Alstom Ar 2013-14_deluxe

7/25/2019 Alstom Ar 2013-14_deluxe

1/144

ANNUAL REPORTALSTOM India Limited

2013/14


2/144

Contents

Company OverviewAlstom Group 02

Welcome to Alstom India 04

Key Facts 06

5 Years Financial Performance 08

Key Highlights 2013-14 09

Board of Directors 10

Corporate Information 11

Statutory ReportsDirectors' Report 12

Management Discussion &Analysis Report 28

Corporate Governance Report 39

Financial StatementsStandalone Financials 53

Consolidated Financials 99


3/144

Alstom is a globalleader in powergeneration, powertransmission andrail infrastructure.

Alstom is shaping

the future


4/144

2

ALSTOM India Limited

(Formerly known as ALSTOM Projects India Limited)

AlstomGroup

ECO80 onshore wind turbine

Karlovac factory, Croatia, site overview

Transformation of existing grid infrastructures

Istanbul tramway model




5/144

3Annual Report 2013-14

Statutory ReportsCompany Overview Financial Statements

With strong presence in allspheres of infrastructure,Alstom is at the forefrontof economic, social andenvironmental progress.Alstom designs and buildsthe fastest train and thehighest capacity automatedmetro in the world,provides turnkey integrated

power plant solutions andassociated services for allenergy sources, includinghydro, nuclear, gas, coaland wind, and it offers awide range of solutions forpower transmission, with afocus on smart grids.

Alstom Thermal Power sector designs,

manufactures and delivers solutionswhich allow customers to generate

competitive, eco-friendly, reliable and

exible power. It has the industry's

most wide-ranging portfolio of thermal

technologies - coal, gas, oil and

nuclear and holds leading positionsin turnkey power plants, power

generation equipment, air qualitycontrol systems and services for the

installed base. It is also a pioneer in

carbon capture technologies.

Thermal Power has a workforce of

36,500 and booked orders of

9 billion in 2013-14.

Thermal Power

Grid has a workforce of 17,000 and

booked orders of 3.5 billion in 2013-14.

Alstom Grid is a world leadingmanufacturer of engineered solutions

for electrical grid applications in utility

and industry settings. It provides

integrated and customised turnkeysolutions such as alternating current

and direct current substations, frommedium up to ultra-high voltages.

Alstom's solutions enable the efcient

transmission of electricity and support

the development of Smart Grids and

Super Grids.

Grid

Renewable Power has a workforce

of 9,200 and booked orders of 2.5

billion in 2013-14.

Alstom Renewable Power offers

the most comprehensive range ofrenewable power generation solutions

for integrated power plants covering

hydroelectricity, wind, geothermal,biomass, solar (concentrated

thermal and photovoltaic) as well

as wave and tidal stream energies.In addition, it provides individual

components including all types ofturbines and generators and has a

full range of services, including plant

modernisation, maintenance andoperational support.

Renewable Power

Transport has a workforce of 28,300

and booked orders of 6.4 billion in2013-14.

Alstom Transport continuouslydevelops, supplies and maintains

rail systems that run smoothly

and efciently to meet the new

challenges of smarter mobility. Itproposes complete solutions for trains,

signalling, infrastructures and servicesadapted to each railway system:

urban, suburban, regional, main lines

and freight. It offers its customersthe most efcient technologies

and materials in order to reduceenvironmental footprint throughout

the lifecycle of the product, from

manufacturing to recycling.

Transport

THE GROUP EMPLOYS

93,000 PEOPLE IN

AROUND 100 COUNTRIES.

IT HAD SALES OF OVER

20 BILLION AND BOOKED

CLOSE TO 21.5 BILLION

IN ORDERS IN 2013-14.


6/144

4



Welcome to

Alstom IndiaPresent in India since1911, Alstom hasstrong capabilitiesin engineering,manufacturing, projectmanagement and supplyof products and solutions

for infrastructure. Alstomhas four R&D centresin India: Transport inBengaluru, Hydro GlobalTechnology Centre inVadodara and GridR&D centres in Hosur &Padappai.

It has two engineeringcentres for Power inNoida and Kolkata andtwelve manufacturingunits dedicated to:Power- Hydro inVadodara, Boilers inDurgapur, AuxiliaryComponents(Power Millsand Air Pre-heaters)in Shahabad, Steamturbines in Gujarat,Transportat Coimbatoreand SriCity and GridinPadappai, Pallavaram,Hosur, Vadodara, Nainiand Noida.

370MW Utran CCPP

Gas

Nuclear Steam Turbine for Kakrapar Project

Nuclear

Power Portfolio

Steam Turbine blades

Steam


7/144



Integration of Solar farms into smart grids

Solar

Control room with ALSPA HMI from ALSPASeries 6 system

Power Automationand Control

EnvironmentalControl System

ECS reference - Manjung 4

Nant de Drance Hydropower plant

Hydro

Thermal Services workshop at Vadodara LP,L-0 stage being bladed India, 2011

Thermal Services


8/144

6



Key Facts

Largest eet of supercriticalboilers are equipped with

Alstomstechnology

15GWinstalled power capacityacross India by Alstom

More than 50mills for 660MWsupercritical boilerssupplied worldwide fromShahabad unit


9/144



More than 90%of the countrysaluminium smelters useAlstoms pollution controlsystems

First to deliverand installhighefciency advanced classgas turbines for 370 MWUtran CCPP

Leading player inhydrowith a growingmarket share


10/144

8



5 Years Financial Performance

(Rupees in million)Order Backlog

09-10

34,066

10-11

57,728

11-12

52,827

12-13

49,568

13-14

54,563

(%)Dividend

09-10

100

10-11

100

11-12

100

12-13

100

13-14

140

(Rupees in million)Networth

09-10

4,965.0

10-11

5,873.0

11-12

6,937.0

12-13

8,021.1

13-14

9,303.5

(Rupees)Earning Per Share

09-10

24.95

10-11

25.20

11-12

24.95

12-13

27.33

13-14

34.31

(Rupees in million)Revenue

09-10

20,828.4

10-11

18,579.8

11-12

24,901.0

12-13

28,839.0

13-14

26,960.3

(Rupees in million)Prot After Tax

09-10

1,672.5

10-11

1,689.0

11-12

1,677.5

12-13

1,837.3

13-14

2,306.5


11/144



Key Highlights,2013-14

Successful commissioning of 2x55MW Chuzachen hydro-electric project

First 800MW supercritical boiler manufactured by Durgapur factoryfor Krishnapatnam

Successful commissioning of Uri II 4x60MW hydro project in Baramulla

PowerGen India and Central Asia, 2013

ECS customer event at Mumbai


12/144

10



Board ofDirectors

From left to right

S.M. Momaya

A.K. Thiagarajan

Rathindra Nath Basu

K. Vasudevan

Dr. Uddesh Kohli

Patrick Ledermann


13/144



CorporateInformation

BOARD OF DIRECTORS

Rathindra Nath BasuChairman & Non-Executive Director

(w.e.f. 01 April 2014)

Sunand SharmaChairman & Whole-time Director

(till 31March 2014)

Patrick LedermannVice-Chairman & Managing Director

S.M. MomayaDirector

K. VasudevanIndependent Director

A.K. ThiagarajanIndependent Director

Dr. Uddesh KohliIndependent Director

COMPANY SECRETARY

Pradeepta Puhan

AUDITORS

S.N. Dhawan & Co.

REGISTERED OFFICE

The International, 5th Floor,

16, Marine Lines Cross Road No. 1Off Maharshi Karve Road,

Churchgate, Mumbai 400020

Telephone + 91 (22)66399260/66399255

Fax + 91 (22) 66399259

Website : www.alstom.com/IndiaEmail : pradeepta.puhan@power.

alstom.com

REGISTRAR & SHARE TRANSFER

AGENT

Karvy Computershare Private Limited7, Andheri Industrial Estate

Off Veera Desai Road

Andheri (West)Mumbai 400053

Telephone + 91 (22)

26730799/26730843Fax + 91 (22) 26730152

Email : [email protected]

MANAGEMENT TEAM

Rathindra Nath Basu

Country President, India &

South Asia (w.e.f. 01 April 2014)

Patrick Ledermann

Vice Chairman & Managing Director

Vijay Sharma

Chief Financial Ofcer

Amaresh SinghCountry Human Resources

Director, India

Sapna Lalwani

Country Communications Director

Hiren Vyas

Country Legal Director

Ashish Ohri

Regional Director, India,

End User Service & Support

Frederic TeyssedouMD Hydro India

Alain Spohr

VP-Steam Plants

Neeraj Nanda

GM Gas India

Sudhanshu GoelMD Boiler India

Anoop Roy

MD ECS India (w.e.f. 01September 2014)

Rajeev SharmaManaging Director, Local Service

Centre Thermal Services India

Rajeev Sharma

VP, Power Automation Control India & ME

Sanjeev Agarwal

MD Power Mills, India

CORPORATE OFFICE

IHDP Building, Plot No, 7, Sector 127,

Noida 201301, Uttar Pradesh, India

WORKS

Durgapur, Shahabad, Vadodara, Noida

MARKETING/OTHER OFFICES

Bengaluru, Chennai, Hyderabad,

Kolkata, Mumbai, Nagpur, Noida,Vadodara, Varanasi


14/144

12



12

Dear Shareholders,

Your Directors have pleasure in presenting the 22ndAnnual Report of the Companyand the Audited Accounts for the year ended 31 March 2014.

FINANCIAL HIGHLIGHTS

(Rupees millions)

Particulars For the year ended31 March 2014

For the year ended31 March 2013

Prots before Etraordinar items,Ta, Interest and Depreciation

2,680.5 3,394.7

Less: Interest/Finance Cost 39.6 24.9

Less: Depreciation 610.8 550.8

Prot before Ta 2,030.1 2,819.0

Less: Provision for Taation

Crrent Ta (1,124.0) (939.3)

Deferred Ta 231.4 (42.4)

Prot after Ta 2,306.5 1837.3

Balance broht forward from

previous year

4,948.3 4076.1

Adjustment on account ofamalgamation and treatment of

derivatives

Nil Nil

Prot available for Appropriation 7,254.8 5,913.4

Appropriations

a) Transferred to General Reserve (230.7) (183.7)

b) Proposed Dividend (941.2) (672.3)

c) Corporate Dividend Ta (Net) (165.0) (109.1)

d) Dividend paid to erstwhile

ALSTOM Holdins (India)

Limited, eliminated on accountof amalgamation

Nil Nil

Balance Carried forward to BalanceSheet

5,917.9 4,948.3

Directors' Report

Francis Rnner manfactrin at Vadodara nit


15/144



CHALLENgINg yEAR

yET SuCCESSFuL

BREAkTHROugHS

DIVIDEND

The Directors are pleased to recommend

a dividend of Rs. 14/- per eqit share

(i.e. 140%) of the face vale of Rs.10/-

each, which incldes a special one-

time dividend of Rs. 4/- per share on

account of sale of Transport Business,

for the year ended 31 March 2014

[previos ear dividend - Rs. 10/- per

share (i.e. 100%)].

OPERATION

The year in review: Successfulbreakthroughs and achievements

The maret for power eneration

eqipment was modest drin the ear

2013-14. The last nancial ear trned

ot to be the weaest ear in terms of

order of new power plants in almost a

decade. While the rst two qarters of

the nancial ear for new power plants

was lean, in the last two qarters, or

Compan booed a few orders, mostl

from overnment-owned tilities.

In the thermal power sector, the maret

was marred b non-availabilit of coal

as well as natral as. Domestic coal

prodction remained at drin the

year and resulted in high imports at

major commercial ports to meet the

reqirements of the power sector. In

the renewable power sector, the rate

of addition of hdropower has been

etremel low. The isses inclded

land acqisition, environmental and

forest clearances, access to the sites

(mainl in North East), resettlement

and rehabilitation isses and occasional

law and order problems. However, withstabilit in Nepal and areement on a

new proect development strctre

in Bhutan, opportunities for future

development of hdropower are

epected in the Soth Asia reion.

Drin the ear nder review, the total

power proects ordered in India was

~14gW ot of which or Compan

participated in 8GW. This includes the

electro mechanical package for the

larest private hdropower proect inIndia (Ratle) and sppl of components

for spercritical boilers to Sratarh,

Darlipalli, North karanpra and

Banharpali projects.

Thoh Financial year 2013-14 (Fy13-

14) was challenin for the power

industry, your Company has made

some sccessfl breathrohs: It won

the rst fll scope trne limestone

based Wet Fle gas Deslfrization

(WFgD) proect in India, the rst maorhdropower proect won in georia and

the rst rnner repair order of Chhha

in Bhutan.


16/144

14



yor Compans strate for epansion

in the Indian power sector is centeredon three pillars:

Growth:Epansion in new prodcts,

markets and technologies.

Technology: Brinin the bestavailable power enerationtechnolo to India that addressesthe nations crrent powerchallenges and harnesses allthe nations available enerresources.

Operational Excellence:Deliveringand eectin proects to thehighest standards resulting incomplete customer satisfaction.

GROWTH

Thermal Power: Harnessingsupercritical technology for Indiaspower sector

Your Company as a market leaderwith over 100 ears of eperience, iswell positioned to offer its new andinnovative power eneration soltionsfor the rapidly evolving energy marketin India. Spercritical technolo isthe best available soltion for Indias

coal-red eneration maret and orCompany is a leader in this segment.Alstom supercritical technology notonl improves efcienc bt alsosbstantiall redces all emissions.

With a total Steam market of 9.7GWin India, spercritical technolorepresents abot 8.2gW. With speriorand innovative spercritical powerplant solutions, your Company is partof 6.2GW of these orders. Alstom is alobal leader in spercritical technolo

and with its interated boiler trbineenerator pacae it loos forward tosecuring more orders in this segment.

Illstration of a Spercritical Boiler

Alstom has a license agreement

with BHEL for sppl of spercriticalboiler technolo in India. Drin the

year, your Company received ordersfrom BHEL to sppl eqipment for

the followin e spercritical boiler

projects.

North Karanpura, 3x660MW for

NTPC Limited:

yor Compan will sppl

spercritical boiler components forNorth karanpra Sper Thermal

Power Proect (STPP) locatedALSTOM TECHNOLOgy

FEATuRES IN 82% OF THE

TOTAL MARkET SHARE OF

SuPERCRITICAL PROjECTS

IN INDIAWill feature Alstom technology6.2GW

Total supercritical market share8.2GW


17/144



in jharhand, India for power

eneration with more efcienc

and less environmental impact.

Darlipalli, 2x800MW for NTPC

Limited:

yor Compan will provide sperior

and innovative spercritical power

plant solutions for the key project,

Darlipalli in Sundergarh.

Banharpali 2x660MW for Odisha

Power Generation Corporation

Limited:

under the scope of the proect

or Compan will co-operate

with BHEL in desinin the boilers

and sppl identied pressre

parts of the 660MW supercriticalboilers, alon with windboes

for Banharpalli Super Thermal

Power Proect (STPP) located in

jharsada, Odisha.

Suratgarh, 2x660MW for

Rajasthan Rajya Vidyut Utpadan

Nigam Limited:

yor Compan will sppl

components and services for

the Suratgarh Super Thermal

Power Proect (STPP), located inSuratgarh, Rajasthan.

Thans to stron presence in the power

maret drin the Fy13-14, or

Compan received man rst of its ind

projects.

Vindhyachal Super Thermal

Power Plant, 1x500MW for NTPC

Limited: yor Compans rst fll scope

trne limestone based Wet

Fle gas Deslfrization (WFgD)

proect for NTPCs Vindhachal

sper thermal power plant is located

in Madhya Pradesh. Your Company

will provide desin, enineerin,

manfactrin, testin, civil wors,

erection and commissioning of the

wet limestone based FgD sstem

for the plverized coal-red boiler

nit on a fll trne basis.

Neyveli New Thermal Power

Project (NNTPP), 2x500MW

for Neyveli Lignite Corporation

Limited:

yor Compan will wor with

BHEL in desinin, enineerin

and spplin two tower boilers,

the complete lignite milling and

rin eqipment, and critical

components. It will be enineered

and manufactured in Alstomsworld class facilities in Stttart

(Germany) and in Durgapur and

Shahabad (India).

MILLS

Your Company successfully completed

the dispatch of seven coal mills for

the 11000MW Tann Bin proect in

Malaysia.

GAS

With lare ener Enineerin,

Procurement and Construction

(EPC) capabilities, or Compan

serves several international as-red

eneration proects in the Middle-East

region.

Continuing the success of Al Mansurya

in Iraq as e service provider, or

Compan will participate in maor

contracts won b Alstom Middle East

FZE and Alstom Switzerland Ltd., in theMiddle-East reion for the as power

maret. Alstom India will be providin

the EPC and desin soltions to Zbair

as-red power station and Al-Anbar

as-red combined-ccle power plant

in Fy14-15. Both these new orders

are bein eected with the Indian

operations as the service provider.

RENEWABLE POWER

Cleaner Power Generation

In renewable power, 1.5gW wasordered in Fy13-14. Of this, or

Compan baed the larest hdro

proect (850MW) ordered b an

728MW Al Mansra as power proect in Iraq


18/144

16



private compan in India. Followin

are some e proects won b orCompan in the hdropower sement:

Ratle Hydropower Plant

Alstom has been awarded theRatle hdropower plant (850MW)b gVk Power and Infrastrctre

Ltd. The contract includes thesppl of for Francis trbines of

205MW each, and one Francis

trbine of 30MW.

Shuakhevi in Georgia

yor Compan has been awarded

2 89.3MW Shahevi hdropower

plant located in Georgia. Alstomis prod to be associated with

one of the largest foreign directinvestment projects in Georgia and

will se its technoloical epertise

in redcin the reions carbonfootprint throh renewable power

generation.

Pelton Runners for ChhukhaHydropower Plant

yor Compan will sppl 4 fore-

fabricated Pelton rnners forChhha Hdropower plant of

Dr green Power Corporation

in Bhtan. Rnner will be

manfactred in the Vadodara

hydro manufacturing unit.

This contract is the rst step to

strengthen our presence in the

hdropower sement in Bhtan.

Excellence in project execution

In todas competitive bsiness

scenario, differentiation through

operational ecellence is one of the

best was to ain and retain cstomer

condence.

Your Company successfully

commissioned the 110MW Chzachen

proect in Siim for gATI Infrastrctre

Private Limited and 240MW uri IIproect in jamm & kashmir for NHPC.

Your Company achieved successful

spinnin of all for nits of NHPC's uri-

II hdro-electric proect (HEP) in record

time. Another milestone was when

NHPC, key customer of your Company

was bestowed with the old shield

nder National Award for meritorios

performance in power sector for

Chamera III HEP. The award was iven

on the basis of evalation carried ot b

Central Electricit Athorit (CEA).

377MW Chamera III hdropower proect in Himachal Pradesh

ALSTOM CONTINuES TO

SEEk NEW OPPORTuNITIES

TO CHALLENgE THE

BOuNDARIES IN POWER

gENERATION


19/144



Illstration of a Wet Fle gas Deslphrisation OST Absorber

TECHNOLOGY

Alstom focuses on developing andproviding innovative technologies toredce the impact of Thermal Power

proects on the environment with thehelp of its hih efcienc soltions andair qalit control sstems.

Your Companys latest third generationWet Fle gas Deslphrisation(WFgD)technolo achieves near zero polltantemissions.

WFGD offers following CustomerBenefts

WFgD is a proven technolo andbest in class performance with

hih reliabilit.

Guarantees >99% removal of SO2,even with hih slphr coal.

The parasitic load is only 1 3% oftotal power otpt and ecellentaccessibilit redces maintenancecosts.

The rst implementation of thistechnolo will featre in NTPCs500MW Vindhachal Sper ThermalPower Plant in Madha Pradesh.

Combustion Technology

Alstom has played a pioneering role inthe development of the power sectorin India over several decades. Mostof the boilers crrentl operatin inthe contr are based on technolocontribtion from Alstom. With afocus on clean coal technologies inthe country, Alstom is once again inthe forefront with nearl 45% of the allnew spercritical boiler orders based onAlstom technology.

In addition, in order to address the felchallene faced b the contr, Alstomhas broht in new technolo; Liniteboilers of a size thats bein done forthe rst time in the contr. India hasvast reserves of lignite and infusionof cost effective technology can helpharness the energy potential of lignite.This tower tpe boiler technolo isbein adopted for 2500MW powerstation of Neyveli Lignite Corporation.

EPOQ - Electrostatic Precipitatoroptimisation software for highresistivity y ash for EPIC III

Alstom process eperience in particlate

45% OF ALL NEW

SuPERCRITICAL BOILERS

FEATuRE ALSTOM'S

TECHNOLOgy

control has provided the niqe now-

how to develop the Electrostatic

Precipitator (ESP) optimisin of chare

(EPOQ) process epert software. The

software is a self-adaptin control

alorithm, which minimises emissions

and optimises power consmption inthe case of hih resistivit ash. The

software will featre in Electrostatic

Precipitators Retrot proect,

5120MW at Nalco.

EPIC III with EPOQTM has followin

benets for or Compans cstomer:

Reduces particulate emissions.

Redces overall ESP power

consumption.

Eas interface with distribted

control system and remote

diagnostics.


20/144

18



Bladin activit for 210MW HP Rotor in proress at Thermal Serv

Beater Wheel Mills

Beater mills (Power Mills) are a

niqe tpe of plverisin eqipment

which carries ot mlti-fnctions

such as crushing, drying, shifting and

transportation of coal all at the same

time. De to its capabilit to rind hihmoisture lignite coal, your Company

received the order to supply 16 Beater

Wheel Mills for the 2500MW Neveli

Power Plant. It will be the rst time that

the static components of Beater Wheel

mill will be manfactred at Alstoms

Shahabad manfactrin facilit.

Power Automation and Control (PAC)

With the set-up of your Companys

rst state-of-the-art facilit for Power

Automation and Controls, Alstomintensied its capabilit and capacit

to deliver advanced lobal soltions

locally.

The facilit started deliverin its rst

set of proects from the third qarter of

the nancial ear 2013-14. These are:

Desin, assembl, testin and

deliver of ecitation sstems forhydro projects: Hulu Teranganu

(Malaysia), Dikchu (Sikkim) and

khatima (uttarahand).

Deliver of ecitation sstem for

the Dhaliana (uttarahand)

hdro-electric power restoration

project in a record time of four

months.

The key products and technologies

manaed b PAC inclde:

Distributed Control Systems (DCS)

Alstoms bsiness nit is enaed in

providing cutting edge technology in

the area of Distribted Control Sstems

(DCS). The Control Sstems bsiness

of PAC involves enineerin, assembl,

testing and commissioning of DCS and

Trbine Control Sstem. The sstem

automates the operations of the entire

plant alon with its tens of thosands of

components with clocwor precision

alon with the safet of critical control

loop.

PAC India has sccessfll eected

projects involving the Alspa Controplant

DCS Systems for the Al Mansurya

(728MW based on gas Trbine-

gT13E2) at Iraq and is crrentl

eectin two lare DCS Sstems

for NTPC Solapr (2660MW) and

NTPC Moda (2660MW) with fll

instrumentation packages.

PAC India also hosts a Lare Thermal

DCS Reference Platform at theNoida facility. This is a one-of-its-kind

platform deploed b PAC in order to

test and enhance the robstness of its

Control Systems platforms.

Vibration Monitoring System (VMS)

yor Compan amented the eistin

PAC bsiness b sinin a strateic

alliance with a technolo partner

in the uk for Vibration Monitorin

Systems. This technology unlocks

sinicant vale for power plant

operators b monitorin of criticaleqipment incldin the main trbines

and Balance of Plant eqipment lie

Pmps, Compressors, Fans and Motors.

PAC now assembles the vibration

monitoring products at Noida facility

and provides fully engineered solutionsto lobal cstomers. The soltion

has made good initial progress and

several key projects are currently under

eection.

Servicing the Installed Base

Alstom has the eperience and

offering to support customers needs

throhot the lifeccle of the power

plant b havin a fll-eded service

oranisation nown as Thermal

Services. Your Company is a full and

dedicated services provider for theentire power plant and focses on

servicin power plants spplied b orCompany and other manufacturers

FIRST STATE-OF-THE-ART

FACILITy FOR POWERAuTOMATION AND

CONTROLS TO DELIVER

ADVANCED SOLuTIONS

LOCALLY


21/144



orshop in Vadodara

installed eet in India as well. yor

Compan has a dedicated worshop

at Vadodara to cater to steam trbinerepairs, rehabilitations, enerator

rewinds and repairs.

Alstom has been able to localise

offerins to sit the Indian maret

and has also been spplin to other

contries from India.

yor Compan is eectin

Electrostatic Precipitators Retrot

project to reduce emissions for the

5120MW plant at Nalco, Anl.

Your Company has installed advanced

control system for emission reductionat NTPC Ramagundam, NTPC Dadri,

and Pnab State Power Corporation

Limited Ropar and has also eected

ESP Restoration wor for Aravali Power

Ltd., jhaar. yor Compan is eectin

Steam Trbine Control Sstem upradeProject at NTPC Rihand for 500MW

stae I nits.

Here are some of the new e service

proects in Fy13-14:

Tamil Nadu Cement Corporation :

ESP prades.

ANTA NTPC: Generator rotor repair.

Rihand NTPC: Grinding Rings,

Boiler.

Torrent Power Sabarmati (Boiler)

TATA Power Tromba Sperheater

Header.

ALSTOM IS A FuLL AND

DEDICATED SERVICE

PROVIDER FOR THE

ENTIRE POWER PLANT


22/144

20



OPERATIONAL EXCELLENCE

Strivin to deliver the best qalit to its

customers, your Company continues to

strengthen measures to achieve greateroperational ecellence throh ve e

pillars: Qalit, Lead Time Redction,

Cost Competitiveness, Standardisation

and Modlarisation and EHS.

A single solution for a range of coal

The 660MW supercritical segment in

India is hihl competitive. So, orCompan developed a simplied,

standardised approach to achievesinicant cost and lead time redction.

The platform has inbilt derees

of freedom for the proect specic

cstomisations withot chanin theboiler desin. 2660MW Moda forNTPC is the project that validates thisplatform concept.

RP6OO Power Block Solution

With the obective of optimising cost

and schedule, your Company hasdeveloped a pre-enineered PowerBloc soltion (Trbine Hall, Boiler,

ESP and DCS) of 660MW Spercriticalplant with domestic and blended coal.The reference plant has achieved itssuccessful completion meeting itstaret in terms of Bill of Qantities

(BOQ) redction in strctral steeland piping, civil cost reduction andreduction in engineering time andoverall proect eection schedle.

Closer ties with stakeholders

In a rapidl chanin maret, orCompany stays close to customers torow in new marets and anticipate theneeds of eistin cstomers. This helpsor Compan to offer qalitative, cost-effective solutions to its customers.Drin Fy13-14 constant efforts were

made b or Compan for enhancedenaement and connect with Indiastechnological opinion leaders andcustomers.

Powergen: Alstom mared a stronpresence in the twelfth editionof Powergen India and CentralAsia staed in Mmbai from 06May to 08 May 2013 under thetheme of "Indian Power - Time todeliver". yor Compan showcasedits cutting edge offerings andsolutions across the conventional

as well as renewable sorces ofpower. Alstom presented seventechnical papers on varied topics.Customers also got an opportunityto interact with Alstom's lobaleperts on technoloical advancesmade b Alstom in rapidlemerin Renewable Power sectorand the Supercritical ThermalPower Sector.

Environment Control System(ECS) Cstomer Meets were

held on 07 May and 10 May2013 at Mmbai and New Delhirespectively to reach out to

majority of the customers. These

events witnessed participationfrom varios technical eperts

from prominent customers suchas Tata Power, NTPC, jSW etc.

This initiative effectively positioned

your Company as an industryleader. Alstoms ECS team has all

the technoloical soltions to bild

clean power in India.

India Nclear Ener, was held

drin 28 November to 30November 2013 in Mmbai,

India. Alstom's nclear eperts

participated in this conference toupdate the major customers on

the latest development in Alstoms

best in class Nclear Trbine IslandTechnology.

SUMMARY

Your Companys key priorities are to

deliver operational ecellence, deliver

advanced technology solutions andto achieve customer satisfaction.

Alstom is continuously striving toprovide competitive and reliable qalit

soltions to the Indian maret. It has

strong focus on increasing localisation

of high technology products andsoltions Alstom India is crrentl

developin eqipment manfactrinplatforms for 660MW and 800MW

supercritical units to optimise costs and

reduce delivery lead times.

ECS Cstomer Meet, 2013 India Nclear Ener, 2013 Power gen India and Central Asia, 2013

OPERATIONAL ExCELLENCE

IS THE BEST WAy TO gAIN

AND RETAIN CuSTOMER

CONFIDENCE


23/144



Alstom is also focusing on developing

and providing innovative technologiesto redce the impact of thermal power

plants on the environment with its

hih efcienc soltions and air qalitcontrol systems. Your Company ensures

that its cstomer is served in the best

possible wa.

CONSOLIDATED FINANCIALSTATEMENTS

In compliance with the applicable

Clases of Listin Areements with

the Stoc Echanes, the Companhas prepared Consolidated Financial

Statements as per the Accounting

Standard on Consolidated FinancialStatements (AS 21) issed b the

Institte of Chartered Accontants

of India. The Adited Consolidated

Financial Statements alon with the

Aditors' Report thereon have been

anneed to this Annal Report.

CORPORATE GOVERNANCE

Your Company has fully complied

with the reqirements and disclosresthat have to be made nder the

Code of Corporate Governance as

reqired nder Clase 49 of the

Listin Areement entered into with

the National Stoc Echane of India

Limited (NSE) and BSE Limited (BSE)

(the Stoc Echanes). As a listed

company, necessary measures are taken

to compl with the Listin Areements

with the Stoc Echanes. A report

on Corporate governance, alon with

a certicate of compliance from the

Statutory Auditors, forms part of this

Annal Report. The Vice-Chairman

& Manain Directors declaration

reardin compliance with ALSTOM

India Limited Code of Condct for Board

Members and Senior Manaement is

attached to the Corporate GovernanceReport.

MANAGEMENT DISCUSSION AND

ANALYSIS

The Management Discussion and

Analysis is presented in a separate

section, which forms part of the Annal

Report.

Stacp of HP 1103 Mill at Shahabad Factor for Mann 11000MW Proect in Malasia


24/144

22



Demo and trainin centre at Noida Power Atomation Control nit

LISTING

The eqit shares of the Compan are

listed at BSE Ltd. (BSE) and National

Stoc Echane of India Ltd. (NSE).

The Company has paid the listing fee for

the ear 2014-2015 to BSE and NSE.

DIRECTORS' RESPONSIBILITY

STATEMENT

Pursuant to Section 217(2AA) of the

Companies Act, 1956, the Directors of

or Compan conrm:

(i) that the applicable accontin

standards have been followed in

preparation of nal acconts and

there are no material departres;

(ii) that such accounting policies

have been selected and applied

consistently and such judgements

and estimates made are reasonable

and prudent so as to give a true and

fair view of the state of affairs of

the Company as at 31 March 2014

and of the prot of the Compan

for the ear ended on that date;

(iii) that proper and sfcient care has

been taen for the maintenance

of adeqate accontin records

in accordance with the provisions

of the Companies Act, 1956 for

safeguarding the assets of the

Company and for preventing

and detecting fraud and other

irrelarities;

(iv) that the annual accounts have

been prepared on a oin concernbasis.

SUBSIDIARY COMPANIESyor Compan has followin two

wholl owned sbsidiaries in India:

(a) ALSTOM Power Boilers Services

Limited, and

(b) ALSTOM Boilers India Limited

The Ministry of Corporate Affairs,government of India vide general

Circlar No: 2 /2011 dated 8 Febrar

2011 has directed that provisions ofSection 212 of the Companies Act,

1956 shall not apply in relation tosbsidiaries of those companies whichfll the conditions contemplated in the

aforesaid circlar. yor Compan flls

the conditions contemplated in the saidcircular. Therefore, the Annual Report

and other particlars of the sbsidiar

companies are not attached with thisAnnal Report. However, a statement

of particlars of the sbsidiarcompanies has been attached alon

with the adited Consolidated Financial

Statements.

The Company shall provide the copy of

Annual Report and other documents ofits sbsidiar companies as reqired

under Section 212 of the Companies

Act, 1956 to the Shareholders of theCompany and also to the Shareholders

of the sbsidiar companies on

demand, free of cost. The Annual

Report containing the annual accounts

of the sbsidiar companies is alsoept open for inspection b an

Shareholder at the Reistered Ofce of

the Compan and that of the sbsidiarcompanies. The details of accounts of

the sbsidiar companies have been

placed on the website of the Compan.The Consolidated Financial Statements

presented b the Compan inclde

nancial reslts of its sbsidiarcompanies.

CORPORATE RESTRUCTURING

Sale and transfer of the CompanysTransportation Undertaking:

The Board of Directors of the Company

in its meetin held on 15 janar 2014had accorded its approval, sbect to

the approval of the shareholders of the

Company and such other approvals,consents, permissions and sanctions

as ma be deemed necessar, to the

sale and transfer b the Compan of itstransportation systems undertaking to

a group company, ALSTOM TransportIndia Limited (ALSTOM Transport), as

a oin concern on a slmp sale basis,

for a lmp sm consideration withot

vales bein assined to individalassets and liabilities, for a total

consideration not less than Rs. 176.9crores (Rupees One Hundred Seventy

Si Crores Ninet Lacs onl) in cash,

as enterprise vale, sbect to schadjustment for change in Net Asset

Vale ecldin cash and debt (which

was Rs. 60 crores as on 30 September


25/144



2013) and on such terms and conditions

as ma be reqired in this reard. The

shareholders of the Company had

approved the sale of the Transport

undertain to ALSTOM Transport bpassing of a special resolution through

postal ballot on 07 March 2014.

Prsant to and in consonance with the

terms and conditions of the Agreement

to Sell Business dated 06 March 2014

(Areement), the sale and transfer of

the Transport undertain to ALSTOM

Transport, as a going concern on a

slmp sale basis, was completed on

31 March 2014.

OPEN OFFER BY GENERAL ELECTRIC

On 05 Ma 2014, gE Ener Erope B.V.

(Acquirer) and (i) general Electric

Company (GE); and (ii) gE Indstrial

France SAS (and toether with gE, thePACs), in their capacit as persons

actin in concert with the Acqirer,had made a pblic annoncement

(Public Announcement) in termsof Secrities and Echane Board of

India (Sbstantial Acqisition of Shares

and Takeovers) Regulations, 2011(Takeover Regulations), wherein

they have made an open offer for

the acqisition of p to 17,479,143eqit shares, representin 26% of the

total paid-p eqit share capital of

the Compan as of the tenth worinday from the closure of the tendering

period, from the pblic shareholders of

the Company (Offer).

It was claried b the Acqirer that

the detailed pblic statement shall beissed and the Offer proceeded with

onl if the underlin Transaction (as

described in the Pblic Annoncement)is consummated as provided for in

the proviso to Regulation 13(4) of the

Takeover Regulations. Accordingly,if the underlin Transaction is not

consummated for any reason, the

Acqirer and PACs shall not proceedwith the Offer.

The Board too note of above anddecided to tae an conseqential

steps only upon the consummation ofaforesaid underlying transaction.

CONSERVATION OF ENERGY,TECHNOLOGY ABSORPTION,FOREIGN EXCHANGE EARNINGSAND OUTGO

The particlars as prescribed ndersb-section (1)(e) of Section 217 of the

Companies Act, 1956, read with theCompanies (Disclosure of Particulars in

the Report of Board of Directors) Rules,

1988, are iven in Annere-A whichforms part of this Directors' Report.

ENVIRONMENT COMPLIANCE

The Compan complies with all

reqirements reardin manaement

of pollutants of manufacturing unitsand also condcts Environmental

Audits of its units at regular intervals.

The Compan has obtained allenvironmental consents such as

air, water and hazardos wasteauthorisation from respective Pollution

Control Boards and are in compliance

with the present environmentallegislation.

ENVIRONMENT, HEALTH ANDSAFETY (EHS)

Your Company considers the Safety,

health and well-bein of or

employees, contractors, customers andother staeholders, to be of the tmost

importance. Your Company also strivesto take care of the environment andEHS


26/144

24



are committed to continually reducing

the environmental impact wherever we

operate.

The Compan condcts its bsiness

operations fully respectingInternational and Local relations

in addition to followin Alstom EHS

Directives and Instrctions to protectthe employees, contractors, customers

and other staeholders. EHS is iven

highest priority and hence managedand controlled through integrated

EHS Manaement Sstem. AlstomEHS Roadmap Standards are

deployed and measured to evaluate

the EHS performance and continalimprovements.

High Risk Activities are of prime focusand manaed throh Alstom Zero

Deviation Plan lanched in jne 2012 to

prevent accidents in high risk activities.Compliance to Alstom Zero Deviation

Plan is evaluated through Cross Sector

Audits for further improvement actionswherever needed.

All maor locations have well eqippedhealth care facilities/arranements.

Alstom universit stronl spportsEHS trainin initiatives to create annderstandin of Environment, Health

and Safet and hence in bildin safet

culture among employees to achieve

organisation goal.

CORPORATE SOCIAL RESPONSIBILITY(CSR)

The Companys Corporate Social

Responsibilit (CSR) activities, reect

its philosoph of helpin to bild a

better, more sstainable societ b

taking into account the societal needs

of the community. After assessing the

needs of community, your Company

is engaged in several programmes to

benet the societ and the commnit

of which it is a part of. As a part of the

education initiative, your Companysfacilities in Drapr and Shahabad

have constrcted a school bildin

and provided it with the infrastrctre

alon with nancial assistance for the

children residing in those areas.

PARTICULARS OF EMPLOYEES

The total nmber of emploees of the

Compan as on 31 March 2014 was

4640.

Information in accordance with the

provisions of Section 217(2A) ofthe Companies Act, 1956, read with

Companies (Particlars of Emploees)

Rules, 1975, forms part of this

Directors Report. However, as per

the provisions of Section 219(1)(b)

(iv) of the Companies Act, 1956, the

Report and Acconts are bein sentto all Shareholders of the Company

ecldin the Statement of Particlars

of Emploees nder Section 217(2A)

of the Companies Act, 1956. Any

Shareholder interested in obtainin

a copy of the said Statement may

write to the Compan Secretar at the

Reistered Ofce of the Compan, and

the same will be sent b post.

FIXED DEPOSITS

The Company has not accepted anyed deposits drin the ear nder

review.

BOARD OF DIRECTORS

In accordance with the Articles of

Association of the Compan, Mr. k.

Vasdevan, Director retires b rotation

from the Board of Directors of the

Compan and shall hold ofce p to the

date of the forthcoming Annual General

Meetin of the Compan and is eliible

for reappointment.Alstom management had transferred

the services of Mr. S.M. Momaya

from Alstom India Limited to Alstom

640MW Lower jrala hdro proect in Andhra Pradesh


27/144



T&D India Limited with effect from

01 September 2013. Accordinlthe Board of Directors had passed

necessary resolutions on 20 August2013 to accept his resignation from

the position of Whole-time Director &

Chief Financial Ofcer of the Companwith effect from close of bsiness hors

on 31 August 2013 and to continue his

directorship on the Board as a Non-Eective Director with effect from

01 September 2013, liable to retire b

rotation. As per the provisions of theArticles of Association of the Company

and the applicable provisions of the

Companies Act, 2013, Mr. Momayashall hold ofce p to the date of the

forthcoming Annual General Meetingof the Compan and is eliible for

reappointment.

In accordance with the Articles of

Association of the Company, the tenure

of ofce of Mr. Rathindra Nath Bas,who was appointed as an Additional

Director and designated as Chairman

of the Compan with effect from 01April 2014, shall hold ofce p to the

date of the forthcoming Annual General

Meetin and is eliible for appointment.

The Company has received a notice inwritin from a member proposin his

candidatre for the ofce of Director.

Pursuant to the provisions of Section

149 and other applicable provisionsof the Companies Act, 2013, your

Directors are seeking appointment ofMr. k. Vasdevan, Mr. A. k. Thiaaraan

and Dr. uddesh kohli as an Independent

Director for ve consective earswith effect from the conclsion of the

forthcoming Annual General Meeting

pto 24 jl 2019.

The particulars of Directors proposed

to be appointed/re-appointed, as thecase ma be, are iven in the Corporate

Governance Report of this Annual

Report.

Drin the ear nder review, Mr.

Sunand Sharma resigned from theposition of Chairman & Whole-time

Director of the Compan with effect

from close of worin hors of 31 March2014. The Board places on record its

appreciation for the contribtions made

b Mr. Sharma drin his tenre with

the Company.

TRANSFER OF AMOUNTS TO

INVESTOR EDUCATION ANDPROTECTION FUND

Pursuant to the provisions of Section205A(5) of the Companies Act, 1956,relevant amonts which remainedunpaid or unclaimed for a period of7 ears have been transferred b theCompan to the Investor Edcation andProtection Fnd.

Frther, as per the reqirements of theInvestor Edcation and Protection Fnd(uploadin of information reardin

unpaid and unclaimed amounts lyingwith companies) Rles, 2012, thestatement containing information ofthe unclaimed amounts of dividendlying for seven years from the date oflast Annual General Meeting i.e. 30jl 2013 has been ploaded on thewebsite of the Compan and necessarforms/retrns have also been led withthe Ministry of Corporate Affairs.

AUDITORS

Messrs S. N. Dhawan & Co., Chartered

Accontants (Firm ReistrationNmber 000050N), StattorAditors of the Compan, holds ofceuntil the conclusion of the ensuingAnnual General Meeting and areeliible for re-appointment.

The Company has received a letterpursuant to Section 139 and 141of the Companies Act, 2013 fromMessrs S. N. Dhawan & Co., CharteredAccontants, reardin their eliibilitfor re-appointment as Auditors of the

Company.

For and on behalf of the Board of Directors

Rathindra Nath Basu Patrick Ledermann

Chairman & Non-Executive Director Vice-Chairman & Managing Director

(DIN 01192973) (DIN 05219344)

Place : Noida

Date : 05 jne 2014

The Board of Directors recommend to

the Members of the Compan for the re-

appointment of Messrs. S.N. Dhawan

& Co., Chartered Accontants (FRN

000050N) as Statutory Auditors of theCompan to hold the ofce for a term

of four years from the conclusion of

ensuing 22nd Annual General Meeting

of the Company till the conclusion of

26th Annual General Meeting of the

Compan (sbect to ratication b

members at ever Annal general

Meetin) and to their remneration.

The Notes to Accounts referred to in the

Aditors Report are self-eplanator

and do not call for any further

comments.

COST AUDITORS

The Central Government has approved

the appointment Messrs Shome &

Banerjee, Cost Auditors for conducting

Cost Adit for the nancial ear 201314.

APPRECIATION

The Board of Directors take

this opportunity to thank all its

Shareholders, valed cstomers, bans,

government and statutory authorities,

investors and stoc echanes for their

continued support to the Company.

yor Directors also wish to place on

record their deep sense of appreciation

for the committed services b or

Companys employees. Your Directors

acnowlede with ratitde the

encoraement and spport etended

b or valed Shareholders and the

Promoters of the Company.


28/144

26



Conservation of Energy, TechnologyAbsorption, Foreign Exchange

Earnings and Outgo Companies(Disclosure of Particulars in the

Report of Board of Directors) Rules,

1988

A. Conservation of Energy

a. Energy Conservation measures

taken during 2013-14

1. Adopted power factor

correction panel both in

factor and township and

availed rebate on electricit

bills approimatel Rs.800000/- per month on an

averae at Drapr unit.

2. Arrested Compressed Air

Leakage at various locations

inside plant (total 136

nos points) to improve

energy consumptions of

compressors and reducing

wastae of ener.

3. Optimised the usage of

compressors b redcin

unloading hours of running

compressors.

4. Overhaled one 1000 CFM

compressor to improve its

efcienc.

5. Overhaled one 315 CFM

compressor to improve its

efcienc.

6. Installed Ener Meters

almost at all electrical

installations to enablemonitoring and analysing

power consmption pattern

for the unit at Durgapur.

7. Plugged 20 nos. of

redundant compressed air

points in various locations

to redce wastae of ener.

8. Procurement of energy

efcient Inverter tpe

weldin machines and

phased ot old transformer/

diode based weldinmachines. New inverter

machines are more energy

efcient.

9. Maintained energy saving

modles with or old

rectier tpe weldinmachines.

10. LED street lihts installed in

Township.

11. Timers provided for

atomatic switchin ON/

OFF of lihts in parin

spaces in the factor, it will

reduce unnecessary energy

consumption for lights.

12. Day light sensor provided for

shop O/H lihts, resltin in

less energy consumption.

13. Timers provided for

atomatic switchin ON/

OFF of Tower lihts in ard

area.

14. 2 nos. new goliath cranes

have been procred

(capacity 15 Ton each) for

material handlin in tbe

yard area and commissioned

with all Variable FreqencDrive (VFD) controlled

motors. VFD controlled

motors are 15-20% more

ener efcient and hence

saving in energy cost.

15. Ener efcient T5 lamps

sed in place of 40w tbe

lights.

16. Refrbishment of Vlcan

frnace with fel efcient

brners.17. Replacement of Conventional

High pressure Mercury

vapor hih ba liht ttins

with Ener efcient gE

(mae) 4F54 T5 liht ttins

at Pulveriser and foundry

shop has effected energy

saving of 1,69,593 units per

annum.

18. Installed 30hp pmp motor

in place of 55hp pump

motor for water sppl atTownship. Hence redced

the ener consmption b

60,000 units per annum.

19. Replacement of Conventionalorescent liht ttins at

varios ofce locations withEner Efcient LED lihtttins has affected enersaving of 6500 units perannum.

20. In heat treatment process,stricter adherence to rate ofheating and cooling as perASME Section VIII Div-1.This has resulted in averagereduction of 70MT LPGconsumption per year for

the same amount of historicchare weiht.

21. Optimisation of electricityconsumption for electricalfrnace b improved loadper cycle, this has resultedin reduction of 30 to 40hours in average cycle timeof heat treatment.

22. Power consmption radicallredced b disconnectinall lihtin load from uPS

and providing only minimalconnected load to ensuresafet drin power failres.

23. Ener consmptionmonitoring implementedwith actions taen evermonth to sta within totalbdet in terms of cost perunit.

24. Relar awareness toswitch off electrical

appliances when emploeesnot at worstation.

25. Power switch off between12:30 to 13:30 hours andafter 17:30 hors has beenimplemented and deviationwith strict approval onlfrom factory head.

b. Additional investments andproposals, if any, beingimplemented for reduction ofconsumption of energy:

Proposals for the year 2014-15:

1. Phase wise replacement of shopO/H metal halide lihts withener efcient LED lamps.

Annexure A to Directors Report


29/144



2. In new paint shop area LED

lamps are bein pt instead of

metal halide lamps.

3. Water recirculation system for

Writz bendin machine.

4. Soft starters for Air compressors.

5. Refrbishment of Stress

Relievin frnace with fel

efcient brners.

c. Impact of above measures

for reduction of energy

consumption and consequent

impact on cost of production ofgoods.

Ependitre on ener forms a

very small part of the cost of

production. Hence, reduction of

energy consumption does not

have an sinicant impact on

the cost of production of goods.

B. Technology Absorption, Adaptationand Innovation

(e) Efforts made towards technolo

absorption, adaptation and

innovation

The Compan has been main

continos efforts towards

improvement of its products

through suggestion schemes,

innovation award and relar

research and development.

(1) Benets derived as a result of

above efforts:

- Product improvement

- Cost Reduction- Lead time reduction

(2) Future plan of action forCompanys factory/ofces are as

under:

Retrottin Ener Efcient

20w/28w T5 lamps in place

of eistin Conventional

orescent tbe (40W) lihts.

Replacement of old DSL with

new shroded bs bar for power

sppl to EOT cranes.

Replacement of old metallic

weldin pl and socet with

non-metallic and locable

plug and socket to improve

productivity and safety.

Replacement of all old room

ACs with modern ener

efcient sstems.

In phased manner, replacement

of 400W Metal Halide Lamps

with ener efcient 150w LED

lamps in shop oor.

Connecting lighting circuit

throh servo stabilizers with205 volts to obtain better

efcienc and sstained life

of lamps in shops and to

reduce connected lighting load

approimatel 15%.

Introdction of Da liht sensors

for shops and timer circuits for

ard area tower lihts.

New Boie frnace is bein

commissioned with enerefcient brners.

New CNC drill machine has

been procred with ener

efcient servo motors and

latest CNC sstem which will

contribte in savin ener

cost.

Refrbishment of Stress

relievin frnaces with fel

efcient brners to improveenergy cost and productivity.

(3) Expenditure on R & D

a) Capital Nil

b) Recrrin - Nil

c) Total - Nil

d) Total R & D ependitre as a % of

total turnover Nil

(4)In case of imported technolo

(import drin the last ve earsreconed from the beinnin

of the nancial ear), followin

information to be frnished:

Technologyimported

Yearof

import

Hastechnology

been fullyabsorbed

If notfully

absorbed,areaswhere

this hasnot taken

place,reasonsthere

for andfuture

plans ofaction

Nil N.A N.A. N.A.

C. Foreign Exchange Earnings and

Outgoa. Activities relating to exports,

initiatives to increase exports,Developments of new exportmarkets for Products and Servicesand Export Plans:

One of the maor orders received bthe Compan drin the nancialear 2013-14 was Shahevi(Hydro) for Rs. 1,353 million.

The total eport earnins fromengineering and other services

were Rs. 1,528 million.

b. Total foreign exchange used andearned:

(Rupees million)

Forein Echaneearned

: 9,609.9

Forein Echaneused

: 6,349.1

Net ForeinEchane earned

: 3,260.8

For and on behalf of the Board of

Directors

Rathindra Nath Basu

Chairman & Non-Executive Director

(DIN 01192973)

Patrick Ledermann

Vice-Chairman & Managing Director

(DIN 05219344)

Place : Noida

Date : 05 jne 2014


30/144

28



28

FORWARD-LOOKING STATEMENTS

This report contains forward-looking

statements, which may be identifed by their

use of words like plans, anticipate, believe,

estimate, expect, intend, will, projects,

or other words of similar expression, as they

relate to the Company or its business and

these words are intended to identify such

forward-looking statements. All statements

that address expectations or projections

about the future, including, but not limited

to statements about the Company's strategy

for growth, development, market position,

expenditures, and fnancial results, are

forward-looking statements. Forward-

looking statements are based on certain

assumptions and expectations of future

events. The Company cannot guaranteethat these assumptions and expectations are

accurate or will be realised. The Company

undertakes no obligations to publicly update

or revise forward-looking statements,

whether as a result of new information,

future events, or otherwise. Actual results,

performances or achievements could differ

materially from those expressed or implied

in such statements. Therefore as a matter

of caution, undue reliance on the forward-

looking statements should not be made as

they speak only of their dates. The following

discussion and analysis should be read in

conjunction with the Companys fnancial

statements included herein and the notes

thereto.

Management Discussion

and Analysis Report

Larest Distribtor manfactred and shop assembled b Vadodara unit


31/144



MARKET OVERVIEW

The maret for conventional power

eneration eqipment was modest in

Financial year 2013-14 (Fy13-14).

There was no maor order for new

power plant drin the rst half (H1)

of the nancial ear. There were few

orders, mostl from overnment owned

utilities during the second half (H2) of

the ear. Nevertheless, the ear Fy13-

14 proved to be the weaest ear in

terms of orderin of new conventional

power plants in almost a decade.

The maret was marred b fel

availabilit concerns coal as well as

natural gas. Production of domestic

coal remained at drin Fy13-14. The

largest domestic coal producer, Coal

India Limited (CIL) reistered ~2% or

~9MT rowth in prodction whereas,

the other pblic sector coal prodcer,

Singareni Collieries Company Limited

(SCCL) reported a decline of ~6% or

~3MT in prodction drin Fy13-14

vis--vis Fy12-13. As a reslt, import

of thermal coal increased b ~15%

at major commercial ports to meet

the reqirements of power sector.

Imports, thoh epected to become

a maor sorce, wold be sstainable

only if related concerns such as pass-

through tariff, improvement in port and

transport infrastructure are addressed.

Domestic gas production declined

frther from 3173 million cbic meters

(MCM) in March 2013 to 2756 MCM

in janar 2014. gas-felled power

generation declined accordingly, more

so with Cit gas Distribtion bein

accorded hiher priorit. gas based

power eneration capacit operated at

less than 25% load factor drin Fy13-

14. RIL kg basin, based on which man

as based power plants were set p,

does not sppl as to an power proect

due to sharp decline in gas production

from this eld. Liqeed natral as

(LNG), due to high cost, continues to

be an nviable fel for these plants.

With lare as based capacit ndereection and now stranded, there is

an urgent need to address the future of

as based power plants in India.

Apart from fel availabilit, the maor

reasons for dela in power proectsinclded delas in land acqisition and

getting mandatory project clearances

such as forest and environmental

clearances. In fact, these isses have

impacted all large infrastructure

projects under implementation

as well as development of new

projects. Development of mines and

transportation proects too has been

affected de to these isses, which has

compounded the coal supply concerns

for Indian power prodcers.

Developers, such as private

independent power prodcers (IPPs),

and conseqentiall proect nanciers

are staring at huge losses emanating

from delas in proects nder eection.

As a reslt arranin fnds for new

power proects has become another

challene for IPPs.

The Government has taken measures

to revive the sector such as presidential

directive to CIL to implement FelSupply Agreements, periodic revision

of power tariffs and restrctrin

package offered to loss making

distribtion companies (Discoms). The

regulator has also approved tariff hike

for imported coal based new plants

considerin increase in import prices;

however this has been challened in

the cort b affected Discoms.

In terms of commissionin of power

plants, the maret witnessed contined

momentm albeit at a slower pace. Asper Central Electrical Athorit (CEA),

arond 21gW power eneration

capacit ot commissioned in Fy13-

14. generation capacit of approimate

26GW and 24GW got commissioned

in Fy11-12 and Fy12-13 respectivel.

Installed base in Indian maret has

rown at a CAgR of abot 10% in the

last three ears. And, with approimate

45gW capacit addition in Fy12-13

and Fy13-14, Indian maret shold

meet the power eneration capacitaddition taret of 88gW set for Twelfth

Plan period (2012-17), ecldin the

renewables.


32/144

30



Of the total estimated potential ofabot 150gW, India has installed

hydroelectric power capacit ofapproimate 41gW onl. The rateof addition of hdropower has beenrather low. The blocin isses incldeland acqisition, environmental andforest clearances, access to the sites,resettlement and rehabilitation issesand law and order problems at times.However, with stabilit in Nepaland areement on a new proectdevelopment structure in Bhutan,opportunities for future development ofhdropower are epected to improve in

this region.

Nclear power eneration in Indiacontines to accont for 2% of Indiastotal Installed base. Thoh, the

government of India aims to increaseinstalled base throh indienos and

foreign cooperation, the internationalprogram has largely remained stuckde to nancin problems, civil liabilitconcerns and lack of support from thelocal population. Currently the Nuclearcapacit addition is epected to rowwith help from the domestic 700MWnclear power proram.

There has been a thrst to increasethe renewable ener share in thetotal installed base of India. There hasbeen polic and relator spport tothe renewable ener sector (mostlwind and solar) throh accelerateddepreciation, attractive feed-in-tariffrates, renewable ener certicates(REC) tradin and carbon credits.

As a result, the Solar Photovoltaic

(PV) maret and onshore wind based

capacit has rown rapidl over the lastve ears in India. Freqent chanes in

the incentive strctre and inabilit of

Discoms to off-tae renewable power at

higher tariff are some of the challenges

to the rowth of this sement. With the

induction of advanced solar technology

sch as concentrated solar power for

lare plants as well as the introdction

of molten salt storae techniqes solar

power eneration is liel to et a

boost.

Thermal Service eperts at wor in Vadodara worshop


33/144



OPPORTUNITIES AND THREATS

Opportunities

Power Generation Equipment

The reserve marin, which is an

indicator of demand-supply gap, is lessthan zero in India. This indicates that

current electricity generation is not

sfcient to meet the captred demand.

The norm in developed economies is to

maintain a comfortable srpls reserve

margin. Additionally, there is large

latent demand in the Indian maret.

It is estimated that lare poplation in

India do not have access to electricit.

Consmers of rid based electricit

still lac 247 access to it. Indstries

and bsiness establishments are forcedto operate on diesel based power, as

the bacp sorce, de to insfcient

electricit sppl. Hence, despite bein

the third largest producer of electricity,

per capita consmption of power in

India is ~930 nits, which is less than

one-third of the lobal per capita

consmption re of ~3200 nits and

sbstantiall lower as compared to

developed economies. Therefore, power

sector in India has ood potential to

row and enerate sinicant ains for

the investors. In power sector, Alstomcaters to engineering, procurement,

constrction and servicin of power

eqipment and plants.

The overnment has acnowleded

the need and potential of the sector

and recognised the private sectors

sinicant role in it. It has come p with

varios policies, relator framewor

and schemes to address the electricity

situation in the country. These policies

have resulted in electricity production

increasin with demand and sinicantimprovement in electricity transmission

as well. However, as the statistics

point ot, a lot needs to be done in the

electricity sector.

Over the years, the Government has

realised the importance of healthy

distribtion sstem in its obective

of providing electricity access to all.

Lately, it has started addressing the

isses faced b Discoms. Restrctrin

and corporatisation of state electricity

boards and privatisation of distribtionfnction throh licenses are eamples

of how initiatives taen to improve

the health of the sector. Strong policy

push from the government supported

b nancial reforms can accelerate the

development of the power sector.

Alstom, bein a lobal maor in

technoloical prodcts, is well placedto harness opportnities in the power

sector in India. It has sbstantial

investments in India to achieve hiher

localisation, which enables it to

access silled worforce and to offer

its prodcts at competitive prices. Its

obective is to provide its cstomers

economical solutions deploying the

most advanced technolo with least

impact on the environment.

Threats

The slowdown in order in-ows and

supplier overcapacity in the present

scenario are potent threats to the power

sector in India. The government is aware

of the sitation and has latel become

active to address the blocin isses.

Financial health of IPPs and Discoms is

not in ood shape with over 246,000

crore of losses in SEB/Discom and

he debt in most of the IPPs, the

power sector toda is strlin for

cash. While periodic tariff revision isbein implemented, Discoms need to

improve their recover efcienc as

well as redce areate technical and

commercial (AT&C) losses. Some of the

private Discoms have already achieved

sbstantial improvement in these

aspects.

Slowdown in economic rowth has

also impacted electricity demand.

unless corrective measres are taen

to qicl remove the hrdles of

the power sector, the rowth in thissement wold remain low.

OUTLOOK

With annual per capita electricity

consumption at ~930 units, it is

foreseen that the demand for electricity

will row frther, both in the short as

well as in the lon term.

Given the impact of stranded projects

on the banin sector, the government

is epected to address the immediate

concerns of infrastructure sector ineneral and power sector in particlar.

Moreover, as the targets for the 13th


34/144

32



Five year Plan are annonced, it is

epected that the orderin for power

eqipment and services will pic p

in the near ftre. Coal has been

identied as the maor fel for power

generation and wold drive the rowth

in the spercritical sement. growth

is also epected in nclear, hdro and

renewable ener sements.

Of late, the central electricity regulator,

CERC, has decided to lead the Indian

power indstr to the net level of

operational efcienc and reliabilit. In

the new tariff reime, it has proposed

sinicant measres to promote

efcienc improvement in power plant

operations. In addition, the increasinawareness and concern for environment

has compelled thermal power plant

operators to install pollution control

measures. Both these developments

enhance bsiness opportnities in

power sector as well as for Alstom.

Driven b hiher efcienc and lowemission, the maret is epected tobe coal based mainl for fel-efcientsupercritical (SC) technology fortilities and IPPs as observed drinthe past two ears.

gas based power plants are nlielto be ordered ntil the isses of aspricin and availabilit of eistinand stranded plants are addressed.Alstom has bilt a stron enineerin,procrement and constrction (EPC)

team at Noida to address the domesticas maret, once bottlenecs areremoved. Crrentl Alstom India

gas EPC team is addressin epertopportnities in Middle-East and SothAsia in collaboration with Alstomslobal as bsiness.

Government has announced a strongpolic spport to the renewable power

sector. Distribted rid and off-rid

power sorces ma et polic spport

in the overnments obective to

achieve 100% electrication.

Overall, bsiness environment is

epected to remain challenin. Pricin

pressre on marins wold be a e

challenge. Your Company has a strong

order boo and is condent to address

such challenges and to deliver value

over lon term to its shareholders withepectation that Power Sector orderin

will pic p in fture.

Steam Trbine


35/144



OPERATING RESULTS OF THE COMPANY

The e nancial res on the performance of the Compan vis--vis previos

ear are presented below:

(Rupees millions)

Year ended31 March 2014


Orders received 40,131 24,517

Revenues 25,948 27,775

Orders in hand 54,563 49,568

Prot before taation 3,199 2,819

Prot after taation 2,307 1,837

EPS (in Rs.) 34.31 27.33

Orders received during the year underreview were worth Rs. 40,131 million.

Major orders received during theear nder review for sppl ofcomponents of spercritical boilersfrom BHEL were Neveli for Rs. 5,564million, NTPC Darlipali for Rs. 3,929million, NTPC North karanpra forRs. 1,731 million, NTPC Banaharpali forRs. 1,522 million and NTPC Suratgarhfor Rs. 1,030 million, supply of hydrotrbine from gVk power for Ratle for

Rs. 7,372 million and sppl of Flegas Deslphrisation (FgD) sstemfor NTPC Vindachal Rs. 2,035 million.In addition to the above, the Compansecred orders for sppl of trbinefrom Shuakhevi (Georgia) for Rs. 1,353million and from Alpaslan (Turkey) for

Rs. 1,109 million.

Sales at Rs. 25,948 million reect

eection schedle of orders in hand.

Finance

The Companys prudent policies and

focs on cash has enabled eneration

of cash from operations despite thenfavorable economic condition

in the country. The Companys

diciosness in neotiatin terms withits customers and vendors that are

favorable to the cash position of theCompany is an important element of

its approach to effective management

of Working Capital. The Companycontinues to regularly monitor, projects

nder eection, focsin on prompt

collections aainst receivables andadvances on intae of new orders, as

part of the continuous focus on cash

ows. The adeqate cash position at

year end is a successful outcome of thisapproach.

The net cash position at the end of

the ear was Rs. 2,696 million after

payment of Rs. 786 million (including

corporate dividend ta) as dividend

and capital ependitre of Rs. 614

million. The slump sale of the Transport

Business rendered a cash of Rs. 1,504

million net of ta to the Compan. In

addition, the Company has placed

Rs. 3,545 million in inter corporate

deposits as at end of the year.

Even as forein echane marets

remain npredictable, the Compans

conservative hedging policy of the

forein echane eposres has helped

inslate s aainst an sinicant effect

in the Statement of Prot and Loss de

to forein echane ctations.

The long term credit rating of the

Compan for fnd based and non-fnd

based limits has been reafrmed as

[ICRA]AA with neative otloo whichmeans high degree of safety regarding

timel servicin of nancial obliations

and sch instrments carr ver low

credit ris. For short term, the credit

ratin has been reafrmed as [ICRA]

A1+ which means ver stron deree

of safety regarding timely payment

of nancial obliations and sch

instrments carr lowest credit ris.

INTERNAL CONTROL

The Companys internal controlenvironment incldes a well-dened

organisational structure, a formally

docmented and reviewed deleation


36/144

34



of athorit alon with internal rles

and idelines for condctin bsiness

transactions. The environment and

controls are periodically monitored

throh procedres/processes set b

management, covering all critical andimportant areas.

The monitoring includes an annual

eercise of comprehensive self-

assessment, that encompassed over

215 process owners in 25 nits

(including sites) testing 2,767 controls.

The assessment consists of, assessing in

totalit, how the entire internal control

system addresses risks meaningfully

and how individal controls interface

with each other to create the entire

internal control environment.

The qalit of assessment is reinforced

b and evolves with chanes in

the internal control environment.

Independent tests are applied to

selected key controls. As a part of

the internal controls monitoring and

onoin improvement, internal adit /

process reviews were condcted drin

the ear b independent teams. These

controls that are periodically updated

are sbect to review b internal

aditors. In line with the coverae planfor internal audits, during the year, four

Internal Adits were carried ot, all of

which have been rated satisfactor.

A formal sstem eists for periodicmonitoring and reporting of the results

of internal audits and Self Assessments.The senior manaement reviews the

isses raised b Internal Adits and

their timely remediation. The auditcommittee of the Board of Directors,met four times during the year, inter-

alia, to review the stats of the resltsof the assessment and implementation

of the recommendations of internalaudits.

The management actively implementsthe recommendations of sch reviews.The adit committee reviews the reslt

of self-assessment of internal controlscomprehensively in its meetings.

HUMAN RESOURCES

The employee strength of the Companystood at 4640 as on 31 March 2014.

Indstrial relations remained cordialat all locations and isses, if an, were

amicabl settled with the unions.

Talent Management

Talent Management GovernanceCommittee

Focs on Internal Mobilit

Top Talent identication Contr People Review

Community development

HR Practices sharing

Fla-off of the larest Francis rnner from hdro facilit in Vadodara


37/144



Alstom Employee Services (AES)

Started serving all sectors

Eected maor proects on

Emploee Data cleanp

Implemented AES Brandin b

openin AES Website

AES go Live for emploees: now

emploees can directl write their

qeries to AES India

Lanched rst AES Feedbac

Survey

Started a new initiative of AES HR

Connect formal and structured

interaction form between AES

and Bu HR.

Expat Management Centre India(EMCI)/ALSTOM ExpatriationCompetency Centre (ALEC)

One Team handlin all epat

compliance matters

Compliance on Ta and SocialSecurity

Efcienc and Process Improvement

Cost Redction Immirationwor done in hose for epats

One point contact for Ta

consltant (Ey & kPMg)

Ta retrn lin spport for non-

Long Term Assignment Policyassignees

gradate Enineerin Proramme 2013

Trainin session for manaers condcted at Alstom universit


38/144

36



Compensation and Benets

National Pension Scheme

launched

Recruitment

One Central Recruitment Team for

all Sectors

One Emploee Referral Polic

Launched

University Relations

Ver Low gradate Hirin, leadinto focus on university through:

Collaboration with universit

Connect Proram withCampus

Focs on Internship Proram

Learning and Development

global India trainin offer

Internal Trainer - Develop and

Motivate. Guide lines prepared for

certifin and Rewardin Internal

Trainer

Localisation and deployment of 15

Alstom universit prorams - in

progress

BUSINESS SEGMENT ANALYSIS

The Business of the Company is

cateorised in two sements, namel,

Power and Transport. However,drin the ear nder review, the

transportation systems undertaking of

the Compan was sold and transferred

to a group company, ALSTOM Transport

India Limited (ATIL), as a oin

concern on a slmp sale basis, for a

lmp sm consideration withot vales

bein assined to individal assets and

liabilities, for a total consideration not

less than Rs. 176.9 crores (Rupees One

Hndred Sevent Si Crores Ninet

Lacs only) in cash, as enterprise value,

sbect to sch adstment for chane

in Net Asset Vale ecldin cash and

debt (which was Rs. 60 crores as on 30

September 2013) and on sch terms

and conditions as ma be reqired in

this regard. The shareholders of the

Company had approved the sale of

the Transport undertain to ATIL b

passing of a special resolution throughpostal ballot on 07 March 2014.

Prsant to and in consonance with the

terms and conditions of the Agreement

to Sell Business dated 06 March 2014,

the sale and transfer of the Transport

undertain to ATIL, as a oin concern

on a slmp sale basis, was completed

on 31 March 2014.

370MW utran Combined Ccle Power Plant in garat


39/144



The summarised performance of the segment is as under:- (Rupees millions)



Orders received 38,205 23,821

Sales 22,796 26,395

Orders in hand 54,563 39,154

For and on behalf of the Board of Directors

Rathindra Nath Basu Patrick Ledermann

Chairman & Non-Executive Director Vice-Chairman & Managing Director

(DIN 01192973) (DIN 05219344)

Place : Noida

Date : 05 jne 2014

Review of the power sement is as

follows:

Power

The wea state of the econom and

poor bsiness sentiments reectedin Alstoms bsiness performance

for the Fy13-14. Sales declined b

~18% during the year, mostly due to

delays in achieving project milestones

due to issues related the delay of

proect faced b or cstomers orother partners. However, Alstom was

able to enerate larer orders drin

the year mostly from its partnership

with BHEL. It also eplored optionsabroad and was able to boo orders.

Shahevi HEP is one sch order. In

addition, Alstom booed the order forRatle HEP (jamm & kashmir) from

gVk Power and Infrastrctre drin

the ear. The Compan was identiedas the preferred partner drin Fy12-

13. Alstom also booed the rst FgD

(Flidized gas Deslphrizer) order bNTPC drin Fy13-14. Conseqent to

the above, orders received b Alstom

increased sinicantl b ~60% andorders in hand for Alstom increased b

~40%.


40/144

38



Certicate on Corporate Governance

To the Members of ALSTOM India Limited

We have examined the compliance of conditions of Corporate Governance by ALSTOM India Limited, for the year ended March

31, 2014, as stipulated in Clause 49 of the Listing Agreement(s) of the said Company with stock exchange(s) in India.

The compliance of conditions of Corporate Governance is the responsibility of the Companys management. Our examination

was limited to procedures and implementation thereof, adopted by the Company, for ensuring the compliance of the conditionsof Corporate Governance. It is neither an audit nor an expression of opinion on the nancial statements of the Company.

In our opinion and to the best of our information and according to the explanations given to us, we certify that the Companyhas complied with the conditions of Corporate Governance as stipulated in the above mentioned Listing Agreements.

We further state that such compliance is neither an assurance as to the future viability of the Company nor the efciency oreffectiveness with which the management has conducted the affairs of the Company.

For S. N Dhawan & Co.

Firm Reg. No.: 000050N

Chartered Accountants

Rajeev K. Saxena

Date: June 5, 2014 Partner

Place : Noida M. Number: 77974

Documents

Alstom Ar 2013-14_deluxe