this 

potential economic slowdown. The efforts 

center around building greater customer 

contact, strengthening of networks, new 

products commercialisation and improved 

value propositions from existing products. 

The Company has also shortened several 

dimensions of its marketing processes through 

introduction of an order allocation process 

between different geographies, direct order 

placement and greater e-enablement of 

processes for dealer business. The Company has 

also forged necessary alliances to strengthen its 

entry into new market segments. 

The various market centric initiatives 

undertaken, coupled with focus on a Product- 

Solutions domain has enabled the Company 

to achieve a turnover of Rs. 42225.98 million, 

during the year under review, as compared with 

Rs. 36599.76 million during the previous year 

2006-07, a rise of 15%. 

The synergy generated through the Pauwels, 

Ganz and Microsol acquisitions, resulted in 

the consolidated turnover of the Company 

increasing from Rs. 59340.39 million to Rs. 

71813.78 million, an increase of 21%. 

The rising crude oil, steel, copper and 

aluminum prices exerted considerable pressure 

on profitability. However, by expansion of its 

dedicated vendor base and strategic purchase 

contracts, the Company has been able to retain 

its edge in terms of costs. E-sourcing has helped 

the Company to develop and implement 

an effective Company-wide, collaborative 

purchasing process, thus significantly lowering 

costs by co-ordinating and leveraging common 

purchases across the Company. Further, 

better capacity utilisation, value engineering, 

improved execution, better order selection 

and control over operating expenses, offset the 

adverse impact of material cost increases to a 

large extent. 

With CG’s progressive Global footprint, 

the need to strive for “One World Quality” is 

becoming increasingly imminent, and, this 

will require changing our attitudes to a much 

higher quality mind-set, to consistently deliver 

Quality as expected by our Global customers. 

Our efforts in this direction will realise its results 

through adoption of best-in-class standards at 

all locations worldwide. Better design platforms 

are being initiated in all our major business 

areas to facilitate faster designs, with greater 

operational and energy efficiency and, which 

also consume reduced material content. This 

will yield the twin objectives of satisfying 

customer expectations, whilst at the same time 

improving the Company’s profitability. 

The thrust on Six Sigma and the Crompton 

Greaves Productivity System (CGPS), continues 

with increased vigour, in driving the Company’s 

initiatives towards Quality, as perceived by the 

Customer and further increasing productivity 

from all its plants worldwide. 

All these above efforts resulted in the 

Company recording a noteworthy profit before 

tax of Rs. 4856.52 million, an increase of 58% as 

compared with last year. The consolidated profit 

before tax increased from Rs. 4359.56 million to 

Rs. 6152.39 million. 

A 3750KW/6P LARGE SLIPRING ROTOR UNDER PROCESS, AT HT MOTORS DIVISION, MANDIDEEP 

DIRECTORS’ REPORT 33

Financial Highlights 

FINANCIALS IN RUPEES CG STANDALONE CGIBV CONSOLIDATED*@ CG CONSOLIDATED** 

PARTICULARS IN RS MILLION 31.3.2008 31.3.2007 31.3.2008 31.3.2007 31.3.2008 31.3.2007 

(A) GROSS SALES 42226.0 36599.8 30061.5 23321.9 71813.8 59340.4 

(B) LESS: EXCISE DUTY 3468.4 2923.7 0 0 3490.4 2944.8 

38757.6 33676.1 30061.5 23321.9 68323.4 56395.6 

(C) LESS: OPERATING EXPENSES 33919.7 30257.8 27810.5 21946.5 60884.5 51567.4 

(D) OPERATING PROFIT 4837.9 3418.3 2251.0 1375.4 7438.9 4828.2 

(E) ADD: DIVIDEND AND OTHER INCOME 696.3 348.8 224.8 671.5 677.0 1051.4 

(F) PROFIT BEFORE INTEREST, DEPRECIATION, 

5534.2 3767.1 2475.8 2046.9 8115.9 5879.6 

AMORTISATION AND TAXES 

(G) LESS: INTEREST 271.1 303.5 379.8 263.4 700.9 565.8 

(H) PROFIT BEFORE DEPRECIATION, AMORTISATION AND TAXES 5263.1 3463.6 2096.0 1783.5 7415.0 5313.8 

(I) LESS: DEPRECIATION, AMORTISATION AND IMPAIRMENT 406.6 393.6 820.9 554.4 1262.6 954.2 

(J) PROFIT BEFORE TAX 4856.5 3070.0 1275.1 1229.1 6152.4 4359.6 

(K) LESS: PROVISION FOR CURRENT YEAR TAX 1520.6 840.0 434.3 259.4 1970.4 1113.4 

(L) LESS: PROVISION FOR DEFERRED TAX 146.7 264.8 (111.5) 74.8 33.5 339.5 

(M) LESS: PROVISION FOR FRINGE BENEFIT TAX 50.0 41.5 0 0 50.3 41.7 

(N) PROFIT AFTER TAX 3139.2 1923.7 952.3 894.9 4098.2 2865.0 

(O) MINORITY INTEREST 0 0 (51.4) (43.8) (48.1) (47.1) 

(P) SHARE OF PROFIT/(LOSS) OF ASSOCIATE COMPANIES 0 0 0.8 (1.0) 17.1 (0.5) 

(Q) PROFIT AFTER TAX, MINORITY INTEREST AND SHARE OF 3139.2 1923.7 901.7 850.1 4067.2 2817.4 

PROFIT/(LOSS) OF ASSOCIATE COMPANIES 

(R) BALANCE BROUGHT FORWARD FROM PREVIOUS YEARS 3097.6 1814.1 0 0 0 0 

(S) TRANSFERRED FROM ASSOCIATE COMPANIES 0 0 0 0 0 0 

(T) TRANSFER (TO)/FROM DOUBTFUL DEBTS RESERVE 161.4 89.6 0 0 161.4 90.9 

(U) TRANSFER FROM INVESTMENT GRANTS 0 0 1.4 16.4 0 0 

APPROPRIATION/DISTRIBUTION 

(V) TRANSFER TO GENERAL RESERVE (313.9) (192.4) 0 0 0 0 

(W) DIVIDEND (586.5) (471.3) 0 0 (586.5) (471.3) 

(X) CORPORATE TAX ON DIVIDEND (99.7) (66.1) 0 0 (99.7) (67.2) 

BALANCE CARRIED TO BALANCE SHEET 5398.1 3097.6 903.1 866.5 3542.4 2369.8 

NOTE *Consolidated Accounts of CG International BV, the holding company for the Pauwels, Ganz & Microsol Acquisitions. 

** Includes results of Pauwels, Ganz, Microsol, Indian Subsidiaries and Associates. 

@ Figures have been regrouped for the purposes of consolidation. 

The profit before interest and tax of the respective Business Groups, compared with last year is 

given below: 

SBU 

IN RS MILLION 2007-2008 2006-2007 

POWER SYSTEMS (CG STANDALONE) 2576.91 1834.90 

INDUSTRIAL SYSTEMS (CG STANDALONE) 1946.02 1303.75 

CONSUMER PRODUCTS 1208.06 954.58 

POWER SYSTEMS (INCLUDING PAUWELS, GANZ AND MICROSOL) 4371.88 3272.00 

INDUSTRIAL SYSTEMS (INCLUDING GANZ ROTATING 

MACHINES BUSINESS) 

1956.29 1302.40 

A detailed review of the operations and 

performance of each Business Group as well as 

Pauwels, Ganz and Microsol is contained in the 

Management Discussion and Analysis Report, 

which is given as a separate chapter in the 

Annual Report. 

Dividend 

The Company declared three interim dividends 

during the year: 

$ Rs. 0.40 per equity share (20%) aggregating 

to a total dividend payout of Rs.171.55 million 

(including dividend tax) declared on 30 October 


FINANCIALS IN EUROS CG STANDALONE CGIBV CONSOLIDATED*@ CG CONSOLIDATED** 

PARTICULARS IN EURO MILLION 31.3.2008 31.3.2007 31.3.2008 31.3.2007 31.3.2008 31.3.2007 

(A) GROSS SALES 665.6 632.4 473.9 403.0 1132.0 1025.4 


611.0 581.9 473.9 403.0 1077.0 974.5 





87.3 65.1 39.0 35.4 127.9 101.6 











(P) SHARE OF PROFIT/(LOSS) OF ASSOCIATE COMPANIES 0 0 0 0 0.3 0 

(Q) PROFIT AFTER TAX, MINORITY INTEREST AND SHARE OF 

49.5 33.2 14.3 14.6 64.1 48.7 





(U) TRANSFER FROM INVESTMENT GRANTS 0 0 0 0.3 0 0 



(W) DIVIDEND (9.2) (8.1) 0 0 (9.2) (8.1) 






2007; the Record Date for this purpose was 5 

November 2007 and the Interim Dividend was 

paid on 16 November 2007. 

$ Rs.0.80 per equity share (40%) aggregating 


(including dividend tax) declared on 30 January 


February 2008 and the Interim Dividend was 

paid on 15 February 2008. 

$ Rs.0.40 per equity share (20%) aggregating 


(including dividend tax) declared on 28 March 


April 2008 and the Interim Dividend was paid 

on 17 April 2008. 

The abovementioned dividend payout as a 

percentage of the share capital works out to 

80%. 

Reserves 

The Reserves at the beginning of the year were 

Rs.6009.80 million. The Reserves at the end of 

the year are Rs. 8574.30 million. 

Directorate 

Mr G Thapar and Mr S Talwar are the Directors 

who retire by rotation at the forthcoming 

Annual General Meeting, and being eligible, 

offer themselves for re-appointment to the 

Board. 

Mr SM Trehan’s term as Managing Director 

would have concluded on 2 May 2009. In 

consideration of his contributions to the 

Company’s operational and financial progress; 

the successful acquisitions, the integration of 

the acquired companies and the strides that 

the Company has made under his leadership, 

A CORE FOR A POWER TRANSFORMER RECEIVES ITS 

FIRST PRE-ASSEMBLED COIL 


FINANCIALS IN US DOLLARS CG STANDALONE CGIBV CONSOLIDATED*@ CG CONSOLIDATED** 

PARTICULARS IN USD MILLION 31.3.2008 31.3.2007 31.3.2008 31.3.2007 31.3.2008 31.3.2007 

(A) GROSS SALES 1052.5 842.0 749.3 536.5 1790.0 1365.1 


966.0 774.7 749.3 536.5 1703.0 1297.4 





137.9 86.7 61.7 47.0 202.3 135.3 











(P) SHARE OF PROFIT/(LOSS) OF ASSOCIATE COMPANIES 0 0 0 0 0.4 0 

(Q) PROFIT AFTER TAX, MINORITY INTEREST AND SHARE OF 

78.2 44.2 22.4 19.4 101.3 64.8 





(U) TRANSFER FROM INVESTMENT GRANTS 0 0 0 0.4 0 0 



(W) DIVIDEND (14.6) (10.8) 0 0 (14.6) (10.8) 






the Board of Directors, at its Meeting held on 

30 January 2008, has approved extension of his 

term as Managing Director for a further period 

of two years from 3 May 2009 to 2 May 2011. 

Members’ approval is being sought to his reappointment 

and the terms related thereto. 

The details of the Directors being 

recommended for re-appointment are 

contained in the accompanying Notice of the 

forthcoming Annual General Meeting. 

Research and Development 

The Company has planned its product portfolio 

upto the year 2010, to steer and align its R&D 

with its business drivers. Towards achieving this 

core purpose, during the year the CG Global 

R&D Centre concentrated on developing new 

platform technologies, as well as, improving 

the existing product technologies. R&D 

has developed and implemented a New 

Product Development System (NPD) across all 

locations in India for monitoring the progress 

of platform and breakthrough technologies 

identified as future business drivers. A Business 

Development Cell has been formed within 

CG Global R&D Centre to monitor and ensure 

successful commercialisation of R&D projects. 

During the year, the Company was Nationally 

recognised, by being bestowed the prestigious 

“National Award for the Best R&D Efforts” for 

its outstanding achievements in the Electrical 

Engineering Sector from the Department of 

Scientific and Industrial Research (DSIR). The 

Company also received other awards such as 

“Golden Peacock Innovation Award” and “Best 

Product Award” at Elecrama 2007. 

CG Global R&D Centre has also received 

accreditation from the National Accreditation 

Board for Testing and Calibration Laboratories 

(NABL) which is a formal recognition of its 

technical competency as a testing / calibration 

laboratory for ISO/IEC 17025 standards. This 

accreditation, besides being testimony to CG 


Global R&D’s high levels of professionalism, 

will facilitate acceptance of test results and 

measurement data amongst 52 accreditation 

bodies representing 45 countries. 

New products and processes developed are 

detailed in the Annexure. 

Promoter Group 

During the year, Mr. Gautam Thapar created 

a separate brand identity for the companies 

under his ownership and christened it as 

“Avantha” Group. The Avantha Group includes 

some companies of the BM Thapar Group, 

since vested with Mr. Gautam Thapar and 

the erstwhile LM Thapar Group companies 

bequeathed to Mr. Gautam Thapar. The BM 

Thapar Group and LM Thapar Group were 

recognised by the Securities and Exchange 

Board of India by its Order dated 8 October 2001 

(as modified from time to time). 

Therefore, Crompton Greaves Limited, 

along with the following entities, constitutes 

a Group as defined under the Monopolies and 

Restrictive Trade Practices Act, 1969 : 

Ballarpur Industries Limited, Bilt Graphic 

Paper Products Limited, Ballarpur International 

Holdings B.V., Ballarpur Paper Holdings 

B.V., Ballarpur Graphic Paper Holdings B.V., 

Ballarpur International Paper Holdings B.V., 

Ballarpur International Graphic Paper Holdings 

B.V. (under incorporation), Sabah Forest 

Industries Sdn. Bhd., Bilt Tree Tech Limited, 

NewQuest Corporation Limited, Bilt Paper 

Holdings Limited, KCT Papers Limited, KCT 

Chemicals & Electricals Limited, APR Sacks 

Limited, The Paperbase Company Limited, 

Janpath Investments and Holdings Limited, Bilt 

Industrial Packaging Company Limited, Biltech 

Building Elements Limited, UHL Power Limited, 

Asia Aviation Limited, Toscana Lasts Limited, 

Toscana Footwear Components Limited, NQC 

Global (Mauritius) Limited, NQC International 

(Mauritius) Limited, NewQuest Services Private 

Limited, Avantha Technologies Limited, 

NewQuest Insurance Broking Services Limited, 

Avantha Power & Infrastructure Limited, Global 

Green Company Limited, Global Green USA 

Limited, GG International N.V., Intergarden N.V., 

Intergarden (India) Private Limited, Dunakiliti 

Kanzervuzem Kft, Greenhouse Agraar Kft, 

Floragarden Tarim Gida Sanay ve Ticaret A.S., 

Solaris Holdings Limited, Solaris Chemtech 

Limited, Solaris Chemtech Industries Limited, 

Solaris Industrial Chemicals Limited, Salient 

Business Solutions Limited, Salient Knowledge 

Solutions Limited, Salient Financial Solutions 

Limited, Salient Business Solutions USA, Inc, 

CG Energy Management Private Limited 

[formerly, CG Motors Private Limited], CG 

Capital & Investments Limited, CG-PPI Adhesive 

Products Limited, Malanpur Captive Power 

Limited, Brook Crompton Greaves Limited, 

CG Actaris Electricity Management Limited, 

CG Lucy Switchgear Limited, International 

Components India Limited, CG International 

B.V., Pauwels International N.V., Pauwels 

Americas Inc, PT Pauwels Trafo Asia, Pauwels 

Trafo Gent N.V., Pauwels Canada Inc, Pauwels 

Transformers Inc, Pauwels Trafo Ireland Limited, 

Pauwels France SA, Pauwels Trafo Belgium N.V., 

Pauwels Trafo Service N.V., Pauwels Middle East 

Trading and Contracting Limited, Crompton 

Greaves Hungary Kft, Transverticum Kft, Ganz 

Transelektro Villamossagi Zrt., Microsol Holdings 

Limited, Microsol Limited, Viserge Limited, 

Microsol (UK) Limited, Tricon Controls Limited 

and Microsol Inc. 

Subsidiary Companies 

The Company has four Indian subsidiaries 

viz CG Energy Management Private Limited 

[formerly, CG Motors Private Limited] (CEM), 

CG Capital & Investments Limited (CG Capital), 

CG-PPI Adhesive Products Limited (CG PPI) 

and Malanpur Captive Power Limited (MCPL). 

CEM, CG Capital and MCPL are subsidiaries of 

the Company, and CG PPI, being a subsidiary 

of CG Capital, in terms of the provisions of the 

Companies Act, 1956, is also the Company’s 

subsidiary. 

The Netherlands-based CG International B.V. a 

100% subsidiary of the Company, is the ultimate 

holding company of the Pauwels, Ganz and the 

Microsol Group, comprising 19 downstream 

subsidiaries, as under: 

$ Pauwels International N.V. 

$ Pauwels Americas Inc 

$ PT Pauwels Trafo Asia 

$ Pauwels Trafo Gent N.V. 

$ Pauwels Canada Inc 

$ Pauwels Transformers Inc 

$ Pauwels Trafo Ireland Ltd 

$ Pauwels France SA 

$ Pauwels Trafo Belgium N.V. 

$ Pauwels Trafo Service N.V. 

$ Crompton Greaves Hungary Kft 

$ Transverticum Kft 

$ Ganz Transelektro Villamossagi Zrt. 

$ Microsol Holdings Limited 

$ Microsol Limited 


$ Viserge Limited 

$ Microsol (UK) Limited 

$ Tricon Controls Limited 

$ Microsol Inc 

In totality, the Company has 24 subsidiaries, 4 

Indian and 20 foreign. 

The Company has obtained an exemption 

under Section 212 of the Companies Act, 

1956, from annexing to this Report, the Annual 

Reports of the abovementioned 4 Indian 

subsidiaries and 20 foreign subsidiaries, for the 

year ended 31 March 2008. 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. 

The details of each subsidiary with respect 

to capital, reserves, total assets, total liabilities, 

details of investment (except in case of 

investment in subsidiaries), turnover, profit 

before taxation, provision for taxation, profit 

after taxation and proposed dividend are 

detailed at Page 99 of the Annual Report. 

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 24 subsidiaries 

mentioned above, and 5 Associate Companies, 

are annexed to this Report. The Associate 

Companies are Brook Crompton Greaves 

Limited, CG Actaris Electricity Management 

Limited, CG Lucy Switchgear Limited, 

International Components India Limited and 

Pauwels Middle East Trading and Contracting 

Limited. 

For the purposes of consolidation, in 

accordance with AS-23, certain Associate 

Companies which do not fulfill the criteria 

specified in the said Accounting Standard have 

been excluded. Investments in such Associate 

Companies have been accounted for, in 

accordance with AS-13. 

THREE TRANSFORMERS BEING TESTED AT THE TEST BED FOR LARGE POWER TRANSFORMERS AT T1 DIVISION, KANJUR 


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, 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. 

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 re-appointment 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. 208 persons had not 

claimed repayment of their matured deposits 

amounting to Rs.2.61 million as at 31 March 

2008. At the date of this Report, an amount of 

Rs. 0.24 million therefrom has been claimed and 

repaid. 

Intime Spectrum Registry Limited continues 

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. 

Share Registrar & Transfer Agent 

Effective 1 December 2007, the Company 

changed its Registrar & Transfer Agents from 

Sharepro Services (India) Pvt Limited to 

Datamatics Financial Services Ltd (DFSL). 

DFSL is a SEBI-registered Registrar & 

Transfer Agent. The contact details of DFSL 

are mentioned in the Report on Corporate 

Governance. 

Investors are requested to address their 

queries, if any to DFSL; however, in case of 

difficulties, as always, they are welcome to 

contact the Company’s Investor Services 

Department, the contact particulars of which 

are contained in the Report on Corporate 

Governance. 

Environment, Health & Safety 

The Company is committed to ensuring 

the health and safety of all its employees, 

contractors, visitors and other persons at its 

workplace. The Company regularly invests 

in requisite resources and infrastructure that 


BIO-SLIM® TRANSFORMER INSTALLED IN CELTIC SEA (GREAT-BRITAIN) FOR AN OFF SHORE WIND-FARM 

ensures safe and healthy work environment for 

its employees. 

To emphasise the importance on day-to-day 

practices in this area, health and safety has been 

chosen as one of the focus themes articulated in 

CG’s Code of Business Practices. The Company 

also has a Health & Safety policy, which has 

been implemented across all its locations. The 

“Health & Safety Committee” at all locations 

ensures review and adequate compliance of 

the Company’s Health & Safety Policy. 

Conducting of training programmes on safety 

and environment, product training sessions 

for newly joined technicians and trainees, firefighting 

drills, health check-ups for executives, 

HIV/AIDS awareness and voluntary blood 

donation camps are some of the initiatives 

undertaken as part of the Company’s on-going 

programmes. 

All the manufacturing units of the Company 

have received ISO 14001 Environmental 

Standards and Management Certification and 

OHSAS 18001 Certification for Occupational 

Health & Safety Management Systems. 

The Company propagates usage of 

environmentally safe technologies in its 

product design processes. The Company is also 

increasing its focus on developing transformers 

and power quality products for usage in 

projects based on wind, solar, renewable and 

other non-conventional sources of energy. 

During the year, the Company won the 

Greentech Gold Award 2007 in the Engineering 

Sector for Environmental Management Systems 

for green products and process technologies 

developed within the Company. 

Acknowledgements 

The Directors acknowledge and appreciate 

the support and co-operation extended by 

the Financial Institutions, Banks, Government 

Authorities, Customers, Vendors and Members 

during the year under review and look forward 

towards continued support from them. 

The Directors also wish to convey their 

appreciation to all the Company’s employees 

for their dedication, hard work and 

commitment which is a significant contribution 

for achieving the Company’s performance. 

On behalf of the Board of Directors 

G THAPAR 

CHAIRMAN 



Annexure to Directors’ Report 

Under Section 217(1)(e) of the Companies Act, 

1956 

CONSERVATION OF ENERGY 

A. ENERGY CONSERVATION MEASURES 

TAKEN 

Management of Energy efficiencies is an 

integral part of the Company’s objectives, whilst 

modernising technologies at its manufacturing 

units. In addition, efforts continue, to conserve 

energy to the maximum extent by constant 

monitoring of energy consumption data, 

adopting energy conservation measures, 

reducing cycle time of furnace related 

processes, using renewable energy sources and 

adopting other measures to improve energy 

yields. 

Some illustrative measures adopted towards 

energy conservation are : 

$ Solid phase sintering process for 

manufacturing of contacts for vacuum 

interrupters 

$ Installation of LPG fired furnaces, for powder 

coating 

$ Condition monitoring of autoclaves 

$ Installation of VFD autoclaves 

$ Installation of induction heating systems, for 

rotors used in motors 

$ Reduction in cycle time for stator machining 

processes 

$ Automation in air conditioning systems 

B. ADDITIONAL INVESTMENTSAND 

PROPOSALS, IF ANY, BEING 

IMPLEMENTED FOR REDUCTION IN 

CONSUMPTION OF ENERGY 

$ Development and usage of LED based 

lighting systems 

$ Installation of wind mills upto 3.2 kW, to 

produce more eco-friendly energy, which 

will cater to the lighting systems of factories 

$ Development of bio-fluids for transformer 

applications 

$ Development of brazing processes for 

manufacture of 2.4” vacuum interrupters 

$ Automation in low pressure air control, for 

manufacturing processes 

$ On-line aging testing for florescent tube light 

TL-3 

$ Installation of energy saver lighting systems 

C. IMPACT OF THE MEASURES AT (A) 

AND (B) FOR REDUCTION OF ENERGY 

CONSUMPTION AND CONSEQUENT 

IMPACT ON THE COST OF PRODUCTION 

Through greater implementation of energy 

efficient manufacturing processes and power 

quality management, there will be a further 

reduction in energy consumption and resultant 

cost savings. However, since the Company’s 

manufacturing processes are not energy 

intensive, the energy conservation measures 

have a negligible impact on the Company’s 

overall cost of production of goods. 

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, the Company has 

concentrated on developing new platform and 

breakthrough technologies in support of the 

product technology centres at the Divisions, 

to strengthen exploitation and improvisation 

of the existing technology platforms. This 

direction for R&D has also been formally 

articulated in the “Quality Policy” of CG Global 

R&D Centre. 

2. Benefits derived as a result of the 

above R&D 

New products developed 

POWER SYSTEMS 

$ 400 kV class station transformer 

$ 245 kV class unit ratio transformer 

$ 990 kV/11 kV cast resin transformer with foil 

for winding 

$ 12 kV, 26.3 kA, 1250 A Univac vacuum circuit 

breaker 

CONTEMPORARY PARALITE MIRROR OPTIC LUMINAIRES LIGHTING UP AN OFFICE 


EXECUTIVES OF CG AND MICROSOL UNDERTAKING 

TESTING ON THE KANJUR 33KV RTU PROJECT 

$ 12 kV, 18.4 kA, vertical isolation vacuum 

circuit breaker 

$ 12 kV, 26.3 kA, 1600 A Univac porcelain clad 

vacuum circuit breaker 

$ 12 kV, 20 kA, (next generation) Univac 

vacuum circuit breaker 

$ Range extension of 24 kV, 25 kA vacuum 

interrupter 

$ Range extension of 72.5 kV current 

transformer and inductive voltage 

transformer for 2400 M altitude 

$ 69 kV circuit breaker made to ANSI standards 

$ 24 kV capacitor voltage transformer with 1.9 

voltage factor 

$ 245 kV reliable spring spring mechanism in 

circuit breaker 

$ 242 kV reliable spring mechanism in circuit 

breaker 

$ 66 kV spring spring circuit breaker with 

higher creepage 

$ 420 kV gas circuit breaker with higher altitude 

$ 36 kV, 25 kA, 200 kV basic insulation level 

panel for circuit breaker 

$ 145 kV, 4000 A gas circuit breaker 

$ 69 kV & 138 kV bushings as per ANSI 

standards 

R&D FROM POWER SYSTEMS 

(OVERSEAS LOCATIONS) 

The Company has also benefited from the 

research work undertaken at Power Systems 

(overseas locations) as under : 

$ Development of high temperature super 

conducting transformer 

$ Implementation of counter-sheilding 

winding, and standardized core clam 

construction 

$ Introduction of silicon fluid production 

capabilities in conjunction with NOMEX 

materials to serve the need for high 

temperature transformers 

$ Development of submersible control box for 

underground switches 

$ Introduction of new protection system for 

self-protecting transformers 

$ IEC 61850 interface for Xcell product range 

$ Development of 145 kV compact gas 

insulated switchgear as per latest standard 

INDUSTRIAL SYSTEMS 

$ Traction motors for 25 kV AC mainline 

$ Traction alternator type C1014TA for railways 

$ 560 frame industrial duty DC motor 

$ Range extension of HT motors above 1500 

kW,11 kV range 

$ 0.25 HP to 1 HP series of general purpose 

motors 

$ 0.25 HP to 1 HP motor for wet grinder 

$ 0.25 HP motor for cooler kit 

$ 0.25 HP motor for temple drum 

$ 0.5 HP motor for blowers 

$ 400 frame SR 4P/8P slipring motor 

$ 500 kVA, 750 V alternators for railways 

$ 160 and 200 frame aluminum body 

alternators 

$ Lamyoke mill duty motors in 808, 810 and 

816 frame sizes 

CONSUMER PRODUCTS 

$ High flow 18” pedestal fan 

$ Ceiling fans - Scorpio 1200mm, New Whirl 

Wind 1200mm, Silent Breeze 1200mm, Cool 

Breeze 900mm, Nebula 1200mm 

$ 380mm and 450mm Blast Air exhaust fan 

$ Appliances – new models of irons, geysers 

and juicer mixer grinders 

$ 600 VA and 800 VA Home UPS 

$ 0.5 HP, 0.75 HP and 1 HP 3” borewell 

submersible pumps 

$ 4” borewell submersible pumps (Popular 

series and Classic series) 

$ 45 HP to 75 HP 8” borewell submersible 

pumps with high water discharge 

$ LED RGB flood light with controller 

$ Energy efficient Slim Gold luminaires for 

domestic Interiors 

$ Cost effective 70 W deepdrawn streetlight 

$ Industrial & Floodlights - integral increased 

safety luminaire for better light distribution 

$ LED updown lighter 21 W for illuminating 

corridors 

New Processes Implemented/ 

Processes Improved 

$ Stator coil vulcanization process for 

alternators used in diesel locomotives 

$ Improvement of 12kV mechanism of M2 class 

of vacuum circuit breaker 

$ Manufacturing of Fastech tools for punching 

laminations 

$ Modification of 200 ton and 400 ton clutch 

assembly 

$ Improvement in winding process for FHP 

motors 

Technology Competence Achieved 

$ Development of nano coating, for various 

outdoor applications like transformers, for 

improved paint life 

$ Substation automation technology at 

transmission and distribution level 


$ Design and development of virtual 

laboratory system for design optimization of 

products 

$ Web-based real-time condition monitoring 

system for transformers and motors 

$ Intelligent electronic device for transformer 

condition monitoring 

$ Electronically controlled BLDC motors (225W, 

580W, 800W) for electric vehicles 

$ Development of 600 kW wind mill generator 

$ Environmental friendly resin impregnation 

paper type bushings 

$ Dry type polycrete base 25kV Dream 

Transformer for rural electrification 

$ Development of premium efficiency motor 

as per NEMA standards 

Patents 

During the year the Company filed 63 patents 

in India, which together with 77 patents filed 

earlier, are pending for registration. One patent 

has been granted during the year. 

3. Future Plan of Action 

The Company has planned its product portfolio 

upto the year 2010, to steer and align its R&D 

with its business drivers. Towards achieving this 

core purpose, during the year the CG Global 

R&D Centre concentrated on developing new 

platform technologies, as well as, improving 

the existing product technologies. R&D 

has developed and implemented a New 

Product Development System (NPD) across all 

locations in India for monitoring the progress 

of platform and breakthrough technologies 

identified as future business drivers. A Business 

Development Cell has been formed within 

CG Global R&D Centre to monitor and ensure 

successful commercialisation of R&D projects. 

The focus for the future will be directed towards 

development of customized solutions for 

customers and achievement of best-in-class 

R&D. 

4. Expenditure on R&D 

RS. MILLION 

FY 2008 

(A) CAPITAL 278.88 

(B) REVENUE 236.16 

(C) TOTAL (A+B) 515.04 

(D) TOTAL R&D EXPENDITURE 

$ AS A PERCENTAGE OF 

1.22% 

TOTAL TURNOVER 

$ AS A PERCENTAGE OF 

10.61% 

PROFIT BEFORE TAX 

TECHNOLOGY ABSORPTION, ADAPTATION 

AND INNOVATION 

1. Efforts and Benefits 

The Company, during the year, has 

concentrated predominantly on in-house 

technology development to establish a 

competitive edge in Indian as well as overseas 

markets. The Company has established strong 

technical collaborations with experts across 

the world and entered into MOUs with various 

National and International academic research 

institutes, for current and futuristic research in 

the area of power sector products. 

2. 

Imported Technology 

YEAR OF PRODUCT 

IMPORT 

2004-2005 800 KV AUTO TRANSFORMERS, 

GENERATOR TRANSFORMERS 

AND SHUNT REACTORS 

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. 

B. TOTAL FOREIGN EXCHANGE EARNED 

AND USED 

TOTAL FOREIGN EXCHANGE 

EARNED 

TOTAL FOREIGN EXCHANGE 

USED 


G THAPAR 

CHAIRMAN 


RS. MILLION 

FY 2008 

7572.43 

3687.64 

IMPORTED 

FROM 

TOSHIBA MITSUBISHI TRANS- 

MISSION AND DISTRIBUTION 

CORPORATION, JAPAN 

STATUS OF 

ABSORPTION 

IN PROGRESS 


CORPORATE 

GOVERNANCE 

The Company’s Philosophy on 

Corporate Governance 

At Crompton Greaves Limited (‘Crompton 

Greaves’, ‘CG’ or ‘the Company’) Corporate 

Governance is reflected through best-in-class 

business practices and adoption of high level of 

ethical standards whilst doing business. 

Growth and Profitability is important; but the 

Board always remains conscious of business 

enablers and gives them as much importance 

as financial performance. It willingly commits 

adequate funds and management time to 

communication & IT infrastructure, brand 

building, management processes like 

budgeting & strategy development, internal 

control systems & processes as well as human 

resources and knowledge management. 

CG encourages Management independence 

and provides individual flexibility within an 

established framework of policies, standards 

and processes, which derive their source 

from the CG Values and are translated into its 

business practices, authority-responsibility 

matrices and governance systems. A strong 

internal audit and control mechanism ensures 

that the Company’s risks are substantially 

aligned with its decided business strategy. 

In FY 2008, the Company formally approved 

a Code of Business Practices, which advocates 

consistency of practices related to operations 

at CG and all its subsidiaries worldwide. The 

Code also provides for a mechanism through 

which the employees of the Company may, 

in confidence, raise concerns about possible 

improprieties in the conduct of business. It 

contains an independent investigation process 

and provides for appropriate disciplinary 

actions for non-conformance. 

As a concerned Corporate Citizen, CG 

continues to focus on Communities that 

surround its operations at various locations, by 

supporting projects and sponsoring identified 

community causes. Employees are encouraged 

to participate in these programmes and make a 

difference to their communities, thus bringing 

pride to themselves and creating a trusting 

partnership between the Company and the 

communities. 

As the foreign locations progressively get 

integrated with CG, the aforesaid best practices 

of governance get extended to these locations 

as well. 


Board of Directors 

COMPOSITION 

As on 31 March 2008, the Company had 

an eight-member Board of Directors. The 

Chairman, Mr Gautam Thapar is a Non- 

Executive Director and a member of the 

Promoter Group. Six other Non-Executive 

Directors – Mr Scott Bayman, Dr Omkar 

Goswami, Mr Sanjay Labroo, Ms Meher 

Pudumjee, Mr Satya Pal Talwar and Dr Valentin 

von Massow - are independent in terms of 

Clause 49 of the Listing Agreement with Stock 

Exchanges. Mr Sudhir Trehan is the Managing 

Director. Thus, the Board of Crompton Greaves 

presently comprises of one Executive Director 

and seven Non-Executive Directors, of whom 

six are independent Directors. Table 1 gives the 

composition of the Board, and the number of 

outside Directorships held by each. None of the 

Directors are related to each other. 

BOARD MEETINGS 

There were five Board Meetings held during 

the year: on 20 April 2007, 30 May 2007, 26 July 

2007, 30 October 2007 and 30 January 2008. 

The Company’s last Annual General Meeting 

was held on 26 July 2007. Table 2 gives the 

attendance record of the Directors. 

Directors’ Compensation 

MANAGING DIRECTOR’S 

COMPENSATION 

For the FY 2008, Mr Sudhir Trehan, Managing 

Director received a remuneration package 

comprising a fixed salary component and a 

performance linked bonus, as approved by 

the Remuneration Committee of the Board 

on 25 January 2006, and conveyed to the 

shareholders pursuant to Section 302 of 

the Companies Act. In terms of the powers 

delegated by the shareholders at the Annual 

General Meeting held on 22 July 2005, the 

Remuneration Committee of the Board 

is authorised to revise the compensation 

package of Mr Trehan, upto a ceiling of 5% of 

the Company’s net profits. In recognition of the 

manifold increase in Mr Trehan’s role in view 

of the global presence of the Company and 

the positive impact that his business efforts 

have had on the Company’s profitability, the 

Remuneration Committee at its Meeting held 

on 30 January 2008 revised the remuneration 

package of Mr Trehan, with effect from 1 April 


TABLE 

01 

COMPOSITION OF THE BOARD 

NAME STATUS OTHER BOARD REPRESENTATIONS 

DIRECTORSHIP (A) COMMITTEE MEMBERSHIP (B) COMMITTEE CHAIRMANSHIP (B) 

MR GAUTAM THAPAR NON-EXECUTIVE CHAIRMAN; PROMOTER 16 4 1 

MR SUDHIR TREHAN EXECUTIVE; MANAGING DIRECTOR 5 1 1 

MR SCOTT BAYMAN NON-EXECUTIVE; INDEPENDENT 1 0 0 

DR OMKAR GOSWAMI NON-EXECUTIVE; INDEPENDENT 8 8 2 

MR SANJAY LABROO NON-EXECUTIVE; INDEPENDENT 16 2 0 

MS MEHER PUDUMJEE NON-EXECUTIVE; INDEPENDENT 6 1 0 

MR SATYA PAL TALWAR NON-EXECUTIVE; INDEPENDENT 10 9 3 

DR VALENTIN VON MASSOW NON-EXECUTIVE; INDEPENDENT 1 0 0 

NOTES (A)Includes private limited companies, but excludes alternate directorships and foreign bodies corporate. (B) Of only public limited companies. 

TABLE 

02 

ATTENDANCE RECORD OF THE DIRECTORS, FY 2008 

NAME 

ATTENDANCE 

BOARD MEETINGS 

LAST AGM 

MR GAUTAM THAPAR 5 YES 

MR SUDHIR TREHAN 5 YES 

MR SCOTT BAYMAN 5 YES 

DR OMKAR GOSWAMI 5 YES 

MR SANJAY LABROO 4 YES 

MS MEHER PUDUMJEE 5 YES 

MR SATYA PAL TALWAR 4 YES 

DR VALENTIN VON MASSOW 5 YES 

CORPORATE GOVERNANCE 45

With effect from 1 April 2008, Mr Trehan’s 

remuneration package is as follows: 

$ SALARY Rs.96 lacs per annum 

$ PERQUISITES A basket of allowances/ 

perquisites upto Rs. 37 lacs per annum which 

will include reimbursement of expenditure or 

allowances in respect of house maintenance 

and repairs, utilities such as gas, electricity, 

water and furnishings; medical reimbursement, 

medical insurance, hospital benefits, leave 

travel concession and education, for himself 

and his family; personal accident insurance, 

club fees, and any other reimbursements, 

allowances or perquisites in terms of the 

Company’s Rules or as may be decided by the 

Chairman of the Company. 

conveyed to the shareholders, pursuant to 

Section 302 of the Companies Act 1956. 

EXTENSION OF MANAGING 

DIRECTOR’S TENURE 

The Board of Directors at its Meeting held on 

30 January 2008 also extended Mr Trehan’s 

tenure as the Company’s Managing Director 

for a further period of 2 years with effect from 3 

May 2009, upto 2 May 2011 on the revised terms 

& conditions and remuneration, applicable 

from 1 April 2008 and with authority to the 

Remuneration Committee to increase the 

remuneration, within the ceiling of 5% of the 

net profits of the Company in any financial 

year. This appointment is subject to Members’ 

approval, which is being sought at the 71st 

Annual General Meeting. 

TABLE 

03 

COMPENSATION OF THE DIRECTORS, FY 2008 (IN RUPEES) 

$ PERFORMANCE INCENTIVE/ COMMISSION 

To be decided by the Board of Directors every 

year. 

THE ABOVE DOES NOT INCLUDE Rent-free 

furnished accommodation owned, leased 

or rented by the Company or House Rent 

Allowance in lieu thereof; company car, with 

driver; company’s contribution to Provident 

Fund, Superannuation Fund and Gratuity 

pursuant to the Rules of the Company and 

encashment of leave. These amounts will be in 

addition to the limits provided above. 

SPECIAL PAYMENT The Remuneration 

Committee also approved payment of a 

lump sum of Rs 30 lacs, only for FY 2008, 

in recognition of his outstanding work in 

successful integration of varied technologies, 

marketing & manufacturing knowledge 

assimilated through acquisitions and creating 

value across different geographies worldwide. 

The above revision in Mr Trehan’s 

remuneration and the Special Payment, as 

approved by the Remuneration Committee 

and the Board on 30 January 2008, has been 

NON- EXECUTIVE DIRECTORS’ 

COMPENSATION 

The shareholders, at the 68th Annual General 

Meeting held on 22 July 2005 approved 

payment of commission to the Company’s Non- 

Executive Directors, collectively, not exceeding 

1% of net profits, computed in the manner 

provided in Section 309(5) of the Companies 

Act. The Board has formulated Guidelines 

for distribution of commission amongst the 

Non-Executive Directors, which provide for a 

minimum fixed payment for participation at 

Board Meetings and a variable component 

for contributions as Chairmen of Board 

Committees and/or for greater involvement 

with Company executives for strengthening 

systems and processes or contributing to the 

strategic direction of the Company. Based on 

these Guidelines, the commission payable to Mr 

G Thapar is higher than the other Non-Executive 

Directors. The compensation of all the Directors 

is given in Table 3. The Company does not have 

any stock option plans or schemes. 

NAME SALARY PERQUISITES COMMISSION RETIREMENT BENEFITS SITTING FEES OTHERS TOTAL 

MR GAUTAM THAPAR 25,380,000 240,000 25,620,000 

MR SUDHIR TREHAN 7,200,000 5,100,000 4,800,000 3,242,400 3,000,000 23,342,400 

MR SCOTT BAYMAN 500,000 160,000 660,000 

DR OMKAR GOSWAMI 1,500,000 280,000 1,780,000 

MR SANJAY LABROO 500,000 140,000 640,000 

MR SATYA PAL TALWAR 1,500,000 180,000 1,680,000 

MS MEHER PUDUMJEE 500,000 100,000 600,000 

DR VALENTIN VON MASSOW 2,200,000 100,000 2,300,000 


TABLE 

04 

AUDIT COMMITTEE MEETINGS, FY 2008 

NAME STATUS MEETINGS HELD MEETINGS ATTENDED 

MR SATYA PAL TALWAR CHAIRMAN, INDEPENDENT DIRECTOR 5 5 

DR OMKAR GOSWAMI MEMBER, INDEPENDENT DIRECTOR 5 5 

MR SANJAY LABROO MEMBER, INDEPENDENT DIRECTOR 5 2 

MR GAUTAM THAPAR MEMBER, NON-EXECUTIVE DIRECTOR 5 5 

DIRECTORS’ SHAREHOLDING 

As on 31 March 2008, Mr G Thapar held 220715 

equity shares, Mr SM Trehan held 103040 shares; 

none of the other Non-Executive Directors held 

any shares in the Company. 

CODE OF CONDUCT 

The Company has a Code of Conduct for 

Directors and Senior Management, that reflects 

its high standards of integrity and ethics. The 

Directors and Senior Management of the 

Company have affirmed their adherence to 

this Code of Conduct and to the absence of 

any potential conflict with the interests of the 

Company with reference to material, financial 

and commercial transactions. As required 

by Clause 49 of the Listing Agreement, the 

Managing Director’s Declaration on adherence 

to the Code of Conduct has been annexed to 

this Report. 

Committees of the Board 

AUDIT COMMITTEE 

The Audit Committee comprises four Non- 

Executive Directors, of whom three are 

independent. The composition is as under: 

MR SATYA PAL TALWAR 

Chairman, Independent Director 

DR OMKAR GOSWAMI 

Independent Director 

MR SANJAY LABROO 


MR GAUTAM THAPAR 

Non-Executive Director 

The Managing Director, Chief Financial Officer, 

Chief of Internal Audit, and representatives of 

the Statutory Auditors attend the meetings of 

the Audit Committee. The Company Secretary is 

the Secretary to the Committee. 

The Company has an independent internal 

audit function with resources and skills adapted 

to the Company’s nature, size and complexity. 

As a progressive Corporate Governance 

practice and to provide greater independence 

to the Internal Audit function, the Head of the 

Internal Audit reports directly to the Managing 

Director. 

The Audit Committee monitors the integrity 

of the financial information provided by the 

Company, by reviewing the relevance and 

consistency of the accounting standards used 

by the Company. 

In addition to the regular Audit Committee 

Meetings, the Committee conducts dedicated 

reviews of the internal control systems set up 

by Management, with a view to ensuring that 

the risks associated with Company’s processes 

are properly identified, managed and disclosed. 

During the year, the Company released an 

updated version of an Accounting Manual for 

Company, which outlines uniform accounting 

policies, accounting treatment, operating 

procedures and best practices related to 

business decisions to be followed at all the Units 

of the Company. 

In addition to review of the financial 

reporting processes of the Company, taxation 

related issues, foreign exchange risks, SAP 

authorisations, IT infrastructure, related parties 

and compliance with regulatory guidelines 

also features on the Audit Committee’s Agenda 

regularly. 

The Chairman of the Audit Committee briefs 

the Board of Directors on the discussions at 

the Audit Committee Meeting, at every Board 

Meeting. 

During FY 2008, five Audit Committee 

meetings were held: on 29 May 2007, 26 July 

2007, 29 October 2007, 29 January 2008 and 22 

February 2008. The attendance record is given 

in Table 4. 

REMUNERATION COMMITTEE 

Although not mandatory in terms of Clause 

49 of the Listing Agreement, the Company 

has a Remuneration Committee comprising 

three Non–Executive Directors, of which two, 

including the Chairman, are independent. 

The Committee reviews the remuneration 

paid to the Managing Director. Presently, the 

Committee comprises: 






TABLE 

05 

REMUNERATION COMMITTEE MEETING, FY 2008 

NAME STATUS MEETING ATTENDED 

MR SANJAY LABROO CHAIRMAN, INDEPENDENT DIRECTOR YES 

DR OMKAR GOSWAMI MEMBER, INDEPENDENT DIRECTOR YES 

MR GAUTAM THAPAR MEMBER, NON-EXECUTIVE DIRECTOR YES 

MR GAUTAM THAPAR 

Non-Executive Director 

During FY 2008, one Remuneration 

Committee meeting was held on 30 January 

2008. The attendance record is given in Table 5. 

SHAREHOLDERS’/INVESTORS’ 

GRIEVANCE COMMITTEE 

The Company has a Shareholders’/Investors’ 

Grievance Committee, details of which are 

given under section “Shareholders” in this 

Report. 

TABLE 

06 

RISK MANAGEMENT COMMITTEE MEETINGS, FY 2008 

RISK MANAGEMENT COMMITTEE 

The Risk Management Committee comprises 

four Directors, of whom three are independent. 

The composition is as under: 



MR SCOTT BAYMAN 




MR SUDHIR TREHAN 

Executive Director 

This Committee reviews the risks confronted 

by the Company with respect to its business 

areas, operations, as well as, financials and 

validates the adequacy of insurance and 

other risk mitigation measures proposed by 

the Company’s businesses. It ensures that the 

Company’s risk management mechanisms 

provide an evaluation of the most significant 

risks relative to strategy and objectives. During 

FY 2008, a comprehensive evaluation of the risks 

associated with the various dimensions of the 

Company’s businesses – operations, financial, 

forex, confidentiality of data, product liability, 

spurious goods, as well as, legal & regulatory 

was undertaken to assess the adequacy 

of business processes, to control risks. The 

Committee has also approved implementation 

of a Global level insurance policy for uniform 

coverage of risks at all locations. 

During FY 2008, three Risk Management 

Committee meetings were held: on 29 May 

2007, 29 October 2007 and 29 January 2008. The 

attendance record is given in Table 6. 

Management 

MANAGEMENT DISCUSSION AND 

ANALYSIS REPORT 

This is given as a separate chapter in the Annual 

Report. 

DISCLOSURE OF MATERIAL 

TRANSACTIONS 

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 

could have a potential conflict with the interests 

of the Company at large. 

ACCOUNTING POLICIES 

The Company has adopted accounting 

treatments which are in conformance with 

those prescribed by the Accounting Standards. 

INSIDER TRADING 

The Company has comprehensive guidelines 

in accordance with the SEBI Regulations in 

this regard, which advise and caution the 

Directors, Management and Executives on 

the procedures to be followed, whilst dealing 

with the securities of the Company. The Insider 

Trading Code framed by the Company helps in 

ensuring compliance with these requirements. 

NAME STATUS MEETINGS HELD MEETINGS ATTENDED 

DR OMKAR GOSWAMI CHAIRMAN, INDEPENDENT DIRECTOR 3 3 

MR SCOTT BAYMAN MEMBER, INDEPENDENT DIRECTOR 3 3 

MR SANJAY LABROO MEMBER, INDEPENDENT DIRECTOR 3 0 

MR SUDHIR TREHAN EXECUTIVE DIRECTOR 3 3 


Shareholders 

DISCLOSURE REGARDING 

APPOINTMENT AND/OR 

RE-APPOINTMENT OF DIRECTORS 

Mr Gautam Thapar and Mr Satya Pal Talwar retire 

by rotation at the forthcoming Annual General 

Meeting and are eligible for re-appointment. 

Their brief profiles are given below: 

MR GAUTAM THAPAR is the Chairman & CEO 

of one of India’s foremost diversified Groups- 

Avantha. The Group’s revenues are in excess of 

USD 3 billion and it operates in eight countries, 

employing over 20,000 people. 

The Avantha Group encompasses companies 

in diversified sectors like power transmission 

and distribution equipments, pulp and paper, 

horticulture and food processing, farm forestry, 

chemicals, infrastructure and information 

technology. 

Crompton Greaves Limited and Ballarpur 

Industries Limited, India’s largest paper 

manufacturer, are the listed companies 

amongst the Group companies. 

Mr Thapar is presently the Chairman of 

Ballarpur Industries Limited. He is also the 

Chairman of the Board of Directors of Crompton 

Greaves Limited, Member of its Audit & 

Remuneration Committees and Chairman of its 

Shareholders/Investors’ Grievance Committee. 

An alumnus of the prestigious Doon School, 

Mr Thapar completed his Chemical Engineering 

from Pratt Institute, USA and has over 2 decades 

of industrial experience. 

Mr Thapar currently serves on the Boards of 

various Industry Associations and Professional 

Organisations. 

DIRECTORSHIPS 

$ Ballarpur Industries Ltd 

$ Salient Business Solutions Ltd 

$ Solaris Holdings Ltd 

$ NewQuest Corporation Ltd 

$ Bilt Paper Holdings Ltd 

$ Asahi India Glass Ltd 

$ Global Green Company Ltd 

$ Solaris Chemtech Ltd 

$ KCT Papers Limited 

$ Lavasa Corporation Ltd 

$ Janpath Investments & Holdings Ltd 

$ Karam Chand Thapar & Bros Ltd 

$ CG Capital & Investments Ltd 

$ Sohna Stud Farm Pvt Ltd 

$ Osian’s Connoisseurs of Art Pvt Ltd 

$ Vani Agencies Pvt Ltd 

DIRECTORSHIPS IN FOREIGN COMPANIES 

$ Compass Ltd (Holding Company of Bata 

International Ltd) 

COMMITTEE POSITIONS 

$ Ballarpur Industries Ltd (1) 

$ Bilt Paper Holdings Ltd (1) 

$ Asahi India Glass Ltd (1) 

$ CG Capital & Investments Ltd (1) 

Mr Thapar is a great believer in Corporate 

Social Responsibility, which he advocates and 

makes a priority in all the companies that he 

leads. He is an active member of the Pratham 

India Education Initiative and President of the 

Thapar University, one of India’s top twenty 

technical schools. 

Mr Thapar currently holds 220715 shares in 

the Company in his individual capacity. 

MR SATYA PAL TALWAR is a law graduate 

and also holds a professional qualification 

as Certified Associate of the Indian Institute 

of Bankers. He has more than 40 years of 

operational and policy formation experience 

in Commercial and Central Banking. He was 

the Deputy Governor of the Reserve Bank of 

India, Chairman - Indian Banks Association; 

Chairman and Managing Director of three 

Nationalised Banks, and had also served on 

the Boards of the Securities and Exchange 

Board of India, Banks, Insurance Companies 

and Financial Corporations in India. Mr Talwar 

is an Independent Director on the Board and 

Chairman of the Audit Committee of Crompton 

Greaves Limited. 

DIRECTORSHIPS 

$ Reliance Life Insurance Co Ltd 

$ Reliance General Insurance Co Ltd 

$ Videocon Industries Ltd 

$ Reliance Communications Ltd 

$ Housing Development Infrastructure Ltd 

$ Reliance Communication Infrastructure Ltd 

$ Reliance Telecom Infrastructure Ltd 

$ Ambience Projects and Infrastructure Ltd 

$ SPS Steel & Power Ltd 

$ Reliance Asset Reconstruction Co Ltd 

COMMITTEE POSITIONS 

$ Reliance Life Insurance Co Ltd (1) 

$ Reliance General Insurance Co Ltd (1) 

$ Videocon Industries Ltd (1) 

$ Reliance Communications Ltd (2) 

$ Housing Development Infrastructure Ltd (1) 

$ Reliance Communication Infrastructure Ltd (1) 

$ Reliance Telecom Infrastructure Ltd (2) 


Mr Talwar does not hold any shares in the 

Company either in his individual capacity or 

beneficially for others. 

The attendance record of these Directors 

at the Board Meetings during the year under 

review is given in Table 2. 

COMMUNICATION TO SHAREHOLDERS 

Full and complete disclosure of information 

regarding the Company’s financial situation 

and performance is an important part of the 

Company’s Corporate Governance ethos. The 

Company has demonstrated this commitment 

by sending its shareholders a full version 

of its Annual Report, despite a Regulatory 

exemption. For convenience of shareholders 

and better information, the standalone and 

consolidated balance sheet and profit and loss 

account are also provided in USD and Euro in 

the Annual Report. 

These emails are sent to shareholders whose 

email-ids are available with the Company 

directly (in case of shareholders holding shares 

in physical form) or through Depository records 

(in case of shareholders holding shares in 

dematerialised form). 

The Company requests shareholders to 

notify email-ids for this purpose, so that they 

can benefit from this initiative. 

The Company further files on-line information 

on financial statements and other matters 

specified, on the approved website of London 

Stock Exchange. 

Meetings are held with institutional investors 

and research analysts, as necessary. 

INFORMATION ON GENERAL BODY 

MEETINGS 

The details of the last three Annual General 

Meetings are as under : 

FINANCIAL YEAR LOCATION DATE TIME 

2004-2005 PATKAR HALL, MUMBAI 400 020 22 JULY 2005 3.30 P.M. 

2005-2006 PATKAR HALL, MUMBAI 400 020 18 JULY 2006 3.30 P.M. 

2006-2007 SUNVILLE PAVILION, MUMBAI 400 018 26 JULY 2007 3.30 P.M. 

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 timeframe, 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 

“Corporate filing” website sponsored jointly by 

the National and Bombay Stock Exchanges, 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 also be 

accessed at the Company’s website www. 

cglonline.com. 

As an investor friendly measure the 

Company has launched an initiative to 

intimate shareholders of important corporate 

announcements issued by the Company 

through individual e-mails. This will enable 

investors to receive latest information on events 

such as Board Meetings, Dividend Declaration, 

Financial Results, Annual General Meeting and 

other important announcements. 

Given below are the Special Resolutions that 

were approved by shareholders at the last three 

Annual General Meetings held on: 

22 JULY 2005 

$ Commission to Non-Executive Directors. 

$ Remuneration to Non-Executive Directors. 

18 JULY 2006 

$ Sub-division of each fully paid equity share of 

the Company having a face value of Rs.10/- 

into 5 fully paid equity shares of the face 

value of Rs.2/- each. 

$ Increase in Authorised Share Capital of the 

Company from Rs.600,000,000/- divided into 

60,000,000 equity shares of Rs.10/- each to 

Rs.1,250,000,000/- divided into 625,000,000 

equity shares of Rs.2/- each. 

26 JULY 2007 

$ No Special Resolution was passed at the 70th 

Annual General Meeting held on 26 July 


Since none of the Resolutions proposed at 

any General Meetings in the last three years, 

required a postal ballot, the Company has 

not adopted postal ballot for passing any 

Resolution. 


DETAILS OF CAPITAL MARKET NON- 

COMPLIANCE, IF ANY 

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 noncompliance 

on any matter related to capital 

markets, during the last three years. 

SHAREHOLDERS’/INVESTORS’ 

GRIEVANCE COMMITTEE 

The Committee comprises Mr Gautam Thapar 

(Chairman) and Mr Sudhir Trehan, Managing 

Director. Mr W Henriques, the Company 

Secretary, has been designated by the Board 

as the Compliance Officer. During FY 2008, the 

Shareholders’/Investors’ Committee met on 30 

January 2008 at which meeting both Members 

were present. 

The Committee reviews the redressal of 

investors’ complaints related to transfers and 

transmission of shares, non-receipt 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 14 shareholders’ 

complaints during the financial year under 

review, which were satisfactorily resolved; 

there are no outstanding complaints or shares 

pending transfer as on 31 March 2008. 

actions/decisions of all subsidiary companies 

are reported to the Company’s Board of 

Directors. In addition, the internal control 

procedures and operational risks of these 

subsidiaries are also discussed by the Audit and 

Risk Management Committees of the Board. 

Auditors’ Certificate on Corporate 

Governance 

The Company has obtained a certificate 

from the Auditors of the Company regarding 

compliance with the provisions relating to 

Corporate Governance prescribed by Clause 

49 of the Listing Agreement with Stock 

Exchanges, which is attached herewith. 

CEO/CFO Certification 

The Managing Director and Chief Financial 

Officer have certified to the Board with respect 

to the financial statements, internal controls 

and other matters, as required by Clause 49 of 

the Listing Agreement with Stock Exchanges, 

and the said Certificate is contained in this 

Annual Report. 

Report on Corporate Governance 

This chapter, read together with the information 

given in the chapter titled “Additional 

Shareholder Information”, constitute the 

compliance report on Corporate Governance 

for FY 2008. 

Governance of Subsidiaries 

The subsidiaries of the Company function 

independently, with an adequately empowered 

Board of Directors and sufficient resources. 

However for more effective governance, the 

minutes of Board Meetings of all Indian as well 

as foreign subsidiaries of the Company are 

placed before the Board of Directors of the 

Company for review. The Company has also 

established a mechanism whereby material 

defaults, show cause notices, dangerous 

occurrences, product liability claims, significant 

developments in human resources, major 

financial decisions and similar significant 


ADDITIONAL 

SHAREHOLDER 

INFORMATION 

Annual General Meeting 

DATE Wednesday, 23 July 2008 

TIME 

3.30 p.m. 

VENUE Ravindra Natya Mandir , 

Prabhadevi, Mumbai 400 025. 

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 

12 JULY 2008 TO 23 JULY 2008 

The register of members and share transfer 

books of the Company will remain closed from 

Saturday, 12 July 2008 to Wednesday, 23 July 

2008, both days inclusive. 

Unclaimed Dividends 

Dividends pertaining to the financial years 

2003-2004, 2004-2005, 2005-2006, 2006-2007 

and 2007-2008, which remain unclaimed for 

a period of seven years, will be transferred to 

the Investor Education and Protection Fund. 

To enable the members to claim their dividend 

before its transfer to the above Fund, the 

proposed dates of transfer are given below: 

DATE OF DECLARATION 

OF DIVIDEND 

DUE DATE FOR TRANSFER TO 

THE INVESTOR EDUCATION 

AND PROTECTION FUND 

28 OCTOBER 2003 27 NOVEMBER 2010 

22 JULY 2004 21 AUGUST 2011 

25 NOVEMBER 2004 24 DECEMBER 2011 

22 MARCH 2005 21 APRIL 2012 


25 JANUARY 2006 24 FEBRUARY 2013 

29 MARCH 2006 28 APRIL 2013 


25 JANUARY 2007 24 FEBRUARY 2014 

21 MARCH 2007 20 APRIL 2014 

30 OCTOBER 2007 29 NOVEMBER 2014 

30 JANUARY 2008 29 MARCH 2015 

28 MARCH 2008 27 APRIL 2015 


Registrar and Agents 

FOR SHARES 

The Company’s new R&T Agent is Datamatics 

Financial Services Limited (DFSL) with effect 

from 1 December 2007. 

Datamatics Financial Services Limited is a SEBI 

registered Registrar and Transfer Agent, whose 

contact details are: 

DATAMATICS FINANCIAL SERVICES LIMITED 

Unit: Crompton Greaves Limited 

Plot No B-5, Part B Crosslane 

MIDC Marol, Andheri (East), Mumbai 400 093 

Tel: 91 22 66712151 to 66712160 

Fax: 91 22 6671 2230 

Email: cginvestors@dfssl.com 

FOR FIXED DEPOSITS 

The Registrar details are as under: 

INTIME SPECTRUM REGISTRY LIMITED 

C-13, Pannalal Silk Mills Compound 

L B S Marg, Bhandup (West) 

Mumbai 400 078 

Tel: 91 22 25963838 

Fax: 91 22 25962691 

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 and 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 or by a 

Senior Executive duly authorised by the Board. 

Approvals are, generally, on a weekly basis. 

During FY 2008, 49 approvals were obtained. 

The total number of shares in physical form 

transferred during the year under review was 

117, 162 shares. 

Dematerialisation of Shares 

As on 31 March 2008, 98.19% of the total 

shares of the Company were dematerialised, 

compared with 97.9% last year. 

in the name of The Bank of New York, the 

Depository : each GDR of the Company is 

equivalent to 5 shares. As on 31 March 2008, 

283,888 GDRs were outstanding, which 

represented 1,419,440 underlying equity shares. 

Stock Codes 

CODE 

1 BSE, MUMBAI 500093 

2 NATIONAL STOCK EXCHANGE CROMPGREAV 

3 GDR 5090318 

4 ISIN INE067A01029 (NSDL & CDSL) 

5 CORPORATE IDENTIFICATION NUMBER L99999MH1937PLC002641 

Listing Details 

The Company’s shares are listed and traded on 

the Mumbai and National Stock Exchanges. 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: 

NAME 

BOMBAY STOCK EXCHANGE LTD 

NATIONAL STOCK EXCHANGE OF INDIA LTD 

The Company’s payment of listing fees are up 

to date 

MARKET PRICE DATA – THE STOCK EXCHANGE, MUMBAI 

ADDRESS 

PHIROZE JEEJEEBHOY TOWERS, 

DALAL STREET, MUMBAI 400 001 

EXCHANGE PLAZA, BANDRA-KURLA 

COMPLEX, BANDRA (E), MUMBAI 400 051 

CLOSING 

(FIRST TRADING DAY 

OF THE MONTH) IN RS. 

SENSEX 

(FIRST TRADING DAY 

OF THE MONTH) 

MONTH 

HIGHEST OF THE 

MONTH IN RS. 

LOWEST OF THE 

MONTH IN RS. 

APRIL 2007 222.35 183.25 190.60 12455.37 

MAY 2007 253.75 208.35 222.90 14078.21 

JUNE 2007 264.40 235.10 250.10 14570.75 

JULY 2007 294.50 250.15 261.70 14664.26 

AUGUST 2007 310.00 260.10 273.85 14935.77 

SEPTEMBER 2007 348.60 303.60 311.80 15422.05 

OCTOBER 2007 439.40 302.00 346.60 17328.62 

NOVEMBER 2007 454.00 380.15 415.25 19724.35 

DECEMBER 2007 445.90 361.10 427.55 19603.41 

JANUARY 2008 409.80 270.00 389.95 20300.71 

FEBRUARY 2008 336.00 265.00 319.25 18242.58 

MARCH 2008 318.50 237.10 309.95 16677.88 

SHARE PRICE 

SENSEX 

AS ON 31 MARCH 2008 275.15 15644.44 

Global Depository Receipts (GDRs) 

The Company issued GDRs in 1996 and the 

underlying shares for each GDR were issued 

ADDITIONAL SHAREHOLDER INFORMATION 53

Share Performance vs BSE Sensex 

CROMPTON GREAVES SHARE PRICE AND BSE SENSEX = 100 ON 1 APRIL 2007 

250 

CROMPTON GREAVES 

200 

150 

BSE SENSEX 

100 

50 

1APRIL2007 

31MARCH2008 

DISTRIBUTION OF SHAREHOLDING AS ON 31 MARCH 2008 

NO. OF SHARES NO. OF SHAREHOLDERS % OF SHAREHOLDERS 

UPTO 500 56688 84.76 

501-1000 3937 5.89 

1001-2000 2769 4.14 

2001-3000 1153 1.72 

3001-4000 673 1.00 

4001-5000 379 0.57 

5001-10000 642 0.96 

10001 AND ABOVE 639 0.96 

66880 100.00 

CATEGORIES OF SHAREHOLDERS AS ON 31 MARCH 2008 

CATEGORY NO. OF SHARES OF RS. 2 EACH % 

PROMOTERS* 143661390 39.19 

INDIAN INSTITUTIONAL INVESTORS 12405014 3.38 

BODIES CORPORATE 16471110 4.49 

FOREIGN INSTITUTIONAL INVESTORS 57890107 15.79 

NRIS, OCBS, GDRS 25611061 6.99 

MUTUAL FUNDS 76626261 20.90 

GENERAL PUBLIC 33798609 9.23 

DIRECTORS** 103040 0.03 

366,566,592 100.00 

NOTES *Mr G Thapar, a Non-Executive Promoter Director, holds 220,715 equity shares 

** Mr SM Trehan, Managing Director, holds 103,040 equity shares. 

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 and 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 Datamatics Financial Services Limited. 

Contact Person: Mr S K Athalekar, Senior 

Executive - Corporate Secretarial 

Time: 2.00 pm to 5.00 pm (Mondays to Fridays) 

Tel: 91 (0)22 24237805 

Fax: 91 (0)22 24237788 

E-mail: shirish.athalekar@cgl.co.in 

Non-Mandatory Requirements 

The Company has implemented the following 

non-mandatory requirements recommended 

by 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 Company also reimburses all expenses 

incurred in his furthering the Company’s 

business interests. 

REMUNERATION COMMITTEE 

A Remuneration Committee comprising three 

Non-Executive Directors is already functional, 

for review and decisions on the remuneration 

package of the Managing Director. 

FINANCIAL RESULTS 

Financial results as published in the newspapers 

are made available to the Members on request. 

These results are also sent by e-mail, to those 

Members who have provided their e-mail ids to 

the Company. 


G THAPAR 

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 examined the compliance of 

conditions of Corporate Governance by 

Crompton Greaves Limited, for the year ended 

31st March, 2008, as stipulated in Clause 49 

of the Listing Agreement entered into by the 

Company with the Stock Exchanges. 

The compliance of conditions of Corporate 

Governance is the responsibility of the 

Management. Our examination has been 

limited to a review of the procedures and 

implementations thereof, adopted by the 

Company for ensuring compliance with 

the conditions of Corporate Governance as 

stipulated in the said clauses. It is neither an 

audit nor an expression of opinion on the 

financial statements of the Company. 

In our opinion and to the best of our 

information and according to the explanations 

given to us and the representations made 

by the Directors and the Management, we 

certify that the Company has complied with 

the conditions of Corporate Governance as 

stipulated in Clause 49 of the above mentioned 

Listing Agreement. 

We further state that such compliance is 

neither an assurance as to the future viability 

of the Company nor of the efficiency or 

effectiveness with which the Management has 

conducted the affairs of the Company. 

For SHARP & TANNAN 

Chartered Accountants 

L VAIDYANATHAN 

PARTNER 

(Membership No. 16368) 



Declaration of Compliance with Code of 

Conduct 

This is to certify that all the Members of the 

Board of Directors and Senior Management 

(i.e. one level below the Executive Directors 

i.e. Vice President level) of the Company, have 

confirmed compliance with the Company’s 

Code of Conduct during April 2007 to March 


THE COMPANY’S CODE REQUIRES 

EVERY MEMBER OF THE BOARD AND 

SENIOR MANAGEMENT TO: 

$ Fulfill the functions of their office with 

integrity as well as professionalism and 

exercise the powers attached thereto, with 

due care and diligence. 

$ Act in the best interests of, and fulfill their 

fiduciary obligations to the Company’s 

shareholders, whilst also considering the 

interests of other stakeholders. 

$ Take informed business decisions based 

on independent judgment and in the best 

interests of the Company, not influenced by 

personal interest or gain. 

$ Respect the confidentiality of information 

and use utmost discretion whilst deciding 

its disclosure or dissemination, ensuring that 

no personal advantage or detriment to the 

Company results from the same. 

$ Make available to, and share information 

with fellow Directors/Executives when 

considered expedient in the best interests of 

the Company. 

$ Protect and use the Company’s assets for 

legitimate business purposes and be alert to 

situations that could lead to loss or misuse of 

these assets. 

$ Minimise any situation or action that can 

create conflict of interests of the Company 

vis-à-vis personal interest or interests of 

associated persons, and make adequate 

disclosures, where necessary. 

$ Act in a manner that will protect the 

Company’s reputation. 

$ Encourage reporting of behaviour, which 

is contrary to the Company’s “Values”, and 

ensure that the person reporting such 

violation is not aggrieved in any manner. 

$ Comply, in letter and spirit, with all 

applicable laws, rules and regulations, and 

also honour the philosophy of “good faith”, 

guided by one’s sense of right and wrong. 

$ Abide by the relevant terms of the Insider 

Trading Code formulated by the Company, 

and any other Code that may be formulated 

from time to time, as applicable. 

$ Adhere to the terms of the powers delegated 

by the Board. 

$ Whilst entering into contracts with Service 

Providers and Consultants, protect the 

arrangement for disclosure or dissemination 

of confidential information. 

$ Establish processes and systems for storage, 

retrieval and dissemination of documents, 

both in physical and electronic form, so that 

the obligations of this Code of Conduct are 

fulfilled. 

$ Raise concerns, if any, on the above issues, at 

a Board Meeting. 

SM TREHAN 




Managing Director’s and Chief Financial Officer’s Certificate on Corporate 

Governance 

To 

The Board of Directors 

Crompton Greaves Limited 

CERTIFICATE 

We have reviewed the Stand-alone and Consolidated financial results and the cash flow statement 

of Crompton Greaves Limited (the Company) for the financial year ended 31 March 2008, and 

certify that: 

(a) These results and statements, to the best of our knowledge and belief : 

(i) do not contain any materially untrue statement or omit any material fact or contain 

statements that might be misleading; 

(ii) present a true and fair view of the Company’s affairs and are in compliance with existing 

accounting standards, applicable laws and regulations. 

(b) To the best of our knowledge and belief, there are no transactions entered into by the Company 

during the year, which are fraudulent, illegal or violative of the Company’s Code of Conduct. 

(c) We accept responsibility for establishing and maintaining internal controls and have evaluated 

the effectiveness of the internal control systems of the Company and have disclosed to the 

Auditors and the Audit Committee, deficiencies in the design or operation of internal controls of 

which we are aware, and the steps taken and proposed to be taken to rectify these deficiencies. 

(d) We have also indicated to the Auditors and the Audit Committee : 

(i) significant changes in the internal controls with respect to financial reporting during the 

year and the achievement of adequate internal controls within the Company’s ERP systems; 

(ii) significant changes in accounting policies during the year, and these have been disclosed in 

the notes to the financial statements. 

(e) To the best of our knowledge and belief, there are no instances of significant fraud involving 

either the Management or employees having a significant Role in the Company’s internal 

control systems with respect to financial reporting. 

SM TREHAN 


BR JAJU 

CHIEF FINANCIAL OFFICER 



CROMPTON 

GREAVES 

STANDALONE 

FINANCIALS 

58 

ANNUAL REPORT 2007–2008 

CROMPTON GREAVES LIMITED

AUDITORS’ REPORT TO THE SHAREHOLDERS OF CROMPTON GREAVES LIMITED 

We have audited the attached Balance Sheet of Crompton Greaves 

Limited as at 31st March, 2008, 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 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 provisions of Section 227 of the Companies Act 

1956, we report that: 

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 in 

Schedule ‘A’ and the Notes on Accounts 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: 

(i) 

(ii) 

(iii) 

in the case of the Balance Sheet, of the state of affairs of 

the Company as at 31st March, 2008; 

in the case of the Profit and Loss Account, of the profit 

for the year ended on that date; and 

in case of the Cash Flow Statement, of the cash flows for 

the year ended on that date. 


CHARTERED ACCOUNTANTS 

1. As required by the Companies (Auditor’s Report) Order, 2003 and 

as amended by the Companies (Auditor’s Report) (Amendment) 

Order, 2004 issued by the Central Government of india in terms 

of Section 227 (4A) 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. 

Mumbai, 23rd May, 2008 

L. Vaidyanathan 

PARTNER 

(Membership No.16368) 

2. Further to our comments in the Annexure referred to above, we 

report that: 

(a) 

(b) 

(c) 

(d) 

(e) 

we have obtained all information and explanations, which to 

the best of our knowledge and belief were necessary for the 

purposes of our audit; 

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; 

the Balance Sheet, the Profit and Loss Account and the Cash 

Flow Statement dealt with by this report are in agreement 

with the books of account; 

in our opinion, the Balance Sheet, the Profit and Loss 

Account and the Cash Flow Statement dealt with by this 

report comply with the accounting standards referred to in 

Section 211 (3C) of the Companies Act, 1956; and 

on the basis of the written representations received from 

directors of the Company as on 31st March, 2008, and taken 

on record by the Board of Directors, we report that none 

of the directors is disqualified as on 31st March, 2008 from 

being appointed as a director in terms of Section 274 (1)(g) 

of the Companies Act, 1956. 

FINANCIALS 59

ANNEXURE TO THE AUDITORS’ REPORT (REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE) 

(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, these fixed 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 of the Company and 

nature of its assets. The frequency of physical verification is 

reasonable and no material discrepancies were noticed on 

such verification. 

(c) The Company has not disposed off any substantial part 

of its fixed assets during the year, so as to affect its going 

concern status. 

(ii) (a) As explained to us, the inventories have been physically 

verified by the management during the year. In our opinion, 

the frequency of such verification is reasonable. 

(b) As per the information given to us, the procedures of physical 

verification of inventory 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) According to the information and explanations given to 

us, the Company has not granted any loans, secured or 

unsecured, to companies, firms and other parties covered 

in the register maintained under section 301 of the 

Companies Act, 1956. Accordingly, paragraphs 4(iii)(b), (c) 

and (d) of the Companies (Auditor’s Report) Order, 2003 are 

not applicable to the Company. 

(b) According to the information and explanations given 

to us, the Company has not taken any loans, secured 

or unsecured, from companies, firms and other parties 

covered in the register maintained under Section 301 of 

the Companies Act, 1956. Accordingly, paragraphs 4(iii)(f ) 

and (g) of the Companies (Auditor’s Report) Order, 2003 are 


(iv) In our opinion, and according to the information and 

explanations given to us, there is adequate internal control 

system commensurate with the size of the Company and nature 

of its business, for the purchase of inventory and fixed assets and 

for the sale of goods and services. During the course of audit, 

we have neither come across nor have been informed of any 

continuing failure to correct major weaknesses in the aforesaid 

internal control system. 

(v) (a) According to the information and explanations given to 

us, we are of the opinion that the particulars of contracts 

or arrangements that need to be entered in 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 such 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 the prevailing 

market prices at the relevant time. 

(vi) The Company has accepted deposits from the public and in our 

opinion and according to the information and explanations given 

to us, the directives issued by the Reserve Bank of India and the 

provisions of Sections 58A, 58AA and other relevant provisions of 

the Companies Act, 1956 and the rules framed thereunder, where 

applicable, have been complied with. We are informed that no 

order has been passed by the Company Law Board or National 

Company Law Tribunal or Reserve Bank of India or any Court or 

any other Tribunal. 

(vii) In our opinion, the Company has an internal audit system 

commensurate with its size and nature of its business 

(viii) We have broadly reviewed the books of account and records 

maintained by the Company pursuant to the rules prescribed 

by the Central Government for the maintenance of cost records 

under Section 209 (1) (d) of the Companies Act, 1956, in respect 

of electric fans, motors, power driven pumps, transformers 

and electric lamps and are of the opinion that prima-facie 

the prescribed accounts and records have been made and 

maintained. The contents of these accounts and records have not 

been examined by us. 

(ix) (a) According to the information and explanations given 

to us, in our opinion, the Company has been regular in 

depositing undisputed statutory dues including provident 

fund, investor education and protection fund, employees 

state insurance, income tax, sales tax, wealth tax, service tax, 

custom duty, excise duty, cess and other material statutory 

dues, as applicable, with the appropriate authorities. 

According to the information and explanations given to us, 

no undisputed amounts were in arrears as at 31st March, 

2008, for a period of more than six months from the date 

they become payable. 

60 



CROMPTON 

GREAVES 

STANDALONE 

FINANCIALS 

58 



AUDITORS’ REPORT TO THE SHAREHOLDERS OF CROMPTON GREAVES LIMITED 

We have audited the attached Balance Sheet of Crompton Greaves 

Limited as at 31st March, 2008, the Profit and Loss Account and also the 

Cash Flow Statement for the year ended on that date, annexed thereto. 




We conducted our audit in accordance with 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 provisions of Section 227 of the Companies Act 

1956, we report that: 

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 in 

Schedule ‘A’ and the Notes on Accounts 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: 

(i) 

(ii) 

(iii) 

in the case of the Balance Sheet, of the state of affairs of 

the Company as at 31st March, 2008; 

in the case of the Profit and Loss Account, of the profit 

for the year ended on that date; and 

in case of the Cash Flow Statement, of the cash flows for 




1. As required by the Companies (Auditor’s Report) Order, 2003 and 

as amended by the Companies (Auditor’s Report) (Amendment) 

Order, 2004 issued by the Central Government of india in terms 

of Section 227 (4A) 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. 



PARTNER 


2. Further to our comments in the Annexure referred to above, we 

report that: 

(a) 

(b) 

(c) 

(d) 

(e) 

we have obtained all information and explanations, which to 

the best of our knowledge and belief were necessary for the 

purposes of our audit; 

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; 

the Balance Sheet, the Profit and Loss Account and the Cash 

Flow Statement dealt with by this report are in agreement 

with the books of account; 

in our opinion, the Balance Sheet, the Profit and Loss 

Account and the Cash Flow Statement dealt with by this 

report comply with the accounting standards referred to in 

Section 211 (3C) of the Companies Act, 1956; and 

on the basis of the written representations received from 

directors of the Company as on 31st March, 2008, and taken 

on record by the Board of Directors, we report that none 

of the directors is disqualified as on 31st March, 2008 from 

being appointed as a director in terms of Section 274 (1)(g) 

of the Companies Act, 1956. 

FINANCIALS 59

ANNEXURE TO THE AUDITORS’ REPORT (REFERRED TO IN PARAGRAPH 1 OF OUR REPORT OF EVEN DATE) 

(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, these fixed 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 of the Company and 

nature of its assets. The frequency of physical verification is 

reasonable and no material discrepancies were noticed on 

such verification. 

(c) The Company has not disposed off any substantial part 

of its fixed assets during the year, so as to affect its going 

concern status. 

(ii) (a) As explained to us, the inventories have been physically 

verified by the management during the year. In our opinion, 

the frequency of such verification is reasonable. 

(b) As per the information given to us, the procedures of physical 

verification of inventory 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) According to the information and explanations given to 

us, the Company has not granted any loans, secured or 

unsecured, to companies, firms and other parties covered 

in the register maintained under section 301 of the 

Companies Act, 1956. Accordingly, paragraphs 4(iii)(b), (c) 

and (d) of the Companies (Auditor’s Report) Order, 2003 are 


(b) According to the information and explanations given 

to us, the Company has not taken any loans, secured 

or unsecured, from companies, firms and other parties 

covered in the register maintained under Section 301 of 

the Companies Act, 1956. Accordingly, paragraphs 4(iii)(f ) 

and (g) of the Companies (Auditor’s Report) Order, 2003 are 


(iv) In our opinion, and according to the information and 

explanations given to us, there is adequate internal control 

system commensurate with the size of the Company and nature 

of its business, for the purchase of inventory and fixed assets and 

for the sale of goods and services. During the course of audit, 

we have neither come across nor have been informed of any 

continuing failure to correct major weaknesses in the aforesaid 

internal control system. 

(v) (a) According to the information and explanations given to 

us, we are of the opinion that the particulars of contracts 

or arrangements that need to be entered in 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 such 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 the prevailing 

market prices at the relevant time. 

(vi) The Company has accepted deposits from the public and in our 

opinion and according to the information and explanations given 

to us, the directives issued by the Reserve Bank of India and the 

provisions of Sections 58A, 58AA and other relevant provisions of 

the Companies Act, 1956 and the rules framed thereunder, where 

applicable, have been complied with. We are informed that no 

order has been passed by the Company Law Board or National 

Company Law Tribunal or Reserve Bank of India or any Court or 

any other Tribunal. 

(vii) In our opinion, the Company has an internal audit system 

commensurate with its size and nature of its business 

(viii) We have broadly reviewed the books of account and records 

maintained by the Company pursuant to the rules prescribed 

by the Central Government for the maintenance of cost records 

under Section 209 (1) (d) of the Companies Act, 1956, in respect 

of electric fans, motors, power driven pumps, transformers 

and electric lamps and are of the opinion that prima-facie 

the prescribed accounts and records have been made and 

maintained. The contents of these accounts and records have not 

been examined by us. 

(ix) (a) According to the information and explanations given 

to us, in our opinion, the Company has been regular in 

depositing undisputed statutory dues including provident 

fund, investor education and protection fund, employees 

state insurance, income tax, sales tax, wealth tax, service tax, 

custom duty, excise duty, cess and other material statutory 

dues, as applicable, with the appropriate authorities. 

According to the information and explanations given to us, 

no undisputed amounts were in arrears as at 31st March, 

2008, for a period of more than six months from the date 

they become payable. 

60 



ANNEXURE TO THE AUDITORS’ REPORT (Contd.) 

(b) 

According to the information and explanations given to 

us and the records of the Company examined by us, the 

particulars of income tax, sales tax, service tax, excise duty 

and cess as at 31st March, 2008, which have not been 

deposited on account of a dispute, are as under: 

Name of Nature of Amount Period to Forum where 

the Statute the disputed Rs. millions which the disputes 

dues amount relates are pending 

The Income Tax and 1974-75 and 

Tax Act, 1961 interest 1975-76, High Court 

87.38 1997-98 and and ITAT 

1998-99, 

2003-04 

The Central Tax, 1996-97 to 

Sales Tax Act, interest 1999-2000, 

1956, Local and 65.76 2001-02 to Commissionarate 

Sales Tax penalty 2004-05 and 

Acts and 2007-08 

Works 

Contract 0.09 1996-97 High Court 

Tax Act 

The Central Duty and 3.32 2005-06 Commissionarate 

Excise Act, penalty to 2007-08 

1944 and 

Service Tax 

1975-76 to 

under the 1981-82, 

Finance Act, 13.20 2000-01 CESTAT 

1994 2001-02 

and 2004-05 

0.73 2001-02 and High Court 

2002-03 

(x) The Company has no accumulated losses as at 31st March, 2008 

and it has not incurred any cash losses in the financial year ended 

on that date and in the immediately preceding financial year. 

(xi) 

(xii) 

(xiii) 

According to the information and explanations given to us, in 

our opinion the Company has not defaulted in the repayment of 

dues to any financial institutions or bank as at the balance sheet 

date. The Company has not issued any debentures. 

According to the information and explanations given to us, the 

Company has not granted any loans and advances on the basis 

of security by way of pledge of shares, debentures and other 

securities. 

The provisions of any special statute applicable to chit fund/nidhi/ 

mutual benefit fund/society are not applicable to the Company. 

(xiv) In our opinion and according to the information and 

explanations given to us, the Company is not dealing in or 

trading in securities. The Company has invested surplus fund in 

mutual funds. According to the information and explanations 

given to us, proper records have been made of the transactions 

and contracts and timely entries have been made therein. The 

investments in mutual funds have been held by the Company 

in its own name. 

(xv) In our opinion and according to the information and explanations 

given to us, the terms and conditions of guarantee given by 

the Company for loans taken by others from banks or financial 

institutions are not prima facie prejudicial to the interests of 

the Company. This ignores a Rs. 43.70 million guarantee given to 

Power Equipment Limited, where no details were available for our 

comment. 

(xvi) In our opinion and according to the information and explanations 

given to us, the term loans have been applied for the purposes 

for which they were obtained. 

(xvii) According to the information and explanations given to us and 

on 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 investments. 

(xviii)The Company has not made any preferential allotment of shares 

to parties or companies covered in the register maintained under 

Section 301 of the Companies Act, 1956, during the year. 

(xix) The Company has not issued any debentures during the year. 

Hence, reporting on paragraph 4 (xix) of the Companies (Auditor’s 

Report) Order, 2003 pertaining to creation of security or charge 

for debentures does not arise. 

(xx) The Company has not raised any money by public issues 

during the year. Accordingly, paragraph 4 (xx) of the Companies 

(Auditor’s Report) Order, 2003 is not applicable to the Company. 

(xxi) During the course of our examination of books and records of the 

Company, carried out in accordance with the generally accepted 

auditing practices in India, and according to the information 

and explanations given to us, we have neither come across any 

instances of material fraud on or by the Company, noticed or 

reported during the year, nor have we been informed of such 

case by the management. 




PARTNER 



FINANCIALS 61

BALANCE SHEETAS AT 31ST MARCH, 2008 

As at 31-03-2008 As at 31-03-2007 

SCHEDULE Rs. million Rs. million Rs. million Rs. million 

SOURCES OF FUNDS 

SHAREHOLDERS’ FUNDS: 

Share capital 1 733.17 733.17 

Reserve and surplus 2 8574.30 6009.80 

9307.47 6742.97 

LOAN FUNDS: 

Secured loans 3 623.68 2413.47 

Unsecured loans 4 251.91 286.86 

875.59 2700.33 

DEFERRED TAX: 

Deferred tax liabilities 670.00 453.10 

Less : Deferred tax assets 147.50 77.30 

(Refer Note 28 of Schedule ‘B’) 522.50 375.80 

10705.56 9819.10 

APPLICATION OF FUNDS 

FIXED ASSETS: 5 

Gross block 10555.12 9153.12 

Less : Depreciation, obsolescence, amortisation 

and impairment 5628.04 5253.13 

Net block 4927.08 3899.99 

Capital work-in-progress 225.88 433.77 

5152.96 4333.76 

INVESTMENTS 6 1943.29 1351.09 

CURRENT ASSETS, LOANS AND ADVANCES: 

Inventories 7 2629.51 2470.10 

Sundry debtors 8 9562.20 8038.90 

Cash and bank balances 9 1576.50 1735.77 

Loans and advances 10 2794.03 2363.68 

Less: 

CURRENT LIABILITIES AND PROVISIONS: 

16562.24 14608.45 

Current liabilities 11 10411.96 8893.83 

Provisions 12 2540.97 1580.37 

12952.93 10474.20 

Net Current Assets 3609.31 4134.25 

CONTINGENT LIABILITIES 19 

SIGNIFICANT ACCOUNTING POLICIES 

NOTES ON ACCOUNT 

The Schedules referred to above and the Notes attached, form an integral part of the Accounts 

[A] 

[B] 

10705.56 9819.10 

As per our report attached 

For SHARP & TANNAN B. R. Jaju S. M. Trehan 

CHARTERED ACCOUNTANTS CHIEF FINANCIAL OFFICER MANAGING DIRECTOR 

L. Vaidyanathan W. Henriques G. Thapar 

PARTNER COMPANY SECRETARY CHAIRMAN 


Mumbai, 23rd May, 2008 Mumbai, 23rd May, 2008 

62 



PROFIT & LOSS ACCOUNTFOR THE YEAR ENDED 31ST MARCH, 2008 

2007-08 2006-07 


INCOME: 

Sales and Services 42225.98 36599.76 

Less: Excise duty 3468.42 2923.72 

Sales and Services (net) 38757.56 33676.04 

Other income 13 696.31 348.75 

39453.87 34024.79 

EXPENDITURE: 

Materials, manufacturing and 

operating expenses 14 28000.07 25284.14 

Staff expenses 15 2009.86 1742.57 

Selling and administration expenses 16 3909.72 3230.99 

Interest and commitment charges 17 271.14 303.50 

Depreciation, obsolescence, amortisation 

and impairment 18 406.56 393.56 

34597.35 30954.76 

PROFIT BEFORE TAX 4856.52 3070.03 

Provision for : 

Current tax 1520.60 840.00 

Deferred tax 146.70 264.80 

(Refer Note 28 of Schedule’B’) 

Fringe benefit tax 50.00 41.50 

1717.30 1146.30 

PROFIT AFTER TAX 3139.22 1923.73 

Balance brought forward from previous year 3097.58 1814.11 

Transfer from / (to) doubtful debts reserve 161.40 89.50 

PROFIT AVAILABLE FOR APPROPRIATION 6398.20 3827.34 

General reserve 313.92 192.37 

PROFIT AVAILABLE FOR DISTRIBUTION 6084.28 3634.97 

1st Interim dividend 146.63 104.73 

2nd Interim dividend 293.25 183.28 

3rd Interim dividend 146.63 183.28 

Corporate dividend tax 99.68 66.10 

BALANCE CARRIED TO BALANCE SHEET 5398.09 3097.58 

Earnings Per Share (Basic and Diluted) Rs. 8.56 5.25 

(Equity share of Rs. 2 each) 

(Refer Note 27 of Schedule ‘B’) 


NOTES ON ACCOUNTS 

[A] 

[B] 









FINANCIALS 63

CASH FLOW STATEMENTFOR THE YEAR ENDED 31ST MARCH, 2008 

2007-08 2006-07 

Rs. million 

Rs. million 

[A] CASH FLOW FROM OPERATING ACTIVITIES 

Profit before taxes as per profit and loss account 4,856.52 3,070.03 

Adjustments for : 

Depreciation, obsolescence, amortisation and impairment 406.56 393.56 

Provision for doubtful debts and advances 179.99 — 

Interest (net) 271.14 303.50 

Income from investments (2.17) (14.45) 

Profit on sale of investments (net) (17.33) (15.74) 

Unrealised exchange gain (net) (3.72) (57.46) 

Profit on sale of fixed assets (net) (7.15) (55.63) 

Provision for diminution in value of investments — 8.10 

827.32 561.88 

Operating profit before working capital changes 5,683.84 3,631.91 

Adjustments for: 

(Increase)/Decrease in trade and other receivables (1,437.43) (1,503.93) 

(Increase)/Decrease in inventories (159.41) (450.36) 

Increase/(Decrease) in trade and other payables 1,746.68 1,662.48 

Increase/(Decrease) in provision for leave encashment 13.88 2.97 

163.72 (288.84) 

Cash generated from operations 5,847.56 3,343.06 

Direct taxes and fringe benefit tax refund/(paid) (1,416.71) (949.83) 

Cash generated from / (used in) operations [A] 4,430.85 2,393.24 

[B] CASH FLOW FROM INVESTING ACTIVITIES 

Add: Inflows from investing activities 

Sale of fixed assets 47.89 98.23 

Sale of investments 16,298.32 12,481.99 

Redemption of preference shares — 100.00 

Income from investments (net) 2.17 14.45 

16,348.38 12,694.67 

Less: Outflows from investing activities 

Purchase of fixed assets (1,268.56) (1,134.72) 

Purchase of investments (16,873.20) (12,904.13) 

(18,141.76) (14,038.85) 

Net Cash (used in) / from investing activities [B] (1,793.38) (1,344.18) 

64 



CASH FLOW STATEMENTFOR THE YEAR ENDED 31ST MARCH, 2008 

2007-08 2006-07 

Rs. million Rs. million 

[C] CASH FLOW FROM FINANCING ACTIVITIES 

Add: Inflows from financing activities 

Secured loans — 288.40 

— 288.40 

Less: Outflows from financing activities 

Secured loans (1,789.79) — 

Unsecured loans (37.41) (45.11) 

Interim dividend paid (620.43) (417.57) 

Corporate dividend tax (74.76) (84.46) 

Interest (net) (274.35) (305.85) 

(2,796.74) (852.99) 

Cash generated from / (used in) financing activities [C] (2,796.74) (564.59) 

NET CHANGES IN CASH AND CASH EQUIVALENTS (A+B+C) (159.27) 484.46 

Cash and cash equivalents at beginning of the year 1,735.77 1,251.31 

Cash and cash equivalents at end of the year 1,576.50 1,735.77 

NOTES: 

1 The cash flow statement has been prepared under the indirect method as set out in Accounting Standard (AS) - 3 Cash Flow Statements. 

2 Additions to fixed assets include movements of capital work-in-progress during the year. 

3 Figures for the previous year have been re-grouped/re-classified wherever necessary. 








FINANCIALS 65

SCHEDULES FORMING PART OF ACCOUNTS 

As at 

As at 

SCHEDULE : 1 31-03-2008 31-03-2007 

SHARE CAPITAL Rs. million Rs. million 

Authorised 

62,50,00,000 Equity Shares of Rs. 2 each 1250.00 1250.00 

Issued and Subscribed 


(Refer Note 1 of Schedule ‘B’) 

Paid-up 


Add: Forfeited shares 42,300 Equity shares of Rs. 2 each 0.03 0.03 

733.17 733.17 

As at Additions Deductions As at 


RESERVES AND SURPLUS Rs. million Rs. million Rs. million Rs. million 

Capital Reserve 191.25 – – 191.25 

Securities Premium Account 2068.19 – – 2068.19 

General Reserve 492.95 317.92 (a) 47.48 (b) 763.39 

Revaluation Reserve 149.67 – 2.06 (c) 147.61 

Government Subsidy 2.50 – – 2.50 

Investment Allowance (Utilised) Reserve 7.27 – 4.00 (a) 3.27 

Doubtful Debts Reserve 161.40 – 161.40 – 

Less: Provisions, per contra (161.01) – (161.01) – 

2912.22 317.92 53.93 3176.21 

Profit and Loss Account 3097.58 5398.09 

Total 6009.80 8574.30 

Previous year 4840.07 1475.84 306.11 6009.80 

NOTES: 

(a) Additions to General Reserve represents Rs. 4.00 million transfer from Investment Allowance (Utilised) Reserve as specified in the applicable 

Act and Rs. 313.92 million transferred from profit and loss account in compliance with provisions of the Companies Act, 1956 

(b) Deduction from General Reserve represents employee benefits provided as per transitional provisions of Accounting Standard (AS) 15 

Employee Benefits. 

(c) Depreciation on revalued fixed assets, recouped from Revaluation Reserve Rs. 2.06 million. 

66 




As at 

As at 


SECURED LOANS Rs. million Rs. million 

Term Loans 

From banks 

Rupees – 92.00 

Foreign currency 462.16 620.28 

From financial institutions 

Rupees – 625.00 

Working Capital Demand Loans 

From banks 

Rupees – 660.00 


(Refer note 5 of Schedule ‘B’) 623.68 2413.47 

As at 

As at 


UNSECURED LOANS Rs. million Rs. million 

Interest free sales tax deferral loans from 

State Governments 251.91 286.86 

{Due within one year Rs. 59.95 million (Previous year Rs. 34.95 million)} 

251.91 286.86 

FINANCIALS 67


SCHEDULE : 5 

FIXED ASSETS Rs. million 

Gross block (Cost / Valuation) Impairment Depreciation / Obsolescence/ Amortisation Net block 

ASSETS As at Additions Deductions As at As at Reversed As at Upto For the Deductions Upto As at As at 

1-04-2007 31-03-2008 1-04-2007 31-03-2008 31-03-2007 year 31-03-2008 31-03-2008 31-03-2007 

(A) Tangible Assets 

Freehold Land 143.42 – – 143.42 7.92 7.92 – – – – – 143.42 135.50 

Buildings 2120.20 91.28 34.30 2177.18 23.04 11.50 11.54 564.61 55.11 8.74 610.98 1554.66 1532.55 

Plant and Equipments 5571.67 1238.52 4.02 6806.17 53.26 26.62 26.64 3679.53 324.31 3.55 4000.29 2779.24 1838.88 

Railway sidings 0.15 – – 0.15 – – – 0.14 – – 0.14 0.01 0.01 

Furniture and Fixtures 1033.52 75.04 9.87 1098.69 20.27 6.26 14.01 803.06 54.66 7.31 850.41 234.27 210.19 

Vehicles 117.89 23.60 26.27 115.22 1.45 – 1.45 63.94 15.37 14.11 65.20 48.57 52.50 

Sub-total (A) 8986.85 1428.44 74.46 10340.83 105.94 52.30 53.64 5111.28 449.45 33.71 5527.02 4760.17 3769.63 

(B) Intangible Assets 

Leasehold Land 114.27 26.82 – 141.09 2.12 2.12 – 20.50 1.10 – 21.60 119.49 91.65 

Computer Software 22.31 21.20 – 43.51 – – – 7.36 6.55 – 13.91 29.60 14.95 

Technical know-how 29.69 – – 29.69 – – – 5.93 5.94 – 11.87 17.82 23.76 

Sub-total (B) 166.27 48.02 – 214.29 2.12 2.12 – 33.79 13.59 – 47.38 166.91 130.36 

Total (A+B) 9153.12 1476.46 74.46 10555.12 108.06 54.42 53.64 5145.07 463.04 33.71 5574.40 4927.08 3899.99 

Previous year 8474.08 841.71 162.67 9153.12 127.74 19.68 108.06 4849.20 415.95 120.08 5145.07 

Add: Capital work-in-progress 225.88 433.77 

5152.96 4333.76 

NOTES: 

(a) Buildings include cost of shares in co-operative societies. 

(b) Cost of Land and Buildings includes Rs. 253.07 million (Previous year Rs.253.07 million) added on revaluation on 30th June, 1985 

(c) Additions during the year include: 

(i) Rs. 562.50 million towards Plant and Equipments, being co-ownership rights in an aircraft. 

(ii) Rs. 199.21 million (Previous year Rs. 121.56 million) relates to research and development activity. 

(d) Capital work-in-progress include Rs. 79.67 million (Previous year Rs. 247.30 million) related to research and development activity. 

68 




SCHEDULE : 6 As at 31-03-2008 As at 31-03-2007 

INVESTMENTS Rs. million Rs. million Rs. million Rs. million 

(At cost, unless otherwise specified) 

Long Term Investments 

Government and trust securities 7.48 7.48 

Fully paid equity shares of subsidiary companies 1219.31 891.23 

Fully paid preference shares of subsidiary companies 329.28 329.28 

Fully paid shares of associate companies 85.26 85.26 

Fully paid preference shares of other companies – 10.00 

Bonds 18.12 18.12 

1659.45 1341.37 

Current Investments 

Other fully paid equity shares 8.29 9.17 

Other investments 275.55 0.55 

283.84 9.72 

1943.29 1351.09 

NOTE: 

Quoted Investments 

Book Value 308.35 34.23 

Market Value 311.67 36.81 

Unquoted Investments 

Book Value 1634.94 1316.86 

As at 

As at 

No. of Shares/ 31-03-2008 31-03-2007 

securities/ bonds / units 

Fully paid up of 

Rs.10 each unless 

otherwise specified Rs. million Rs. million 

Particulars of Investments: 

A) Long Term Investment 

Government and trust securities 

1 Central Government Securities 

10.18% GOI 2026 of Rs. 100 each 39000 4.92 4.92 

2 State Guaranteed Bonds 

10.50% APSDL 2011 of Rs. 100 each 22000 2.56 2.56 

7.48 7.48 

Subsidiary Companies 

Fully paid equity shares: 

1 CG Capital & Investments Limited 10500000 105.00 105.00 

2 CG Energy Management Private Limited 1600000 7.44 7.44 

(formerly CG Motors Private Limited) 

3 CG International B.V., of Euro 100 each 180000 1013.28 685.20 

(60,000 shares subscribed during the year) 

4 Malanpur Captive Power Limited 9358500 93.59 93.59 

1219.31 891.23 

Fully paid preference shares: 

CG Capital & Investments Limited 

(7% Non-Convertible, Non-Cumulative 

Redeemable Preference Shares) 32928044 329.28 329.28 

329.28 329.28 

FINANCIALS 69


SCHEDULE : 6 No. of Shares/ As at As at 

INVESTMENTS (Contd.) securities/ bonds / units 31-03-2008 31-03-2007 

Fully paid up of 

Rs.10 each unless 

otherwise specified Rs. million Rs. million 

Associate companies 

Fully paid equity shares: 

1 Brook Crompton Greaves Limited 7840000 78.40 78.40 

2 CG Lucy Switchgear Limited 599993 6.00 6.00 

3 International Components India Limited 85500 0.86 0.86 

4 Power Equipment Limited, of US $ 10 each 20600 0.00 0.00 

(Carried at nominal value of Rs.10) 

85.26 85.26 

Other company 

Fully paid preference shares: 

CG CoreEI Logic Systems Limited – – 10.00 

(7% Non-Convertible, Non-Cumulative 

Redeemable Preference Shares) 

(1810000 shares sold during the year) 

– 10.00 

Bonds 

6.75% Tax-Free US64 Bonds of Rs. 100 each 167210 18.12 18.12 

(maturity date 31st May, 2008) 18.12 18.12 

Total (A) 1659.45 1341.37 

B) Current Investment 

Fully paid equity shares of other company 

1 Radiant Electronics Limited 190000 0.00 0.00 

(Carried at nominal value of Rs.10) 

2 Kale Consultants Limited – – 0.01 

(4200 share sold during the year) 

3 Nicco Corporation Limited 66078 0.32 0.32 

4 Dinette Exclusive Club Private Limited 5500 0.55 0.55 

(Share of Rs.100 each) 

5 Industrial Development Bank of India Limited 127720 7.42 8.29 

(15,000 shares sold during the year) 

8.29 9.17 

Other Investments 

1 UTI Unit Scheme 2002 88215 0.55 0.55 

2 Mutual Funds 

(purchased during the year) 

Canara Robeco Floating rates Short Term Daily Dividend Fund 9748291 100.00 – 

Birla Cash Plus-Institutional Premium 7487131 75.00 – 

Reliance Liquidity Fund-Daily Dividend Reinvestment 4999463 50.00 – 

Principal Cash Mutual Fund Liquid Option Institutional Premium Fund 5000605 50.00 – 

275.55 0.55 

Total (B) 283.84 9.72 

Total (A+B) 1943.29 1351.09 

70 




SCHEDULE : 6 2007-08 2007-08 

INVESTMENTS (Contd.) Nos. Rs. million 

Details of investments purchased and sold during the year 

CAN Floating Rate Short Term Growth Fund 7291193 85.00 

Canara Robeco Floating Rate ST Daily Dividend Fund 461840388 4738.48 

CANLIQUID Fund - Institutional Daily Dividend Reinvestment 4983913 50.04 

CANLIQUID Plus - Institutional Daily Dividend Reinvestment 5657185 70.19 

Canara Robeco Liquid Fund - Institutional Daily Dividend Reinvestment 26558308 275.26 

Canara Robeco Interval Monthly Institutional Dividend Fund 5028942 50.29 

LIC Liquid Fund - Dividend Plan - LIC01 61561679 671.03 

Sundaram BNP Paribas Money Fund Super Instalment 29729207 300.13 

Birla Cash Plus-Institutional Premium-Daily Dividend-Reinvestment 606737629 6079.21 

Reliance Liquidity Fund-Daily Dividend Reinvestment 66794943 668.16 

Sundaram BNP Paribas Liquid Plus Super Instituitional- 

Dividend Reinvestment Daily 27207944 273.22 

HDFC Liquid Fund Premium Plan-Dividend-Daily Reinvestment 65335495 801.00 

Principal Cash MF Liquid Option Instl Prem Fund-Dividend- 

Reinvestment Daily 26037139 260.39 

Principal Floating Rate Fund SMP Instalment Option- 

Dividend Reinvestment 3503738 35.04 

Principal Cash Management Fund 4011269 40.12 

Lotus India Liquid Fund-Institutional Plus Daily Dividend 94860895 948.72 

Lotus India Liquid Plus Fund-Institutional Daily Dividend 7007438 70.18 

Lotus India Overnight Fund-Daily Dividend 1000843 10.01 

Kotak Liquid (Institutional Premium) - Daily Dividend 6955454 85.05 

Kotak Floater Short Term-Weekly Dividend 33713747 337.72 

Kotak Floater Short Term-Daily Dividend 4984039 50.05 

JPMORGAN India Liquid Fund-Dividend Plan Reinvestment 23009232 230.23 

UTI Liquid Cash Plan Institutional-Growth Option 4000000 40.00 

ICICI Prudential Interval Fund Monthly Plan II-Retail Dividend- 

Reinvestment Dividend 9986970 100.59 


INVENTORIES Rs. million Rs. million Rs. million Rs. million 

Stores, spares and packing materials 32.02 30.01 

Raw materials 962.76 681.06 

Work-in-process - Manufacturing 1094.10 969.50 

- Contracts 

At cost 45.73 178.33 

At realisable sales value 423.67 1341.55 

469.40 1519.88 

Less: Progress payments 399.14 1239.90 

70.26 279.98 

1164.36 1249.48 

Finished goods - Manufacturing 301.79 336.95 

Add:- Excise duty on finished goods 36.28 49.38 

338.07 386.33 

- Trading goods 132.30 123.22 

470.37 509.55 

2629.51 2470.10 

FINANCIALS 71



SUNDRY DEBTORS Rs. million Rs. million Rs. million Rs. million 

(Unsecured) 

Debts outstanding for a period 

exceeding six months 

Considered good 1651.57 1139.41 

Considered doubtful 179.99 161.01 

1831.56 1300.42 

Other debts 


9742.19 8199.91 

Less: Provision for doubtful debts 179.99 9562.20 161.01 8038.90 

9562.20 8038.90 


CASH AND BANK BALANCES Rs. million Rs. million Rs. million Rs. million 

Cash on hand 1.29 1.31 

Bank balances with scheduled banks 

On current accounts 1095.38 1374.43 

On deposit accounts 479.83 360.03 

1575.21 1734.46 

1576.50 1735.77 

As at 

As at 


LOANS AND ADVANCES Rs. million Rs. million 

(Unsecured, considered good) 

Advances recoverable in cash or in kind or for value to be received 2345.29 2043.98 

Advances to Subsidiaries 111.18 67.80 

Balances with excise, customs, service tax and value added tax etc. 337.56 251.90 

2794.03 2363.68 


CURRENT LIABILITIES Rs. million Rs. million Rs. million Rs. million 

Sundry creditors 7709.69 6493.18 

Due to subsidiaries 86.58 54.65 

Advances from customers 1872.31 1701.04 

Investor Education and Protection Fund 

Unclaimed dividend 10.20 7.47 

Unclaimed matured fixed deposits 2.61 5.07 

12.81 12.54 

Due to Directors 38.17 28.07 

Interest accrued but not due on loans 8.07 11.29 

Other Liabilities: 

Security deposits 67.48 44.72 

Others 616.85 548.34 

684.33 593.06 

10411.96 8893.83 

NOTE: Sundry creditors includes Rs. 152.19 million (Previous year N.A.) due to micro and small enterprises. 

72 




As at 

As at 


PROVISIONS Rs. million Rs. million 

Taxes 1520.60 840.00 


Interim dividend 146.63 183.28 

Corporate dividend tax 24.92 – 

Leave encashment 141.77 127.89 

Gratuity 26.89 71.94 

Other employee benefts 50.92 – 

Others provisions 579.24 315.76 

(Refer note 30 of Schedule ‘B’) 

2540.97 1580.37 

SCHEDULE : 13 2007-08 2006-07 

OTHER INCOME Rs. million Rs. million 

Income from 

Lease of premises 99.52 20.06 

Business Service Centres 87.62 85.13 

(Tax deducted at source Rs. 38.06 million; Previous year Rs. 21.15 million) 

187.14 105.19 

Income from investments 2.17 14.45 

Exchange gain (net) 387.08 91.70 

Profit on sale of fixed assets (net) 7.15 55.63 

Profit on sale of investments (net) 17.33 15.74 

Miscellaneous income 95.44 66.04 

696.31 348.75 

FINANCIALS 73



MATERIALS, MANUFACTURING Rs. million Rs. million Rs. million Rs. million 

AND OPERATING EXPENSES 

Raw materials consumed 

Opening stock 681.06 511.18 

Add: Purchases 20933.23 19193.07 

(including construction materials Rs. 197.47 

million; Previous year Rs. 128.25 million) 

Less: Closing stock 962.76 681.06 

Total 20651.53 19023.19 

Add: Sub contracting charges 1038.55 744.06 

Less: Scrap sales 547.41 411.81 

21142.67 19355.44 

Purchase of trading goods 6020.07 5634.75 

(Increase)/decrease in stocks: 

Closing Stock 

Work-in-progress - Manufacturing 1094.10 969.50 

- Contracts 45.73 178.33 

Finished goods 470.37 509.55 

1610.20 1657.38 

Opening Stock 


- Contracts 178.33 149.60 


1657.38 47.18 1310.30 (347.08) 

27209.92 24643.11 

Stores and spares 261.00 218.40 

Power and fuel 288.22 237.23 

Repairs - Buildings 53.99 34.56 

- Plant and equipments 118.98 110.45 

Technical and testing fees 67.96 40.39 

28000.07 25284.14 


STAFF EXPENSES Rs. million Rs. million 

Salaries, wages and bonus 1636.50 1398.30 

Provident fund and family pension scheme contributions 84.94 81.91 

Superannuation fund contributions 30.95 25.58 

Gratuity 36.65 40.76 


Workmen and staff welfare 171.65 165.75 

2009.86 1742.57 

74 





SELLING AND ADMINISTRATION EXPENSES Rs. million Rs. million Rs. million Rs. million 

Rent 62.44 55.11 

Repairs-others 63.38 56.77 

Rates and taxes 260.09 206.25 

Insurance 39.23 51.90 

Travelling 254.70 227.10 

Vehicle maintenance 16.91 19.60 

Legal and professional charges 189.48 138.55 

Auditors’ remuneration (excluding service tax) 

Audit fees 4.10 4.10 

Tax audit fees 0.80 0.80 

Certification work 0.34 0.40 

Other services 2.22 2.68 

Expenses reimbursed 0.35 0.76 

7.81 8.74 

Forwarding, godown and packing 1135.92 955.30 

Advertising 211.44 155.70 

Bad debts and advances 171.57 282.37 

Provision for doubtful debts and advances 179.99 – 

After sales services including warranties 359.52 232.52 

Sales promotion 203.64 157.47 

Miscellaneous expenses 752.40 674.39 

Provision for diminution in value of investments – 8.10 

Directors’ fees 1.20 1.12 

3909.72 3230.99 


INTEREST AND COMMITMENT CHARGES Rs. million Rs. million 

Fixed loans 100.88 115.03 

Others 214.17 204.03 

315.05 319.06 

Less: Interest income (including tax deducted at 43.91 15.56 

source Rs. 9.13 million; Previous year Rs. 3.09 million) 

271.14 303.50 


DEPRECIATION, OBSOLESCENCE, Rs. million Rs. million 

AMORTISATION AND IMPAIRMENT 

Depreciation, Obsolescence and amortisation 463.04 415.95 

Impairment provided / (reversed) (54.42) (19.68) 

Recoupment from revaluation reserve (2.06) (2.71) 

406.56 393.56 

FINANCIALS 75


As at 

As at 


CONTINGENT LIABILITIES Rs. million Rs. million 

(a) Claims against the Company not 160.70 94.80 

acknowledged as debts 

(b) Sales tax liability that may arise in respect 

of matters in appeal 23.51 23.60 

(c) Excise duty / Service tax liability that may 

arise in respect of matters in appeal 

preferred by the Company 154.85 150.40 

(d) Excise duty / Service tax liability that may 

arise in respect of matters disputed by 

the Department 3.35 33.90 

(e) Income tax liability that may arise 

in respect of matters in appeal preferred 87.38 42.40 

by the Department 

(f ) Guarantees given on behalf of subsidiary 

companies 5756.05 5094.40 

(g) Guarantees given on behalf of associate company 43.70 47.34 

(h) Bills discounted 1568.23 981.50 

76 




SCHEDULE [A] 


1 Basis of Presentation 

(a) The Company maintains its accounts on accrual basis following the historical cost convention, except for the revaluation of certain 

fixed assets, in accordance with the Generally Accepted Accounting Principles (GAAP) and in compliance with the Accounting 

Standards specified in the Companies (Accounting Standards) Rules, 2006 notified by the Central Government and other provisions 

of the Companies Act, 1956. However, certain escalation and other claims are accounted for in terms of contract with the customers. 

Insurance and other claims are accounted for as and when admitted by the appropriate authorities. 

(b) The preparation of accounts under GAAP requires management to make estimates and assumptions that affect the reported amounts 

of assets and 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. Examples of such estimates include the useful lives of fixed assets and intangible assets, 

provision for doubtful debts/advances, future obligation in respect of retirement benefit plans, etc., actual result could differ from these 

estimates. Any revisions to accounting estimates are recognised prospectively in the current and future periods. 

2 Fixed Assets 

(a) Fixed assets are stated at cost net of tax / duty credit availed, if any, except for land and buildings added prior to 30th June, 1985 which 

are stated at revalued cost as at that date based on the report of technical expert. 

(b) Lump sum fees paid for acquisition of technical know-how relating to plant and machinery is capitalised as intangible asset. 

(c) Fixed assets are eliminated from financial statements, either on disposal or when retired from active use. The retired assets are disposed 

off immediately. The capitalised cost of such disposed / retired assets, are removed from the fixed assets records. 

(d) Pre-operative expenses, including interest on borrowings till the date of commissioning, for the projects, where applicable, incurred till 

the projects are ready for commercial production, are treated as part of the project cost and capitalised. 

(e) Internally manufactured / constructed fixed assets are capitalised at factory cost, including excise duty, where applicable. 

(f ) 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. 

3 Impairment of Assets 

(a) The carrying amount of assets, other than inventories is reviewed at each balance sheet date, to determine whether there is any 

indication of impairment. If any such indication exists, the recoverable amount of the assets is estimated. 

(b) An impairment loss is recognized, whenever the carrying amount of assets or its cash generating units exceeds its recoverable amount. 

The recoverable amount is the greater of the asset’s net selling price and value in use which is determined based on the estimated 

future cash flow generated from the continuing use of an asset and from its disposal at the end of its useful life, discounted to their 

present values. 

(c) An impairment loss is reversed, if there has been a change in the estimates made to determine and recognise the recoverable amount 

in the earlier year. 

4 Intangible Assets and Amortisation 

Intangible assets are recognised as per the criteria specified in the Accounting Standard - Intangible Assets and are amortised as under: 

(a) Leasehold land : Over the period of lease; 

(b) Specialised software : Over a period of five years; 

(c) Lump sum fees for technical know-how : Over a period of five years from the year of commercial production. 

5 Investments 

(a) Long term investments are carried at cost after providing for any diminution in value, if such diminution is of other than temporary 

nature. 

(b) 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. 

FINANCIALS 77


SCHEDULE [A] 

SIGNIFICANT ACCOUNTING POLICIES (Contd.) 

6 Inventories 

Inventories are valued at 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 and spares 

(b) Work-in-progress - Manufacturing : At Cost plus appropriate production overheads 

(c) Work-in-progress - Contracts : At Cost till certain percentage of completion and thereafter at realisable value 

(d) Finished goods - Manufacturing : At Cost, plus appropriate production overheads, including excise duty paid / payable on 

such goods 

(e) Finished goods - Trading : At Cost, on Weighted average basis 

7 Foreign currency transactions, Forward contracts and Derivatives 

(a) 

(b) 

(c) 

(d) 

The reporting currency of the Company is Indian Rupee. 

Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of 

transaction. At each balance sheet, foreign currency monetary items are reported using the closing rate. Exchange differences that arise 

on settlement of monetary items are recognised as income or expense in the period in which they arise. 

The Company uses foreign exchange forward contract to hedge its exposure to movements in foreign exchange rates. The use of these 

contracts reduces the risk or cost and the company does not use these contracts for trading or speculation purposes. Cash flows arising on 

account of roll over / cancellation are recognised as income / expense of the period in line with the movement in the underlying exposures. 

Derivative transactions are considered as off-balance sheet items and cash flows arising therefrom are recognised in the books of 

account as and when the settlements take place / over the tenor thereof in accordance with the terms of the respective contracts. 

8 Revenue Recognition 

(a) 

(b) 

(c) 

(d) 

(e) 

Revenue from sale of products are recognised when all the significant risk and reward of ownership of the products are passed on to 

the customers, which is generally on despatch of goods and acceptance. 

Service income is recognised as per the terms of the contract with the customer, when the related services are performed. 

Sales include excise duty and price variation and is recognised in terms of contracts with the customers. Sales exclude value added 

tax / sales tax, brokerage and commission. 

Revenue from contracts is recognised based on percentage completion after providing for expected losses. 

Excise duty in respect of finished goods is included in the valuation of finished goods. 

(f ) Dividend income is accounted for when the right to receive income is established. 

9 Employee Benefits 

(a) 

Short Term Employee Benefits 

All employee benefits payable wholly within twelve months of rendering service are classified as short term employee benefits. Benefits 

such as salaries, wages, short term compensated absences, etc. and the expected cost of bonus, ex-gratia are recognised during the 

period in which the employee renders the service. 

(b) 

Defined contribution Plan 

Company’s contributions paid / payable during the year to provident fund, officer’s superannuation fund, ESIC and labour welfare fund 

are recognised in the profit and loss account. 

(c) 

Defined Benefit Plan 

Company’s liabilities towards gratuity, leave encashment, and Post Retirement Medical Benefits are determined using the Projected 

Unit Credit Method, which considers each period of service as giving rise to additional unit of benefit entitlement and measures each 

unit separately to build up the final obligation. Actuarial gain and losses are recognised immediately in the statement profit and loss 

account as income or expenses. Obligation measured at the present value of estimated future cash flows using a discounted rate that 

is determined by reference to market yields at the balance sheet date on government bonds, where the currency and terms of the 

Government are consistent with the currency and estimated terms of the defined benefit obligation. 

78 




SCHEDULE [A] 


(d) Long Term Employee Benefits 

The obligation for long term benefits, such as, leave encashment is reocognised in the same manner as in the case of defined benefit 

plans as in (c) above. 

10 Depreciation 

(a) 

(b) 

(c) 

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 to the Companies Act, 1956, where 

the lease period of land is beyond the life of the building. In other cases, amortised over the lease period. 

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. 

(d) In case of impaired assets, the depreciation is charged on the adjusted cost computed after impairment. 

11 Research and Development 

(a) Revenue expenditure on research and development is charged under respective heads of account. 

(b) Capital expenditure on research and development is included as part of fixed assets and depreciated on the same basis as other fixed 

assets. 

12 Borrowing Costs 

(a) Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the 

cost of such asset till such time as the asset is ready for its intended use or sale. 

(b) All other borrowing costs are recognised as expense in the period in which they are incurred. 

13 Taxes on Income 

(a) 

(b) 

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. 

Deferred tax is recognised on timing differences between the accounting income and the taxable income for the year, and quantified 

using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. 

(c) Deferred tax assets are recognised and carried forward only to the extent that there is reasonable certainty supported by convincing 

evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised. 

14 Provisions, Contingent liabilities and Contingent assets 

(a) 

Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation, if 

i) the Company has a present obligation as a result of past event; 

ii) 

iii) 

a probable outflow of resources is expected to settle the obligation; and 

the amount of the obligation can be reliably estimated. 

(b) 

(c) 

Reimbursements by another party, expected in respect of expenditure required to settle a provision, is recognised when it is virtual 

certain that reimbursement will be received if obligation is settled. 

Contingent liability is disclosed in the case of 

i) a present obligation arising from past event, when it is not probable that an outflow of resources will be required to settle the 

obligation; 

ii) 

a possible obligation, unless the probability of outflow of resources is remote. 

(d) 

(e) 

Contingent assets neither disclosed nor recognised. 

Provision, contingent liabilities and contingent assets are reviewed at each balance sheet date. 

FINANCIALS 79


SCHEDULE [B] 2007-08 2006-07 

NOTES ON ACCOUNTS Rs. million Rs. million 

1 Of the Equity shares of Rs. 2 each comprised in the subscribed capital of the Company : 

19,36,000 issued pursuant to a contract without payment 

being received in cash; 

18,57,33,312 issued as fully paid up bonus shares by way of 

capitalisation of reserves; 

73,82,830 issued as fully paid up pursuant to scheme of 

amalgamation; 

3,30,68,750 issued as an international offering of Global 

Depository Receipts (GDR’s) (in US Dollars); 

2 Estimated amount of contracts remaining to be executed on 

Capital Account and not provided for (net of advances) 212.49 285.50 

3 Provision for current tax for the year includes wealth tax 

payable under the Wealth Tax Act, 1957 2.00 2.00 

4 There are no amounts due and outstanding to be credited to 

the Investor Education and Protection Fund as at 31st March, 2008. 

5 Secured Loans 

(a) Term loans from banks are secured by way of equitable mortgage of land 

and building and by way of hypothecation of specific movable properties 

at certain locations. 

(b) Working Capital Demand Loans from Banks are secured by hypothecation 

of stocks and book debts, present and future. 

6 Sales include 

Increase / (Decrease) in work-in-progress - contracts, 

at realisable value 

Closing work-in-progress 423.67 1341.55 

Less: Opening work-in-progress 1341.55 956.79 

(917.88) 384.76 

and are net of: 

(i) Brokerage and commission 256.45 238.23 

(ii) Cash discount 69.91 56.63 

7 Disclosure under AS-7 Construction Contracts 

(i) Contract revenue recognised 245.34 1447.29 

(ii) Advance received 10.60 45.95 

(iii) Retentions 24.53 564.00 

(iv) Amount of contract costs incurred 197.48 1602.60 

8 Following expenses have been capitalised during the year: 

Materials and manufacturing 0.12 2.98 

9 Exchange difference on foreign currency transactions 

capitalised during the year – 0.34 

10 The Company, through its wholly owned subsidiary CG International B.V., 

The Netherlands, has completed all the formalities, during the year, for the 

acquisition of Microsol Holdings Ltd, based in Ireland together with its subsidiaries. 

11 The Company’s investment in its’ subsidiary (Malanpur Captive Power Limited), 

has been pledged as security in favour of a financial institution against assistance 

availed by the subsidiary. 

80 





NOTES ON ACCOUNTS (Contd.) Rs. million Rs. million 

12 Value of imports (on C.I.F. basis) 

(a) Raw materials 2834.08 2875.66 

(b) Spare parts 85.18 19.76 

(c) Capital goods 113.64 241.56 

(d) Trading goods 338.30 253.23 

13 Expenditure in foreign currency 

(a) Technical / Testing fees 31.72 15.11 

(b) Professional charges 18.24 8.13 

(c) Interest 15.53 60.48 

(d) Travelling, commission on export, etc. 204.77 253.18 

14 Remittance in foreign currency on account of dividend: 

3rd Interim dividend for previous year 

(a) Number of non-resident shareholders 426 436 

(b) Number of shares held 31749158 5407968 

(c) Amount of dividend 15.87 13.52 

1st Interim Dividend for current year 




2nd Interim Dividend for current year 




15 Earnings in foreign exchange 

(a) Export of goods (on F.O.B. basis) including deemed 

exports Rs. 256.21million (Previous year Rs. 487.20 million) 7564.47 6156.50 

(b) Service income 7.31 5.66 

(c) Others 0.65 – 

16 Expenditure on research and development 

(a) Capital 278.88 368.86 

(b) Revenue expenses 236.16 167.45 

(Revenue expenses debited to Profit & Loss Account under the normal 

head of expenses, which are grouped under the following heads): 

Staff Cost 86.48 71.39 

Depreciation 15.07 7.68 

Others 134.61 88.38 

FINANCIALS 81



NOTES ON ACCOUNTS (Contd.) Unit Quantity Rs. million Quantity Rs. million 

17 Raw Materials Consumed 

Ferrous Metals Ton 80992 5072.73 68054 4536.05 

Non-ferrous Metals Ton 36562 4204.69 34188 4627.25 

Chemicals, Oils and Paints K.Ltr 16881 538.41 9713 547.94 

Wires, Pipes, Tubes and Cables K.Mtr 13659 280.13 19241 357.87 

Components M.Pc 737 7747.95 703 6917.20 

Others* 2807.62 2036.88 

20651.53 19023.19 

* Include construction materials Rs. 197.47 million (Previous year Rs. 128.25 million). 

18 Consumption of Raw Materials and Spare Parts 2007-08 2006-07 

Percentage 

Percentage 

of total Rs. million of total Rs. million 

Consumption 

Consumption 

Raw Materials: 

Imported 12.73 2629.23 16.16 3073.87 

Indigenous 87.27 18022.30 83.84 15949.32 

100.00 20651.53 100.00 19023.19 

Spare Parts: 

Imported 63.65 6.46 65.07 11.97 

Indigenous 36.35 3.69 34.93 6.43 

100.00 10.15 100.00 18.40 

2007-08 2006-07 

Unit Quantity Rs. million Quantity Rs. million 

19 Sales 

i) Transformers, Reactors and 

Accessories thereof Nos 24505 12869.74 18766 9987.54 

ii) Switchgears, Control Equipments 

and Accessories thereof Nos 455235 6060.07 298454 5654.21 

iii) Motors, Alternators and Pumps Nos 691009 9710.54 763754 7973.59 

iv) Electrical Steel Stampings and 

Laminates M.Ton 16156 546.28 12855 555.02 

v) Electric Fans, Ventilation Control 

Systems Nos 4844970 4927.71 3932417 3959.77 

vi) Electric Lamps M.Nos 63 1634.30 56 1352.88 

vii) Communication, Computer system 

Software and Accessories 1.97 46.82 

viii) Servicing 643.35 522.21 

ix) Others 5832.02 6547.72 

42225.98 36599.76 

NOTES: 

1 Quantitative figures for Sales are after exclusion of inter-divisional transfers, capitalisation / captive consumption, samples, etc. 

2 Sales include excise duty Rs. 3468.42 million; (Previous year Rs. 2923.72 million) 

82 




SCHEDULE [B] 

NOTES ON ACCOUNTS (Contd.) 

20 Details of licensed capacity, installed capacity and actual production 

Class of goods Unit Licensed Capacity *Installed Capacity @Actual Production 

manufactured 2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 

i) Transformers, KVA 9000000+(l) 9000000+(l) 24670000 25970000 22764760 17825165 

Reactors and Nos. 19687 19687 27000 27000 24581 18895 

Accessories +(c)+(f)+(l) +(c)+(f )+(l) +(c)+(f) +(c)+(f ) 

thereof 

ii) Switchgear, Nos. 322000 322000 588600 587300 457421 299889 

Control + (l) + (l) 

Equipment and 

Accessories thereof 

iii) Motors, HP 1439250+(l) 1439250+(l) 6264900 5531400 5267321 4573193 

Alternators Nos. 198835+(l) 198835+(l) 570436 1090100 336437 465950 

and Pumps 

iv) Electrical Steel MT 7500+(l) 7500+(l) 22000 20000 15796 12831 

Stamping and 

Laminates 

v) Electric Fans, Nos. 1000000 1000000 4233700 4030300 2595285 2292157 

Ventilation and +(l)+(r) +(l)+(r) 

Pollution Control 

Systems 

vi) Lighting - M.Pcs. 19.46+(I) 19.46+(I) 103 73 77 46 

Electric Lamps 

vii) Communication, Lines 120000+(l) 120000+(l) – 51000 – 763 

Computer Terminals (l) (l) – 3300 – 1437 

Systems, Software 

and Accessories 

viii) Other Items Nos. 2400250 2400250 5050 5050 2946 3407 

* Installed Capacities are as certified by the Managing Director. 

@ The production figures are as per returns submitted to the Department of Industrial Development. 

(c) To the extent required for Switchgear manufacture and supply to Associates. 

(f ) To the extent required for captive use. 

(l) Under the liberalised Industrial Policy of Government of India, the Company obtained the capacities approved by way of acknowledgements 

against the IEMs submitted by it. 

(r) Registered; Capacity not specified. 

FINANCIALS 83


SCHEDULE [B] 


21 Opening stock and closing stock of finished goods 

Class of goods Unit 31st March 2008 31st March 2007 31st March 2006 

Quantity Rs. million Quantity Rs. million Quantity Rs. million 

i) Transformers, Reactors 

and Accessories 

thereof Nos 57 7.73 192 27.91 46 23.83 

ii) Switchgears, Control 

Equipment and 

Accessories thereof Nos 212 19.11 396 6.50 1061 19.80 

iii) Motors, Alternators 

and Pumps Nos 23335 115.51 27581 139.23 18802 85.80 

iv) Electrical Steel 

Stampings and 

Laminations M.Ton 474 33.47 271 18.16 527 39.60 

v) Electric Fans, 

Ventilation and Pollution 

Control Systems Nos 139133 115.06 115199 102.20 114521 90.02 

vi) Electric Lamps M.Nos 1.85 55.19 1.44 42.82 2.04 41.44 

vii) Communication, 

Computer Systems, 

Software and 

Accessories 4.78 13.56 17.56 

viii) Others 119.52 159.17 133.74 

470.37 509.55 451.79 

22 Disclosures as required by the Micro, Small and Medium Enterprises Development Act, 2006 (the Act) are as under: 

The information regarding micro and small enterprises has been determined to the extent such parties have been identified on the basis of 

information available with the Company. 

Sr. Particulars 2007-08 

No. 

Rs. million 

i) (a) Principal amount remaining unpaid to any supplier as on Balance Sheet date (micro and small enterprises) 152.19 

(b) Interest due thereon the remaining unpaid to any supplier as at the end of each accounting year – 

ii) The amount of interest paid by the buyer in terms of Section 16 of the Act along with the amount of 

the payment made to the supplier beyond the appointed day during each accounting year – 

iii) The amount of interest due and payable for the period of delay in making payment (which have been 

paid but beyond the appointed day during the year) but without adding the interest specified under 

the Act – 

iv) The amount of total interest accrued and remaining unpaid at the end of each accounting year – 

v) The amount of further interest remaining due and payable even in the succeeding years, 

until such date when the interest dues as above are actually paid to the small enterprise for 

the purpose of disallowance as a deductible expenditure under Section 23 of the Act. – 

84 




SCHEDULE [B] 


23 Disclosures as required by Accounting Standard (AS) 15 Employee Benefits 

(a) Defined Benefit Plans as per Actuarial Valuation are as under 

Rs. million 

Gratuity Leave Encashment Post 

Retirement 

Medical 

Benefits 

2007-08 2006-07 2007-08 2006-07 2007-08 

(Funded) (Funded) 

I Change in obligation during the year 

1 Liability at the beginning of the year 261.96 255.02 127.89 124.92 47.48 

2 Interest cost 21.25 18.77 9.85 8.47 3.76 

3 Current service cost 16.04 14.75 7.94 4.77 0.73 

4 Past service cost – – – – – 

5 Benefits paid (40.75) (42.24) (35.28) (27.31) (2.40) 

6 Actuarial (gain) / losses 10.22 15.66 31.38 17.04 1.35 

7 Liability at the end of the year 268.72 261.96 141.77 127.89 50.92 

II Change in assets during the year 

1 Plan assets at the beginning of the year 190.02 216.99 – – – 

2 Expected return of plan assets 19.93 13.98 – – – 

3 Contributions 71.94 – (35.28) 27.31 2.40 

4 Benefits paid (40.75) (42.24) (35.28) (27.31) (2.40) 

5 Actuarial gain / (loss) 0.69 1.29 – – – 

6 Plan assets at the end of the year 241.83 190.02 – – – 

7 Total actuarial gain/(loss) to be recognised 9.53 14.37 31.38 17.04 1.35 

III Actual return on plan assets 

1 Expected return on plan assets 19.93 13.98 – – – 

2 Actuarial gain / (loss) 0.69 1.29 – – – 

3 Actual return on plan assets 20.62 15.27 – – – 

IV Net asset / (liability) recognised 

in the balance sheet 

1 Liability at the end of the year (268.72) (261.96) (141.77) (127.89) (50.92) 

2 Plan assets at the end of the year 241.83 190.02 – – – 

3 Amount recognised in the balance sheet (26.89) (71.94) (141.77) (127.89) (50.92) 

V Expenses recognised in the statement 

of profit and loss account for the year 

1 Current service cost 16.04 14.75 7.94 4.77 0.73 

2 Interest cost 21.25 18.77 9.85 8.47 3.76 

3 Expected return on plan assets (19.93) (13.98) – – – 

4 Actuarial (gain) / losses 9.53 14.37 31.38 17.04 1.35 

5 Past service cost – – – – – 

6 Total expenses as per actuarial valuation 26.89 33.91 49.17 30.27 5.85 

7 Optional payment 9.76 6.85 – – – 

8 Total expenses 36.65 40.76 49.17 30.27 5.85 

VI Balance sheet reconciliation 

1 Opening net liability 71.94 38.03 127.89 124.92 47.48 

2 Expenses as above 26.89 33.91 46.86 30.27 5.85 

3 Employer contribution 71.94 – 32.98 27.31 2.40 

4 Amount recognised in the balance sheet 26.89 71.94 141.77 127.89 50.92 

FINANCIALS 85


SCHEDULE [B] 


23 Disclosures as required by Accounting Standard (AS) 15 Employee Benefits (Contd.) 

Rs. million 

Gratuity Leave Encashment Post 

Retirement 

Medical 

Benefits 

2007-08 2006-07 2007-08 2006-07 2007-08 

(Funded) (Funded) 

VII The major categories of plan assets 

as a percentage of total insurer 

managed funds 100% 100% – – – 

VIII Effect of one percent point 

change in the assumed medical 

inflation rate 

(A) Increase/(decrease) on aggregate 

service and interest cost of Post 

Retirement Medical Benefits 

a) One Percentage point 

increase in Medical 

Inflation Rate – – – – 0.45 

b) One Percentage point 

decrease in Medical 

Inflation Rate – – – – (0.43) 

(B) Increase/(decrease) on present 

value of defined benefits 

obligation as at 31st March, 2008 

a) One Percentage point 

increase in Medical 

Inflation Rate – – – – 5.24 

b) One Percentage point 

decrease in Medical 

Inflation Rate – – – – (4.31) 

IX Actuarial assumptions: 

1 Discount rate 8.25% p.a. 8.25% p.a. 8.25% p.a. 8.25% p.a. 8.00% p.a. 

2 Rate of return on plan assets 8.25% p.a. 8.25% p.a. – – – 

3 Salary escalation 2.50% p.a. 2.50% p.a. 2.50% p.a. 2.50% p.a. – 

4 Mortality pre retirement rate LIC (1994-96) – LIC (1994-96) 

Ultimate Ultimate – – 

5 Mortality post retirement rate LIC (1996-98) 

Ultimate 

6 Medical premium Inflation rate – – – – 4.00 % p.a. 

(b) The Company has adjusted an amount of Rs. 47.48 million towards opening liability of Post Retirement Medical Benefits, against the 

opening balance of General Reserve as per the transitional provisions of the Standard. 

(c) The Company makes contribution towards provident fund and superannuation fund as a defined contribution retirement benefit 

plan for qualifying employees. To fund the benefits, the Company is required to contribute a specified percentage of salary to the 

respective trusts, which administer the retirement benefit schemes. 

(d) The Guidance issued by the Accounting Standard Board (ASB) on implementing the Accounting Standard states that provident funds 

set up by employers, which require interest shortfall to be met by the employer, needs to be treated as defined benefit plan. The Fund 

does not have any existing deficit or interest shortfall. As per the Company’s Actuary, any future obligation arising due to interest 

shortfall can not be measured reliably. However, having regard to the assets of the Fund and return on the investments, the Company 

does not expect any deficiency in the foreseeable future 

86 




SCHEDULE [B] 


(e) The Company makes annual contributions to the Cropmton Greaves Limited Gratuity Trust, which is funded defined benefit plan for 

qualifying employees. The scheme provides for lump sum payment to vested employees at retirement, death while in employment or 

on termination of employment as per the Company’s Gratuity Scheme. Vesting occurs upon completion of five years of service. 

(f ) The Company provides post retirement medical benefits to qualifying employees. 

(g) The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation were carried out at 

31st March, 2008. The present value of the defined benefit obligation and the related current service cost and past service cost, were 

measured using the Projected Unit Credit Method. 

24 Disclosures as required by Accounting Standard (AS) 17 Segment Reporting 

Rs. million 

I A Primary Segments Power Consumer Industrial Others Eliminations/ Total 

(Business Segment) Systems Products Systems Unallocable 2007-08 

Particulars Expenditure / 

Assets* 

Segment Revenue 19626.55 11667.03 10328.33 604.07 42225.98 

Add: Inter segment Revenue 6.46 0.88 251.37 1.67 (260.38) – 

Total 19633.01 11667.91 10579.70 605.74 (260.38) 42225.98 

Segment Results 2576.91 1208.06 1946.02 (72.61) 5658.38 

Less: Interest 271.14 

Less: Other Unallocable Expenditure 

Net of Unallocable Income 530.72 

Profit before tax 4856.52 

Capital Employed: 

Segment Assets 9781.51 3096.37 3476.00 232.71 7071.90 23658.49 

Segment Liabilities 5682.33 2219.68 1804.50 199.74 3046.68 12952.93 

Net Assets 4099.18 876.69 1671.50 32.97 4025.22 10705.56 

Capital Expenditure 318.30 79.70 105.60 748.40 16.58 1268.58 

Depreciation 195.43 67.15 129.85 5.57 8.56 406.56 

* Unallocable assets comprise assets and liabilities which cannot be allocated to the segments. Tax credit asset / liability not considered in 

capital employed. 

Rs. million 

B Particulars Power Consumer Industrial Others Eliminations/ Total 

Systems Products Systems Unallocable 2006-07 

Expenditure / 

Assets* 

Segment Revenue 17410.72 9926.68 8625.06 637.30 – 36599.76 

Add: Inter segment Revenue 1.28 13.70 248.92 – (263.90) – 

Total 17412.00 9940.38 8873.98 637.30 (263.90) 36599.76 

Segment Results 1834.90 954.60 1303.70 (79.70) – 4013.50 




Profit before tax 3070.03 




Net Assets 4266.39 775.61 1592.53 82.07 3102.50 9819.10 


Depreciation 161.50 49.20 141.10 7.60 34.16 393.56 

* Unallocable assets comprise assets and liabilities which cannot be allocated to the segments. Tax credit asset / liability not considered in 

capital employed. 

FINANCIALS 87


SCHEDULE [B] 


II Secondary Segment (Geographical Segment) 

(a) The distribution of Company’s sales by geographical market is as under: 

Rs. million 

Sales and Service Revenue: 2007-08 2006-07 

Domestic 34582.04 30514.98 

Overseas 7643.94 6084.78 

Total 42225.98 36599.76 

(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 and incomes which are not directly attributable to any business segment are shown as unallocable expenditure. (Net of 

unallocated income) 

(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 the Accounting Standard. 

(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, Luminaire, Light Sources and Pumps 

(c) Industrial Systems : Electric Motors and Alternators, Drives 

25 Disclosures as required by Accounting Standard (AS)18 Related Party Disclosures 

i) List of related parties over which control exists: 

Sl. No. Name of the Related Party Relationship 

1 CG Capital & Investments Limited Wholly owned Subsidiary 

2 CG Energy Management Private Limited Wholly owned Subsidiary 


3 CG PPI Adhesive Products Limited Subsidiary of CG Capital & Investments Limited 

4 Malanpur Captive Power Limited Subsidiary of Crompton Greaves Limited 

5 CG International B.V. Wholly owned Subsidiary 

6 Pauwels International N.V. Wholly owned subsidiary of CG International B.V. 

7 Pauwels Trafo Belgium N.V. Subsidiary of Pauwels International N.V. 

8 Pauwels Trafo Gent N.V. Subsidiary of Pauwels International N.V. 

9 Pauwels Trafo Ireland Ltd. Wholly owned subsidiary of Pauwels International N.V. 

10 Pauwels France S.A. Subsidiary of Pauwels International N.V. 

11 Pauwels Transformer Inc Wholly owned subsidiary of Pauwels International N.V. 

12 Pauwels Americas Inc Wholly owned subsidiary of Pauwels International N.V. 

13 Pauwels Canada Inc Wholly owned subsidiary of Pauwels International N.V. 

14 Pauwels Trafo Service N.V. Subsidiary of CG International B.V. 

15 PT Pauwels Trafo Asia Wholly owned subsidiary of Pauwels International N.V. 

16 CG Hungary Kft Wholly owned subsidiary of CG International B.V. 

88 




SCHEDULE [B] 


Sl. No. Name of the Related Party Relationship 

17 Ganz Transelektro Villamossagi Zrt Wholly owned subsidiary of CG Hungary Kft 

18 Transverticum Kft Wholly owned subsidiary of Ganz Transelektro Villamossagi Zrt. 

19 Microsol Holdings Ltd. Wholly owned subsidiary of CG International B.V. 

20 Microsol Limited Wholly owned subsidiary of Microsol Holdings Ltd. 

21 Microsol (UK) Limited Wholly owned subsidiary of Microsol Holdings Ltd. 

22 Viserge Limited Subsidiary of Microsol Holdings Ltd. 

23 Microsol Inc Wholly owned subsidiary of Microsol Holdings Ltd. 

24 Tricon Controls Limited Wholly owned subsidiary of Microsol (UK) Limited 

Serial no.19 to 24 acquired during the year (Refer note 10, supra) 

During the year, the company which has been merged is as under: 

Pauwels Contracting Inc Merged with Pauwels Canada Inc. w.e.f.1st April, 2007 

During the year, the companies which have been acquired and liquidated are as under: 

1 Microsol Europe Limited 

2 Microsol (Utility Solutions) Inc 

ii) List of related parties with whom transactions were carried out during the year and description of relationship : 

Subsidiaries: 

1 CG Capital & Investments Limited 

2 CG Energy Management Private Limited 


3 CG PPI Adhesive Products Limited 

4 CG International B.V. 

5 PT Pauwels Trafo Asia 

6 Pauwels Americas Inc 

7 Pauwels Trafo Belgium N.V. 

8 Pauwels Canada Inc 

9 Pauwels Transformer Inc 

10 Ganz Transelektro Villamossagi Zrt 

11 Microsol (UK) Limited 

12 Malanpur Captive Power Limited 

Associates: 

1 Brook Crompton Greaves Limited 

2 CG Lucy Switchgear Limited 

3 International Components India Limited 

Key Management Personnel and their Relatives: 

1 G. Thapar - Chairman and Promoter Director 

2 S.M. Trehan - Managing Director 

Other Related Parties in which a director is interested: 

1 Ballarpur Industries Limited 

2 Solaris Chemtech Limited 

3 BILT Graphic Paper Products Limited 

4 BILT Power Limited 

5 Asia Aviation Limited 

FINANCIALS 89


SCHEDULE [B] 


iii) The following transactions were carried out with the related parties in the ordinary course of business: 

Rs. million 

Sr. Nature of transaction / relationship 2007-08 2006-07 

No. 

1 Purchases of goods and services 

Subsidiaries 

CG PPI Adhesive Products Limited 24.87 16.00 

PT Pauwels Trafo Asia 166.40 68.02 

Pauwels Trafo Belgium N.V. 169.53 22.36 

Pauwels Transformer Inc 5.58 – 

Pauwels Americas Inc – 2.84 

Pauwels Canada Inc 10.61 12.65 

Associates 

Brook Crompton Greaves Limited 284.71 190.49 

CG Lucy Switchgear Limited 404.74 421.24 

International Components India Limited 32.06 5.51 

Other Related Party 

Greaves Cotton Limited – 6.26 

Total 1098.50 745.37 

2 Sales of goods and services 

Subsidiaries 

CG PPI Adhesive Products Limited – 0.09 

PT Pauwels Trafo Asia – 3.06 

Pauwels Canada Inc 70.92 16.59 

Pauwels Americas Inc 540.42 589.21 

Pauwels Trafo Belgium N.V. 16.93 – 

Malanpur Captive Power Limited 8.10 43.95 

Ganz Transelektro Villamossagi Zrt 6.35 – 

Associates 



Other Related Parties 


Ballarpur Industries Limited 5.86 6.86 

Solaris Chemtech Limited 12.08 – 

BILT Graphic Paper Products Limited 2.88 – 

BILT Power Limited 11.33 – 

Total 725.43 723.88 

3 Purchase of fixed assets 

Subsidiaries 

Microsol (UK) Limited 3.22 – 

Associate 

International Components India Limited – 0.75 


Asia Aviation Limited 562.50 – 

Total 565.72 0.75 

4 Subscription to equity shares 

Subsidiaries 

CG International B.V. 328.08 344.30 

Malanpur Captive Power Limited – 93.59 

Total 328.08 437.89 

5 Interest expenses 

Subsidiaries 

CG Capital & Investments Limited 2.65 1.26 

CG Energy Management Private Limited 0.41 0.41 

Associates 

CG Lucy Switchgear Limited – 0.77 

Total 3.06 2.44 

90 




SCHEDULE [B] 


Rs. million 


No. 

6 Dividend received 

Associate 


Total – 12.00 

7 Commission received 

Associates 



Total 7.98 3.84 

8 Rental income 

Subsidiary 

CG PPI Adhesive Products Limited – 0.14 


Ballarpur Industries Limited 28.40 – 

Total 28.40 0.14 

9 Interest income 

Subsidiary 

Malanpur Captive Power Limited 7.50 – 

Total 7.50 – 

10 Payment of Salaries, commission and perquisities 

Key Management Personnel 

G. Thapar 25.38 15.35 

S.M. Trehan 23.69 20.02 

K. Thapar – 0.50 

Total 49.07 35.87 

11 Rent paid 




Total 7.77 – 

iv) 

Amount due to / from related parties 

Rs. million 


No. 

1 Account payable 

Subsidiaries 

CG PPI Adhesive Products Limited 4.80 3.59 


Pauwels Canada Inc 0.28 – 

Associates 




Total 202.63 35.53 

FINANCIALS 91


SCHEDULE [B] 


Rs. million 


No. 

2 Account receivable 

Subsidiaries 


PT Pauwels Trafo Asia 18.30 3.22 

Pauwels Transformer Inc 0.01 – 

Pauwels Americas Inc 4.59 – 



Ganz Transelektro Villamossagi Zrt 5.04 – 

Associates 




Ballarpur Industries Limited – 1.70 

Total 57.52 37.76 

3 Loan and advances receivable 

Subsidiaries 

CG PPI Adhesive Products Limited 0.04 – 



Associates 

CG Lucy Switchgear Limited 0.13 – 

International Components India Limited 1.75 – 


Total 128.96 84.38 

4 Loan and advances payable 

Subsidiaries 

CG Energy Management Private Limited 5.19 44.07 

CG Capital and Investments Limited 45.39 6.99 

Total 50.58 51.06 

5 Due to Key Management Personnel 

G. Thapar 25.38 15.35 

S.M. Trehan 6.09 6.12 


Total 31.47 21.97 

26 (a) The Company has not entered into any finance / operating lease as specified in Accounting Standard (AS) 19 Leases. The ‘Company 

has, however taken various residential/commercial premises and plant and equipment under cancellable operating lease. These lease 

agreeements are normally renewed on expiry, wherever required. 

(b) 

There are no exceptional / restrictive covenants in the lease agreements. 

27 Disclosures as required by Accounting Standard (AS) 20 Earnings Per Share 

Particular 2007-08 2006-07 

Profit after taxes Rs. million 3139.22 1923.73 

Number of equity shares outstanding 366566592 366566592 

Nominal value of shares Rs./share 2.00 2.00 

Earning Per Share (Basic and Diluted) Rs. 8.56 5.25 

92 




SCHEDULE [B] 


28 Deferred Tax 

The major components of deferred tax assets and deferred tax liabilities are as under: 

Rs. million 

As at 31-03-08 As at 31-03-07 

Deferred Deferred Deferred Deferred 

Tax Tax Tax Tax 

Particulars Assets Liabilities Assets Liabilities 

Difference between book depreciation and tax depreciation 670.00 453.10 

Expenses allowable for tax purposes when paid/on payment of TDS 17.00 21.00 

Other items giving rise to timing differences 130.50 56.30 

147.50 670.00 77.30 453.10 

Net deferred tax liability 522.50 375.80 

Net Incremental liability charged to profit and loss account 146.70 264.80 

29 As per the Accounting Standard (AS) 28 Impairment of Assets, the Company has reviewed potential generation of economic benefits from 

fixed assets. Accordingly, impairment loss amounting to Rs. 54.42 million (Previous year Rs. 19.68 million) provided in prior years has been 

reversed during the year. 

30 Disclosures as required by Accounting Standard (AS) 29 Provisions, Contingent Liabilities and Contingent Assets 

a) Movement in provisions: 

Rs. million 

Nature of Provision Warranties Sales Tax Excise Duty 

2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 

Carrying amount at the beginning of the year 150.57 119.02 70.00 43.30 4.30 – 

Additional provision made during the year 169.49 84.76 111.40 26.70 13.90 4.30 

Amounts used during the year 17.71 23.79 – – – – 

Unused amounts reversed during the year 41.52 29.42 – – – – 

Carrying amount at the end of the year 260.83 150.57 181.40 70.00 18.20 4.30 

Nature of Provision Liquidated damages Total 

2007-08 2006-07 2007-08 2006-07 

Carrying amount at the beginning of the year 90.89 – 315.76 162.32 

Additional provision made during the year 27.92 90.89 322.71 206.65 

Amounts used during the year – – 17.71 23.79 

Unused amounts reversed during the year – – 41.52 29.42 

Carrying amount at the end of the year 118.81 90.89 579.24 315.76 

b) Nature of Provisions: 

i) Product Warranties: The Company gives warranties on certain products and services in the nature of repairs / replacement, 

which fail to perform satisfactorily during the warranty period. Provision made represents the amount of the expected cost of 

meeting such obligation on account of rectification / replacement. The timing of outflows is expected to within a period of two 

years. 

ii) Provision for sales tax represents sales tax liability on account of non-collection of declaration forms and other legal matters 

which are in appeal under the Act / Rules. 

iii) Provision for excise duty represents the differential duty liability that is expected to materialise in respect of matters in appeal. 

iv) Provision for liquidated damages has been made on contracts for which delivery dates are exceeded and computed in reasonable 

and prudent manner. 

c) Disclosure in respect of contingent liabilities. Refer Schedule 19. 

31 Derivative Instruments: 

The Company has made no losses on its derivative transactions. In addition, as a measure of prudence, gain of Rs. 5.82 million has not been 

accounted. 

FINANCIALS 93


SCHEDULE [B] 


32 Managerial Remuneration: 

Computation of Net Profit in accordance with the provisions of Section 349 of the Companies Act, 1956 

Rs. million 

2007-08 2006-07 

Profit before tax as per profit and loss account 4856.52 3070.03 

Add: Managerial remuneration 55.77 41.97 

Directors sitting fees 1.20 1.12 

Profit on sale of fixed assets (net) (as per 

Section 349 of the Companies Act,1956) 7.15 10.90 


Provision for diminution in value of investments – 244.11 8.10 62.09 

Less: Profit on sale of investments (net) 17.33 15.74 

Profit on sale of fixed assets (net) 7.15 24.48 55.63 71.37 

Net Profit / Loss (-) in terms of Section 349 5076.15 3060.75 

Net profit for the purpose of calculation under Section 309 5076.15 3060.75 

Maximum remuneration as per Section 309 (3) @ 5% 253.81 153.04 

Maximum Commission to Non-executive directors u/s 309 (4) @ 1% 50.76 30.61 

Actual payable to Non-executive directors 32.08 21.95 

Remuneration to Managing Director / Directors charged to accounts 

(a) Salaries, commission and incentives 47.08 33.95 

(b) Contribution to provident and other funds 3.59 3.24 

(c) Other perquisites 5.10 4.78 

55.77 41.97 

33 Particulars in respect of loans and advances in the nature of loans as required by the listing agreement:- 

Rs. million 

Name of the Company Balance as at Maximum outstanding during 

31-03-2008 31-03-2007 2007-08 2006-07 

A. Loans and advances in the nature of 

loans given to subsidiaries:- 

Pauwels Contracting N.V. 8.01 – 24.58 9.29 

CG PPI Adhesive Products Limited 0.04 – 0.18 – 

Malanpur Captive Power Limited 103.13 67.80 103.13 67.80 

B. Loans and advances in the nature of 

loans given to associates 

Brook Crompton Greaves Limited 19.58 16.58 19.58 16.58 

CG Lucy Switchgear Limited 0.13 – 2.01 – 

C. Loans and advances in the nature 

of loans where repayment 

schedule is not specified 



Malanpur Captive Power Limited 103.13 67.80 103.13 67.80 



D. Loans and advances in the nature of loans 

where interest is not charged 





34 Figures for the previous year have been re-grouped/re-classified wherever necessary. 

94 




SCHEDULE [B] 


35 Balance Sheet Abstract and Company’s General Business Profile 

I Registration Details 

Registration No. 2 6 4 1 State Code 1 1 

Balance Sheet Date 3 1 0 3 2 0 0 8 

II Capital Raised during the year (Amount in Rs. Thousands) 

Public issue 

Rights issue 

N I L N I L 

Bonus issue 

Private placement 

N I L N I L 

III Position of Mobilisation and Deployment of Funds (Amount in Rs. Thousands) 

Total liabilities 

Total assets 

1 0 7 0 5 5 5 4 1 0 7 0 5 5 5 4 

Sources of Funds Paid-up capital Reserves & surplus 

7 3 3 1 6 5 8 5 7 4 2 9 2 

Secured loans 

Unsecured loans 

6 2 3 6 8 3 2 5 1 9 1 4 

Net deferred tax liabilities 

5 2 2 5 0 0 

Application of Funds Net fixed assets and intangible assets Investments 

5 1 5 2 9 6 3 1 9 4 3 2 8 5 

Net current assets 

3 6 0 9 3 0 6 

IV Performance of Company (Amount in Rs. Thousands) 

Turnover (including other income) Total expenditure 

4 2 9 2 2 2 7 9 3 8 0 6 5 7 6 5 

+ - Profit/Loss before tax before extra-ordinary items + - Profit/Loss before Tax after extra-ordinary items 

+ 4 8 5 6 5 1 4 + 4 8 5 6 5 1 4 

+ - Profit/Loss after tax Basic earnings per share in Rs. 

+ 3 1 3 9 2 1 4 8 . 5 6 

Dividend rate % 

8 0 

V Generic names of the principal products, services of the Company: 

Item code no. 

8 5 . 0 4 

(ITC code) 

Product description Transformers 

Item code no. 

(ITC code) 

Product description 

8 5 . 3 5 

Switchgears and power control equipment 

Item code no. 

8 4 . 1 4 

(ITC code) 

Product description Fan, light sources and luminaires 

Item code no. 

(ITC code) 


Item code no. 

(ITC code) 


8 5 . 0 1 

Electrical motors and alternators 

8 5 . 1 7 

Telecom and networking 

Signatures to Schedules 1 to 19 and A and B 







FINANCIALS 95

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 CG Energy Malanpur CG Pauwels Pauwels Pauwels 

and Adhesive Management Capital International International Trafo Trafo 

Investments Products Private Power B.V. N.V. Belgium N.V. Ireland Ltd. 

Limited Limited Limited Limited 

1 Financial year of the subsidiary ended on 31-03-2008 31-03-2008 31-03-2008 31-03-2008 31-03-2008 31-03-2008 31-03-2008 31-03-2008 

2 Extent of the interest of the Company 

in the subsidiary at the end of the 

Financial Year of each 

(a) Number of shares in the subsidiary 

company held by Crompton 

Greaves Limited Nos. 10500000 NIL 1600000 9358500 180000 NIL NIL NIL 

(b) Shareholding percent in the 

subsidiary held by Crompton 

Greaves Limited % 100 NIL 100 58.14 100 NIL NIL NIL 

3 The net aggregate of profits, less 

losses, of the subsidiary company 

so far as it concerns the members 

of Crompton Greaves Limited: 

(a) Not dealt with in the accounts of 

Crompton Greaves Limited to: 

(i) For the Financial Year ended 

31-03-2008 Rs. million 7.99 19.47 (1.61) (10.73) 3.40 1,969.17 332.00 382.62 

(ii) For the previous financial years 

since it became a subsidiary Rs. million 124.15 109.21 (7.57) (0.56) 73.84 480.30 554.30 331.74 

(b) Dealt with in the accounts of 



31-03-2008 Rs. million NIL NIL NIL NIL NIL NIL NIL NIL 


since it became a subsidiary Rs. million NIL NIL NIL NIL NIL NIL NIL NIL 

96 




Statement in accordance with the provisions of Section 212 of the Companies Act, 1956 (Contd.) 

Name of the Subsidiary Pauwels Pauwels PT Pauwels Pauwels Pauwels Pauwels Pauwels CG 

Transformer Canada Trafo France Americas Trafo Trafo Hungary Kft. 

Inc Inc Asia S.A. Inc. Gent N.V. Service N.V. 







Greaves Limited Nos. NIL NIL NIL NIL NIL NIL NIL NIL 



Greaves Limited % NIL NIL NIL NIL NIL NIL NIL NIL 








31-03-2008 Rs. million 511.98 386.75 119.54 3.44 2.30 (32.94) 1.19 (470.00) 


since it became a subsidiary Rs. million 225.70 39.84 169.70 0.90 (10.40) (25.80) (4.04) 13.96 







FINANCIALS 97


Statement in accordance with the provisions of Section 212 of the Companies Act, 1956 (Contd.) 

Name of the Subsidiary Ganz Transverticum Microsol Microsol Microsol (UK) Viserge Microsol Tricon 

Transelektro Kft. Holdings Limited Limited Limited Inc Controls 

Villamossagi Limited Limited 

Zrt. 







Greaves Limited Nos. NIL NIL NIL NIL NIL NIL NIL NIL 



Greaves Limited % NIL NIL NIL NIL NIL NIL NIL NLL 








31-03-2008 Rs. million (466.42) (4.33) (1284.01) 1180.86 (2.85) 21.85 3.02 4.84 


since it became a subsidiary Rs. million 206.79 3.22 – – – – – – 







B. R. Jaju W. Henriques S. M. Trehan G. Thapar 

CHIEF FINANCIAL OFFICER COMPANY SECRETARY MANAGING DIRECTOR CHAIRMAN 


98 



INFORMATION IN RESPECT OF SUBSIDIARIES 

Particulars 31-03-2008 Rs. million 

CG Capital & CG-PPI CG Energy Malanpur CG Pauwels Pauwels Trafo Pauwels Trafo 

Investments Ltd. Adhesive Management Captive Power International B.V. International N.V. Belgium N.V. Ireland Ltd. 

Products Ltd. Private Limited Limited 

Capital 

Equity Share Capital 105.00 39.00 16.00 160.98 998.98 2474.30 1837.40 203.10 

Preference Share Capital 329.28 – – – – – – 155.00 

434.28 39.00 16.00 160.98 998.98 2474.30 1837.40 358.10 

Reserves 132.14 83.79 (9.18) (19.00) (36.06) 3677.04 500.21 1118.73 

Total Assets 566.42 127.11 6.82 922.46 4509.48 6403.59 2337.61 1837.64 

Total Liabilities 566.42 127.11 6.82 922.46 4509.48 6403.59 2337.61 1837.64 

Investments 

(Except Investments in Subsidiaries) 


Government or Trust Securities – – – – – – – – 

Shares, Debentures or Bonds 477.35 – – – – 1.98 – – 

Others – – – 10.72 – – – – 

477.35 – – 10.72 – 1.98 – – 

Turnover (including other income) 8.80 173.28 0.52 369.49 72.29 4705.40 14269.86 4385.59 

Profit Before Taxation 8.69 37.05 (1.61) (18.25) 3.40 1918.96 514.51 429.32 

Provision for Taxation 

Current Tax 0.69 14.80 – – – (0.01) – 48.62 

Deferred Tax – (1.76) – – – (50.20) 182.51 (1.92) 

Fringe Benefit Tax 0.00 0.10 – 0.20 – - – – 

Profit After Taxation 7.99 23.91 (1.61) (18.45) 3.40 1969.17 332.00 382.62 

Proposed Dividend – – – – – – – – 

FINANCIALS 99



Pauwels Pauwels PT Pauwels Pauwels Pauwels Pauwels Trafo Pauwels Trafo CG Hungary Ganz 

Transformer Inc. Canada Inc. Trafo Asia France S.A. Americas Inc. Gent N.V. Service N.V. Kft. Transelektro Zrt. 

Capital 

Equity Share Capital 66.81 1001.97 563.58 2.50 4.50 226.30 0.50 0.64 5422.53 

Preference Share Capital 66.80 – – – – – – – – 

133.61 1001.97 563.58 2.50 4.50 226.30 0.50 0.64 5422.53 

Reserves 789.74 (1044.18) (37.38) 22.20 (12.58) (882.90) 2.30 (495.53) (5473.14) 

Total Assets 1115.57 664.71 702.14 24.70 (8.08) (656.60) 2.80 2844.28 3801.45 

Total Liabilities 1115.57 664.71 702.14 24.70 (8.08) (656.60) 2.80 2844.28 3801.45 

Investments 



Government or Trust Securities – – – – – – – – – 

Shares, Debentures or Bonds – – – – – – – – – 

Others – – – – – – – – – 

– – – – – – – – – 

Turnover (including other income) 4259.99 2581.94 2061.90 391.22 807.47 25.39 15.87 67.60 2798.29 

Profit Before Taxation 815.00 120.25 173.36 5.32 3.92 (32.94) 1.19 (469.18) (466.42) 


Current Tax 307.41 – 68.79 1.88 4.05 – – 0.82 – 

Deferred Tax (4.39) (266.50) (14.97) - (2.43) – – – – 

Fringe Benefit Tax – – – – – – – – – 

Profit After Taxation 511.98 386.75 119.54 3.44 2.30 (32.94) 1.19 (470.00) (466.42) 

Proposed Dividend – – – – – – – – 

. 

100 





Transverticum Kft Microsol Microsol Microsol (UK) Viserge Microsol Inc Tricon Total 

Holdings Limited Limited Limited Controls 

Limited Limited 

Capital 

Equity Share Capital 0.67 212.94 54.37 0.01 0.07 97.66 0.01 13489.82 

Preference Share Capital – 46.69 12.46 – – – – 610.23 

0.67 259.63 66.83 0.01 0.07 97.66 0.01 14100.05 

Reserves (1.05) (495.12) (76.11) 13.92 147.97 (67.95) (0.01) (2162.15) 

Total Assets 0.98 154.30 (9.27) 39.65 148.04 29.71 – 25565.51 

Total Liabilities 0.98 154.30 (9.27) 39.65 148.04 29.71 – 25565.51 

Investments 



Government or Trust Securities – – – – – – – – 

Shares, Debentures or Bonds – – – – – – – 479.33 

Others – – – – – – – 10.72 

– – – – – – – 490.05 

Turnover (including other income) 10.33 – 127.43 285.63 27.62 106.42 4.84 37557.16 

Profit Before Taxation (4.25) (1284.01) 1180.86 0.64 21.85 3.02 4.84 2965.52 


Current Tax 0.08 – – 3.49 – – – 450.63 

Deferred Tax – – – – – – – (159.66) 

Fringe Benefit Tax – – – – – – – 0.30 

Profit After Taxation (4.33) (1284.01) 1180.86 (2.85) 21.85 3.02 4.84 2674.25 

Proposed Dividend – – – – 19.37 – – 19.37 

. 

FINANCIALS 101

CROMPTON 

GREAVES 

CONSOLIDATED 

FINANCIALS 

102 



AUDITORS’ REPORT 

TO THE BOARD OF DIRECTORS ON THE CONSOLIDATED FINANCIAL STATEMENTS OF CROMPTON 

GREAVES LIMITED AND ITS SUBSIDIARIES 

1. We have audited the attached Consolidated Balance Sheet of 

Crompton Greaves Limited and its subsidiaries and associates 

(‘the Crompton Greaves Group’) as at 31st March, 2008, the 

Consolidated Profit and Loss Account and the Consolidated Cash 

Flow Statement for the year ended on that date, annexed thereto. 




2. We conducted our audit in accordance with 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 prepared, in all material 

respects, in accordance with an identified financial reporting 

framework and are free of material misstatements. An audit 

includes examining, on 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 statements. We believe that our audit provides a 

reasonable basis for our opinion. 

a) in the case of the Consolidated Balance Sheet, of the 

consolidated state of affairs of the Crompton Greaves Group 

as at 31st March, 2008; 

b) in the case of the Consolidated Profit and Loss Account, 

of the consolidated results of operations of the Crompton 

Greaves Group for the year ended on that date; and 

c) in the case of the Consolidated Cash Flow Statement, of the 

consolidated cash flows of the Crompton Greaves Group for 






PARTNER 


3. We did not audit the financial statements of certain subsidiaries, 

namely, CG Capital & Investments Limited and CG International B.V., 

The Netherlands and its subsidiaries whose financial statements 

reflect total assets of Rs. 10,843.34 million as at 31st March, 2008, 

total revenues of Rs. 30,295.12 million and the cash inflows being 

Rs. 191.94 million for the year ended on that date and an associate, 

namely, CG Actaris Electricity Management Private Limited whose 

net carrying cost of investment being Rs. 18.03 million and 

current year share of profit being Rs. 2.62 million. 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 these subsidiaries and an 

associate is based solely on the report of the other auditors. 

4. We report that the consolidated financial statements have been 

prepared by the Company in accordance with the requirements 

of the Accounting Standard (AS) 21 Consolidated Financial 

Statements and (AS) 23 Accounting for Investments in Associates 

in Consolidated Financial Statements specified by the Companies 

(Accounting Standards) Rules, 2006 notified by the Central 

Government and on the basis of the separate audited financial 

statements of the Crompton Greaves Group included in the 

consolidated financial statements. 

5. In our opinion and to the best of our information and explanations 

given to us and on consideration of the separate audit report on 

individual audited financial statements of the Crompton Greaves 

Group, we are of the opinion that the said consolidated financial 

statements give a true and fair view in conformity with the 

accounting principles generally accepted in India: 

FINANCIALS 103

CONSOLIDATED BALANCE SHEET AS AT 31ST MARCH, 2008 





Share capital 1 733.17 733.17 

Reserve and surplus 2 12284.68 8955.32 

13017.85 9688.49 

MINORITY INTEREST 3 122.50 283.99 

LOAN FUNDS: 

Secured loans 4 8119.77 8726.06 

Unsecured loans 5 299.74 318.66 

8419.51 9044.72 

21559.86 19017.20 


FIXED ASSETS: 6 

Gross block 26854.05 22331.60 

Less: Depreciation, obsolescence, 

amortisation and impairment 14885.82 12479.51 

Net block 11968.23 9852.09 


12444.05 10872.70 

INVESTMENTS 7 934.32 644.60 

DEFERRED TAX: 

Deferred tax assets 1306.79 930.02 

Less: Deferred tax liabilities 718.68 511.84 

(Refer Note 9 of Schedule ‘B’) 588.11 418.18 


Inventories 8 10663.63 9156.12 

Sundry debtors 9 17204.14 14213.51 

Cash and bank balances 10 2444.86 2414.67 

Loans and advances 11 3703.76 3645.51 

34016.39 29429.81 

Less: 

CURRENT LIABILITIES AND PROVISIONS: 

Current liabilities 12 21714.64 20236.39 

Provisions 13 4708.37 2111.70 

26423.01 22348.09 

Net Current assets 7593.38 7081.72 

21559.86 19017.20 

CONTINGENT LIABILITIES 20 


NOTES ON ACCOUNT 

[A] 

[B] 









104 



CONSOLIDATED PROFIT & LOSS ACCOUNTFOR THE YEAR ENDED 31ST MARCH, 2008 

2007-08 2006-07 


INCOME: 




Other income 14 677.02 1051.39 

69000.39 57446.99 

EXPENDITURE: 

Materials, manufacturing and operating expenses 15 45660.42 38619.44 

Staff expenses 16 7968.08 7171.47 

Selling and administration expenses 17 7255.96 5776.50 

Interest and commitment charges 18 700.90 565.80 

Depreciation, obsolescence, amortisation 

and impairment 19 1262.64 954.22 

62848.00 53087.43 



Current tax 1970.39 1113.43 


(Refer Note 9 of Schedule ’B’) 


2054.17 1494.56 


Less: Minority interest in income (48.13) (47.07) 

PROFIT AFTER TAXES AND MINORITY INTEREST 4050.09 2817.93 

Share of profit / (loss) of Associate Companies 17.09 (0.48) 

AMOUNT AVAILABLE FOR APPROPRATION 4067.18 2817.45 

Transfer from / (to) doubtful debts reserve 161.40 90.90 

AMOUNT AVAILABLE FOR DISTRIBUTION 4228.58 2908.35 

APPROPRIATIONS: 







(Equity share of Rs. 2 each) 

(Refer Note No. 10 of Schedule ‘B’ ) 



[A] 

[B] 









FINANCIALS 105

CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 31ST MARCH, 2008 

2007-08 2006-07 


[A] CASH FLOW FROM OPERATING ACTIVITIES 

Profit before taxes as per Profit and Loss account 6152.39 4359.56 

Adjustments for : 



Interest (net) 700.90 565.80 

Income from investments (2.39) (14.63) 

Profit on sale of investments (net) (18.13) (30.44) 

Unrealised exchange gain (net) (3.72) (57.46) 

Profit on sale of fixed assets (net) (8.83) (62.03) 


2110.46 1363.56 

Operating profit before working capital changes 8262.85 5723.12 

Adjustments for: 

(Increase)/Decrease in trade and other receivables (2180.21) (3475.22) 

(Increase)/Decrease in inventories (1482.57) (3197.25) 

Increase/(Decrease) in trade and other payables 2805.05 5918.57 

Increase/(Decrease) in provision for leave encashment 14.01 3.00 

(843.72) (750.90) 

Cash generated from operations 7419.13 4972.22 

Direct taxes and fringe benefit tax refund/(paid) (1868.13) (1135.77) 

Minority interest in income (48.13) (47.07) 

Share of profit / (loss) of associate companies 17.09 (0.48) 

Cash generated from / (used in) operations [A] 5519.96 3788.90 

[B] CASH FLOW FROM INVESTING ACTIVITIES 

Add: Inflows from investing activities 

Sale of fixed assets 57.80 118.94 

Sale of investments 16299.13 12496.69 

Change in minority interest 75.77 167.44 

Adjustments on acquisition of subsidiary/minority interest 267.95 – 

Cash and cash equivalents acquired pursuant to acquisition 

of a subsidiary company 4.17 14.13 


16707.21 12811.83 

Less: Outflows from investing activities 

Purchase of fixed assets (2582.84) (6483.93) 

Purchase of investments (16555.83) (12468.44) 

Acquisition of subsidiary and minority interest (752.58) (437.88) 

Adjustments on acquisition of subsidiary/minority interest – (667.18) 

Change in investment in associate companies (17.09) 0.48 

(19908.34) (20056.95) 

Net Cash (used in) / from investing activities [B] (3201.13) (7245.12) 

106 



CONSOLIDATED CASH FLOW STATEMENTFOR THE YEAR ENDED 31ST MARCH, 2008 

2007-08 2006-07 

Rs. million 

Rs. million 

[C] CASH FLOW FROM FINANCING ACTIVITIES 

Add: Inflows from financing activities 

Secured loans – 4876.79 

– 4876.79 

Less: Outflows from financing activities 

Secured loans (886.74) – 

Unsecured loans (21.39) (13.31) 

Interim dividend paid (620.41) (417.46) 

Corporate tax on dividend (75.88) (85.39) 

Interest (net) (684.22) (563.05) 

(2288.64) (1079.21) 

Cash generated from / (used in) financing activities [C] (2288.64) 3797.58 

NET CHANGES IN CASH AND CASH EQUIVALENTS (A+B+C) 30.19 341.36 

Cash and cash equivalents at beginning of the year 2414.67 2073.31 

Cash and cash equivalents at end of the year 2444.86 2414.67 

NOTES: 

1. The cash flow statement has been prepared under the indirect method as set out in Accounting Standard (AS) 3 Cash Flow Statements. 

2. Additions to fixed assets includes movements of capital work-in-progress during the year. 

3. Figures for the previous year have been re-grouped/re-classified wherever necessary. 








FINANCIALS 107

SCHEDULES FORMING PART OF CONSOLIDATED ACCOUNTS 

As at 

As at 


SHARE CAPITAL Rs. million Rs. million 

Authorised 

62,50,00,000 Equity Shares of Rs.2 each 1250.00 1250.00 

Issued and Subscribed 


Paid-up 


Add: Forfeited shares 42,300 Equity shares of Rs.2 each 0.03 0.03 

733.17 733.17 

As at Additions Deductions As at 


RESERVES AND SURPLUS Rs. million Rs. million Rs. million Rs. million 

Capital Reserve on consolidation 1760.42 – 193.64 (a) 1566.78 

Capital Reserve 191.25 – – 191.25 

Securities Premium Account 2068.19 – – 2068.19 

Capital Redemption Reserve 100.00 – – 100.00 

Revaluation Reserve 149.67 – 2.06 (b) 147.61 

Government Subsidy 5.37 – 1.42 (c) 3.95 

Foreign Currency Transalation Reserve (492.56) 265.25 – (227.31) 

Investment Allowance (Utilised) Reserve 7.27 – 4.00 (c) 3.27 

Doubtful Debts Reserve 166.00 – 161.40 4.60 

Less: Provisions, per contra (165.61) – (161.01) (4.60) 

3790.00 265.25 201.51 3853.74 

Retained Earnings 5165.32 3547.81 (c) 282.19 (d) 8430.94 

Total 8955.32 3813.06 483.70 12284.68 

Previous year 7330.08 2469.83 844.59 8955.32 

NOTES: 

(a) Deduction from capital reserve represents Rs. 193.64 million goodwill arising on acquisition of minority interest in a subsidiary (Refer Note 

17 of Schedule ‘B’) 

(b) Depreciation on revalued fixed assets, recouped from revaluation reserve Rs.2.06 million. 

(c) Addition to Retained Earnings represents Rs. 3,542.39 million transferred from profit and loss account, Rs. 4.00 million transferred from 

Investment Allowance (Utilised) Reserve and Rs. 1.42 million transferred from Government Subsidy 

(d) Deduction from retained earnings represents Rs. 282.19 million on account of employee benefits provided as per Accounting Standard (AS) 

15 Employee Benefits. 

(e) Retained earnings comprises of general reserves and profit and loss account balances. 

108 




As at 

As at 


MINORITY INTEREST Rs. million Rs. million 

Opening balance 283.99 116.54 

Adjustment on account of subsidiaries (208.39) 121.61 

Share of profit for the year 48.13 47.07 

Dividend to minority shareholders (1.23) (1.23) 

Closing balance 122.50 283.99 

As at 

As at 


SECURED LOANS Rs. million Rs. million 

Term Loans 

From banks 

Rupees 3416.37 92.00 


From financial institutions 

Rupees 2676.35 1195.97 

Working Capital Demand Loans 

From banks 

Rupees – 660.00 


8119.77 8726.06 

As at 

As at 


UNSECURED LOANS Rs. million Rs. million 

Inter-corporate deposits 

From others 20.69 – 

Lease Finance 27.14 31.80 

Others 

Interest free sales tax deferral loans from State Governments 251.91 286.86 

{Due within one year Rs. 59.95 million (Previous year Rs. 34.95 million)} 

299.74 318.66 

FINANCIALS 109


SCHEDULE : 6 

FIXED ASSETS Rs. million 

Gross block (Cost / Valuation) Impairment Depreciation / Obsolescence / Amortisation Net block 

ASSETS As at Additions Deductions Translation As at As at Reversed As at Upto For the Deductions Translation Upto As at As at 

1-04-2007 Adjustments 31-03-2008 1-04-2007 31-03-2008 1-04-2007 year Adjustments 31-03-2008 31-03-2008 31-03-2007 

(A) Tangible Assets 

Freehold Land 311.34 – – 6.27 317.61 7.92 7.92 – – – – – – 317.61 303.42 

Buildings 5647.12 150.22 37.01 763.73 6524.06 23.04 11.50 11.54 2262.96 238.71 10.74 678.29 3169.22 3343.30 3361.12 

Plant and Equipments 11283.23 2008.49 123.07 523.26 13691.91 53.26 26.62 26.64 8002.63 597.22 118.67 533.37 9014.55 4650.72 3227.34 

Railway Sidings 0.15 – – – 0.15 – – – 0.14 – – – 0.14 0.01 0.01 

Furniture and Fixtures 1765.39 168.84 103.29 35.71 1866.65 20.27 6.26 14.01 1441.72 90.80 99.51 48.78 1481.79 370.85 303.40 

Vehicles 252.81 31.82 36.43 63.57 311.77 1.45 – 1.45 128.70 29.83 22.59 58.24 194.18 116.14 122.66 

Sub-total (A) 19260.04 2359.37 299.80 1392.54 22712.15 105.94 52.30 53.64 11836.15 956.56 251.51 1318.68 13859.88 8798.63 7317.95 

(B) Intangible Assets 

Goodwill on consolidation 2408.50 511.72 – 259.44 3179.66 – – – 110.39 280.43 – 33.98 424.80 2754.86 2298.11 

Leasehold Land 118.87 27.29 – – 146.16 2.12 2.12 – 21.42 1.27 – – 22.69 123.47 95.33 

Computer Software 452.10 174.25 14.45 48.94 660.84 – – – 386.96 49.73 13.76 35.60 458.53 202.31 65.14 

Technical Know-how 29.69 – – – 29.69 – – – 5.93 5.94 – – 11.87 17.82 23.76 

Patents and Licenses 25.60 0.22 – (25.58) 0.24 – – – 3.10 0.05 – (3.15) – 0.24 22.50 

Research and Development 36.80 74.36 – 14.15 125.31 – – – 7.50 25.14 – 21.77 54.41 70.90 29.30 

Sub-total (B) 3071.56 787.84 14.45 296.95 4141.90 2.12 2.12 – 535.30 362.56 13.76 88.20 972.30 3169.60 2534.14 

Total (A+B) 22331.60 3147.21 314.25 1689.49 26854.05 108.06 54.42 53.64 12371.45 1319.12 265.27 1406.88 14832.18 11968.23 9852.09 

Previous year 17121.74 5670.01 460.15 – 22331.60 127.74 19.68 108.06 11798.08 976.61 403.24 – 12371.45 

Add : Capital work-in-progress 475.82 1020.61 

12444.05 10872.70 

110 





INVESTMENTS Rs. million Rs. million Rs. million Rs. million 

(At cost, unless otherwise specified) 


Government and trust securities 7.48 7.48 

Fully paid shares of associate companies 266.54 251.65 

(Under Equity Method) 

Fully paid preference/equity shares of other companies 5.23 15.23 

Bonds and Debentures 360.52 360.52 

639.77 634.88 

Current Investments 

Other fully paid equity shares 8.29 9.17 

Other investments 286.26 0.55 

294.55 9.72 

934.32 644.60 


INVENTORIES Rs. million Rs. million Rs. million Rs. million 

Stores, spares and packing materials 33.38 32.33 

Raw materials 3633.89 3122.82 

Work-in-process - Manufacturing 5269.75 4170.45 

- Contracts 

At cost 58.54 329.03 

At realisable sales value 2267.52 1776.74 

2326.06 2105.77 

Less: Progress payments 1807.85 1505.60 

518.21 600.17 

5787.96 4770.62 

Finished goods - Manufacturing 755.45 1017.46 

Add:- Excise duty on finished goods 36.28 49.38 

791.73 1066.84 

- Trading goods 416.67 163.51 

1208.40 1230.35 

10663.63 9156.12 


SUNDRY DEBTORS (Unsecured) Rs. million Rs. million Rs. million Rs. million 

Debts outstanding for a period 

exceeding six months 



2559.04 1779.62 

Other debts 



17521.29 14503.92 

Less: Provisions for doubtful debts 317.15 290.41 

17204.14 14213.51 

17204.14 14213.51 

FINANCIALS 111



CASH AND BANK BALANCES Rs. million Rs. million Rs. million Rs. million 

Cash on hand 3.52 3.82 

Bank balances with scheduled banks 



1653.64 1809.45 

Bank balances with Non scheduled banks 



787.70 601.40 

2444.86 2414.67 


LOANS AND ADVANCES Rs. million Rs. million Rs. million Rs. million 

(Unsecured, considered good) 

Advances recoverable in cash or in kind 

or for value to be received 



Less: Provision for doubtful advances 41.39 44.40 

3140.31 3186.52 

Balances with excise, customs, service tax 

and value added tax etc. 563.45 458.99 

3703.76 3645.51 


CURRENT LIABILITIES Rs. million Rs. million Rs. million Rs. million 

Sundry creditors 12228.50 11661.57 

Advances from customers 6736.06 1701.04 

Investor Education and Protection Fund 

Unclaimed dividend 10.56 7.81 

Unclaimed matured fixed deposits 2.61 5.07 

13.17 12.88 

Due to Directors 38.17 28.07 

Interest accrued but not due on loans 46.27 29.59 

Other Liabilities: 

Security deposits 67.48 44.72 

Others 2540.86 6694.40 

2608.34 6739.12 

Due to erstwhile Shareholders of Pauwels group 44.13 64.12 

21714.64 20236.39 

112 




As at 

As at 


PROVISIONS Rs. million Rs. million 

Taxes 1970.39 1113.43 


Interim dividend 146.63 183.28 



Gratuity 27.06 71.94 

Other Employee Benefits 1197.54 – 

Others provisions 1149.21 571.96 

(Refer note 15 of Schedule ‘B’) 

4708.37 2111.70 


OTHER INCOME Rs. million Rs. million 

Income from 

Lease of premises 99.52 19.92 

Business Service Centres 87.62 85.13 

187.14 105.05 


Exchange gain (net) 140.55 330.85 

Profit on sale of fixed assets (net) 8.83 62.03 

Profit on sale of investments (net) 18.13 30.44 

Miscellaneous income 319.98 508.39 

677.02 1051.39 

FINANCIALS 113



MATERIALS, MANUFACTURING Rs. million Rs. million Rs. million Rs. million 

AND OPERATING EXPENSES 

Raw materials consumed 

Opening stock 3122.82 1760.40 

Add: Purchases 38561.37 34377.90 

(including construction materials Rs. 197.47 

million; previous year Rs. 128.25 million) 

Less: Closing stock 3633.89 3122.82 

Total 38050.30 33015.48 

Add: Sub contracting charges 1491.44 1049.26 

Less: Scrap sales 717.67 540.36 

38824.07 33524.38 

Purchase of trading goods 6020.07 5634.75 

(Increase)/decrease in stocks 

Closing Stock 


- Contracts 58.54 329.03 


6536.69 5729.83 

Opening Stock 


- Contracts 329.03 255.50 


5729.83 (806.86) 3967.40 (1762.43) 

44037.28 37396.70 

Stores and spares 533.50 435.95 

Power and fuel 604.59 457.09 

Repairs - Buildings 132.22 34.78 

- Plant and equipments 255.63 238.73 

Technical and testing fees 97.20 56.19 

45660.42 38619.44 


STAFF EXPENSES Rs. million Rs. million 

Salaries, wages and bonus 6422.90 5558.24 

Provident fund and family pension scheme contributions 878.99 969.36 

Superannuation fund contributions 31.16 25.86 

Gratuity 36.67 41.01 


Workmen and staff welfare 549.17 546.73 

7968.08 7171.47 

114 





SELLING AND ADMINISTRATION EXPENSES Rs. million Rs. million Rs. million Rs. million 

Rent 187.18 129.00 

Repairs-others 112.28 62.42 

Rates and taxes 401.47 276.58 

Insurance 250.12 232.94 

Travelling 466.45 383.61 

Vehicle maintenance 104.01 81.88 

Legal and professional charges 579.02 413.32 

Auditors’ remuneration (excluding service tax) 

Audit fees 51.24 91.61 

Tax audit fees 0.89 0.85 

Taxation matters – 0.32 

Certification work 0.34 0.40 

Other services 2.22 2.70 

Expenses reimbursed 0.38 0.79 

55.07 96.67 

Forwarding, godown and packing 2159.25 1744.94 

Advertising 296.24 182.11 

After sales services including warranties 696.40 267.01 

Sales promotion 203.64 157.47 

Miscellaneous expenses 1361.81 1433.93 

Bad debts and advances 201.63 302.87 



Directors’ fees 1.40 3.65 

7255.96 5776.50 


INTEREST AND COMMITMENT CHARGES Rs. million Rs. million 

Fixed loans 363.85 284.10 

Others 417.38 298.63 

781.23 582.73 

Less: Interest income 80.33 16.93 

700.90 565.80 


DEPRECIATION, OBSOLESCENCE, AMORTISATION Rs. million Rs. million 

AND IMPAIRMENT 

Depreciation, obsolescence and amortisation 1319.12 976.61 

Impairment provided / (reversed) (54.42) (19.68) 

Recoupment of revaluation reserve (2.06) (2.71) 

1262.64 954.22 

FINANCIALS 115


SCHEDULE : 20 As at As at 

31-03-2008 31-03-2007 

CONTINGENT LIABILITIES Rs. million Rs. million 

(a) Claims against the companies not 

acknowledged as debts 162.21 388.26 

(b) Sales tax liability that may arise in respect 

of matters in appeal 25.53 23.60 

(c) Excise duty / Service tax liability that may 

arise in respect of matters in appeal 

preferred by the Company 155.79 150.40 

(d) Excise duty / Service tax liability that may 

arise in respect of matters disputed by 

the Department 3.35 33.90 

(e) Income tax liability that may arise 

in respect of matters in appeal by the 

company 18.54 – 

(f ) Income tax liability that may arise 

in respect of which the department have 

preferred an appeal 120.29 74.50 

(g) Guarantees issued to bankers by 

associate companies 3.13 2.01 

(h) Guarantee given on behalf of associate 

company 43.70 47.34 

(i) Bills discounted 1579.06 993.81 

116 




SCHEDULE [A] 


1 Basis of Presentation 

The consolidated financial statements relate to Crompton Greaves Limited (the Parent Company), its subsidiary companies and associates. 

The Parent Company with its subsidiaries and associates constitute the Group. 

(a) 

(b) 

(c) 

(d) 

The Financial Statements of the subsidiary companies used in the consolidation are drawn upto the same reporting date as that of the 

Parent Company, i.e. year ended 31st March, 2008. 

The Company maintains its accounts on accrual basis following the historical cost convention, except for the revaluation of certain fixed 

assets, in accordance with the Generally Accepted Accounting Principles (GAAP) and in compliance with the Accounting Standards 

specified in the Companies (Accounting Standards) Rules, 2006 notified by the Central Government and other provisions of the 

Companies Act, 1956. However, certain escalation and other claims are accounted for in terms of contract with the customers. 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 and 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. Examples of such estimates include the useful lives of fixed assets and intangible assets, 

provision for doubtful debts/advances, future obligation in respect of retirement benefit plans, etc., actual result could differ from these 

estimates. Any revisions to accounting estimates are recognised prospectively in the current and future periods. 

The accounts of all Indian subsidiaries and associates are prepared in compliance with the Accounting Standards specified in the 

Companies (Accounting Standards) Rules, 2006 notified by the Central Government and other provisions of the Companies Act, 1956 

and those of the foreign subsidiaries and associates, have been prepared in compliance with the local laws and applicable accounting 

standards, wherever necessary. 

2 Principles of Consolidation 

(a) 

(b) 

(c) 

(d) 

(e) 

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 and are presented to the extent possible, in the same manner as the Company’s independent 

financial statements. 

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 subsidiaries 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. Where the share of equity in the subsidiary companies as on the date of investment, is in excess of cost of investment of the 

company, it is recognised as ‘capital reserve on consolidation’ and shown under the head Reserves and Surplus, in the consolidated 

financial statements. 

Minority interest in the net assets of consolidated subsidiaries consists of the amount of equity attributable to the minority shareholders 

at the dates on which investments are made by the company in the subsidiary companies and further movements in their share in the 

equity, subsequent to the date of investments. 

Investments in associate companies have been accounted under the Equity Method as per Accounting Standard (AS) 23 Accounting 

for Investments in Associates in Consolidated Financial Statements. 

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 profit and loss account reflects the investor’s share of the results of the operations of the 

Investee. 

3 Fixed Assets 

(a) 

(b) 

Fixed assets are stated at cost net of tax / duty credit availed, if any, except for land and buildings added prior to 30th June, 1985 which 

are stated at revalued cost as at that date based on the report of technical expert (in case of Parent Company). 

Lump sum fees paid for acquisition of technical know-how relating to plant and machinery is capitalised as intangible asset. 

FINANCIALS 117


SCHEDULE [A] 


(c) Fixed assets are eliminated from financial statements, either on disposal or when retired from active use. The retired assets are disposed 

off immediately. The capitalised cost of such disposed / retired assets, are removed from the fixed assets records. 

(d) Pre-operative expenses, including interest on borrowings till the date of commissioning, for the projects, where applicable, incurred till 

the projects are ready for commercial production, are treated as part of the project cost and capitalised. 

(e) Internally manufactured / constructed fixed assets are capitalised at factory cost, including excise duty, where applicable. 

(f ) 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. 

4 Impairment of Assets 

(a) The carrying amount of assets, other than inventories is reviewed at each balance sheet date, to determine whether there is any 

indication of impairment. If any such indication exists, the recoverable amount of the assets is estimated. 

(b) An impairment loss is recognized, whenever the carrying amount of assets or its cash generating units exceeds its recoverable amount. 

The recoverable amount is the greater of the asset’s net selling price and value in use which is determined based on the estimated 

future cash flow generated from the continuing use of an asset and from its disposal at the end of its useful life, discounted to their 

present values. 

(c) An impairment loss is reversed, if there has been a change in the estimates made to determine and recognise the recoverable amount 

in the earlier year. 

5 Intangible Assets and Amortisation 

Intangible assets are recognised as per the criteria specified in the Accounting Standard - Intangible Assets and are amortised as under: 

(a) Leasehold land : Over the period of lease; 

(b) Specialised software : Over a period of three - five years; 

(c) Lump sum fees for technical know-how : Over a period of five years from the year of commercial production; 

(d) Goodwill on consolidation : Over the period of ten years. 

(e) Other intangible assets : Over the period of five years 

6 Investments 

(a) Long term investments are carried at cost after providing for any diminution in value, if such diminution is of other than temporary 

nature. 

(b) 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. 

7 Inventories 

Inventories are valued at 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 and spares 

(b) Work-in-progress - Manufacturing : At Cost plus appropriate production overheads 

(c) Work-in-progress - Contracts : At Cost till certain percentage of completion and thereafter at realisable value 

(d) Finished goods - Manufacturing : At Cost, plus appropriate production overheads, including excise duty paid / payable 

on such goods 

(e) Finished goods - Trading : At Cost, on Weighted average basis. 

8 Foreign Currency Transactions, Forward Contracts and Derivatives 

(a) The reporting currency of the Company is Indian Rupee. 

(b) Foreign currency transactions are recorded on initial recognition in the reporting currency, using the exchange rate at the date of 

transaction. At each balance sheet, foreign currency monetary items are reported using the closing rate. Exchange differences that arise 

on settlement of monetary items are recognised as income or expense in the period in which they arise. 

118 




SCHEDULE [A] 


(c) The Company uses foreign exchange forward contract to hedge its exposure to movements in foreign exchange rates. The use of these 

contracts reduces the risk or cost and the company does not use these contracts for trading or speculation purposes. Cash flows arising 

on account of roll over / cancellation are recognised as income / expense of the period in line with the movement in the underlying 

exposures. 

(d) Derivative transactions are considered as off-balance sheet items and cash flows arising there from are recognised in the books of 

account as and when the settlements take place / over the tenor thereof in accordance with the terms of the respective contracts. 

(e) In accordance with the requirement of Accounting Standard (AS) 11The effects of changes in foreign exchange rates, operations of 

foreign subsidiaries which are considered as non-integral operations, their financial statements are converted in Indian Rupees at the 

following exchange rates: 

(i) Revenue and Expenses: At the average exchange rate during the year 

(ii) Current Assets and Current Liabilities: Exchange rate prevailing at the end of the year. 

(iii) Fixed Assets: Exchange rate prevailing at the end of the year. 

(iv) Share Capital: At the original rate when the capital was infused. 

(v) The resultant translation exchange differences are accumulated in the Foreign Currency Translation Reserve. 

9 Revenue Recognition 

(a) Revenue from sale of products are recognised when all the significant risk and reward of ownership of the products are passed on to 

the customers, which is generally on despatch of goods and acceptance. 

(b) Service income is recognised as per the terms of the contract with the customer, when the related services are performed. 

(c) Sales include excise duty and price variation and is recognised in terms of contracts with the customers. Sales exclude value added tax 

/ sales tax, brokerage and commission. 

(d) Revenue from contracts is recognised based on percentage completion after providing for expected losses. 

(e) Excise duty in respect of finished goods is included in the valuation of finished goods. 

(f ) Dividend income is accounted for when the right to receive income is established. 

10 Employee Benefits 

Employee benefits including contributions towards social security, retirement benefit schemes are accounted for based on the regulatory 

framework in the respective countries and employment rules / contracts applicable to the specifc companies. 

11 Depreciation 

(a) Depreciation on the fixed assets is provided at the minimum rates and in the manner specified in Schedule XIV of the Companies Act, 

1956, on written down value method except in the case of parent Company, where depreciation on buildings and plant and equipment 

is provided on straight line method. 

(b) Building constructed on leasehold land are depreciated at normal rate as prescribed in Schedule XIV to the Companies Act, 1956, where 

the lease period of land is beyond the life of the building. In other cases, amortised over the lease period. 

(c) 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. 

(d) In case of impaired assets, the depreciation is charged on the adjusted cost computed after impairment. 

(e) In case of foreign subsidiaries, depreciation on fixed assets has been provided at the rates required/permissible by the Generally 

Accepted Accounting Principles of the respective countries. However, the depreciation rates are higher than the rates specified in the 

Schedule XIV of the Companies Act, 1956. 

12 Research and Development 

(a) Revenue expenditure on research and development is charged under respective heads of account. 

(b) Capital expenditure on research and development is included as part of fixed assets and depreciated on the same basis as other fixed 

assets. 

FINANCIALS 119


SCHEDULE [A] 


13 Borrowing Costs 

(a) Borrowing costs that are attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the 

cost of such asset till such time as the asset is ready for its intended use or sale. 

(b) All other borrowing costs are recognised as expense in the period in which they are incurred. 

14 Leases 

(a) Assets acquired under leases where the company has substantially all the risks and rewards of ownership are classified as finance leases. 

Such assets are capitalised at the inception of the lease at the lower of the fair value or the present value of minimum lease payments 

and a liability is created for an equivalent amount. Each lease rental paid is allocated between the liability and the interest cost, so as to 

obtain a constant periodic rate of interest on the outstanding liability for each period. 

(b) Assets acquired on leases where a significant portion of the risks and rewards of ownership are retained by the lessor are classified as 

operating leases. Lease rentals are charged to the profit and loss account on accrual basis 

15 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 relevant tax laws and based on the expected outcome of assessments/appeals. 

(b) Deferred tax is recognised on timing difference between the accounting income and the taxable income for the year and quantified 

using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date. 

(c) Deferred tax assets are recognised and carried forward only to the extent that there is reasonable certainty supported by convincing 

evidence that sufficient future taxable income will be available against which such deferred tax assets can be realised. 

16 Provisions, Contingent liabilities and Contingent assets` 

(a) Provisions are recognised for liabilities that can be measured only by using a substantial degree of estimation, if 

i) the Company has a present obligation as a result of past event; 

ii) a probable outflow of resources is expected to settle the obligation; and 

iii) the amount of the obligation can be reliably estimated. 

(b) Reimbursements by another party, expected in respect of expenditure required to settle a provision, is recognised when it is virtual 

certain that reimbursement will be received if obligation is settled. 

(c) Contingent liability is disclosed in the case of 

i) a present obligation arising from past event, when it is not probable that an outflow of resources will be required to settle the 

obligation; 

ii) a possible obligation, unless the probability of outflow of resources is remote. 

(d) Contingent assets neither disclosed nor recognised. 

(e) Provision, contingent liabilities and contingent assets are reviewed at each balance sheet date. 

120 




SCHEDULE : [B] 


1 (a) In terms of Accounting Standard (AS) 21 Consolidated Financial Statements and (AS) 23 Accounting for Investments in Associates in 

Consolidated Financial Statements, the consolidated financial statements present the consolidated accounts of Crompton Greaves 

Limited (the Parent Company) with its subsidiaries and associates as under: 

Country of As at As at 

Incorporation 31-03-2008 31-03-2007 

Proportion of 

Proportion of 

Ownership Interest Ownership Interest 

Sr. either directly or either directly or 

No. through subsidiary through subsidiary 

Subsidiaries 

1 CG Capital & Investments Limited India 100.00 100.00 

2 CG Energy Management Private Limited India 100.00 100.00 


3 CG PPI Adhesive Products Limited India 81.42 81.42 

4 Malanpur Captive Power Limited India 58.14 60.95 

5 CG International BV Netherlands Antilles 100.00 100.00 

6 Pauwels International NV Belgium 100.00 100.00 

7 Pauwels Contracting Inc Canada – 100.00 

(merged with Pauwel Canada Inc. w.e.f. 01.04.2007) 

8 Pauwels Trafo Belgium NV Belgium 100.00 100.00 

9 Pauwels Trafo Ireland Limited Ireland 100.00 100.00 

10 Pauwels Transformer Inc USA 100.00 100.00 

11 Pauwels Canada Inc Canada 100.00 100.00 

12 PT Pauwels Trafo Asia Indonesia 95.00 60.00 

13 Pauwels France SA France 100.00 100.00 

14 Pauwels Americas Inc. USA 100.00 100.00 

15 Pauwels Trafo Gent NV Belgium 100.00 100.00 

16 Pauwels Trafo Service NV Netherlands Antilles 100.00 100.00 

17 CG Hungary Kft Hungary 100.00 100.00 

18 Ganz Transelektro Villamossagi Zrt Hungary 100.00 100.00 

19 Transverticum Kft Hungary 100.00 100.00 

20 Microsol Holdings Limited Ireland 100.00 – 

21 Microsol Limited Ireland 100.00 – 

22 Microsol (UK) Limited United Kingdom 100.00 – 

23 Viserge Limited Ireland 100.00 – 

24 Microsol Inc USA 100.00 – 

25 Tricon Controls Limited United Kingdom 100.00 – 

26 Microsol Europe Limited (liquidated on 17.02.2008) Ireland – – 

27 Microsol (Utility Solutions) Inc. (liquidated on 17.12.2007) Ireland – – 

(Acquired the Microsol Group on 28.05.07 (Sr. No 20 to 27) 

during the year) 

FINANCIALS 121




Country of As at As at 

Incorporation 31-03-2008 31-03-2007 

Proportion of 

Ownership Interest 

either directly or 

through subsidiary 

Proportion of 

Ownership Interest 

either directly or 

through subsidiary 

Associates 

1 Brook Crompton Greaves Limited India 49.00 49.00 

2 CG Actaris Electricity Management Private Limited India 49.00 49.00 

(formerly CG Actaris Electricity Management Limited) 

3 CG Lucy Switchgear Limited India 50.00 50.00 

4 International Components India Limited India 50.00 50.00 

5 Pauwels Middle East Trading & Contracting Private Limited Sharjah 49.00 49.00 

(b) 

(c) 

(d) 

For the purpose of consolidation, the financial statements of CG International BV, which includes the accounts of the foreign subsidiaries 

and associates (Pauwels, Ganz and Microsol Group) as at 31st March, 2008, has been restated to comply with the Generally Accepted 

Accounting Principles in India. 

In case of CG Actaris Electricity Management Private Limited, the financial statements as at 31st December, 2007 have been considered. 

There were no material adjustments required for any significant events or transactions for three months upto 31st March, 2008 

For the purpose of consolidation in accordance with Accounting Standard (AS) 23, certain associates which do not fulfill the criterion 

specified in the said standard have been excluded. Investments in such associates have been accounted for in accordance with 

Accounting Standard (AS) 13 Accounting for Investments. The list of associates not included in the Consolidated Financial Statements 

are as under. 

(i) Power Equipment Limited 

(ii) Radiant Electronics Limited 

31-03-2008 31-03-2007 


2 Goodwill on Consolidation : 

Opening Balance 2298.11 – 

Goodwill on acquisition of subsidiaries during the year 511.72 2408.50 

Less : Goodwill charged to profit and loss account during the year 280.43 110.39 

Add : Translation adjustment 225.46 – 

Closing balance 2754.86 2298.11 

3 The effect of acquisitions of subsidiaries during the year : Effect on Group Net Assets as at 

Profit After 31st March, 2008 

Minority Interest 

Rs. million 

Increase / Increase / 

(Decrease) 

(Decrease) 

Microsol Holdings Limited, Ireland 25.22 (201.03) 

122 



SCHEDULES FORMING PART OF CONSOLIATED ACCOUNTS 



2007-08 2006-07 


4 Estimated amount of contracts remaining to be executed on 

capital account and not provided for (net of advances) 302.76 486.30 

5 Sales include 

(a) Increase / (Decrease) in construction work-in-progress: 

(i) Closing work-in-progress 2267.52 1776.74 

(ii) Less: Opening work-in-progress 1776.74 1111.19 

490.78 665.55 

and are net of: 

(b) Brokerage and commission 577.97 454.83 

(c) Cash discount 74.23 56.63 

6 Disclosure under AS-7 Construction Contracts 

(a) Contract revenue recognised 1914.13 2046.19 

(b) Advance received 1285.56 49.55 

(c) Retentions 55.86 605.60 

(d) Amount of contract costs incurred 1543.69 2053.00 

7 Exchange difference on foreign currency transactions capitalised – 48.67 

during the year 

8 Advances recoverable in cash or in kind or for value to be received include: 

Rent deposit with director 0.11 0.11 

9 Deferred Tax 

The major components of deferred tax assets and deferred tax liabilities are as under:- 

Rs. million 


Particular Deferred Deferred Deferred Deferred 

Tax Tax Tax Tax 

Assets Liabilities Assets Liabilities 

Difference between book and tax depreciation – 718.68 – 511.84 

Expenses allowable for tax purposes when paid/ 

on payment of TDS 143.90 – 21.00 – 

Unabsorbed carried forward tax losses / depreciation 1010.01 – 812.30 – 

Other items giving rise to timing differences 152.88 – 96.72 – 

1306.79 718.68 930.02 511.84 

Net deferred tax (liability) / asset 588.11 418.18 

Deferred tax (liabilities)/assets charged / (credited) 

to Retained Earnings on adoption of Accounting 

Standard (AS) 15 Employee Benefits 126.68 

Effect of translation gain / (loss) 76.73 

Net (liability) charged to the Profit and Loss Account (33.48) 

Net incremental (liability)/asset 169.93 

FINANCIALS 123




10 Disclosures as required by Accounting Standard (AS) 20 Earnings Per Share 

2007-08 2006-07 

Profit for the year after tax, minority interest and share 

of profit / (loss) of associate companies Rs. Million 4067.18 2817.45 

Number of equity shares outstanding 366566592 366566592 

Nominal value of share Rs./Share 2.00 2.00 


11 (a) The Company has not entered into any finance / operating lease as specified in Accounting Standard (AS) 19 Leases. The Company 

has, however taken various residential/commercial premises and plant and equipments under cancellable operating lease. These lease 

agreeements are normally renewed on expiry, wherever required. 

The Company has entered into non cancellable operating lease for certain office equipments. The details of liability are as mentioned 

below: 

2007-08 2006-07 

Rs. million 

Rs. million 

Amount due within one year 8.53 7.80 

Amount due one to five years 18.61 24.00 

Total 27.14 31.80 

(b) There are no exceptional / restrictive covenants in the lease agreements. 

12 Disclosures as required by Accounting Standard (AS) 18 Related Party Disclosures 

(a) Relationships: 

(i) List of related parties with whom transactions were carried out during the year: 

Associates : 

1 Brook Crompton Greaves Limited 

2 CG Lucy Switchgear Limited 

3 International Components India Limited 

(ii) Key Management Personnel and their relatives : 

1 Mr. G. Thapar - Chairman and Promoter Director 

2 Mr. S. M. Trehan - Managing Director 

(iii) Other Related Parties in which a director is interested: 

1 Ballarpur Industries Limited 

2 Solaris Chemtech Limited 

3 BILT Graphic Paper Products Limited 

4 BILT Power Limited 

5 Asia Aviation Limited 

124 



SCHEDULES FORMING PART OF CONSOLIATED ACCOUNTS 



(b) The following transactions were carried out with the related parties in the ordinary course of business: 

Rs. million 


No. 

1 Purchases of goods and services 

Associates 






Total 721.51 623.50 

2 Sales of goods and services 

Associates 





Ballarpur Industries Limited 5.86 6.86 

Solaris Chemtech Limited 12.08 – 

BILT Graphic Paper Products Limited 2.88 – 

BILT Power Limited 11.33 – 

Total 82.71 70.98 

3 Purchase of fixed assets 

Associate 

International Components India Limited – 0.75 



Total 562.50 0.75 

4 Interest expenses 

Associate 


Total – 0.77 

5 Dividend received 

Associate 


Total – 12.00 

6 Commission received 

Associates 



Total 7.98 3.84 

7 Rental income 



Total 28.40 – 

8 Rent paid 




Total 7.77 – 

FINANCIALS 125




Rs. million 


No. 

9 Payment of Salaries, commission and perquisities 


G. Thapar 25.38 15.35 

S. M. Trehan 23.69 20.02 


Total 49.07 35.87 

(c) 

Amount due to / from related parties 

Rs. million 


No. 

1 Accounts payable 

Associates 




Total 166.63 31.94 

2 Accounts receivable 

Associates 




Ballarpur Industries Limited – 1.70 

Total 24.40 15.09 

3 Loans and advances receivable 

Associates 

CG Lucy Switchgear Limited 0.13 – 

International Components India Limited 1.75 – 


Total 17.78 16.58 

4 Due to Key Management Personnel 


G. Thapar 25.38 15.35 

S.M. Trehan 6.09 6.12 


Total 31.47 21.97 

126 






13 Disclosures as required by Accounting Standard (AS) 17 Segment Reporting 

I A Primary Segment (Business Segment) 

Rs. million 

Particulars Power Consumer Industrial Others Eliminations Total 

Systems Products Systems Unallocable 2007-08 

Expenditure / 

Assets* 


Add: Inter segment Revenue 6.46 0.88 251.37 1.67 (260.38) – 

Total 48243.42 11667.91 11044.08 1118.75 (260.38) 71813.78 

Segment Results 4371.88 1208.06 1956.29 (1.90) – 7534.33 




Profit before taxes 6152.39 




Net Assets 13958.71 876.69 1617.93 1619.89 2898.53 20971.75 


Depreciation / Amortisation 694.95 67.15 170.52 41.04 288.98 1262.64 

* Unallocable Assets comprise Assets and Liabilities which cannot be allocated to the segments. Tax Credit Asset / 

Liability not considered in Capital Employed above. 

Rs. million 

Particulars Power Consumer Industrial Others Eliminations Total 

Systems Products Systems Unallocable 2006-07 

Expenditure / 

Assets* 


Add: Inter segment Revenue 1.28 13.70 248.92 – (263.90) – 

Total 39895.97 9940.31 8971.40 796.61 (263.90) 59340.39 

Segment Results 3272.00 954.60 1302.40 162.88 – 5691.88 




Profit before taxes 4359.56 




Net Assets 12304.76 775.61 1954.32 1575.74 1988.59 18599.02 


Depreciation / Amortisation 544.40 72.10 141.10 13.97 182.65 954.22 

* Unallocable Assets comprise Assets and Liabilities which cannot be allocated to the segments. Tax Credit Asset / 

Liability not considered in Capital Employed above. 

FINANCIALS 127




Rs. million 

2007-08 2006-07 

II 

Secondary Segment (Geographical Segment) 

(a) The distribution of sales: 

Sales and Service Revenue: 

Domestic 42738.99 30648.44 

Overseas 29074.79 28691.95 

Total 71813.78 59340.39 

(b) The location of tangible / intangible fixed assets : 

Particulars 

Domestic 6069.48 5164.80 

Overseas 6374.57 5707.90 

Total 12444.05 10872.70 

III Segment Identification, Reportable segment and definition of each reportable segment: 

(i) Segment Revenue and Results: 

The expenses and incomes which are not directly attributable to any business segment are shown as unallocable expenditure.(Net of 

unallocated income) 

(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 Standard 

(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, Luminaire, Light Sources and Pumps 

(c) Industrial Systems : Electric Motors and Alternators, Drives 

(d) Others : Telecommunication, Investment Activity, Generation and Distribution of electricity etc. 

14 As per the Accounting Standard (AS) 28 Impairment of Assets, the Company has reveiwed potential generation of economic benefits from 

fixed assets. Accordingly, impairment loss amounting to Rs. 54.42 million (Previous year Rs.19.68 million) provided in prior years has been 

reversed during the year. 

128 






15 Disclosures as required by Accounting Standard (AS) 29 Provisions, Contingent Liabilities and Contingent Assets 

a) Movement in provisions: 

Rs. million 

Nature of Provision Warranties Sales Tax Excise Duty 

2007-08 2006-07 2007-08 2006-07 2007-08 2006-07 

Carrying amount at the beginning of the year 406.77 355.12 70.00 43.30 4.30 – 

Additional provision made during the year 541.50 149.96 111.40 26.70 13.90 4.30 

Amounts used during the year 40.83 38.19 – – – – 

Unused amounts reversed during the year 76.64 60.12 – – – – 

Carrying amount at the end of the year 830.80 406.77 181.40 70.00 18.20 4.30 

Nature of Provision Liquidated damages Total 

2007-08 2006-07 2007-08 2006-07 

Carrying amount at the beginning of the year 90.89 – 571.96 398.42 

Additional provision made during the year 27.92 90.89 694.72 271.85 

Amounts used during the year – – 40.83 38.19 

Unused amounts reversed during the year – – 76.64 60.12 

Carrying amount at the end of the year 118.81 90.89 1149.21 571.96 

b) Nature of Provisions: 

i) Product Warranties: The Company gives warranties on certain products and services in the nature of repairs / replacement,which 

fail to perform satisfactorily during the warranty period. Provision made represents the amount of the expected cost of meeting 

such obligation on account of rectification / replacement.The timing of outflows is expected to within a period of two years. 

ii) Provision for sales tax represents sales tax liability on account of non-collection of declaration forms and other legal matters which 

are in appeal under the Act / Rules. 

iii) Provision for excise duty represents the differential duty liability that is expected to materalise in respect of matters in appeal. 

iv) Provision for liquidated damages has been made on contracts for which delivery dates are exceeded and computed in reasonable 

and prudent manner. 

c) Disclosure in respect of contingent liability: Refer Schedule 20. 

FINANCIALS 129




16 Derivative Instruments: 

The Company has made no losses on its derivative transactions. In addition, as a measure of prudence, gain of Rs.5.82 million has not been 

accounted. 

17 During the year CG International B.V., has acquired additional equity stake in PT Pauwels Trafo Asia, Indonesia from the minority shareholders. 

The goodwill arising out of this investment amounting to Rs. 193.64 million has been set off against the capital reserve accounted on 

acquisition of Pauwels Group in the year 2005-06 of which the above company is a subsidiary. 

18 The Group has availed the loan facility secured by the equitable mortage of fixed assets and hypothecation of inventories and receivables 

both present and future. 

19 Current year figures include the results of the subsidiaries acquired during the year. Consequently, the figures for the current year are 

not comparable with the figures of the previous year and figures for the previous year have been regrouped and reclassified, wherever 

necessary. 

Signatures to Schedule 1 to 20, A and B 








130 



ACCOUNTS 

IN FOREIGN 

CURRENCY 

Only for convenience of Shareholders 

FINANCIALS 131

STANDALONE BALANCE SHEET AS AT 31ST MARCH, 2008 


USD million USD million USD million USD million 



Share capital 18.27 16.87 

Reserve and surplus 213.72 138.25 

231.99 155.12 

LOAN FUNDS: 

Secured loans 15.55 55.52 

Unsecured loans 6.28 6.60 

21.83 62.12 

DEFERRED TAX: 


Less: Deferred tax assets 3.68 1.78 

13.02 8.64 

266.84 225.88 


FIXED ASSETS: 

Gross block 263.08 210.56 

Less: Depreciation, obsolescence, amortisation 


Net block 122.81 89.72 


128.44 99.70 

INVESTMENTS 48.44 31.08 


Inventories 65.54 56.82 

Sundry debtors 238.34 184.93 

Cash and bank balances 39.29 39.93 

Loans and advances 69.64 54.38 

412.81 336.06 

Less: CURRENT LIABILITIES AND PROVISIONS: 

Current liabilities 259.52 204.60 

Provisions 63.33 36.36 

322.85 240.96 

NET CURRENT ASSETS 89.96 95.10 

266.84 225.88 

Note: Exchange rate considered for 1 USD in 2007-08 is Rs. 40.12 and for 2006-07 is Rs. 43.47. 

132 



STANDALONE PROFIT & LOSS ACCOUNTFOR THE YEAR ENDED 31ST MARCH, 2008 

2007-08 2006-07 


INCOME: 




Other income 17.35 8.02 

983.39 782.72 

EXPENDITURE: 

Materials, manufacturing and operating expenses 697.92 581.60 

Staff expenses 50.10 40.09 

Selling and administration expenses 97.44 74.33 

Interest and commitment charges 6.76 6.98 


862.35 712.05 



Current tax 37.90 19.32 



42.81 26.37 



Transfer from/(to) doubtful debts reserve 4.02 2.06 









Earnings Per Share (Basic and Diluted) (in USD) 0.21 0.12 

NOTE: Exchange rate considered for 1 USD in 2007-08 is Rs. 40.12 and for 2006-07 is Rs. 43.47. 

FINANCIALS 133

STANDALONE BALANCE SHEET AS AT 31ST MARCH, 2008 


Euro million Euro million Euro million Euro million 





146.72 116.52 

LOAN FUNDS: 



13.80 46.66 

DEFERRED TAX: 


Less: Deferred tax assets 2.32 1.34 

8.24 6.49 

168.76 169.67 


FIXED ASSETS: 

Gross block 166.39 158.17 



Net block 77.67 67.40 


81.23 74.89 







261.07 252.42 




204.18 180.99 

NET CURRENT ASSETS 56.89 71.43 

168.76 169.67 

NOT E : Exchange rate considered for 1 EURO in 2007-08 is Rs. 63.4375 and for 2006-07 is Rs. 57.87. 

134 



STANDALONE PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2008 

2007-08 2006-07 


INCOME: 





621.93 587.95 

EXPENDITURE: 






545.38 534.91 






27.07 19.81 





General reserve 4.95 3.32 







Earnings Per Share (Basic and Diluted) (in EURO) 0.13 0.09 

NOTE: Exchange rate considered for 1 EURO in 2007-08 is Rs. 63.4375 and for 2006-07 is Rs. 57.87. 

FINANCIALS 135








324.47 222.88 

MINORITY INTEREST 3.05 6.53 

LOAN FUNDS: 



209.86 208.07 

537.38 437.48 


FIXED ASSETS: 

Gross block 669.34 513.72 



Net block 298.31 226.64 


310.17 250.12 


DEFERRED TAX: 



14.66 9.62 






847.87 677.01 




658.60 514.10 


537.38 437.48 

NOTE: Exchange Rate considered for 1 USD in 2007-08 is Rs. 40.12 and for 2006-07 is Rs. 43.47. 

136 



CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2008 

2007-08 2006-07 


INCOME: 





1719.84 1321.54 

EXPENDITURE: 






1566.51 1221.25 






51.19 34.38 




Share of profit/(loss) of Associate Companies 0.43 (0.01) 










Earnings Per Share (Basic and Diluted) in USD 0.28 0.18 

NOT E : Exchange Rate considered for 1 USD in 2007-08 is Rs. 40.12 and for 2006-07 is Rs. 43.47. 

FINANCIALS 137








205.21 167.42 

MINORITY INTEREST 1.93 4.91 

LOAN FUNDS: 



132.72 156.30 

339.86 328.63 


FIXED ASSETS: 

Gross block 423.32 385.89 



Net block 188.66 170.24 


196.16 187.88 


DEFERRED TAX: 



9.27 7.23 






536.22 508.55 




416.52 386.17 


339.86 328.63 

NOT E : Exchange Rate considered for 1 Euro in 2007-08 is Rs. 63.4375 and for 2006-07 is Rs. 57.87. 

138 



CONSOLIDATED PROFIT & LOSS ACCOUNT FOR THE YEAR ENDED 31ST MARCH, 2008 

2007-08 2006-07 


INCOME: 





1087.69 992.69 

EXPENDITURE: 






990.71 917.36 






32.38 25.83 




Share of profit/(loss) of Associate Companies 0.27 (0.01) 










Earnings Per Share (Basic and Diluted) in EURO 0.17 0.13 

NOT E : Exchange Rate considered for 1 Euro in 2007-08 is Rs. 63.4375 and for 2006-07 is Rs. 57.87. 

FINANCIALS 139

PRODUCTS 

& SERVICES 

140 



PRODUCTS & SERVICES 

POWER SYSTEMS 

Transformers: CG 

Power Transformers 

Distribution Transformers 

Energy Efficient Transformers 

Dry Type Transformers (Cast Resin & VPI) 

Locomotive Transformers 

Traction Transformers 

Furnace Transformers 

Rectifier Transformers 

Series and Shunt Reactors 

Switchgear: CG 

 

 

 

 

 

 

 

 

 

 

 

 

OIP Instrument Transformers upto 420 kV 

Condenser Bushings upto 420 kV 

Coupling/Grading Capacitors upto 420 kV 

Vacuum Circuit Breakers upto 36 kV 

Gas Circuit Breakers upto 420 kV 

Lightning Arresters upto 390 kV 

Disconnectors upto 420 kV 

Vacuum Interrupters upto 52 kV, 44 kA 

MV & LV Vacuum Contactors upto 12 kV and 630A 

Unitised Substation 

Power Quality Solutions – Reactive power compensators, 

harmonic filters, current limiting and damping reactors, 

transient suppressors. 

Dry type outdoor Instrument Transformers upto 36 kV. 

CG Power System Service 

 

 

 

Site Services 

Repair & Refurbishment 

Condition Monitoring and Diagnostics of Power Apparatus. 

Transformers: Pauwels 

 

 

 

 

 

 

 

 

 

 

 

Power Transformers 

Distribution Transformers 

Cast Resin Dry Type Transformers 

SLIM Transformers 

Phase Shifting Transformers 

Traction Transformers 

Mobile Transformers 

HVDC Converter Transformers 

Special Purpose Transformers 

Compact Substations 

Reactors 

Pauwels Trafo Service 

 

 

 

 

Site Services 

Maintenance 

Repair 

All types and makes of Transformers 

Pauwels Contracting 

 

 

Systems Engineering 

Turnkey Projects: 

– Rural Electrification projects 

– Industrial HV & MV Installations 

– Mobile Capacitor Banks 

– Mobile HV Circuit Breakers 

– Mobile MV Switchgear 

– Transmission Line Projects 

Ganz Transelektro Electric Co. Ltd. 

 

 

 

High Voltage Power Transformers upto 750 kV, 

Special Transformers & Reactors, Loco Transformers. 

Gas Insulated Switchgear (GIS) upto 300 kV 

Turnkey Sub-stations upto 400 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 


HT Motors 

AC motors from 125 kW watts to 5MW - all types including 

Flameproof Safety, HT & LT Industrial Duty machines from 

frame size 315 onwards. 

Laminated yoke DC motors including Industrial duty 

DC motors in frame sizes 315 to 630. 

LT Motors 

 

 

 

 

AC Motors Fr. 63 to 400 (0.18 kW – 450 kW) 

DC Motors Fr. 100 to 280 (2.2 kW – 450 kW) 

Alternators Fr. 112 to 355 (5 kVA – 625 kVA) 

AC Drives 0.25 kW – 400kW 

FINANCIALS 141

HT Motors: GANZ 

HT Slip Ring Motors upto 10 MW 

HT Squirrel Cage Motors upto 12 MW 

 

 

 

Lighting Electronics 

Accessories 

Building Management Systems 

FHP Motors 

 

 

 

 

 

B48 Frame- 30 Watts - 187 Watts - 2 /4 /6 Pole Motors 

M50 Frame- 187 Watts - 1100 Watts - 2/4 Pole Motors 

100S Frame- 1500 Watts - 2200 Watts - 2/4 Pole Motors 

80 -100 -112-132 CI Frame- 550 Watts - 3700 Watts - 4 Pole Motors 

Flame Proof Motors (FP50)- 370 Watts - 750 Watts - 4 Pole Motors 

Rail Transportation / Traction 

 

 

 

 

 

A.C & D.C Traction motors 

Traction Alternators 

Electrical Traction Controls for Diesel Electric 

Tower Car and Multiple Units 

Electrical Control panel for Diesel Electric 

Locomotives 

Brushless DC Carriage fans & motors 

Railway Signalling Products 

 

 

 

Signalling Relays 

Point Machines 

Data Logger 

Stampings 

 

 

Stampings 

Laminations 


Lighting 

LAMPS 

 

 

 

 

 

 

Incandescent Lamps 

Fluorescent Tubular Lamps 

Compact Fluorescent Lamps 

Mercury Sodium & Metal Halide Lamps 

Halogen Lamps 

LEDs 

LUMINAIRES & ACCESSORIES 

 

 

 

 

 

 

Domestic Luminaires 

Retail Lighting 

Office Lighting 

Street Lights 

Flood Lights 

High Masts 

FANS & APPLIANCES 

 

 

 

 

 

 

 

 

Ceiling : Luxury Under light, Premium Fans, Decorative Fans & 

Generic Fans 

Table, Pedestal and Wall Mounting Fans in metal and plastic 

Domestic Exhaust Fans 

Cooler Kits 

Industrial Fans : Heavy Duty Exhaust Fans, Air Circulators & Air 

Curtains 

Special Purpose Fans : Personal Fans, Cabin Fans, Tower Fans & Farrata 

Geysers : Instant Water Heater (Plastic / Metal), Storage Water 

Heaters (Plastic / Metal), Gas Geysers, Mercury Range (Combo 

– Metal & Plastic). 

Household Appliances like – Food Processors, Mixer Grinders, Juicer 

Mixer Grinders, Wet Grinders, Dry Irons, Steam Irons, Lanterns, 

Toasters, Home UPS/ Inverter etc. 

PUMPS 

 

 

 

 

 

Electrically driven Pumps 

– Centrifugal Monoblock Pump sets-Single/Two Stage 

– Self Priming Pump sets – Monobloc/Coupled 

– Submersible Pump sets for 75, 78, 100, 150, 200 

& 250 mm Borewells 

– Jet Centrifugal Pump sets – Single/ Multi Stage 

– Dewatering Pump sets 

– Vertical In Line Pump sets 

– Open well Submersible Pump sets 

Diesel Engines and Diesel Engine Pumps 

Petrol Kerosene Engine Pumps 

Compressor Pumps and Air Compressors 

Diesel Engine driven Pump sets 

INTERNATIONAL 

 

Exports of all Crompton Greaves manufactured 

and factored products. 

OTHERS 

Meters 

Energy Meters – Single phase & Three phase 

142 



ESTABLISHMENTS 

FINANCIALS 143

ESTABLISHMENTS 

REGISTERED OFFICE 

CG House, 6th Floor, Dr. Annie Besant Road, 

Worli, Mumbai-400 030, India. 

Tel. +91-022-24237777 

Fax +91-022-24237788. 

INTERNATIONAL DIVISION 

“Jagruti”, 2nd floor, Kanjur Marg (East), Mumbai-400042, India. 

Tel: +91-022-67558931, +91-022-67558365, 

Fax: +91-022-25774066 

Email: cgi@cgl.co.in 

POWER SYSTEMS 

Transformer Division 

Kanjur Marg (East), Mumbai-400042, India. 

Tel: +91-022-25782974, 67558000, 

67558202, 67558211. 

Fax: +91-022-67558305. 25798214 

Email: jayantkumar.kulkarni@cgl.co.in 

Plot No. T1&T2 MPAKVN Industrial Area, 

Malanpur (Dist. Bhind), Pin 477116, Madhya Pradesh, India. 

Tel: +91-07539-283502/3/5/7, 409029 

Fax: +91-07539-283585, 409031 

Email: Anindya.Basu@cgl.co.in 

 

Plot No. 29, 31& 32 New Industrial Area 

No.1, AKVN, Mandideep- 462046, 

Madhya Pradesh, India. 

Tel: +91-07480-408285/6, 408209, 408201, 408281 

Fax: +91-07480-408208, 408255 

Email: Anindya.Basu@cgl.co.in 

Switchgear 

A-3, M.I.D.C., Ambad, Nashik-422010 (Maharashtra), India. 

Tel: +91-0253-2382271-75, 2301104 

Fax: +91-0253-2381247 

Email: jayantkumar.kulkarni@cgl.co.in 

S6 & Power Quality 

D2- MIDC, Waluj, Aurangabad-431136, India. 

Tel: +91-0240-2558000, 2558081, 2558001, 2558031 

Fax: +91-0240-2554697 

Email: pramod.rao@cgl.co.in 

Switchgear (S2) – Electronics Unit 

10A, Jigani Industrial Area, Jigani, 

Anekal Taluk, Bangalore Rural, 

Bangalore 562 106. 

Tel: + 91-08110-413498 

Fax: + 91-08110-413430 

Email: nb.nayak@cgl.co.in 

Engineering Projects Division 

DLF Cyber-Green, Tower A, 3rd Floor, 

Sector 25-A, DLF Phase III, Gurgaon-122002, Haryana, India. 

Tel: +91-0124-3047700, 3047704, 3047701 

Fax: +91-0124-3047777, 3047888 

Email: neeraj.baxi@cgl.co.in 


Machines 7 Division 

D-5, Industrial Area, MPAKVN, 

Mandideep-462046 (M.P), India. 

Tel: +91-07480-400000, 403238, 400181/2 

Fax: +91-07480-403119 

Email: raina@cgl.co.in 

Railway Signalling Division 

11 B, Industrial Area No1, Pithampur-454775, 

District-Dhar (M.P), India. 

Tel: +91-07292-410000, 403095 

Fax: +91-07292-253211 

Email: dipak.chattopadhyay@cgl.co.in 

Stampings Division 


Tel: +91-022-67558715/6, 25796866 

Fax: +91-022-25787970 

Email: rajendra.gupta@cgl.co.in 

B-110, MIDC Industrial Area, 

Ahmednagar-414111, India. 

Tel: +91-0241- 6610513/4, 6610518/23 

Fax: +91-0241-6610511 

Email: shivaji.salunkhe@cgl.co.in 

LT Motors Division 

A/6-2, MIDC Industrial Area, 

Ahmednagar- 414111(Maharashtra), India. 

Tel: +91-0241- 2777500, 2777372 

Fax: +91-0241-2777508, 2776103 

Email: kn.neelkant@cgl.co.in 

S-14-15, Colvale Industrial Estate, Colvale, 

Bardez, Goa-403513 

Tel: +91-0832-2299664/665/666, 2404000 

Fax: +91-0832-2299663 

Email: abhay.kulkarni@cgl.co.in 

FHP Motors Division 

196-198, Kundaim Industrial Estate, Kundaim, 

Ponda, Goa-403115, India. 

Tel: +91-0832-3983200, 3983205, 2395954 

Fax: +91-0832-2395377, 3983299 

Email: jagdish.pant@cgl.co.in 

144 




Fans Division 

Plot No. 1 Goa IDC Industrial Estate, Bethora, 


Tel: +91-0832-2331200, 2331256 

Fax: +91-0832-2330155 

Email: uhm@cgl.co.in 

Plot No. 214-A Kundaim Industrial Estate, 

Kundaim, Goa-403115, India. 

Tel: +91-0832-2395901, 2395814 

Fax: +91-0832-2395305 

Email: uhm@cgl.co.in 

Plot No. 81, HPSIDC Indl. Area, 

Baddi, District Solan, HP-173205 

Tel: +91- 01795-246140 

Email: rajesh.puri@cgl.co.in 

Appliances Division 

Plot No. 1 Goa IDC Industrial Estate, Bethora, 


Tel: +91-0832-2331200, 2331256 

Fax: +91-0832-2330155 

Email: anandkumar.n@cgl.co.in 

Lighting Division 

Lighting Division, 

Kanjur Marg (East), Mumbai 400 042, India. 

Tel: +91-022-67558000, 67558425/26 

Fax: +91-022-25787283/25783027 

Email: manoj.verma@cgl.co.in 

Baroda Lamp Works, Kural Village, Padra Taluka, 

Padra Jambusar Road, District Baroda-391430, Gujarat, India. 

Tel: +91-02662-242278, 329694, 329521 

Fax: +91-02662-242326 

Email: raj.ray@cgl.co.in 

Pumps Division 

A-28, MIDC, Ahmednagar-414111, India. 

Tel: +91-0241-6606500, 6606501, 2777262 

Fax: +91-0241- 6606550, 6606560 

Email: vplele@cgl.co.in 

BRANCH & MARKETING OFFICES 

NORTHERN REGION 

Regional Head Office: New Delhi- 

Vandhana Building, 11 Tolstoy Marg, New Delhi-110001, India. 

Tel: +91-011-30416300, 30416901, 23354879, 30416306 

Fax: +91-011-23324360, 23725661, 23352134 

Email: sudhir.kane@cgl.co.in 

Rail Transportation Systems 

BRANCH DETAILS 

Vandhana Building, 11, Tolstoy Marg, New Delhi-110001, India. 

Tel: +91-011-30416300, 23352147 

Fax: +91-011-23324360, 23352134 

Email: salil.kumar@cgl.co.in 

JAIPUR 

Church Road, PO BOX 173, Jaipur-302001, India. 

Tel: +91-0141-3018800-29 

Fax: +91-0141-2365371 

Email: rajat.chopra@cgl.co.in 

JALANDHAR 

B12-407, 2nd floor, Near BSF Chowk, 

Ladowali Road, Jalandhar-144001, India. 

Tel: +91-0181-3240990-93, 2225410, 5083743 

Fax: +91-0181-2226342 

Email: jiwan.mannan@cgl.co.in 

LUCKNOW 

Saran Chambers II, 3rd floor, 

5 Park Road, Lucknow-226001, India. 

Tel: +91-0522-3018851-79 

Fax: +91-0522-3018858 

Email: devesh.pandey@cgl.co.in 

EASTERN REGION 

Regional Head Office: Kolkata- 

50 Chowringhee Road, Kolkata-700071, India. 

Tel: +91-033-22829681-85. 

Fax: +91-033-22829942 

Email: mailadmin@cal.cgl.co.in; balvinder.bajwa@cgl.co.in; 

cglcal@cgl.co.in 

BHUBANESWAR 

Janpath Tower, 3rd floor, Ashok Nagar Unit II, 

Bhubaneswar-751009, India. 

Tel: +91-0674-2531128, +91-0674-2531429 

Fax: +91-0674-2533521 

Email: satish.mohanty@cgl.co.in 

FINANCIALS 145

WESTERN REGION 

Regional Head Office: Mumbai- 


Tel: +91-022-67558000, 25780234, 67558600/01 

Fax: +91-022- 25795158, 67558669 

Email: ajit.kamath@cgl.co.in 

AHMEDABAD 

909-916, Sakar II, Near Ellis Bridge, Ahmedabad-380006, India. 

Tel: +91-079-40012000, 40012201 

Fax: +91-079-40012222 

Email: sagar.mohbe@cgl.co.in 

INDORE 

103-B, Apollo Trade Centre, 2B, Rajgarh Kothi, 

Mumbai-Agra Road, Indore-452001, India. 

Tel: +91-0731-2498269, 2498271, 2495531, 4201231 

Fax: +91-0731-4065621 

Email: pawankumar.singh@cgl.co.in 

PUNE 

Premium Point Building, 4th floor, Opp Modern High School, 

J M Road, Shivajinagar, Pune-411005, India. 

Tel: +91-020-25534675-77. 25534685 

Fax: +91-020-25534684 

Email: vivek.batra@cgl.co.in 

NAGPUR (Satellite office) 

3, West High Court Road, Lal Bahadur Shastri Chowk, 

Dharampeth, Nagpur-440010, India. 

Tel: +91-0712-2531271, 2560870, 2560871 

Fax: +91-0712-2537196. 

Email: pankaj.shah@cgl.co.in 

RAIPUR (Satellite office) 

Opp. Chuna Bhatti, Near Mahesh Cold House, Bhanpuri, Raipur, India. 

Telefax: +91-0771-2562055 

Email: pankaj.shah@cgl.co.in 

SOUTHERN REGION 

Regional Head Office: Chennai- 

Crompton House-3, Dr. MGR Salai 

(Kodambakkam High Road), Nungambakkam, Chennai-600034, India. 

Tel: +91-044-42247500, 28235533, 28257375. 42247575, 42247600 

Fax: +91-044- 28281596, 28231973 

Email: krashnavadan.desai@cgl.co.in 

BANGALORE 

Janardhana Towers, 1st floor, 562/640 

Bannerghatta Road, Bilekahalli, Bangalore-560076, India. 

Tel: +91-080-41391908, 41391909, 41391901 

Fax: +91-080-41391900. 

Email: pulacode.venkatesh@cgl.co.in 

COCHIN 

Cherupushpam Building, 5th floor, 300-6, 

Shanmugham Road, Ernakulam, Cochin-682031, India. 

Tel: +91-0484-2370860-63, 2360240, 2382340 

Fax: +91-0484-2373738. 

Email: ramaswamy.ns@cgl.co.in 

SECUNDERABAD 

Minerva Complex, 4th floor, 94, 

Sarojni Devi Road, Secunderabad-500003, India. 

Tel: +91-040-40002300, 40002347, 40002345 

Fax: +91-040-40002340. 

Email: anil.maniktala@cgl.co.in 

SERVICE CENTRES 

NORTHERN REGION 

NEW DELHI 

Vandhana Building, 11, Tolstoy Marg, 

New Delhi-110001. India 

Tel: +91-011-30416308, 30416304 

Fax +91-011-30416466 

Email: amit.jain@cgl.co.in 

JAIPUR 

Church Road, P.O. Box 173, Jaipur-302001, India. 

Tel: +91-0141- 3018806 

Fax: +91-0141-2365371 

Email: suresh.awasthi@cgl.co.in 

rajat.chopra@cgl.co.in 

JALANDHAR 

Khasra No 151/99, Village Khajurla, Tehsil Phagwara, 

Distt. Kapurthala, Jalandhar – 144001 

Tel: +91-0181-2632187 

Fax: +91-0181-2226342 

Email: rajinder.rahi@cgl.co.in 


CHANDIGARH 

Plot No. 281, Industrial Area, Phase-II, Chandigarh-160002, India. 

Tel. +91-0172-2659764, 

Fax: +91-0172-2657402 


LUCKNOW 

B-2, Transport Nagar, Lucknow-226012, India. 

Tel. +91-0522-3018850-59, 2432345, 6532003, 2433132 

Email: kamlesh.sinha@cgl.co.in; 

Email: devesh.pandey@cgl.co.in 

146 



EASTERN REGION 

KOLKATA 

21, RN Mukherjee Road, Kolkata-700001, India. 

Tel. +91-033-22489160, 22488911. 

Fax: +91-033-22489737. 

Email: mailadmin@cgl.co.in; 

cglcal@cgl.co.in; subhash.ghosh@cgl.co.in 

BHUBANESWAR 

Janpath Tower (Basement), 

Ashok Nagar, Unit II, Bhubaneswar- 751009, India. 

Tel. +91-0674-2531128, 2531429 

Fax: +91-0674-2531592 

Email: ajoy.mahapatra@cgl.co.in 

PATNA 

Vishwasadan, Behind Jeevan Deep Bldg, 

East of Narmada Apartment, Exhibition Road, Patna-800001, India. 

Tel. +91-0612-2239405 

Email: swapan.bera@cgl.co.in 

WESTERN REGION 

MUMBAI 

Kanjur Marg (East), Mumbai- 400042, India. 

Tel. +91-022-67558000, 67558590. 

Fax: +91-022-67558669 

Email: subhash.rege@cgl.co.in 

AHMEDABAD 

909-916, Sakar II, Near Ellis Bridge, Ahmedabad-380006, India. 

Tel: +91-079-40012000, 40012201 

Fax: +91-079-40012222 

Email: sagar.mohbe@cgl.co.in 

INDORE 

103-B, Apollo Trade Centre, 2B Rajgarh Kothi, 

Mumbai – Agra Road, Indore- 452001, Madhya Pradesh, India. 

Tel. +91-0731-2498269, 2498271 

Fax: +91-0731-4065621 

Email: pankaj.sengar@cgl.co.in 

pawankumar.singh@cgl.co.in 

SOUTHERN REGION 

CHENNAI 

A.G. Enterprises, 37 NSK Salai, Vadapalani, 

Chennai-600026, India. 

Tel: +91-044-23651369 

Fax: +91-044-28231973 

Email: narayan.vs@cgl.co.in 

leo.selvaraj@cgl.co.in 

BANGALORE 

SS Agencies, No. 20, New Timber Yard Layout, 

Mysore Road, Bangalore-560026, India. 

Tel. +91-080-26755727 

Fax: +91-080-26755723 

Email: pulacode.venkatesh@cgl.co.in 

SECUNDERABAD 

Sree Lakshmi Enterprises, 13/2, Industrial Area, 

Rasulpura, Secunderabad-500 003, India. 

Tel. +91-040-27905938, 27904538 

Fax: +91-040-40002340 

Email: anil.maniktala@cgl.co.in 

narayan.vs@cgl.co.in 

COCHIN 

Vishnu Traders, 35/1872 A, South Janata Road, 

Palarivattom, Cochin-682025, India. 

Tel. +91-0484-2338102, 2338856 

Fax: +91-0484- 2373738 

Email: ramaswamy.ns@cgl.co.in 


COIMBATORE 

Param Enterprises, 658-664, 

Rajalakshmi Plaza, 100 ft Road, Gandhipuram, 

Coimbatore-641 012, India. 

Tel. +91-0422-2526453 

Fax: +91-0422-2525334 


PUNE 

Premium Point Building, 4th floor, Opp Modern High School, 

J M Road, Shivajinagar, Pune-411005, India. 

Tel: +91-020-25534675-77. 

Fax: +91-020-25534684 

Email: vivek.batra@cgl.co.in 

NAGPUR (Satellite office) 

3, West High Court Road, 

Lal Bahadur Shastri Chowk, Dharampeth, Nagpur-440010, India. 

Tel: +91-0712-2531271, 2560870 

Fax: +91-0712-2537196. 

Email: vipin.sahu@cgl.co.in 

FINANCIALS 147

HOLDING 

PAUWELS INTERNATIONAL N.V. 

Antwerpsesteenweg 167, 

B-2800 Mechelen, Belgium 

T + 32 15 283 333 - F + 32 15 283 300 

EMEA 

PAUWELS TRAFO BELGIUM N.V. 



T + 32 15 283 333 - F + 32 15 283 300 




T + 32 15 283 333 - F + 32 15 283 491 

PAUWELS TRAFO IRELAND LTD. 

Dublin Road, 

Cavan, Republic of Ireland 

T + 353 49 43 31 588 - F + 353 49 43 32 053 

GANZ TRANSELEKTRO ELECTRIC Co. LTD. 

Máriássy Street 7, 

H-1095 Budapest, Hungary 

T + 36 1 483 66 11 - F + 36 1 266 66 13 

MICROSOL LTD. 

Unit 28, Enterprise Complex, 

Pearse Street 

Dublin 2, Republic of Ireland 

T + 353 1 415 3700 - F + 353 1 671 6343 

Sales Offices 

PAUWELS FRANCE S.A. 

41, Boulevard Vauban 

Immeuble Arago 1 

F-78280 Guyancourt, France 

T + 33 1 34 52 10 80 - F + 33 1 34 52 27 30 


UK Representative Office 

Suite 11, Epoch House 

Falkirk Road 

Grangemouth FK3 8WW, United Kingdom 

T + 44 1324 486100 - F + 44 1324 486020 


Saudi Arabia Representative Office 

P.O. Box 59276 

Riyadh 11525, Saudi Arabia 

T + 966 1 405 24 31 - F + 966 1 405 48 25 

PAUWELS MIDDLE EAST LTD. 

P.O. Box 5730 

Sharjah, United Arab Emirates 

T + 971 6 574 03 13 - F + 971 6 574 01 31 


Liaison Office, 

P.O. Box A 1831 

No. 4 King George Road 

Office No. 2 & 3 

Avondale, Harare, Zimbabwe 

T + 263 4 704 736 - F + 263 4 704 736 

AMERICA 

PAUWELS TRANSFORMERS, INC. 

One Pauwels Drive, 

Washington, Missouri 63090, USA 

T + 1 636 239 9300 - F + 1 636 239 9398 

PAUWELS CANADA, INC. 

101 Rockman Street, 

Winnipeg, MB R3T 0L7, Canada 

T + 1 204 452 7446 - F + 1 204 453 8644 

Sales Office 

PAUWELS AMERICAS, INC. 

One Pauwels Drive, 

Washington, Missouri 63090, USA 

T + 1 636 239 9349 - F + 1 636 239 9398 

ASIA 

PT PAUWELS TRAFO ASIA 

Kawasan Industri Menara Permai Kav. 10 

Jl. Raya Narogong, Cileungsi, 

Bogor 16820, Indonesia 

T + 62 21 823 04 30/36 - F + 62 21 823 02 68/42 22 

Sales Offices 


Contracting Division 

Plaza PP, 5th Floor 

Jl. TB. Simatupang No. 57, Pasar Rebo 

Jakarta 13760, Indonesia 

T + 62 21 841 40 57 - F + 62 21 841 43 64 

PAUWELS TRAFO ASIA 

NZ Representative Office, P.O. Box 28099 

Christchurch 8242, New Zealand 

T + 64 3 331 8290 - F + 64 3 331 8299 

148

2007-2008 - Cgglobal.com

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