Bharat Heavy Electricals Ltd


BSE: 500103 | NSE: BHEL | ISIN: INE257A01026 
Market Cap: [Rs.Cr.] 46,333 | Face Value: [Rs.] 2
Industry: Electric Equipment

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Annexure

Annexure - I to the Directors' Report

A. FINANCIAL PERFORMANCE OF THE COMPANY

(i) Standalone Financial Results

Balance Sheet

1. Share Capital

( Rs in Crore)
F.Y. 2012-13 F.Y. 2011-12
Authorised Share capital 2000 2000
Issued, subscribed & Paid up Share Capital 490 490

There is no change in the share capital during the year 2012-13.

2. Reserves & Surplus

( Rs in Crore)
F.Y. 2012-13 F.Y. 2011-12
Capital Reserve 3 3
General Reserve 28850 23850
Surplus of Profit & Loss 1102 1031
29955 24884

The Reserve & Surplus has increased by Rs 5071 Crore during 2012-13 after additionof Retained earnings. A sum of Rs 5000 Crore has been transferred to General Reserve outof profit for the year 2012-13.

3. Borrowings

F.Y. 2012-13

F.Y. 2011-12

Long Term Short Term Total

Long Term

Short Term

Total

Unsecured Loans-Financial lease obligation 129 0 129 123 0 123
Secured Loan-Export credit 0 1286 1286 0 0 0
129 1286 1415 123 0 123

Borrowings have increased due to short term borrowings by way of export credit availedto manage cash flows.

4. Other Long Term / Current Liabilities

F.Y. 2012-13

F.Y. 2011-12

Other Long Term Liabilities Current Liabilities Total

Other Long Term Liabilities

Current Liabilities

Total

Trade payables (Incl. Acceptances) 756 9675 10431 617 10255 10872
Deposits from customers & others 74 481 555 105 444 549
Advances Received from customers & others 4960 11261 16221 6837 13144 19981
Other payables/ liabilities 2120 2120 2236 2236
5790 23537 29327 7559 26079 33638

The reduction in other long term liabilities and current liabilities by Rs 4311 Crorein 2012-13 is due to decrease in net balance of advances from customers.

5. Provisions

F.Y. 2012-13

F.Y. 2011-12

Long Term Short Term Total

Long Term

Short Term

Total

Provision for employee benefits 2185 488 2673 2076 401 2477
Provision for contractual obligation 3603 1387 4990 2793 1057 3850
Proposed Dividend (Incl. Div. tax)

-

941 941

-

1047 1047
Other Provisions 145 193 338 136 130 266
5933 3009 8942 5005 2635 7640

There is a net increase in total provision by Rs 1302 Crore in 2012-13 owing toaddition in the provision for contractual obligation.

6. Fixed Assets

F.Y. 2012-13 F.Y. 2011-12
Gross Block 10783 9707
Less: Depreciation/ amortisation 6328 5413
Less: Lease Adjustment Account (3) ( 3)
Net Block 4458 4297
Capital Work-in-Progress 1134 1324
Intangible assets under development 38 23
5630 5644

Gross Block increased by Rs 1076 Crore and Capital Work in progress includingIntangible Assets under development decreased by Rs 175 Crore during the year. The netincrease is due to capital expenditure incurred on augmentation of manufacturing capacityand modernisation of the facilities in manufacturing units and at power project sites.

7. Non Current Investments

F.Y. 2012-13 F.Y. 2011-12
Long Term Trade Investments 429 462

Long term trade investments have decreased by Rs 33 Crore due to sale of BHEL stake inUdangudi Power Corporation Ltd.

8. Deferred Tax Assets (Net)

F.Y. 2012-13 F.Y. 2011-12
Deferred Tax Assets (Net) 1551 1546

Deferred Tax assets (Net) has marginally increased by Rs 5 Crore mainly on account ofincrease in the surcharge on income tax.

9. Loans & Advances

F.Y. 2012-13

F.Y. 2011-12

Long Term Short Term Total

Long Term

Short Term

Total

Loans & Advances 905 2029 2934 900 2112 3012

Loans & advances have decreased by Rs 78 Crore owing to adjustment of advances madetowards purchases.

10. Inventories

F.Y. 2012-13 F.Y. 2011-12
Inventories 11764 13549

All efforts have been made to maintain inventory at a lower level. Inventory as numberof days of turnover is 86 days in 2012-13 as against 100 days in 2011-12.

11. Receivables

F.Y. 2012-13

F.Y. 2011-12

Long Term

Trade Receivable

Total

Long Term

Trade Receivable

Total

Trade Receivables (Net) 10654 29234 39888 9384 26357 35741

Receivables increased by Rs 4147 Crore. In number of days to turnover it increased from264 days in 2011-12 to 290 days in 2012-13.

12. Cash and bank balances

F.Y. 2012-13 F.Y. 2011-12
Cash & bank balances 7732 6672

The cash and bank balances at the end of 2012-13 would be Rs 6446 Crore net of shortterm borrowings of Rs 1286 Crore.

13. Other Current Assets

F.Y. 2012-13 F.Y. 2011-12
Other Current Assets 200 151

Other current assets represent Interest accrued on banks deposits and investments.

Statement of Profit & Loss

14. Revenue from Operations

( Rs in Crore)
F.Y. 2012-13 F.Y. 2011-12
Gross Turnover 50156 49510
Less : Excise Duty 1904 1847
Less : Service Tax 634 435
Revenue from operations (Net) 47618 47228

During 2012-13, BHEL recorded its highest ever turnover of Rs 50156 Crore. Powersegment and Industry segment contributed 79% and 21% respectively for the total revenue ofthe company.

15. Other Operational Income

( Rs in Crore)
F.Y. 2012-13 F.Y. 2011-12
Export Incentive 24 12
Scrap Sales 283 308
Others 500 431
807 751

The marginal increase in other operational income is owing to increase in freight &insurance income.

16. Other Income

( Rs in Crore)
F.Y. 2012-13 F.Y. 2011-12
Exchange variation (net) 143 99
Interest Income 605 814
Other income 374 353
1122 1266

Other income decreased by Rs 144 Crore during the year mainly due to reduction ininterest income.

17. Cost of Material consumption, Erection & Engineering Expenses

F.Y. 2012-13 F.Y. 2011-12
Cost of consumption of raw material & components 23044 24549
Consumption of stores & spares 584 564
Erection & Engineering Expenses 4271 3795
27899 28908

There is reduction in material consumption as percentage of net turnover afteradjustment of accretion/decretion to WIP & FG from 60.49% in 2011-12 to 59.13% in2012-13.

18. Employee Benefits Expenses

F.Y. 2012-13 F.Y. 2011-12
Employees Benefits Expenses 5753 5465

Employees remuneration & benefits increased by 5% ( Rs 288 Crore) from Rs 5465Crore in 2011-12 to Rs 5753 Crore in 2012-13.

19. Finance Costs

( Rs in Crore)
F.Y. 2012-13 F.Y. 2011-12
Interest and other borrowing costs 125 51

The interest cost represents the interest component of the lease rentals on assetstaken on finance lease and interest on short term borrowings during the year.

20. Other Expenses of manufacturing, Admini-stration, Selling & Distribution

( Rs in Crore)
F.Y. 2012-13 F.Y. 2011-12
Other expenses of Manufacturing, Administration, Selling & Distribution 3777 3223

The increase in other Expenses of manufacturing, Administration, Selling &Distribution is Rs 554 Crore as compared to 2011-12 due to volume of operations and alsodue to liquidated damages charged off during the year.

21. Provisions (Net)

( Rs in Crore)
F.Y. 2012-13 F.Y. 2011-12
Provisions (Net) 1566 1403

The increase in Provisions (Net) by Rs 163 Crore as compared to previous year is mainlyon account of net increase in provision for Contractual Obligations.

22. Depreciation

( Rs in Crore)
F.Y. 2012-13 F.Y. 2011-12
Depreciation 953 800

The increase in depreciation by Rs 153 Crore is on account of increase in gross block.

23. Tax Expense

( Rs in Crore)
F.Y. 2012-13 F.Y. 2011-12
Income Tax-Current Year 3042 3277
- Earlier Years (220) (632)
Deferred tax charge/ (credit) (4) 617
Tax Expenses (Net) 2818 3262

The decrease in tax expense (Net) is in line with change in profit for the year.

24. Profit after Tax

in Crore)
F.Y. 2012-13 F.Y. 2011-12
Profit after Tax 6615 7040

25. Dividend

The company has paid an interim dividend of 106% 2.12 per share), Rs 518.89 Crore, onshare capital of Rs 489.52 Crore during the year 2012-13. The Board has also recommended aFinal dividend of 164.5% 3.29 per share) i.e. Rs 804.11 Crore.

The total dividend (exclusive of dividend tax) for the year 2012-13 is Rs 1323 Crore5.41 per share) as against Rs 1566.47Crore 6.40 per share) in the previous year.

Provision of Rs 136.66 Crore has been made for corporate dividend tax on the finaldividend proposed. Corporate dividend tax of Rs 84.18 Crore has already been paid on theinterim dividend.

26. Transfer to General Reserve

Rs 5000 Crore has been transferred to General Reserve for the year 2012-13.

(ii) Financial Review of Subsidiary Companies

a) Bharat Heavy Plate and Vessels Ltd. (BHPV)

Bharat Heavy Plate and Vessels Ltd. (BHPV) is 100% subsidiary co. of BHEL taken over on10.05.2008. In 2012-13 BHPV recorded a profit of Rs 35.04 Crore on a turnover of Rs 240.27Crore.

The financial highlights of BHPV are as under:

Particulars F.Y. 2012-13 F.Y. 2011-12
BHEL's Investment in Equity at at
Advance against issue of shares 34.00 34.00
Turnover 240.27 155.80
Profit after Tax 35.04 10.44

b) BHEL Electrical Machines Ltd.

A subsidiary Company has been incorporated on 19th January, 2011 as"BHEL Electrical Machines Ltd", with BHEL holding the majority stake of 51% withan equity investment of Rs 5.36 Crore and Govt. of Kerala retaining 49%. In 2012-13, BHELEML recorded a loss of Rs 0.55 Crore on a turnover of Rs 26.53 Crore.

Particulars F.Y. 2012-13 F.Y. 2011-12
BHEL's Investment in Equity 5.36 5.36
Turnover 26.53 21.14
Profit after Tax -0.55 -0.38

(iii) Financial Review of Joint Ventures Companies a) BHEL-GE Gas Turbine Services Pvt.Ltd. (BGGTS)

BGGTS is a Joint Venture Company of BHEL & GE USA, formed to take up repair &servicing of GE designed Gas Turbines. The Financial highlights of the Company are asunder:

Particulars F.Y. 2012-13 F.Y. 2011-12
BHEL's Investment in Equity 2.38 2.38
Turnover 813.78 513.28
Profit after tax 81.70 60.76
Net Worth 157.38 114.48

During the year BGGTS has paid interim dividend at 500% and proposed final dividend at200% on the Equity share capital of Rs 4.76 Crore.

b) NTPC - BHEL Power Projects Pvt. Ltd. (NBPPPL)

A Joint Venture between BHEL & NTPC in-corporated on 28th April, 2008for carrying out EPC activities in the Power Sector. The Financial highlights are asunder:

Particulars F.Y. 2012-13* F.Y. 2011-12
BHEL's Investment in Equity 25.00 25.00
Turnover 116.25 145.55
Profit after tax 5.66 13.06

*Based on provisional figures

c) Udangudi Power Corporation Ltd. (UPCL)

A Joint Venture between BHEL & TNEB was incorporated on 26th December,2008, to build, own and operate a 1600 MW (2x800 MW) Super Critical Thermal Power Plant atUdangudi. On 26.03.2013, BHEL has sold its entire stake in UPCL.

(Rs in Crore)
Particulars F.Y. 2012-13 F.Y. 2011-12
BHEL's Investment in Equity - 32.50
Net Block - 29.09
Capital Work in Progress - 41.75

d) Raichur Power Corporation Ltd.

BHEL has promoted a joint venture company with Karnataka Power Corporation Limited(KPCL) for setting up Supercritical Thermal Power Plant at Karnataka on build, own andoperate basis. The Joint Venture was incorporated on April 15, 2009 under the name of"Raichur Power Corporation Ltd".

( Rs in Crore)
Particulars F.Y. 2012-13* F.Y. 2011-12
BHEL's Investment in Equity 331.52 331.52
Net Block 3.35 3.40
Capital Work in Progress (Including advances for capital expenditure) 3531.85 1469.07

*Based on provisional figures

e) Dada Dhuniwale Khandwa Power Limited

BHEL has promoted a joint venture company with Madhya Pradesh Power Generating CompanyLtd. (MPPGCL) for setting up of a 2x800 MW Supercritical Thermal Power Plant at Khandwa,Madhya Pradesh on build, own and operate basis. The Joint Venture was incorporated onFebruary 25, 2010 under the name of "Dada Dhuniwale Khandwa Power Ltd".

( Rs in Crore)
Particulars F.Y. 2012-13* F.Y. 2011-12
BHEL's Investment in Equity 22.50 22.50
Net Block 0.02 0.03
Capital Work in Progress 1.63 0.75
*Based on provisional figures

f) Latur Power Company Ltd.

BHEL has promoted a Joint venture company with Maharashtra State Power GenerationCompany Ltd. (MAHAGENCO) for setting up a 2x660 MW Thermal Power Plant or 1500 MW gasbased Combined Cycle Power Plant (CCPP) in Latur, Maharashtra. The Joint Venture Companywas incorporated on April 6, 2011 under the name of "Latur Power Company Ltd.".The present paid up equity of the JVC is Rs 5 Crore, subscribed to equally by both thepartners.

g) Power Plant Performance Improvement Ltd.

A Joint Venture between BHEL and Siemens and is under liquidation.

(iv) Consolidated Financial Statement (CFS)

Consolidated Financial Statements have been prepared in accordance with AccountingStandard- 21 on "Consolidated Financial Statements" and Accounting Standard - 27on " Financial Reporting of Interest in Joint Ventures."

A brief summary of the results on Financial performance in line with the above AS areas under:

2012-13 2011-12 % age increase over 2011-12
Statement of Profit & Loss
Turnover 50673 49898 1.55
Profit Before Tax 9531 10367 -8.06
Profit After Tax 6693 7087 -5.56
Balance Sheet
Sources of Funds
Shareholders fund 30533 25403 20.19
Minority Interest 5 5 0.00
Non current liabilities 13007 12880 0.99
Current liabilities 28208 29142 -3.20
Total 71753 67430 6.41
Application of Funds
Net Block (incl. CWIP) 7036 6282 12.00
Non Current Investments 6 6 0.00
Deferred Tax Assets 1556 1549 0.45
Other Non current assets 11744 10374 13.21
Current Assets 51411 49219 4.45
Total 71753 67430 6.41

B. PERFORMANCE OF BUSINESS SEGMENTS

Power Sector

The Indian Power Sector is witnessing a slowdown since the past few years. Issues ofcoal linkages, environmental clearances, land acquisition and fund constraints haveresulted in non-finalization of new projects, especially in the private sector and some ofthe ongoing projects are on a slow execution path.

• In the Power Sector business segment, despite these challenges and intensecompetitive pressure, BHEL has maintained its market leadership in the domestic market forutility sets:

• Power Sector secured orders worth Rs 25,560 Crore; 82% up from last year.

• Secured orders for 8 nos. Turbine Generator (TG) package and 9 nos. Boilers forSuper-critical sets during the year.

• Continued Customer Confidence; Repeat order of TG package for 2x700 MWe RAPP7&8.

• Orders for 7 nos. of standalone ESP Packages for supercritical sets againststiff global competition.

Significant orders received in the Power sector include:

Thermal

Sub-Critical Orders:

• 1x500 MW NTPC, Vindhyachal Stg-V: Steam Generator (SG), Turbine Generator &ESP Package.

Super-Critical ratings:

• 2x660 MW NTPC / Mauda: ESP Packages

• 2x660 MW NTPC / Sholapur: ESP Package

• 2x660 MW DVC / Raghunathpur: TG Package

• 3x660 MW NPGCL/Nabinagar: SG,ESP Package

• 2x800 MW NTPC / Gadarwara: SG, TG Package

• 2x660 MW RRVUNL/Suratgarh: Erection Procure-ment & Commissioning (EPC)Package

• 2x660 MW OPGCL/IB Valley: Boiler Turbine Generator (BTG) Package

Hydro

• 3x57 MW NTPC/Lata Tapovan: Electrical & Mechanical (E&M) Package

Gas

• 160 MW RRVUNL/Ramgarh CCPP Stg IV: BTG package

Nuclear

• 2x700 MWe NPCIL/RAPP 7&8: TG, Control & Instrumentation (C&I) andControl Center Instrumentation package

• 2x700 MWe NPCIL / KAPP 3&4 : CCI package

Spares & Services Business Group (SSBG)

Order inflow of Rs 2,885 Crore in Spares & Services business segment: 28% (Y-o-Y)increase over that of Rs 2,250 Crore in 2011-12.

BHEL swept the market in the area of ESP and C&I retrofit business and securedorders to the tune of Rs 499 Crore against stiff international competition.

Commissioning Highlights

• All time high 10,340 MW of power plant equipment synchronised/commissionedincluding 9,328 MW utility, 703 MW captive/ industrial sets in the country and 309 MW inoverseas markets.

• Highest ever 9,328 MW of utility project Commissioned/Synchronized during ayear: Consistently maintaining the upward trend in last five years.

• All time high 9,298 MW utility capacity added during a year; 14% up from theprevious year and 30 MW synchronized, awaiting clearance from utilities for capacityaddition.

• A total of 29 utility sets commissioned against 21 last year.

• The installed capacity of BHEL supplied Utility sets went up to 1,15,500 MWmaintaining its lion's share of 57% in the country's total installed capacity comprisingThermal, Hydro and Nuclear sets.

• BHEL's contribution to the capacity added in the country in the last quarter was56% .

• Commissioning of 4,621 MW in March' 13 for utility sets.

• Establishing a central monitoring system paid dividends in terms of completionof Performance Guarantee Test for 58 nos. main plant packages (TG, Boiler, ESP, Mills).

First Time Achievements

• Commissioning of India's first indigenously manufactured sub-critical set of 600MW at North Chennai on EPC Basis.

• Conducted 'Performance Guarantee Test' of highest capacity set of 525 MW atMaithon for TG & Boiler.

• Conducted 1000 MW generator stator winding HV test (Kudankulam 1&2).

29 nos. Utility sets commissioned during the year were -

• Korba West (500 MW) in Chhatisgarh

• Pragati CCPP GT-3 (250 MW) in Delhi

• Pipavav Module -II CCPP (351 MW), Ukai U 6 (500 MW) in Gujarat.

• Jhajjar U 3 (500 MW) in Haryana

• Chutak HEP U 1,2,3 & 4 (4X11 MW) in Jammu & Kashmir

• Adhunik U 1, 2 (2X270 MW), Koderma U 2 (500 MW) in Jharkhand

• Bina U 1 & 2 (2X250 MW), Satpura U 10 (250 MW), Vindhyachal U 11 & 12(2X500 MW) in Madhya Pradesh

• Amravati U 1 (270 MW), Bela U 1 (270 MW), Mauda U 1 & 2 (2X500 MW) inMaharashtra

• Ramgarh GT (110 MW) in Rajasthan

• North Chennai U 2 (600 MW), Vallur U 2 (500 MW) in Tamilnadu

• OTPC Tripura (363.3 MW) in Tripura

• Harduaganj U 9 (250 MW), Parichha U 5 & 6 (2X250 MW), Rihand U 5 (500 MW) inUttar Pradesh

Overseas sets commissioned by BHEL during the year include Western MountainExtension Libya, Unit-6 (157 MW), Finchaa Sugar Factory, Ethiopia Unit 1 (12.5 MW), PT MSWIndonesia - Boiler (30 MW), Varjob - Hydro Power station Tajikistan-Unit I & II(2X4.75 MW), Namchien Hydro Power Project, Vietnam - Unit I (100 MW).

Performance of Bhel Utility Sets

• BHEL supplied Thermal sets (Coal + Lignite) generated 4,83,431 MUs against4,59,706 MUs of last year showing an increase of 5.16% and forming approx. 70.0% of thecountry's total generation of 6,91,340 MUs from thermal utility sets.

• BHEL coal based sets registered PLF of 73.7% against National Average of 69.95%.

• During the financial year, generation from BHEL supplied thermal sets of ratings195 MW and above - which form the backbone of the country's thermal generating capacity,went up to 4,54,304 MUs with PLF of 77.3% and OA of 89.3%.

• 13 nos. stations equipped with BHEL equipments recorded a PLF of above 90%:

NR : Rihand Stage II (92.5), Singrauli (92.3), Unchahar (92.8)

ER : Budge Budge (93.5)

WR : Bhilai (96.8), Dahanu (100.2), Korba (NTPC) (90.1), Vindhyachal (91.3),Raigarh (90.2)

SR : Kakatiya (90.9), North Madras (91.9), Ramagundam (90.7), Tuticorin (90.4)

• 187 BHEL supplied coal based sets achieved PLF of over 70%. Out of these, 57sets registered PLF of over 90% and 73 sets achieved PLF between 80% - 90%.

• BHEL coal sets registered the Operating Availability (O.A.) of 86.3%.

• BHEL supplied 500 MW sets achieved consistent availability of more than 90% forthe last six years.

• 167 Thermal sets of BHEL make achieved O.A. higher than or equal to 90%.

• 182 BHEL supplied coal based sets clocked uninterrupted operation for more than90 days during the year out of which:

• 59 sets ran twice continuously for more than 90 days.

• 27 sets continuously ran for more than 200 days.

• Trombay U 5 (500 MW) and Singrauli U 5 (200 MW) clocked uninterrupted operationthroughout the year - a testimony of BHEL's product excellence.

Services

BHEL reinforced its commitment in providing prompt and efficient service to itscustomers aimed at facilitating uninterrupted power supply and keeping power plants ingood running condition.

• Services sector has seen a phenomenal growth with 30% increased order inflow(Y-o-Y) in FY 12-13: Rs 533.58 Crore.

• During the year, BHEL overhauled 176 nos. of sets including the non-BHELones-highest in last five years

• Highest ever commissioning of 485 MW in R&M during FY 2012-13. Details ofsets:

• JSEB Patratu TPS-10 (110 MW)

• PSPCL GNDTP Bathinda TPS-3 (110 MW)- uprated to 120 MW

• OHPC Rengali HEP-1 (50 MW)

• GSECL Ukai HEP-1 (75 MW)

• JSEB Subernrekha HEP, Sikidiri (2x65 MW)

• R&M of Boiler at Satpura-7 (210 MW) enables it run at 'full load' even after30 years of operation

Services Jobs in overseas Project:

• Chukha Bhutan unit-284 MW (R&M Job)

• Varjob - Hydro Power station Tajikistan - Unit I&II (R&M and uprating)

• Overhauling and 'stator bar replacement' of Generator-3 (153 MW) at Libya (SAS)

Customer Satisfaction

Our valued customers have appreciated number of efforts by BHEL viz. improvements inexisting systems, completion of works ahead of schedule in challenging conditions etc. inthe form of appreciation letters, award and accolades.

Significantly appreciation letter received from MD, Jindal Power Ltd for adopting bestpractice for "successfully placing the pre-assembled condenser in position" atJPL Raigarh.

Appreciations received from many reputed customers (like Karnataka Power CorporationLimited, Andhra Pradesh Power Generation Corporation Limited (APGENCO), Rajasthan RajyaVidyut Utpadan Nigam Limited, Damoder Valley Corporation (DVC), MSPGCL, NTPC, TamilnaduElectricity Board (TNEB) etc. for excellent support given by BHEL.

3500 MW Capacity added in 2012-13 as against 1000 MW last year for NTPC. With this,BHEL's contribution to NTPC's capacity of 41,184 MW stands at 70%.

As per MoU with GOI, 'Customer Satisfaction Survey' was conducted first time for'Power-Sector as a whole'. Survey was conducted through external agency at 77 customerlocations covering 271 respondents.

Industry Sector

In Industry Sector, BHEL secured orders worth Rs 4500 Crore in Captive Power, RailTransportation, Power Transmission, Oil & Gas, Renewable Energies and other industrialsegments.

Major orders received during the year / other business highlights - Industrysegment-wise include:

Captive Power plants

• Order for 5th Back Pressure Turbine Generator (19.5 MW set) from M/sNALCO for their Damanjodi plant against stiff competition from Chinese vendors. 4 no. 18.5MW BHEL turbines have earlier been supplied for various expansion phases and are operatingsuccessfully.

• Order for 23 MW STG set from M/s Paradeep Phosphates for their fertiliser plantat Paradeep against fierce competition. Presently, BHEL make 2 nos. 16 MW STG sets areoperating satisfactorily since 1986.

• Another 33 MW steam turbine & generator set order from Aditya Birla Chemical(India) Ltd. for their Palamau, Bihar caustic plant against stiff competition. BHEL make30 MW STG set is operating satisfactorily since year 2000 apart from 12 no. x 150 MW setsunder various stages of erection/commissioning for Hindalco Industries and 4 x 20 - 32 MWSTG sets for Grasim (Aditya Birla group companies)

Project Commissioning

• BHEL's first two-cylinder uprated 150MW (Reheat) rating turbine in theindustrial Segment was commissioned for HINDALCO at Mahan.

• BHEL commissioned 703.3 MW in Captive Power/ Industrial Segment.

• For the first time in India, Gas Turbine was run with Refinery Fuel Gas forHMEL's GGSR refinery. Customer's appreciation has also been received for the same.

Renewable Business

• Order received for 2 Solar Photo Voltaic (SPV) Power plants for Unchahar &Talcher of 10 MW each from NTPC. This is the highest rated SPV Power Plant order receivedby BHEL so far.

• 5 MW grid connected SPV Plant for KPCL was commissioned at Mandya, Karnataka.

• SPV Plants commissioned at Andrott (320 kW) Kavaratti (760 kW) & Kadmat (270kW) Islands of Lakshadweep. With this BHEL has commissioned a total of 1900 kW SPV Plantsat various Islands of Lakshadweep. This is the largest Island electrification programmeusing Solar Photo Voltaic modules.

Transportation Business Group

• Orders for 319 sets of Electrics for conventional AC EMU/DEMU; 756 nos. ofTraction Motors & 252 nos. Traction Alternator received from Indian Railways againststiff competition from local and foreign suppliers.

• Single largest order for 47 sets of Power Converter with control electronics for6000 HP WAG-9 locomotives received from CLW, Chittaranjan.

• Secured orders for 12 nos. Diesel Electric shunting locomotive in the range of350-1400 HP from various non-railways customers.

• In order to meet increasing demand of Railway Coaches, BHEL has signed an MoUwith Indian Railways for setting up a green field factory in Rajasthan for manufacturingof MEMU coaches for Railways.

• Completed supplies of 15 sets of IGBT based Propulsion system for electric locoagainst Railway Board Order for 30 sets. Most of these sets have been commissioned onlocos and are in commercial service. Locomotive fitted with first prototype set of IGBTbased propulsion system has already covered more than 1 Lakh Km in commercial service.

• Supplied 63 nos. 25 kV AC WAG-7 Electric loco-motives to Indian Railways whichis the largest no. of locos supplied in any single financial year.

• To make old DC EMU rakes of Western and Central Railways suitable for running onAC supply, BHEL developed up-rated AC EMU Transformers of 1200 kVA without changing theouter dimensions of existing 1000 kVA AC EMU Transformers so as to fit them in limitedspace available in the old coaches. This will help railways to continue to run suburbanservices in Mumbai where DC supply is being phased out.

• Supplied the highest no. of 237 sets of AC EMU Electrics to IR.

• Delivery of Electrics for 13 rakes of Kolkata Metro Coaches required forexpansion of India's first underground Metro has been completed on schedule. Also suppliesof AC EMU electrics and DEMU Electrics to Railways against ICF/RCF orders have beencompleted on time.

• To meet Railways growing demand for AC locomotives, manufacturing capacity atJhansi plant is being further enhanced from 60 locos p.a. to 75 locos p.a.

• BHEL is fully geared up to manufacture and supply 6000 HP WAG-9 AC locomotiveswith IGBT based propulsion to Indian Railways.

Industrial Products - Electrical

• Secured order for 10 no. vertical synchronous motors for Chintalapudi LiftIrrigation Scheme in Andhra Pradesh, through M/s Xylem Water Solutions India Pvt. Ltd.This will help in establishing BHEL as a motor supplier with pump OEMs operating in theirrigation sector.

• Rate Contract (RC) was finalised with Reliance Industries Ltd. for supply of160-470 kW HT motors for their projects at Hazira, Jamnagar and other sites.

• BHEL achieved yet another milestone by successfully developing

• 3600 kW 10 Pole Vertical motor for Primary Sodium pumps application of 500 MWeProto Type Fast Breeder Reactor setup at Kalapakkam. Integrated testing of motor on loadwas carried out along with Pump, Convertor and Pony motor at pump vendor M/s KBL works atKirloskarwadi.

• Successful development of largest 20 pole CACA vertical Induction Motor of 4370kW, 6.6 kV, for Sea Water pump application for NPCIL Bhavini (through M/s KBL).

• The largest rating 5450 kW, 11 kV, 8 POLE CACW H-Module Motor for ID Fanapplication of 660 MW Prayagraj STPP.

• EML, Kasargod developed as low cost supplier for winding of LT motors. Statorcapsules with mush winding sourced from them by HEP Bhopal and motors tested anddispatched.

Industrial Products - Mechanical

• ONGC reposed faith in BHEL by placing another order for refurbishment &upgradation of another four rigs of ONGC/Sibsagar.

• Highest ever order booking in a year for supply of WH & X-Mas Trees achievedduring 2012-13 from ONGC, OIL, and other drilling companies.

• Successfully commissioned BHEL's largest Turbo Blower having capacity of4,18,000 Nm3/hr at a discharge pressure of 5.75 KSCA for RINL, Vizag.

• Largest compressor supplied by BHEL for wet gas application to MRPL PFCCURefinery (2MCL1007 compressor). The compressor is designed to handle a large flow of243733 kg/hr. BHEL has successfully completed Mechanical run test and complete unit testof this compressor along with steam turbine EHNK 40/56-3 and also the performance test ofthe compressor.

Transmission System - Substation/ Switchyard

• Order for 400/132 kV Switchyard at Nabinagar received against competitivebidding from M/s NPGCL.

• Order for 220 kV Pusauli New S/stn & Dehri (S/stn Extn) received againstcompetitive bidding from M/s BSEB.

• For 800 kV, 6000 MW, Multi-terminal HVDC NE Agra project, the largest HVDCproject globally is under construction, the design of DC Valve Hall has been completed.Pre-fabricated building for DC Hall to house DC yard equipment indoors having clear spanof 77 m and height of 40 m has been designed for the first time in India.

• Pole 2 of 2500 MW HVDC Ballia- Bhiwadi was commissioned in June, 2012, all onshore supplies from BHEL including 4 nos. converter transformers from Bhopal works. Fullload power flow of 1250 MW was achieved in September, 2012. With this the project isloaded to full capacity of 2500 MW.

• BHEL has expanded its EPC presence in the field of GIS right from 33 kV andcovering GIS ratings of 66 kV, 132 kV, 220 kV and up to 400 kV backed by in-houseengineering & integration expertise.

• 66 kV Gas Insulated Switchgear (GIS) was charged by the Transmission BusinessGroup in October'12 at Paradip Refinery of M/s Indian Oil Corporation Limited as a part ofthe turnkey contract.

• 400 kV Gas Insulated Switchgear (GIS) for 2x600 MW North Chennai TPS Stage-II,unit-2 commissioned by the Transmission Business Group of BHEL in December'12. This is thefirst time 400 kV GIS in BHEL's EPC Thermal power project has been commissioned.

• The Phase-I of the National Experimental substation of PGCIL at Bina was chargedin May 2012 with BHEL's 1200 kV UHVAC transformer, 1200 kV CVT & Disc insulators. Thisproject has been in successful operation since then. BHEL was the first manufacturer inIndia to have successfully designed, manufactured and tested a 1200 kV transformer.

• BHEL has successfully developed and tested the first 400 kV, 315 MVA PhaseShifting Transformer which has been supplied to APGENCO for installation at KothagudemTPS.

• BHEL has set up state-of-the-art facility for Thyristor Valve at EDN, Bangalorefor assembly and testing of Thyristor Valve Modules for HVDC and FACTS applications.

• Capacitor shop at Bhopal has been upgraded conforming to cleanliness class 6 asper ISO-14644-1 for manufacturing capacitors for HVDC and FACTS projects.

• Additional investments have been made at Bhopal works for manufacturing &testing converter transformers for 800 kV HVDC project.

Transmission Products

• Achieving yet another landmark, BHEL enters 765 kV transformer business -Secured two significant orders:

• Megha Engineering & Infrastructures Ltd. for 765 kV auto transformers andshunt reactors along with other transformers for Western UP Transmission SystemUpgradation.

• BIDCO for 765 kV generator transformers, auto transformers and shunt reactorsfor upcoming Lalitpur 3x660 MW TPS.

The orders envisage design, manufacturing, testing and supply of total 53 nos., 12365MVA 765 kV transformers and reactors that would be manufactured at BHEL's state-of-the-arttransformer plant at Bhopal.

BHEL's foray into 765 kV range transformers has further strengthened BHEL's position inEHV segment.

• Customer reposes faith in BHEL-several transformer/switchgear orders received onnegotiated basis from various customers viz. PSTCL (Punjab), NTPC (Tanda), Reliance(Dahanu), Chhattisgarh, Dadra Nagar Haveli, etc.

• Other significant orders received for power transformers/switchgear/bus ducts:

• RRVPNL (Rajasthan) - 9 nos. 160 MVA, 220 kV auto transformers

• TANTRANSCO (TN) - 6 nos. 100 MVA, 220 kV auto transformers

• MP Transco & Discoms - 1378 nos. vacuum circuit breakers

• UP Discoms - 809 nos. vacuum circuit breakers

• NTPC (Nabinagar, Mauda & Solapur) - 7 sets busducts for 7x660 MW TPS

• Short circuit testing of 100 MVA, 220/66 kV system power transformer wassuccessfully done for the first time in India. This transformer was manufactured by BHELJhansi for PSTCL and tested at CPRI.

International Business

In International Business, the last few years have been afflicted with economicuncertainties and political turmoil which has severely constrained capital investmentsworldwide. Especially in our target markets new projects are not forthcoming and plannedprojects are also being put on hold or on slow execution path. In spite of suchchallenging trends, BHEL has been able to sustain its exports momentum with a physicalexport order inflow of Rs 2004 Crore from 20 countries in 2012-13 registering an eightfold growth over the previous year. The year marked significant steps towardsglobalization with successful forays in new markets and new product areas, apart fromfirmly establishing the company's presence in existing markets.

Major Achievements During 2012-13

During the year BHEL secured following prestigious orders:

• Major Orders from Bhutan - Accelerating our success story in Bhutan, BHELsecured orders for Electro-mechanical package of 1020 MW Punatsangchhu-II Hydro PowerProject and Electro-mechanical package of 720 MW Mangdechhu Hydro Power Project. With thisorder the total capacity contracted by BHEL in Bhutan has reached 4,356 MW (around 98% ofBhutan's total capacity). Another key achievement was winning the order for TransformerPackage for the Punatsangchhu-II Hydro Power Project against stiff internationalcompetition.

• Entry into new markets - Consolidating its presence in East Africa, BHEL hassuccessfully made its maiden entry into Burundi by securing order for 2x10 MW Kabu HydroProject. Also BHEL for the first time secured an order for supply of OLTC from M/sAbsolute Africa, South Africa.

• Repeat Orders-Following the successful execution of the previous orders ofWellheads, BHEL received repeat orders for Wellheads from Jindal Petroleum OperatingCompany, Georgia and Amran Establishment LLC, Oman. M/s IER, UAE placed an order for Rotorof Fr-6B Gas Turbine subsequent to successful delivery of 4 nos. Frame 6B Gas Turbines byBHEL. Also repeat order for Bus Extension Module was secured from Metso Automation, USA(for the third time from the same customer). Moreover, BHEL secured a repeat order for thesupply of 1900 kW Slip Ring Induction motor from Mombasa Cement Ltd., Kenya.

• Continued focus on After Sales Services led to orders for Spares & Servicesfrom Afghanistan, Bangladesh, Bhutan, Georgia, Indonesia, Iran, Jordan, Kenya, Libya,Malaysia, Malta, New Caledonia, Nigeria, Oman, Sri Lanka, UAE, United States & Yemen.

Execution of Major Overseas Orders

In the year 2012-13, BHEL has successfully commissioned 309 MW of power plant capacityin overseas markets. Major milestone of the year was the commissioning of power plants inLibya, Tajikistan, Ethiopia, Vietnam and Indonesia.

Libya - Unit-6 (157 MW) Western Mountain GTPP for General ElectricityCompany of Libya was commissioned during the year. With this BHEL's installed capacity inLibya has reached 1,182 MW.

Tajikistan - 2 x 4.75 MW Modernisation & Uprating of Varzob PowerPlant commissioned and project handed over to Government of Tajikistan.

Ethiopia - First unit (12.5 MW) of Fincha Sugar Factory efficaciouslycommissioned.

Vietnam - First unit (100 MW) of Nam Chien Hydro Project successfullycommissioned.

Indonesia - First Unit (30 MW) of PT-MSW Indonesia CFBC Boiler projectsuccessfully synchronized.

We are currently executing 30 nos. projects spread over 23 countries across the world -Afghanistan, Belarus, Bhutan, DR Congo, Ethiopia, Indonesia, New Caledonia, Oman, Rwanda,Sudan, Syria and Yemen to name a few.

Customer Appreciation

Oman - 2 x Fr 5 GTG Mina Al Refinery -Appreciation received from Oman OilRefineries and Petroleum Industries Company SAOC for successful completion of all works inrecord time in challenging conditions.

UAE - Certificate of appreciation awarded by Al Ghail Power LLC forsuccessful completion of 2 x Fr 6B GTG Al Ghail Power Project.

Azerbaijan - Appreciation received from JSC Azereneji for the successfulexecution of the Imishli and Gala Power Transmission Project and after-sales support.

Capital Investment

C. CAPITAL INVESTMENT

• BHEL made a capital investment of Rs 752 Crore during 2012-13 towardsaugmentation of manufacturing capacity and modernisation of the facilities, inmanufacturing units and at power project sites.

• Focused attention was given on rebuilding and retrofitting of many existingfacilities to enhance their life, accuracy and productivity through an additionalinvestment of Rs 83 Crore

• As part of major Capacity Augmentation for modernization and upgradation of theHot Mill of our Seamless Steel Tube Plant at Trichy, envisaging more than two-foldincrease in capacity to 86,500 MT per annum, production trials are under way, with keyfacilities including the Rotary Hearth Furnace, Walking Beam Furnace and Stretch ReducingMill having been commissioned. This will ensure secured supply chain for one of the keyinputs for boiler manufacture. With introduction of state-of-the-art technology, yieldwill substantially improve, enhancing competitiveness.

• Photovoltaic (PV) Module Manufacturing Capacity has been enhanced at ourElectronics Division, Bengaluru with the installation of ultramodern 20 MW Solar PV Modulemanufacturing line.

• BHEL is augmenting its manufacturing and testing facilities for 800 kV HVDCTransmission Systems; and for IGBT based propulsion systems for AC EMUs, DEMUs & 6000HP AC Locomotives.

• Towards preserving environment and to reduce emission of green houses gases,BHEL has initiated conversion of Diesel Oil operated furnaces to Natural Gas at itsCentral Foundry Forge Plant at Haridwar.

• As part of its commitment towards green initiatives and contributing tosustainable development, BHEL is establishing a 5 MWp grid-interactive SPV power plant atits Boiler Auxiliary Plant at Ranipet.

• BHEL in its endeavour to support, develop and upgrade technology in the field ofpower transmission area is establishing Centre of Excellence for Advance TransmissionSystem at Corporate R&D, Hyderabad and has commissioned Real Time Digital Simulator(RTDS), with capability to simulate upto 1200 kV Transmission Voltages for development oftransmission products.

D. JOINT VENTURES

I) BHEL-GE Gas Turbine Services Ltd. (BGGTS)

The Joint Venture Company, BHEL-GE Gas Turbine Services Ltd. (BGGTS), has been promotedby BHEL with GE, USA for repair & servicing of GE designed Gas Turbines and hascompleted fifteen full financial years of operation.

BGGTS achieved a sales turnover of Rs 813.78 Crore during the year 2012-13 with aprofit after tax of Rs 81.70 Crore. Orders for Rs 489.20 Crore approx were booked by BGGTSduring the year 2012-13. BGGTS successfully completed gas turbine servicing & supplyof spares to various customers in both Public and Private sectors. For the year 2012-13,BGGTS has declared a total dividend of 700 % thereby maintaining its consistent record ofimproved performance.

II) Powerplant Performance Improvement Limited (PPIL)

The Joint Venture Company, Powerplant Performance Improvement Ltd. (PPIL), has beenpromoted by BHEL with Siemens, Germany for plant performance improvement of old fossilfuel power plants.

PPIL is in the process of settlement of outstanding issues and collection of withheldpayments for pending contracts. Since sufficient business to ensure viability of thecompany has not been forthcoming, the promoter partners have mutually agreed to graduallywind up the company.

III) NTPC BHEL Power Projects Private Limited (NBPPL)

BHEL along with NTPC Ltd. has promoted a joint venture company "NTPC BHEL PowerProjects Private Limited" for carrying out EPC contracts for Power Plants and otherInfrastructure Projects in India and abroad. The JVC has acquired land in Mannavaram, APand is in the process of implementing Phase-I of the investment for carrying out EPC andmanufacture of Balance of Plant equipment for power plants. NBPPL has entered into atechnical collaboration agreement with M/S DMW, USA for manufacture and supply of CoalHandling Plants. The JVC is presently executing orders for Balance of Plant equipmentassigned to it.

The paid up capital of the JVC is presently Rs 50 Crore, with BHEL and NTPC each havingsubscribed Rs 25 Crore. Further equity contribution of Rs 25 Crore each has been made inMay 2013 by the two promoters to enable JVC to meet its capital expenses requirement forimplementing phase-I. For the financial year 2012-13, the JVC achieved a turnover of Rs116.25 Crore and PAT of Rs 5.66 Crore approx. (unaudited).

IV) Udangudi Power Corporation Limited (UPCL)

BHEL had promoted a joint venture company with Tamilnadu Electricity Board for settingup of a 2x800 MW Supercritical Thermal Power Plant at Udangudi, Tuticorin, Tamil Nadu onbuild, own and operate basis. The JVC was incorporated on December 26, 2008 under the nameof "Udangudi Power Corporation Ltd". The paid up equity capital of JVC was Rs 65Crore, with BHEL and TNEB each having subscribed Rs 32.5 Crore. The JVC has been awaitinggrant of coal linkage and MOEF clearance before proceeding with finalizing main plantequipment order on BHEL. In March 2012, Govt. of Tamil Nadu indicated that they would liketo pursue this project as a state project rather than as a JV project and requested BHELto agree for termination of JVA on mutual consent basis. After exploring all possibleoptions, BHEL has agreed for sale of BHEL's equity in UPCL to TANGEDCO for a totalconsideration of Rs 64 Crore. Pursuant to receipt of sale consideration and transfer ofBHEL's share in UPCL to TANGEDCO, BHEL nominee directors have resigned from the Board ofUPCL with effect from March 26, 2013 and the JVA stands terminated.

V) Raichur Power Corporation Limited (RPCL)

BHEL has promoted a joint venture company with Karnataka Power Corporation Limited(KPCL) for setting up of a 2x800 MW Supercritical Thermal Power Plant at Yeramarus,Raichur, Karnataka and 1x800 MW Supercritical Thermal Power Plant at Edlapur, Raichur,Karnataka on build, own and operate basis. The Joint Venture Agreement with KPCL wassigned on January 12, 2009 and the JVC was incorporated on April 15, 2009 under the nameof "Raichur Power Corporation Limited". The initial authorized and paid upequity of the JVC was Rs 10 Crore subscribed to equally by KPCL and BHEL. Pursuant tofinancial closure in November 2011 and induction of IFCI as the third equity partner, achange in equity structure has been agreed and final equity holding would be KPCL 50%,BHEL 26% and IFCI 24%. At the end of 2012-13, the total paid up equity capital of JVC isapprox. Rs 775.9 Crore, with BHEL contributing Rs 331.5 Crore, KPCL contributing Rs 344.4Crore and IFCI contributing Rs 100 Crore. JVC has also tied up the required debt with M/sPFC and a consortium of commercial banks.

The JVC has received MOEF clearance for the 2x800 MW Yeramarus Power Project and theorder for supply and E&C of main plant equipment for the 2x800 MW Yermarus project hasbeen placed on BHEL for a value of approx. Rs 6,300 Crore. The work of Coal HandlingSystem and Ash Handling System for YTPS has also been awarded to BHEL at a negotiatedcontract value of Rs 966 Crore (inclusive of taxes). The LOA for 1x800MW Edlapur projectvaluing Rs 3,100 Crore has also been settled and Notice to Proceed would be issued afterMOEF clearance.

VI) Dada Dhuniwale Khandwa Power Limited (DDKPL)

BHEL has promoted a joint venture company with Madhya Pradesh Power Generating CompanyLtd. (MPPGCL) for setting up of a 2x800 MW Supercritical Thermal Power Plant at Khandwa,Madhya Pradesh on build, own and operate basis. The Joint Venture Agreement with MPPGCLwas signed on January 28, 2010 and the JVC was incorporated on February 25, 2010 under thename of "Dada Dhuniwale Khandwa Power Ltd.". The initial authorized and paid upequity of the JVC was Rs 5 Crore subscribed to equally by MPPGCL and BHEL. At present thepaid up equity capital is Rs 45 Crore, with BHEL and MPPGCL each having subscribed to Rs22.5 Crore, to enable JVC to meet land acquisition expenses. The acquisition of land is inprogress with section 9 notification issued for land for approach road & waterpipeline corridor and section 6 notification for land for main plant. Application forgrant of coal linkage was filed with Ministry of Coal on January 27th, 2010 andall the requirements under ToR as specified by Ministry of Environment and Forests (MOEF)including EIA study and public hearing has been completed. The JVC has been awaiting grantof coal linkage and MOEF clearance before proceeding with finalizing main plant equipmentorder on BHEL. The JVC has in Jan' 13 applied for allotment of coal blocks under the newpolicy for coal block allotment to Govt. companies announced by Govt. of India. A changein equity structure has been approved by the Board, with BHEL holding 26%, MPPGCL 10%,PSUs/PSU-FIs/PSU bank 16% and balance 48% by a strategic partner.

VII) Latur Power Company Limited (LPCL)

BHEL has promoted a Joint venture company with Maharashtra State Power GenerationCompany Ltd. (MAHAGENCO) for setting up a 2x660 MW Thermal power plant or 1500 MW gasbased Combined Cycle Power Plant (CCPP) in Latur, Maharashtra. The Joint Venture Agreementwith MAHAGENCO was signed on November 11, 2010 and the JVC was incorporated on April 6,2011 under the name of "Latur Power Company Ltd". The present paid up equity ofthe JVC is Rs 5 Crore, subscribed to equally by both the partners.

The JVC has reviewed the viability of various fuel options to set up a coal based orgas based project. Due to non availability of coal linkage and domestic gas also not beingavailable till 2015, the JV partners are considering the option of setting up a Solar PVplant.

E. R&D AND TECHNOLOGICAL ACHIEVEMENTS

BHEL places strong emphasis on innovation and creative development. The research anddevelopmental efforts of the company are thus aimed not only at improving the performanceand efficiency of the existing products, but also developing new products usingstate-of-the-art technologies and processes, relevant to the needs of the country toremain current both in terms of technology & features vis-a-vis global benchmarks.

Accordingly, BHEL pursued two pronged strategy namely; aggressive in-house efforts andencouraging innovation which is in line with the "Decade of Innovations(2010-2020)" declared by Govt. of India. As a result, R&D spend of the companyhas registered 4.4% growth over last financial year (from Rs 1,199 Crore to Rs 1,252 Crore(actual)) and associated turnover from In-house developed products and services clockingturnover of Rs 9643 Crore, which is approx 19% of the total turnover of the company.BHEL's efforts for encouraging innovation have resulted in raising BHEL's IPR capitaltally to 2170 as on date with highest ever IPRs (385 nos.) filed this year.

Some significant developments carried out during the year are as follows:

• A cost-effective high-pressure feed water heater for 600 MW Power Plants,meeting international standards, has been successfully developed. It has been installed at2x600 MW North Chennai.

• To meet stringent safety requirements of 500 MW Fast Breeder Reactor basedNuclear Power Plant of BHAVINI, a state-of-the-art unified C&I platform involvingmajor equipment like Steam Generator, Turbine, Auxiliary Boiler and Station C&I hasbeen designed and implemented.

• To improve the stability and reliability of power systems, BHEL has developedand manufactured a 3 Phase, 315 MVA, 400 kV class, Phase Shifting Transformer withstate-of-the-art features. It will be installed at APGENCO Kothagudem.

• In the area of renewable energy, a cost-effective 250 kW grid-connected PowerConditioning Unit (PCU) has been developed, commissioned and synchronized with the grid.

• To enhance overall solar energy absorption during the day by PV arrays, BHEL hasdeveloped a modular solar thermal sun tracker which operates on a novel liquid balancingsystem. It enables generation of 25% additional energy during the day.

• BHEL has developed a mathematical model for predicting the dynamic behavior of182 MW Integrated Gasification Combined Cycle (IGCC) plants. This has been used to carryout dynamic simulations for possible disturbances in the plant and to develop controlsystems.

• BHEL has developed a new variant '300 MW Steam Turbine' with 3.9% improved heatrate by optimizing the flow paths of HP, IP and LP turbines, while keeping the existingturbine module combination of 270 MW. The turbine has been offered for 1x300 MW AbhijeetInfra, Visakhapatnam.

• In the transportation sector, catering to RDSO's requirement for conversion ofexisting DC EMUs to 25 kV AC EMUs, BHEL has successfully type tested a 1200 kVA AC EMUtransformer which matches the dimensions of the conventional AC EMU transformer with a 20%enhanced output.

• To improve the reliability of Oil rigs, BHEL has developed an improved design ofCasing Line Spooler Unit with electrically operated braking system to eliminate thefailure of rope during reeving in or out operation.

• In its endeavour to develop environment friendly technologies, BHEL hasdeveloped Copper Indium Gallium di-Selenide (CIGS) nano-material for the absorber layer ofthin film solar cells. CIGS has better performance under diffused light. 16-20% efficiencyhas been achieved at lab level.

• As a reliable partner in ISRO's space program, BHEL achieved a landmark with thesuccessful deployment of its Space Grade Solar Panels and Satellite Batteries on theGSAT-10 and RISAT satellites. BHEL has supplied 278 sq. mtrs. of Space Grade Solar Panelsand 42 Satellite Batteries, which are deployed on various satellites, now in orbit.

• A state-of-the-art Test Facility for boiler feed booster pumps for power plantsup to 1000 MW has been established at Hyderabad. It is used for testing the pump for fullload performance and NPSH (Net Positive Suction Head) test with vacuum control. Thebooster pump for 660 MW NTPC Barh-II unit was tested at this facility.

• A Drop Tube Furnace facility has been established at the Coal Research Centre,Tiruchy, for testing the combustion characteristics of Indian, imported as well as blendedcoals. It will be used for accurate prediction of boiler performance and efficient furnacedesign.

F. QUALITY PERFORMANCE HIGHLIGHTS

1. Continuing its tradition of achieving excellence, two Units of BHEL (Hyderabad &EDN) have been awarded "Commendation for Significant Achievement" in 2012-13under CII EXIM Bank Award Scheme for Business Excellence as per the globally recognizedmodel of European Foundation for Quality Management (EFQM).

2. Customer Satisfaction Survey conducted in 2012-13 for Power Sector of BHEL by M/sIMRB International, Gurgaon. CSS was carried out for all four PS-regions and PEM. Theoverall Customer Satisfaction Index (CSI) of BHEL as per survey report is 65 out of 100.

3. International Convention on Quality Control Circles (ICQCC- 2012) held at KualaLumpur, Malaysia during 14 - 17th Oct'12 where 4 units (Trichy, HEEP Haridwar, EDN &EPD) of BHEL participated. BHEL Trichy, EDN & EPD bagged "3 STAR Gold" awardwhere as HEEP Haridwar bagged "2 STAR Silver" award.

G. HUMAN RESOURCE MANAGEMENT

1) Industrial Relations

1. The Industrial Relations scenario in the various Manufacturing Units and theBusiness Sector/ Offices of the Company remained harmonious and peaceful during the year2012-13. The mandays lost was almost negligible during the year.

2. The thrust on participative culture and communication continued during the year. Theapex level bipartite forum, namely "The Joint Committee for BHEL" met twice.There were 64 meetings of the Plant Councils and 365 meetings of the Shop Councils. Inaddition, meetings were also held with the representatives of Executives and Supervisorsof the various Manufacturing Units including the Business Sector/Offices.

3. A Joint Appeal on behalf of "The Joint Committee for BHEL", was alsoissued apprising all the employees about the prevailing business environment, the orderbook position, the various financial parameters and the intense competition which theCompany is facing. The Appeal urged the employees not only to rise on this occasion but toovercome these challenges with all their might.

2) Awards won by BHEL, Units & employees

Continuing its tradition of winning prestigious national/international awards, theorganization and its employees won several awards during the year 2012-13. Notable amongthese included:

• The 'India Pride Award for Excellence in Heavy Industries 2012-13' was receivedby CMD, BHEL from Dr. M. Veerapa Moily, Union Minister of Petroleum & Natural Gas.

• The Indian Chamber of Commerce 'PSE Excellence Award' in the R&D, Technology& Innovation category was received from Mr. O.P. Rawat, Secretary, Department ofPublic Enterprises, Govt. of India.

• 'National Energy Conservation Award 2012' was won by BHEL Central Foundry ForgePlant (CFFP), Haridwar for excellence in energy conservation and management in 'Foundries'sub-sector in 'Industries' sector. The Hon'ble President of India, Shri Pranab Mukherjee,presented the award to CMD, BHEL, on National Energy Conservation Day.

• 'AIMA Managing India Award' for being the Outstanding PSU of the Year by the AllIndia Management Association (AIMA). The award was presented by the Hon'ble President ofIndia, Shri Pranab Mukherjee to CMD, BHEL

• The 'NDTV Profit Business Leadership Award 2012' in the Engineering categoryfrom Shri Montek Singh Ahluwalia, Dy. Chairman, Planning Commission. BHEL has won thisprestigious award for the third year in succession.

• 'DSIJ Award for the Fastest Growing Maharatna PSU'. The award was presented toCMD, BHEL by Mr. Ajit Singh, Hon'ble Union Minister of Civil Aviation.

• BHEL was declared the Best PSU in the Electrical & Electronics category byDun & Bradstreet.

• BHEL has won 'Golden Peacock National Training Award 2012' after a gap of morethan a decade. The Award highlights the Training Excellence of the organization.

• The 37th ELCINA-EFY Award, Instituted by the Electronic IndustriesAssociation of India (ELCINA) and Electric for You (EFY) in recognition of the 'Spirit ofExcellence' in the electronics industry.

• 'Enertia Award 2011' under the category Technology & Innovation forConventional Energy (Thermal, Nuclear, etc.).

• Engineering Export Promotion Council (EEPC)'s Top Export Award-recognision fortwenty third successive year.

• 'SKOCH Digital Inclusion 2012' Gold award Trophy in the PSU category fordeveloping and implementing 'Drawing and Document Management System'.

• 'BT-Star Award 2013 for Excellence in Innovation (Tech/RnD)' in the Maharatna/Navratna category was received by CMD, BHEL from Shri Shekhar Dut, Hon'ble Governor ofChhattisgarh, in the presence of Shri Bhupinder Singh Hooda, Hon'ble Chief Minister ofHaryana.

• The 'Gold Award under the National Awards for e-Governance 2012-13' wasconferred on BHEL for Innovative use of ICT by PSUs for Customer's Benefits. The award waspresented to BHEL by the Hon'ble Chief Minister of Rajasthan, Shri Ashok Gehlot, at the16th National Conference on e-Governance.

• 7 employees won 'Prime Minister's Shram Awards' including 1 Shram Bhushan ; 5Shram Devi ; and 1 Shram Shree and 3 Vishwakarma Rashtriya Puraskars have been shared by13 employees from BHEL's Trichy unit, for innovative suggestions leading to costreduction, higher productivity, safety and quality of products.

• 5 'National Safety Awards 2010' to BHEL's Trichy unit and EPD, Bangalore foroutstanding achievements in terms of the longest accident free period and lowest accidentfrequency rate at their works.

• 'Dainik Bhaskar India Pride Gold Award 2012' for excellence in Central and StatePublic Sector Enterprises in the category of Heavy Industries.

The following awards were conferred in individual category :

• Shri B.P. Rao, CMD, BHEL, received the 'BT- Star Best PSU Man of the Year 2012'Award from Shri Oscar Fernandes, in the presence of Shri T.K.A. Nair, Advisor to the PrimeMinister of India.

• Mr. Farooq Abdullah, Hon'ble Union Minister of New & Renewable Energypresented Enertia 'Power Man of the Year Award' for individual contribution to the powersector to Mr. B.P. Rao, CMD, BHEL.

• 'NITIE Distinguished Alumnus Award 2012' to CMD, BHEL.

• Top Rankers 'Entrepreneurial Path Breaker Award 2013' from Mr. Ajay Shankar,Member Secretary, National Manufacturing Competitiveness Council to CMD, BHEL.

• 'CNBC TV18 Best CFO Award 2013' was received by Director (Finance) from theHon'ble Union Minister of State (Independent Charge) for Corporate Affairs, Mr. SachinPilot.

• 'BT Yes Bank CFO of PSU (Large) award' was received by Director (Finance) fromHon'ble Union Minister for Commerce & Industry, Shri Anand Sharma.

• Director (Finance), BHEL, was conferred the IPE 'Finance Leadership Award' forvaluable contribution made by his practices towards corporate governance. The awards arepresented by Institute of Public Enterprise (IPE) & endorsed by World CSR Congress,World CSR Day, CMO Asia & Asian Confederation of Business.

• 'CFO 100 Roll of Honour 2013 in Corporate Governance/Financial Control' toDirector (Finance), BHEL.

• HR Leadership Award to Director (HR), BHEL.

• Director (Power), BHEL, received the BT-Star Award 2013 for Excellence asDirector (Projects) in the Maharatna/Navratna category, from Shri Shekhar Dutt, Hon'bleGovernor of Chhattisgarh, in the presence of Shri Bhupinder Singh Hooda, Hon'ble ChiefMinister of Haryana.

• 'Bureaucracy Today PSU Director of the Year Award' to Director (Power), BHEL.

3) Human Resource Development

• Training

• During the year 2012-13, total number of training man days (TMD) per employee is4.95 against MoU target of 3 TMD per employee.

• 152 Multi-skilling/Skill upgradation Programmes have been conducted during2012-13 covering approximately 3000 artisans.

• Customer Training has been a regular activity at BHEL. During the year, 2202customers were trained giving 9921 man days.

• 8390 Vocational Trainees from different professional institutions were alsotrained giving 386586 man days.

• 6139 Act Apprentices were trained in different units giving 1103205 man days.

• Our esteemed customers like NTPC, PGCIL, NHPC, ONGC and IOCL appreciated us forconducting effective customer training programmes at HRDC Bhopal.

• DVC appreciated the training programme at HRDC Jhansi as "Valuable andKnowledge full, It also helped in operation & maintenance at site".

People Development Workshops - Based on the findings of the BHEL EmployeeEngagement Survey and Focused Group Discussions measuring the rational and emotionalcommitments of the new entrants in the organization, HRDI and Corporate HR/ NIC conductedthree workshops for Training of Trainers for People Development at HRDI, Noida.Participants who were trained here in turn went back to their units/regions and conducteda total of 82 workshops covering 2110 executives (E4-E7).

Knowledge Transfer Workshops - Knowledge Transfer Workshops have beendevised as a mechanism to capture existing knowledge from the seniors who havesuperannuated or are due to superannuate & to document their knowledge for the benefitof future engineers of BHEL.

'BHEL: Need of the hour' for Artisans - To increase the efficacy ofartisans and their commitment to work for BHEL's growth, six workshops were conducted atBhopal, Haridwar, Hyderabad, Trichy and Rudrapur. 315 artisans participated in theworkshops.

'Life Education Workshop' for Supervisors-

In order to increase the productivity, positive orientation and commitment at workplace for Supervisors; HRDI had conducted Two Life Education Workshops at Haridwar. 111Supervisors of Haridwar unit attended this programme.

Training for Board Members - In keeping with our policy of training fromall levels ,three of our Board Members were nominated for attending two days"Directors' Conclave: Towards Value Adding Board" organized by InternationalManagement Institute(IMI), New Delhi on Sept. 28-29,2012.

In collaboration with NTPC, a top manage-ment programme - "StrategicManagement Initiative for Leadership Effectiveness (SMILE) Towards Global StrategicLeadership" was held for 11 days at Greater Noida, Berlin, Milan and Paris byInternational Management Institute, New Delhi. Programme was attended by nine EDs, one GM(I) and two Sr. GMs + one DHI representative.

Mentoring Workshop - During the year 2012-13, 23 workshops were conductedat Varanasi, Haridwar, Bhopal, Trichy, Bangalore, Delhi, Hyderabad, Jhansi, Ranipet andPower Sector (Eastern Region) to train 742 mentors and mentees.

Competency Development - As a part of 'Competency Development'initiatives, the third phase of Behavioural Competency assessment was conducted for Seniorlevel executives with the help of a Consultant using the Development Centre approach. 352executives were covered during the year thereby completing the assessments across allunits. The strengths and areas of improvement in relation to the BHEL's CompetencyFramework were shared with each participant and a Development Plan suggested for eachduring the feedback session.

4) Manpower strength

The manpower strength of the Company as on 31.03.2013 was 48,399.

5) Status on Presidential Directives

Directives on reservation policy for reserved category persons

Presidential Directives on reservation policy issued by Central Govt. from time to timepertains to provision of certain percentages of reservation in direct recruitment as wellas promotion in specified posts and for specified reserved category of candidates, i.eSCs, STs, OBCs and Physically Challenged. Besides, the Directives also contain provisionof certain concessions and relaxations in direct recruitments, promotions and reservationfor housing for specified category of employees. The Presidential Directives on thesubject from time to time are being strictly complied with and reservation percentages areensured through maintenance of Post Based Roster system as prescribed by Govt. However,there is no direct impact of these guidelines on the financial position of the company.

I. Representation of SC/ST employees:

The overall representation of SC/ST/OBC employees in total manpower was 19.81%, 5.76%and 25.02% for SCs, STs and OBC respectively as on 31/12/2012. However, the percentages indirect recruitment during the year are 19.06% for SCs, 5.83% for STs and 33.66% for OBCs.This does not include offers issued, but those who joined after 01/01/2013 till31/03/2013, which takes care of the required percentage of reservation as on 31/03/2013.

The Annual Statement in the prescribed format showing the representation of SCs, STsand OBCs as on 31/12/2012 and number of appointments made during the preceding calendaryear, as furnished to the Government, is given at Annexure - A.

II. Manpower strength of Physically Challenged employees as on 31.12.2012

As on 31/12/2012, we have a total of 930 Physically Challenged employees in BHEL. Thegroup wise manpower strength of Physically Challenged employees in the Company as on31/12/2012 is given at Annexure - B.

H. CORPORATE SOCIAL RESPONSIBILITY HIGHLIGHTS

It has been BHEL's endeavour always to act as a responsible corporate citizen committedto working for welfare of the society through inclusive growth aimed at capabilitybuilding, empower-ment of communities, environment protection, development of backwardregions and upliftment of the marginalized and under-privileged sections of the society.In line with this commitment, the company supports various social initiatives across thecountry by undertaking projects in diversified areas like Education, CommunityDevelopment, Health, Environment Enrichment, Vocational Training, Skill Development,Disaster/Calamity Management and Infrastructure Development. During the year 2012-13, theCompany achieved a fund outflow of Rs 63 Crore on its various CSR initiatives andactivities.

Education

The Company is promoting various Scholarship Programmes for students frombelow-the-poverty-line (BPL)/weaker sections of the society to enable them pursue highereducation. Under these programmes, financial assistance is also provided to children ofwidows in adopted schools and villages of BHEL units. The company is supporting need-basedconstruction of hostels, classrooms, toilets etc. in several educational institutes of thebackward regions/districts of the country.

BHEL supported a project titled "Katha Reading League in 10 MCD schools" ofDelhi which has been implemented by an NGO named "Katha". The project hassuccessfully achieved the objective of rehabilitating slum children, including schooldrop-outs, developing in them an inclination towards reading/learning through the methodof story-telling.

Another project titled "Lifting every voice of children" has been undertakenby the company to provide quality education to children belonging tounder-privileged/weaker economic sections of the society. The project targeted socially& economically deprived children living in re-settlement colonies of Delhi. Under theproject, 300 children have been covered to promote quality education through 10 integratedlearning centres where they were also provided with mid-day meals for betternutrition/health. To make the classroom environment user-friendly & supportive,learning material like copy, pencils, slate, eraser etc. as well as toys and other itemsfor decoration of Balwadi were also provided to these children. Apart from the above,several activities like games have also been conducted for motor development of thechildren.

Carrying forward its endeavour for inclusive growth of the society, BHEL joined handswith an NGO named 'Udayan Care' to support higher education of girl children coming frombelow-the-poverty line (BPL) families. This CSR project, aligned to BHEL's Haridwar unit,is yet another step by the Company towards empowering girl children coming from extremelypoor family background, so that they are able to join the mainstream of development. Underthis programme titled 'Udayan Shalini', 100 brilliant girl children, who have passed classXth, shall be financially supported to pursue their education up to Post-graduation levelalongside developing/enhancing their personality and employability.

Community Development

To supplement our health and hygiene programs, BHEL has initiated a program called"Anhad Gram" in 25 villages of the backward district of Munger in Bihar. Throughthe program, following four objectives will be achieved- i) Dairy development, ii) Biomass fuel, iii) Women Health & Hygiene and iv) Food Processing & PreservationUnit, with a view to holistically improve the living conditions of people in thesevillages. These projects are named as: Swadhaar (Milk chilling units), SuIndhan (Bio-massfuel), SuKanya (Low cost sanitary napkins unit) and SuAahar (Food Processing &Preservation Unit).

1. Swadhaar: The program involves setting up of a milk chilling centre for theprofitable management of animal husbandry in the village. The cooperatives have beenformed from the rural population of the village for profitable and commercial usage ofmilk. One group of farmers has also been formed for organic certification of theirfarmland and farm produce. Under this programme, the farmers have been trained for propermanagement of their livestock to ensure better quality and quantity of milk. The programhas been envisaged to bring about sustainable development of the region in its social,economic and environmental arena.

2. SuIndhan: As the women of the villages have to spend a large part of the day incollection of firewood and also have to bear the drudgery and smoke while cooking by theirtraditional fuel and methods, this program for briquette-making from the agriculturalbio-wastes has been undertaken. Under the program, briquettes have been produced with aburning efficiency of about 55 minutes, resulting in lesser pollution and better fuelefficiency while cooking.

3. SuKanya: Under this program, BHEL is setting up a production unit for low costsanitary napkins in the villages. The unit will be run and managed by the women SHGs ofthe village. This program has been envisaged for the empowerment of women. With a view tomake the women of the village self-reliant and act as protagonists in the region forproviding a low cost sanitary napkin alternative to the women/girls of the region fortheir better health & hygiene.

4. SuAahar: Under the program, a centre for food processing to provide valueaddition to the crops grown and with consequent increase in income of the farmers has beenset up in the villages. Promotion of Organic farming in the selected beneficiary villageshas also been done so as to promote sustainable development of agriculture in the region.It is through the practice of organic farming that input cost of agriculture will getreduced and the farmers will get a good price for their produce that will include asignificant variety of crops and fruits. Around 100 farmers having at least 40 hectares ofagricultural land will work in this project for organic certification of their land.

Health Management

Commited to providing quality health care services for the needy and deprived peopleand in particular, for the aged people living in remote/ backward regions, BHEL joinedhands with Help Age India, a renowned NGO, by providing them with 04 Mobile Medical Units(MMUs) for operation in the vicinity of remote project sites of its Power Sector Regions -PSNR, PSSR, PSER and PSWR.

The MMUs are fully equipped with basic diagnostic equipments such as Stethoscope, BPApparatus, Glucometer for measuring blood-sugar levels, weighing machine etc. includingmedicines for common ailments such as Hypertension, Diabetes, Arthritis, etc. The Help Ageteam consisting of Social Protection Officer, Medical Consultant, Physiotherapist andPharmacist along with specialist drivers will operate the MMUs at Nimoo Bazgoh in Leh,Angul (Odisha), Durgapur (West Bengal) and Nagpur (Maharashtra), to provide free medicinesand health care to the poor people residing in these areas who otherwise are unable toafford medical treatment on their own.

BHEL has extended support to Triumph Foundation, a charitable trust under the RotaryClub of Thane Hills for setting up a Day Care Centre and Blood Bank for patients afflictedwith Thalassemia, a disease caused by weakening and destruction of Red Blood Cellsresulting in bone deformities and cardio-vascular illnesses.

BHEL has funded the state-of-the-art equipments for this Blood Bank with modernfacilities such as, provision of Nucleic Acid tested blood and blood components at a verynominal cost, Mobile Van facility for conducting voluntary blood donation camps, facilityto store 1000 units of blood, bar coding of all the samples and blood units and componentsto ensure donor and patient identity.

Disaster Management

As an expression of its solidarity and support to thousands of people devastated by therecent floods in the Ganges & its tributaries in Uttarakhand region, BHEL swiftly gotinto the act to provide relief and succour to them by way of food, water, medicines aswell as mobile medicare services (MMU).

Reaching out to the victims of flood-ravaged Utarakhand region, BHEL made a humblecontribution of Rs 2 Crore under the company's CSR initiatives to the Chief Minister'sRelief fund of Uttarakhand to alleviate the suffering of the distraught people.

In addition to the amount given to CM's Relief fund, BHEL employees also came forwardto express their solidarity and support for the people devastated by nature's havoc inUtarakhand by contributing their one day's salary amounting Rs 6.38 Crore to PM's Relieffund. This noble gesture of BHEL employees yet again symbolises the inherent strength ofthe Company in integrating its organisational values with the determination and passion ofits employees to reach out to the most needy and downtrodden sections of the society.

Earlier, BHEL had also compassionately responded to the beck and call of the victimsdevastated by the earthquake in Sikkim by undertaking refurbishment of four governmentschools which were damaged by the earthquake.

Environment Protection

Fully alive towards its responsibility for protection of the environment, BHEL hadundertaken a project that entailed afforestation of a barren land at Ramadurga in Koppaldistrict of Karnataka. The project involves planting of fruit-bearing trees in a patch ofcompletely barren land and preserving these trees for birds and animals, thereby alsopromoting protection of species

Vocational Training

With a view to provide self-employment opportunities to women and to enable them toenhance their social and economic status, two programmes viz. "Cutting andtailoring" and "beauty culture" for women of economically weaker sectionsof Simrawari (Khailar) & Gopalpura villages of Jhansi were conducted.

UDAAN Project

The Govt. of India has evolved a scheme called 'Special Industry Initiative' (SII) totrain the educated youth of Jammu & Kashmir (J&K), who have the potential tocontribute to national growth/development, so as to enhance their employability. Theinitiative titled 'Udaan' envisages training of 40,000 youths holding professionalgraduate/post-graduate degrees. BHEL has joined this initiative to provide training to 500J&K youths over a period of five years.

The training programme for the first batch of 100 youths by BHEL was formally launchedon 14.02.2013 at a function held in SCOPE complex, New Delhi which was presided over byShri M.F. Farooqui, Secretary (HI), Ministry of HI&PE. Shri B.P. Rao, CMD (BHEL), ShriAmbuj Sharma, Joint Secretary (HI), our Directors - S/Shri Atul Saraya, Director (Power),O.P. Bhutani, Director (E,R&D), M.K. Dube, Director (IS&P), P.K. Bajpai, Director(Finance), R. Krishnan, Director (HR); and a host of other dignitaries including Shri R.K.Srivastava, Jt. Secretary (MHA - Kashmir Affairs) and Shri Dilip Chenoy, CEO & MD ofNational Skill Development Corporation (NSDC) were present on the occasion.

CSR Training & Development

Believing firmly in the need for training and sensitizing employees and staff towardsCSR, BHEL had trained 45 officials engaged in CSR activities in variousunits/regions/divisions of the Company for better understanding and implementation of CSRguidelines issued by the Department of Public Enterprises (DPE).

I. RIGHT TO INFORMATION ACT, 2005

BHEL is a front-runner in implementing the Right to Information (RTI) Act, 2005 and hasembraced the Act in true letter and spirit.

A Central Public Information Officer (CPIO) and a Central Assistant Public Officer(CAPIO) aided by a Senior Executive (Law) at the company level and 15 CPIOs at each of themajor administrative units along with 1 CAPIO at Bhopal Unit are functioning as part ofthe Right to Information Group.

To assist and facilitate the citizen in obtaining information, detailed guidelines havebeen placed on BHEL's website, spelling out the procedure for securing access toinformation and filing of first appeals under the Act.

Instructions have been issued to administrative units to ensure compliance to themandatory requirements of the Act.

Proactive disclosures have been made on BHEL's website in line with Section 4 (1) (b)of the Act, disseminating various categories of information so that citizens have minimumneed to resort to the Act for the purpose of obtaining information.

BHEL is an active member of Steering Committee on RTI constituted by StandingConference of Public Enterprise (SCOPE). CMD, BHEL showcased BHEL's journey in adoptingRTI as a tool of transparency in improving efficiency in systems and processes in thespecial issue of 'Kaleidoscope' a SCOPE publication.

The CPIOs and the other stakeholders involved are sensitised regularly about theirobligations under the Act through various trainings and workshops. BHEL participated inSymposium on "Right to Information Act, 2005 for Central Public SectorEnterprises" held on 29th & 30th of November 2012 atMumbai. Annual workshop on Right to Information Act, 2005 for the benefit of new &existing CPIOs/CAPIOs of BHEL was held on 5.10.2012 wherein along with other speakers Ms.Sushma Singh, Honourable Information Commissioner from the Central Information Commissionaddressed the participants.

BHEL received 1425 RTI applications and 287 appeals during the year 2012-2013 whichwere dealt with as per the provisions of the Act.

J. INTERNAL CONTROL SYSTEM

• The company has Internal Audit Cells located at major manufacturing units,regional offices and at Corporate office of the company which carry out audits as perAnnual Audit Programme approved by Board Level Audit Commitee. The Internal Auditdepartment checks the adequacy and effectiveness of internal control system throughregular audits, system reviews and monitors compliance of various policies and procedures.The Company has in-house Internal Audit Department commensurate with its size ofoperations. Functioning of Internal Audit and adequacy of internal control system isreviewed by Board Level Audit Commitee which is supported by Unit Level Audit Committees.

• The company has well placed proper and adequate systems of internal control anddocumented procedures covering all financial and operating functions. Adequate internalcontrol measures are in the form of various codes, manuals and procedures issued by themanagement covering all critical and important activities viz. Purchase, Material, Stores,Works, Finance, and Personnel etc. These codes, manuals and procedures are updated fromtime to time and are subject to strict compliance which is monitored by Internal Audit.The Company continues its efforts to align all its processes and controls with global bestpractices.

K. MERGERS & ACQUISITIONS

BHEL, in its strategic endeavor to diversify the market and product portfolio, isactively pursuing acquisition opportunities in Europe & USA in the areas of coretechnologies in energy sector including renewables and other potential areas liketransportation & transmission to achieve its objectives like access to technology,access to global markets, securing global supply sources, diversifying into related &new business areas etc. to facilitate in achieving top line and botom line growth targetsas envisaged in Strategic Plan 2017.

In this pursuit, BHEL is consistently evaluating its technology profile, product mixand exploring new potential markets for suitable target opportunities in closeco-ordination with its empanelled M&A Advisors.

To realize the full benefits to BHEL from Bharat Heavy Plate & Vessels (BHPV), awholly owned subsidiary, a proposal for merger of BHPV with BHEL under the provisions ofSick Industrial Companies (Special Provisions) Act, 1985("SICA") was approved byBHEL Board on May 23, 2012. Consequently, with the approval of merger proposal by UnionCabinet on February 21, 2013, a Modified Draft Rehabilitation Scheme (MDRS) under theprovisions of SICA has been filed with Hon'ble BIFR.

The Extraordinary General Meetings of BHPV and BHEL shareholders were held on June 20,2013 and June 27, 2013 respectively wherein proposal for merger of BHPV with BHEL waspassed by a special resolution.

It is envisaged that with the merger of BHPV with BHEL, the consolidated entity shallprovide strategic and competitive advantage by integrating and rationalizing capacitiesfor the production of industrial boilers and process plant equipment.

L. OPPORTUNITIES AND THREATS

World

The global economy faces a number of significant and interrelated challenges hamperingrecovery from a half a decade long economic crisis. The global economy is still under thegrip of crisis with euro-zone recession continued in the first three months of 2013despite some signs of revival in Germany coupled with increased monetary and fiscal cutsin US.

Across the advanced economies, the IMF report 2013 predicts shrinkage of growth by 0.2percent in 2013 against earlier forecast of 3 percent due to fall in US growth from 2.2percent in 2012 to 1.6 percent in 2013 on the back of continued austerity, unabatedrecessions in eurozone and some medium-term risks emerging from "unconventionalmonetary measures" in other developed economies. In Asia (and particularly the ASEANeconomies), where domestic demand growth has been fairly strong with scope for stimulus inselected areas, the outlook during the year 2013-14 appears positive. Enduring worriesabout the Eurozone debt crisis will tend to favor the dollar over the euro and other riskycurrencies. The overall outlook indicates a balanced risk with prospects of slow recoveryin global economy during the current & next fiscal.

Globally energy scenario has witnessed major shifts and realignments with Shale Gasdiscoveries proving to be a game-changer. Fukushima disaster has put the nuclear programon the back burner while major technological and cost breakthroughs have acceleratedprospects of renewables. Growing population, stringent environmental regulations and newtechnologies are transforming the energy landscape making inroads for alternative energyin the global energy mix for long term sustainability of economic growth. With theincreasing need to develop alternative energy, notable steps have been taken byinternational political fraternity in policy making with important agreements on climatechange, reform of inefficient fossil-fuel subsidies and development and deployment oflow-carbon technologies having potential to transform the global energy systems. As a partof alternative sources of energy, renewables are growing at a much faster pace than fossilfuel with share of electricity generation from solar surpassing the generation from windenergy sources.

In the global context, growth in demand for energy is expected to be around one percenton an annual average during the period 2011-2035. The fastest growing major source ofenergy will be natural gas while coal would remain dominant fuel till 2025 before pavingthe way for less carbon intensive energies led by OECD and China. Global investment inenergy supply infrastructure is expected to be around $38 Trillion over 2011- 2035. By2035, China would account for 22% of world demand, up from 17% in the year 2012 followedby India with 18% share in the rise.

On the face of the challenges of availability, accessibility, and accountability in thecontext of energy, policy and technology innovations are the imperatives for harnessingnatural resources more efficiently for maintaining a sustainable economic growth.

India

Overall economy of India has taken a hit due to the cascading effect of uncertaintysurrounding global economy coupled with low domestic consumption demand spurred byinflation and poor manufacturing & capital goods performance mirroring weak investmentsentiment. The GDP growth number for the year 2012-13 has been 5% against 5.3-5.5%predicted earlier by most financial institutions. The country has to struggle even harderto achieve a GDP growth number of around 6% in FY14 due to challenging domestic &external environments and lower-than-expected expansion during the fiscal 2012-13.

Sectoral indicators of IIP during the year 2012- 13 were also disappointing asElectricity & Manufacturing posted a subdued growth while Mining contracted. IndianRupee breached all time low of 56-level against Dollar due to number of macro-economicfactors like large current account deficit, high fiscal deficit and delay in easing ofmonetary policy. Industrial growth, as per IIP data released by CSO, registered a growthof 2.5% during March'2013 after bottoming out in February'2013 at 0.6%. The Capital Goodssector has registered subdued performance with intermittent contractions all through theyear 2012-13 pummeled by bleak investment climate due to high interest rate anduncertainty in finalization of projects. CMIE estimate for average IIP growth over theyear 2013-14 is around 3.5%, a positive signal for increasing industrial growth prospectdriven mainly by enhanced focus on infrastructure development. Intervention of monetarypolicy regulator is a necessary requirement for sustainable growth in industrialproduction. The resilience of Indian economy would continue to get tested on the anvil ofchallenges thrown up by a struggling world economy and domestic pressures of inflation,current account deficit, lack of investment sentiment, subdued capital inflow andconsumption demand.

Power Sector

The Indian Power Sector is one of the largest and most important industries in India asit fulfills the energy requirements of all industries across various sectors. The sectorhas been growing quite remarkably over the last two plan periods. In current plan period(12th Plan), capacity addition of 20,623 MW was achieved till March'13 againsta capacity addition target of 17,601 MW. Total installed capacity in India reached2,23,344 MW as on March 31, 2013. Still, country's power sector is characterized, withsome pockets as notable exceptions, by a sharp demand-supply imbalance, frequent powercuts etc. Responding to burgeoning demand of electricity, 12th Plan envisagesan investment of around Rs 16 Lakh Crore in Power Infrastructure. During 12thand 13th Plan periods, Government of India intends to add around 88.5 GW and100 GW respectively along with the matching capacity additions in T&D segments. Inorder to build an efficient and rapidly growing electricity sector with large-scaleprivate and foreign investments with state-of-the-art technology, Government of India hasshown its strong commitments by constituting Cabinet Committee on Investments to clearprojects expeditiously. Therefore opportunities for growth exist for all stakeholders.Foreign suppliers, especially from China and other developed nations have made substantialinroads in Power Generation and transmission equipment space. Off late, Japan is also onthe lookout to enter into Indian Power Sector taking advantage of depreciating Yen.

In spite of various policy initiatives to diversify the fuel mix, it is becomingincreasingly evident that coal will continue to occupy centre-stage of India's energyscenario due to the limited reserve potentiality of petroleum & natural gas,eco-conservation restriction on hydel project and geo-political perception of nuclearpower. Based on estimates, the consumption of coal is projected to rise by nearly 40percent over the next five years and almost to double by 2020. Introduction of energyefficient, climate-friendly and less fuel consuming technologies like thermal sets withSupercritical parameters, UHV Transmission systems, FACTS, Smart Grid etc, augur well forresponding to the challenges associated with the sector. Initiatives are underway indevelopment of IGCC and Advanced Ultra Supercritical technology seeking to reduce carbonfootprint in Generation of Power. Renewable power is likely to contribute significantlytowards incremental capacity addition with cumulative target of 20 GW from Solar Energyand 54 GW from Wind, Small Hydro Plants (SHP) & Biomass by the year 2022.

The survival of the domestic electrical and power equipment sector is closely linked totimely finalization of infrastructure projects and addressing the issues of non-levelplaying field vis-a-vis imports. India's investment cycle is inextricably linked to thepower cycle, as 30% of country's capital formation is determined by the power sector. Thekey problems hindering the growth of the power sector are land, fuel, environment &forest clearances and investments besides security issues. Other challenges like skilldeficit, constrained availability of critical raw materials and infrastructure constraintsare critical to give a boost to domestic production of Power & Heavy Electricalequipment. Capacity imbalances particularly in Balance of Plant areas have emerged as oneof the main impediments for realizing the capacity addition targets of the sector. TheCabinet decision to impose duty on import of power equipment has addressed thedisadvantages of around 5% only, while a gap of about 9% still remains.

A welcome step in promoting growth has been the clearance accorded by Cabinet Commiteeon Investments, a high level panel constituted by Union Cabinet, to 13 infrastructureprojects involving investments worth Rs 33,000 Crore. The financial re-structuring ofState Discoms initiated by Union Government is another important step to alleviate thewoes of debt starved distribution companies owned by State Governments. Anothersignificant step is the decision of CERC addressing the unprecedented increase in theprice of imported coal through compensation packages to the power project developers oncase to case basis. In a nutshell actions like policy interventions, debt restructuringinitiative, tariff hikes taken by the Government are indications of recovery after havinggone through a tough time over the last couple of years.

Industry Sector

Depressing growth of world economy and its contagion effect has taken sheen out ofIndian Industry leading to a semblance of stagnation in industrial production. Theindustrial sector exhibited signs of slowdown during 2012-13 mainly on account of sharpdeceleration in capital and intermediate goods, mining and manufacturing. SignificantlyTransmission and Distribution market shrank by 9-10%, first time in the last decade. Araft of issues plaguing the growth of all sectors of Industry be it Transportation,Electrical Equipment, Defence Products include low R&D Investment, Commoditization ofthe products, lack of operational efficiency coupled with incursion of Low Cost Substitutefrom Foreign Suppliers. This opens up opportunities to enhance cost competitiveness,increase supply chain agility, explore technology tie-up and look outward for sustainablegrowth. As substantial manufacturing capacity in the industry being under utilised due todelayed conversion of orders triggered by subdued consumption demand, capital investmentsin expansion of facilities in industries are not taking place. This further leads toreduction in employment, less consumption of raw materials & commodities andintermediary goods as well as subdued growth of Service Sector.

Increased capex in Metro, Rolling Stock and Dedicated Freight Corridor is likely todrive strong demand. Another demand driver is Ultra High voltage segment where 12thPlan has accorded more thrust and given that there are very few players, opportunity isdefinitely going to improve for manufacturers of Heavy Electrical equipment. With recentinitiatives of Government to boost infrastructure projects, there is a sense of recoveryin public spending in segments like Hydrocarbon, Energy, Roads, Railways etc, albeit slow,during medium to long term. With renewed focus on non-conventional energy, offerings inrenewable would gain momentum. Acute drought situation coupled with regulatoryinterventions has compelled municipal authorities to move to water recycling and watertreatment driving demand growth.

M. POSITIONING FOR THE FUTURE

• Power sector will continue to remain major contributor in our top line withtransportation and transmission emerging as next big business verticals. Strategies are inplace to strengthen our presence in Nuclear, Renewable and Water segments.

• Company has adopted its Strategic Plan 2012-17. The plan attempts to steer thecompany towards becoming a global engineering enterprise. Key drivers of our successare-expanding our offerings in Power Sector by building EPC capability, focus on industrybusinesses, expansion of spares & services and adoption of collaborative approach.

• The company is continuously sharpening its focus on '6-Point' priority areas foraction viz. Capability Enhancement, Accelerated Project Execution, Product CostCompetitiveness & Quality, Diversification, Engineering & Technology and PeopleDevelopment aligned with its Strategic Plan initiatives to sustain its leadership positionin its areas of operations.

• Efforts are being made to make supply chain agile and accelerate projectexecution, sustained focus on Vendor Base Expansion, Scaling up procurement throughtechnology initiatives, Advanced Manufacturing Action, Global Sourcing etc.

• Developing lower rating sets with supercritical parameters providingalternatives to the Utilities to take advantage of this eco-friendly technology even inlower rating sets.

• In order to meet burgeoining demand for energy, IEP has identified NuclearEnergy based power generation as a viable option. Increased scope by offering productsbeyond conventional island in Nuclear business is under way.

• BHEL's collaborative initiatives to address the growing demand potential inRailway Transportation including Metro & Suburban Railways include initiative withIndian Railways for setting up a greenfield Mainline Electrical Multiple Unit (MEMU) Coachfactory in Rajasthan.

• Considering the National Action Plan on Climate Change targeting 15% ofelectricity generation from renewables by 2020, BHEL is looking towards expanding itscapacity to manufacture photo voltaic modules & cells.

• As a part of structure driven strategic initiatives to expand offerings inRenovation and Modernisation of Power Plants, R&M systems group (RMSG) has beenconstituted.

• In a bid to address the aspirations of the company to become a preeminentsupplier of Industrial Boiler, Nuclear Steam Generator & supplier of equipment forprocess Industries, merger of BHPV, as a 100% subsidiary of BHEL, is under way. In a bidto make headway in new product areas like Alternators for Traction Applications etc.,facilities of BHEL-EML, a Joint venture of BHEL and Kerala Govt., are being leveraged.

• 'Engineering and Technology' is our strength. To uphold our reputation forexcellence in our core capability, we will continue to upgrade existing products tocontemporary levels and develop new products through continuous in-house efforts as wellas through acquisition of new technologies.

N. RISKS AND CONCERNS

The recovery from global economic recession is still shrouded with uncertainty as thereis no let up in the sovereign debt crisis in euro zone resulting in general loss ofconfidence. The environment in euro area further deteriorated due to the effects of bankdeleveraging on the real economy. Because of the problems in Europe compounded by FiscalCliff in US (in terms tax increase & spending cuts), the business activities remaineddisappointing since 2011. The World GDP growth is projected to contract by 0.2% in Fiscal2013 against earlier forecast of around 3% (IMF report April 2013), despite the correctivemeasures taken by European banks, easing of fiscal tightening in US and continued fiscalstimulus maintained by Government of Japan to boost demand. The slowdown in the emergingmarket and developing economies continues since 2012 due to sharp deceleration in demandfrom key advanced economies coupled with domestic policy tightening, slow pace ofresolution of regulatory issues, and subdued investment sentiments. In a nutshell,Macroeconomic scenario is entrenched in the risks of Eurozone crisis, US sequestration,slowing demand in emerging markets and lowering appetite for capital investment worldwideleading to continuation of stagnated growth in the short to medium term.

The Indian Power Sector has over the years caught attention of the world because ofhigh power capacity additions program planned in the country. This has resulted in anumber of reputed international players/suppliers of power equipment proactively makingforay into India as target market. Suppliers from the countries like China have alreadymade substantial foothold in Power Equipment supplies taking advantage of reduced importduty and funding through ECB route besides the concessions provided by their Government toboost exports. 12th Plan coal and gas based power capacity addition plans havebeen scaled down due to vagaries associated with fuel linkages. Apart from fuelunavailability, the other constraints for the project developments are clearance issuesand high cost of investment leading to under-utilisation of already ramped upmanufacturing capacities rendering a very challenging situation for BHEL's growthprospects. The situation is further aggravated by poor logistics associated withtransportation affecting delivery.

A combination of global competition and lackluster demand in international marketcoupled with subdued consumption demand in the domestic market are going to weigh heavilyon the domestic industry escalating the competitive intensity. Unforeseen rise in rawmaterial prices, especially steel and copper, due to depreciating currency could alsoimpact margins. Further, prevailing non-tariff restrictions imposed by some countries leadto competitive disadvantage in export of Capital Goods.

Energy security and climate change are the twin causes of mounting worries surroundingenvironmental sustainability world over. India has an overall strategic imperative tobalance the goals of sustainable energy use, enhanced competitiveness and maintenance ofthe security of the energy supply. With assimilation of eco-friendly technologies andbuilding on capabilities to harness alternative sources of energy, the Indian market ismoving steadily towards ensuring that the equipment match the requirements of energysecurity. The domestic power sector has other concerns like limited number and capacity/capability of balance of plant vendors in the country, lack of competent/qualifiedconstruction contractors for taking up large size power projects, shortage of skilledmanpower and contractual issues between project authorities/developers, contractors andtheir sub-contractors etc.

In most of the business areas in which BHEL operates, the growth prospects aredependent on policy decisions at the national and international levels as also on theprevailing business trends.

For and on behalf of the Board of Directors of
BHARAT HEAVY ELECTRICALS LTD.
Place : New Delhi (B.Prasada Rao)
Dated : August 3, 2013 Chairman & Managing Director

Annexure - A

Annual Statement Showing the Representation of SCs, STs and OBCs as on 01/01/2013 andNo. of appointments made during the preceding calendar year

Representation of SCs/STs/OBCs (As on 01/01/2013)

No. of appointments made during the calendar year

By Direct Recruitment

By Promotion*

By Deputation/ Absorption

Groups Total No. of Employees SCs STs OBCs Total SCs STs OBCs Total SCs STs Total SCs STs
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Group A 14572 2336 945 2723 1112 163 83 334
Group B 9926 1655 284 939 1 1 0 0
Group C 23525 5383 1566 8327 2925 601 156 989
Group D (Excl. SW) 702 174 20 238 97 23 2 69
Group D (SW) 151 133 2 1 0 0 0 0
Total 48876 9681 2817 12228 4135 788 241 1392 0 0 0 0 0 0

*In BHEL, no appointments are made at induction level by promotion

Annexure - B

Representation of the persons with disabilities as on 01/01/2013

Group

Number of Employees (Representation)

Direct Recruitment (During the calendar year 2012)

Promotion*

(As on 01/01/2013)

No. of Vacancies Reserved

No. of Vacancies Made (appointed)

No. of Vacancies Reserved

No. of Vacancies Made (appointed)

Total VH HH OH VH HH OH Total VH HH OH VH HH OH Total VH HH OH
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Group A 14572 3 15 176 4 12 18 1112 34
Group B 9926 10 14 147 1
Group C 23525 31 37 485 13 31 52 2925 1 4 85
Group D 853 1 3 8 1 2 97
Total 48876 45 69 816 17 44 72 4135 1 4 119

*There is no reservation in Promotion from Group B to A and within Group A. In BHELwithin Group C & D, career based promotion policy is followed, wherein all employeeson completion of prescribed eligibility period in a Grade and subject to attainingsatisfactory levels in conduct and performance are promoted to the next higher grade.

Annexure - II to the Directors' Report

Brief Resume of Directors Proposed for Appointment and Re-appointment as per ListingAgreement [Clause 49 IV (G)(I)]

Part-time Official Directors

Ms. Kusumjit Sidhu

Ms. Kusumjit Sidhu, aged 57 years, was inducted as Part-time Official Director onthe Board of BHEL w.e.f. 10th May, 2013. Ms. Sidhu, an IAS Officer of 1979batch, is presently posted as the Additional Secretary & Financial Adviser, in theDepartment of Industrial Policy and Promotion, Ministry of Commerce and Industry,Government of India. She is also holding the charge of Financial Adviser of Ministry ofHeavy Industries & Public Enterprises, Ministry of Micro, Small & MediumEnterprises.

Ms. Sidhu is post graduate in History and has rich and diversified experience ofworking in senior positions, both at Central and State levels. During her career spanningover 30 years, she has served in responsible positions in various Government departmentslike Irrigation, Water Resources, Power, Tourism, Higher Education & Languages,Planning, Personnel etc. Prior to joining as Additional Secretary & Financial Adviser,Department of Industrial Policy and Promotion, she held the charge of Chief ElectoralOfficer and Principal Secretary of Elections Department, Government of Punjab.

Presently, she is also serving as Part-time Official Director of HMT Limited, Bangaloreand Heavy Engineering Corporation Limited, Ranchi.

Ms. Sidhu does not hold any share of BHEL.

Functional Directors

Shri Atul Saraya

Shri Atul Saraya, aged 59 years, has been inducted as Director (Power) w.e.f. 1stOctober, 2009. He is a Graduate in Electrical Engineering from Harcourt ButlerTechnological Institute, Kanpur and also holds a PG Diploma in Business Management. ShriSaraya joined BHEL Haridwar as an Engineer Trainee in 1976 and has more than 37 years ofdiversified and versatile professional experience of manufacturing at BHEL's HeavyElectricals Equipment Plant, Haridwar, Business Development at Power Sector MarketingDivision at New Delhi and Project Implementation and Construction at Power Sector EasternRegion, Construction Division, Kolkata. As Executive Director, he held the charge of bothPower Sector Marketing and Power Sector Eastern Region concurrently.

Apart from being the full time Director (Power) in BHEL, he is also Part-time Chairmanof Raichur Power Corporation Ltd. [a Joint Venture Company (JVC) of BHEL & KarnatakaPower Corp. Ltd.] and Part-time Director on the Board of NTPC - BHEL Power ProjectsPrivate Limited (NBPPL), a BHEL-NTPC JVC.

As Director (Power), he is responsible for spearheading the Power Sector of BHEL, whichhandles about 76% of the organisation's business. New domestic and increasing foreigncompetition in the country is the biggest challenge being faced within the sector by theorganisation today. Shri Saraya is addressing these issues by successfully formulatingstrategies for securing not only business for the growth of the organisation but alsoensuring timely completion of the Projects in hand leading to enhanced customersatisfaction.

Shri Saraya has also initiated various activities towards Corporate SocialResponsibility helping children and other backward communities in their difficult times.

Shri Saraya is holding 1000 equity shares of BHEL.

Shri P.K. Bajpai

Shri P.K. Bajpai, aged 58 years has been inducted as Director (Finance) w.e.f. 1stJuly, 2011. He is a B.Tech (Mech.) from IIT, Kanpur, MBA from the University of Leeds (UK)and ACMA from the Institute of Cost Accountants of India.

Shri Bajpai joined BHEL in the year 1977 and has more than 36 years of versatileexperience. He has played a critical role as Head of Finance of Profit Centres comprisingentire value chain of the Organization viz. Engineering (Project Engineering andManagement), Manufacturing and Erection Commissioning and Services. Shri Bajpai was postedas Head of Finance of BHEL's Manufacturing Unit at Bhopal when the Unit showed loss in2000-2001 after showing profit continuously since 1972-73. At this critical juncture, hewas able to make an immediate turnaround, with Unit showing profit in 2001-2002. Duringhis tenure as Head of Finance of Erection and Commissioning Unit, Power Sector —Northern Region from 1996-2001, there was an all round improvement in Turnover, ValueAdded and PBT of the Region. As Head of Finance of Project Engineering and Managementdivision, he played critical role in initiating the development of integrated softwarecalled PULSE, sizing and specifications of packages for procurement and rationalizationand simplification of processes.

As General Manager (Finance) Internal Audit/ Management Improvement Cell, Shri Bajpaiintroduced Systems Audit. He developed a system on Effectiveness of Internal Audit andImprovements for higher maturity level, effective coordination with CAG office for 'NIL'comments on Annual Accounts.

Besides heading critical SBUs, Shri Bajpai has also worked in Corporate FinancialServices Division looking after Treasury Management, Forex Exposure Management,Receivables Management, Operation Surplus/ Deficit Management, Banking facility —Cash/ Non Cash limits. He was also Head of Finance of Power Sector HQs and also dealt withHR, Management Services, IT & HRDD functions.

Shri Bajpai is currently a Part-time Chairman on the Board of Latur Power CompanyLimited.

Shri Bajpai does not hold any shares of BHEL.

Shri W.V.K. Krishna Shankar

Shri W.V.K. Krishna Shankar, aged 58 years, has been inducted as Director(Industrial Systems & Products) by the President of India w.e.f 1st Aug,2013. He is a Mechanical Engineer from University Visveswarayya College of Engineering,Bangalore University and has a Diploma in Management. He has undergone training inCorporate Planning at IMI (now IMD), Geneva, Switzerland. During a career spanning 36years with Bharat Heavy Electricals Limited, he handled a variety of assignments instrategic as well as operational areas in various capacities and functions. He waselevated to the position of Executive Director in July 2010.

Having started his career in BHEL at Tiruchirappalli in 1977, he actively participatedin project planning, scheduling and monitoring activities related to the setting up ofSeamless Steel Tube Plant of BHEL at Tiruchirappalli. After commissioning of the plant, hewas moved to Corporate Office of BHEL where he designed and implemented project monitoringsystems at corporate level for two large investment schemes of BHEL, viz. Phase-IIIexpansion of the Boiler Plant (4000 MW) at Tiruchirappalli and establishment of a BoilerAuxiliaries Plant at a green field site in Ranipet. He was also closely associated atCorporate Level in the evolution & design of 'Product Manager' based organizationstructures for implementation across various units of BHEL.

During 1998 to 2004, as part of Industry Business Sector, he played a key role inmarketing of Pulverized fuel based Captive Power Plants, DG Power Plants and DefenceProducts & Systems.

He has also worked with the National Manufacturing Competitiveness Council (NMCC)formed by the Government of India as a forum at the highest level for policy dialogue toenergize & sustain manufacturing in India. He was associated with the drafting of the'National Strategy for Manufacturing' in March 2006 as well as the recommendations forminga part of the 'Report of Prime Minister's Group on Measures for ensuring sustained growthof the Indian Manufacturing Sector' in Sep 2008.

He has been involved in drawing up five Corporate Plans for the company starting withthe 'Corporate Plan for the 80s'. As Executive Director (Corporate Planning &Development), Shri Krishna Shankar led the exercise in creating a new vision, mission andvalues for the company in 2010-11 by carrying out a unique experiment of capturing theimagination of younger generation. The company's new 'Strategic Plan 2012-17' piloted byhim to enable BHEL realize a revenue target of Rs 1,00,000 Crore by 2016-17, lays emphasison building eight business verticals of BHEL, viz. Utility Power Plant Business; Spares& Services Business; Captive Power Plant Business; Transmission Business;Transportation Business; Industrial Products & Defence; Renewable Energy Business; andWater Business.

He has successfully handled the Investor Relations portfolio for five years. He hasrepresented BHEL at several interactive forums in Canada, France, Germany, Italy,Singapore, Switzerland, UK and USA. As Secretary of the Management Committee of BHEL - topmost policy making body in the company as well as the Secretary of the Committee ofFunctional Directors, Mr. Krishna Shankar was closely associated with the short term andlong terms aspects of the company operations. He is an invited member on the CII-CapitalGoods committee and FICCI-Capital Goods committee and is also the BHEL Nominee Director onthe Board of Dada Dhuniwale Khandwa Power Limited (2x800 MW Joint Venture of BHEL &MPPGCL).

Having been appointed as the Chief Risk Officer of the company in January 2013, hespearheaded the implementation of Enterprise Risk Management across the entireorganization.

Shri Krishna Shankar is holding 100 equity shares of BHEL.

   

Peer Comparison

Company Market Cap
(Rs. in Cr.)
P/E (TTM)
(x)
P/BV (TTM)
(x)
EV/EBIDTA
(x)
ROE
(%)
ROCE
(%)
D/E
(x)
B H E L 46,333.07 9.55 1.52 3.53 23.7 23.4 0.03
Siemens 26,622.04 144.05 6.61 32.11 4.4 5.2 0.00
A B B 17,416.06 103.38 6.50 30.47 6.7 12.5 0.18
Crompton Greaves 11,600.60 23.08 3.82 8.27 15.6 21.2 0.00
Havells India 11,457.85 25.38 6.13 14.61 21.4 25.9 0.07
Alstom T&D India 6,547.20 62.83 7.17 13.06 8.0 13.7 0.57
Suzlon Energy 3,560.54 0.00 1.03 0.00 0.0 0.0 2.09
ALSTOM India 2,658.27 14.93 3.34 5.98 24.8 36.0 0.00
Triveni Turbine 2,499.33 31.30 17.66 9.83 102.7 122.3 0.17
Schneider Elect. 2,186.57 0.00 9.17 65.60 0.0 0.0 0.91
V-Guard Inds. 1,465.49 25.01 5.61 12.77 26.7 26.5 0.58
Matra Kaushal 1,138.60 0.00 56.45 0.00 0.0 0.0 0.01
TD Power Sys. 937.37 30.82 2.03 9.66 8.0 12.3 0.07
Techno Elec. 899.90 15.90 1.58 8.82 11.0 12.0 0.36
Honda Siel Power 651.24 37.41 2.33 7.64 7.6 11.3 0.00

Futures & Options Quote

 
Expiry Date
189.65 2.50  (1.3%)
Instrument: FUTSTK
Expiry Date: 24 Apr 2014
Open Price: 187.25
Average Price: 189.94
No. of Contracts Traded: 19,648,000
Open Interest: 6,518,000
Underlying: BHEL
Market Lot: 2000
Previous Close: 189.65
Day’s High | Low: 191.35 | 187.20
Turnover (Cr.): 373.19
Open Int. Change: -4,002,000.00 ( [38.0]% )
View detailed F& O quotes >>

Key Information

Key Executives:

B Prasada Rao , Chairman & Managing Director  

I P Singh , Company Secretary  

Ambuj Sharma , Official Director (Part time)  

P K Bajpai , Director (Finance)  


Company Head Office / Quarters:
BHEL House,
Siri Fort,
New Delhi,
New Delhi-110049
Phone : 91-11-66337000(15 Lines)
Fax : 91-11-66337533
E-mail :
query@bhel.com
inder@bhel.in
Web : http://www.bhel.com
Registrars:
Karvy Computershare Pvt Ltd
105-108 Arunachal Bl
19 Barakhamba Road
Connaught Place
New Delhi - 110 001

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