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Notes to Accounts of GE Power India Ltd.

Mar 31, 2017

1. GENERAL INFORMATION

GE Power India Limited (name changed with effect from 5 August 2016, formerly known as ALSTOM India Limited) (‘the Company’) is a publicly owned Company, incorporated on 2 September 1992 as Asea Brown Boveri Management Limited, under the provisions of Indian Companies Act. The equity shares of the Company are listed on the BSE Limited and National Stock Exchange of India Limited.

Its operations includes a composite range of activities viz. engineering, procurement, manufacturing, construction and servicing etc. of power plants and power equipment.

*On May 23, 1997 Haryana Power Generation Corporation (HPGC) executed contracts with Alstom Germany and Alstom India (then ABB entities, predecessor in interest of the Alstom entities mentioned). On April 17, 2000 Alstom terminated the contracts due to breach by HPGC for non-payment of milestone payments due. In May 2001 HPGC encashed the bank guarantees of the two Alstom entities. Alstom then invoked arbitration. Arbitration proceedings lasted 9 years and the tribunal issued a reasoned unanimous award in May 2010.

HPGC then filed objections to the award in the district court of Panchkula and high court of Chandigarh. Alstom won in all forums. Thereafter HPGC moved a special leave petition in the Supreme Court which is currently pending. Alstom/ GE argued for and the Supreme Court passed an order granting leave and issued an interim stay on the operation of the award, subject to payment of RS.1000 million (against Bank Guarantee). The amount of RS.1000 million alongwith interest thereon amounting to RS.32.4 million (Previous year H Nil) (belonging to the two Alstom/ GE entities) is thus held in trust pending final order and presented as “other current financial liabilities” , refer note 23.

2. EQUITY SHARE CAPITAL

a. Movement of the shares outstanding at the beginning and at the end of the reporting year

b. Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of RS.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends, if any, in Indian rupees. The dividend proposed by the Board of Directors, if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend.

In the event of liquidation of Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

c. Shares held by holding / ultimate holding Company and / or their subsidiaries (refer note 37)

GE Energy Europe BV (GEEE B.V.) on 2 May 2017, sold its entire shareholding (13,789 shares) in the Company to Alstom India Tracking BV (formerly known as Alstom Finance BV ). On account of this transaction, GEEE BV will no longer be shown as a promoter in any disclosures made by the Company in accordance with applicable laws in India and in the shareholding pattern of the Company, on a going forward basis.

General Electric Company, United States is the ultimate holding company with effect from 2 November 2015. ALSTOM France was ultimate holding company and ALSTOM Holdings France was holding company till 1 November 2015.

d. Details of shareholders holding more than 5% shares in the Company

e. Shares allotted as fully paid up pursuant to contract(s) without payment being received in cash (during 5 years immediately preceding 31 March 2017) 6,097,561 equity shares of RS.10 each issued to the erstwhile shareholders of ALSTOM Holdings (India) Limited pursuant to the Scheme of Amalgamation which became effective on 20 April 2012 with effect from 1 April 2011, the appointed date without payment being received in cash.

After the reporting date the following dividend (excluding dividend distribution tax) is proposed by the board of directors subject to the approval at the annual general meeting. The dividends has not been recognised as liabilities. Dividend would attract dividend distribution tax when declared or paid.

Information about Other provisions and significant estimates

Warranty- Warranty costs are estimated on the basis of contractual agreement, technical evaluation and past experience. The timing of outflows is expected to be as per warranty periods as specified in various contracts.

Contingencies / Others - Provision for contingencies represents estimates made mainly for probable claims arising out of litigations / disputes pending with various authorities.

3. GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

a) Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The plan is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net employee benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the respective plans.

b) Sensitivity analysis

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to are discount rate and future salary escalation rate. The following table summarizes the impact in percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 50 basis points.

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analyses.

Information relating to sensitivity analysis for actuarial assumptions, other than disclosed above, including the methods and assumptions used in preparing the analysis, as required by paras 145 (a) and 145(b) respectively, of the Indian Accounting Standard - 19 ‘Employee Benefits’ is not available with the Company.

c) Exceptional items

Over the past few years, capital investments in the power sector had slowed down and several projects had stalled due to external factors blocking Company’s financial resources and creating large work in progress. All these led to lower sales and revenue generation impacting Company’s financial performance. In the overall business interests of the Company, it was decided to right-size the scale of operations of the Company. This has led to rationalising the work force of the Company to match with the backlog and operating levels. Consequently, the Company has recognised the expense of RS.518.0 million (previous year H Nil).

This rationalisation is being carried on as part of the ongoing steps taken by the Company to reduce the operating costs and improve the competitiveness.

I) Provident Fund

In respect of certain eligible employees, the Company has a provident fund plan which is administered through a trust. The Trust deed provides for the Company to make good any deficiency in the interest to be paid by the Trust to it’s members and the income earned by it. Accordingly the plan is as a defined benefit plan. The Company has obtained an actuarial valuation of the Provident fund liability as at the Balance Sheet date and accordingly the Company has recognised a provision of H Nil million (previous year H Nil million) towards provident fund liability. The Actuary has not provided the other details to meet the disclosure requirement of the Indian Accounting Standard 19 “Employee Benefits” and accordingly the disclosures included are limited to the extent of those provided by the Actuary.

Information relating to reconciliation from the opening balance to closing balance for plan assets and present value of defined benefit obligation, classes of plan assets held, sensitivity analysis for actuarial assumptions, other than disclosed above, including the methods and assumptions used in preparing the analysis, asset-liability matching strategy, expected contribution for the next year and maturity profile of the defined benefit obligation, as required by paras 140, 141, 145 (a), 145(b), 146 and 147 respectively, of the Indian Accounting Standard - 19 ‘Employee Benefits’ is not available with the Company.

II) Defined contribution plan

In respect of defined contribution plan, the Company has recognized the following amounts in the Statement of Profit and Loss:

4. LEASE COMMITMENTS

Operating leases

The Company’s significant operating lease arrangements are in respect of premises (residential, offices etc.). The lease term for these leases includes a lock-in period and in certain cases are renewable by mutual consent on mutually agreeable terms. Lease payments under operating leases are recognised in the Statement of profit and loss.

With respect to all operating leases, lease payments of RS.296.4 million (previous year - RS.307.7 million) have been recognised as an expense in the Statement of Profit and Loss.

There is no contingent rent in the lease agreements. The lease term is for 1-9 years and is renewable at the mutual agreement of both the parties. There are no restrictions imposed by lease arrangements. There are no subleases.

5. SEGMENT INFORMATION

An operating segment is a component that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the other components, and for which discrete financial information is available. The Company has considered one business segment i.e. Power as the primary reporting segment on the basis that the risk and returns of the Company is primarily determined by the nature of products and services.

Chief Operating Decision maker of Company is the Managing Director, along with the Board of Directors, who review the periodic results of the Company.

*Project items include equipment and miscellaneous items meant for execution of projects. Segment reporting - Geographical segments

The analysis of geographical segments is based on the geographical location of the customers.

Major customer :

One customer accounts for 18 % approximately (previous year 29% approximately) of Company’s total revenue from operation.

6. RELATED PARTY

List of related parties

Parties with whom control exists:

General Electric Company, United States (Since Nov 02, 2015)* (Ultimate Holding Company)

Alstom India Tracking BV (Formerly known as ALSTOM FINANCE BV) (Holding Company)

* ALSTOM France was Ultimate Holding Company and ALSTOM Holdings France was Holding Company till 1 November 2015

Parties controlled by the Company (Subsidiaries)

GE Power Boilers Services Limited, India (formerly known as Alstom Power Boilers Services Limited, India)

Alstom Boilers India Limited, India (dissolved w.e.f 17 October 2016)

Key managerial personnel (KMp)

Mr. Ashok Ganesan - Director (w.e.f. 1 April 2016) and Managing Director (w.e.f. 1 May 2016)

Mr. Patrick Ledermann - Vice Chairman and Managing Director (untill 31 March 2016)

Other related parties with whom transactions have taken place during the year (fellow subsidiaries/associates)

Alstom Power Hydraulique SAS, PT General Electric Power Solutions Indonesia (formerly known as PT Alstom Power Energy System Indonesia), Alstom S&E Africa Proprietary Limited, Alstom Renewable Austria GmbH, Wuhan Boiler Company Limited, GE Inspection Robotics AG (formerly known as ALSTOM Inspection Robotics Ltd), GE Power Services (I) Private Limited, GE India industrial Private Limited, General Electric Croatia Limited. (formerly known as ALSTOM CROATIA Ltd), GE Strongwish Automation & Controls Technology Development (Shenzhen) Company Limited. (formerly known as ALSTOM Strongwish co, Ltd), GE Power Estonia AS (formerly known as ALSTOM Estonia AS), GE Intelligent Platforms Private Limited., Alstom Power Service, Alstom Power Italia Spa, Alstom Power Conversion, Alstom Asia Pte Limited, General Electric International, INC, Alstom Ressources Management SA, GE Power Norway AS (formerly known as ALSTOM Norway AS), Alstom Renewable Malaysia Sdn Bhd, Alstom Holdings, GE T&D India Limited (formerly known as ALSTOM T&D India Limited), GE Renewable R&D India Private Limited (formerly known as ALSTOM Hydro R&D India Limited), GE Renewable Technologies (formerly known as Alstom Renewable Technologies), Alstom SA, Alstom Management SA, GE Power Solutions Japan K.K. (formerly known as Alstom Power Japan K.K), Alstom Systems India Private Limited, Grid Solutions SAS (formerly known as Alstom Grid SAS), General Electric Technology GmbH (formerly known as ALSTOM Technologie AG Switzerland), General Electric International INC, General Electric Energy UK Limited (formerly known as ALSTOM Ltd, United Kingdom), General Electric (Switzerland) GmbH (formerly known as ALSTOM (Switzerland) Ltd), GE Renewable Sweden AB (formerly known as ALSTOM Renewable Sweden AB), GE Renewable Energy Canada Inc. (formerly known as Alstom Renewable Power Canada Inc. / Alstom Energies Renouvelables Canada), GE Renewable (Switzerland) GmbH (formerly known as ALSTOM Renewable (Switzerland) LLC), GE Power Vietnam Company Limited (formerly known as ALSTOM Vietnam Company Ltd), GE Power Systems GmbH (formerly known as ALSTOM Power Systems GmbH), GE Power Sweden AB (formerly known as ALSTOM Power Sweden AB), GE Power Sp.z.o.o. (formerly known as ALSTOM Power Sp.z o.o.), GE Power Solutions (Malaysia) Sdn. Bhd. (formerly known as ALSTOM Asia pacific Sdn. Bhd.) GE Power Services (Malaysia) Sdn. Bhd. (formerly known as Alstom Services Sdn. Bhd.),GE Power AG (formerly known as Alstom Power Gmbh), GE Middle East FZE (formerly known as Alstom Middle East Ltd.), GE Hydro France (formerly known as Alstom Hydro France), GE Energy Products France SNC, GE Energy Colombia S.A. (formerly known as ALSTOM Colombia S.A.), GE Energias Renovaveis Limiteda. (formerly known as Alstom Energias Renovaveis Ltda), GE Boiler Deutschland GmbH (formerly known as Alstom Boiler Deutschland GmbH), Alstom Transport India Limited, Alstom Thermal Service Chile SpA, Alstom Technical Services (Shanghai) Company, Limited, Alstom Saudi Arabia Transport and Power Limited, Alstom Renovables Espana S.L., Alstom Renewable Rus Limited, Alstom Renewable Hydro Spain, S.L.U., Alstom Power, S.A.U., Alstom Power Systems, Alstom Power Service (Pty) Limited, Alstom Power Inc., Alstom IS&T, Alstom International Mobility Management AG, Alstom Bharat Forge Power Private Limited , Alstom Arabia Power Factory Company Limited, Alstom (Thailand) Limited.

Joint venture under the common control of the Ultimate Holding Company

NTPC GE Power Services Private Limited (formerly known as NTPC Alstom Power Services Private Limited)

Related parites till 01 Nov 2015

ALSTOM Transport India Limited

Alstom Systems India Private Limited

ALSTOM Transport SA

ALSTOM Holdings

ALSTOM SA

7. GLOBAL ACQUISITION OF ALSTOM ENERGY BY GE

GE Energy Europe B.V. (“Acquirer”) along with Persons Acting in Concert (“PAC”) had made an open offer in previous financial year under the provisions of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 for acquisition of 17,479,143 fully paid-up equity shares in the Company representing 26% of the total paid-up equity share capital of the Company from public shareholders at price of RS.440.32 per equity share.

The open offer had completed in February 2016 and in terms of the said Open Offer, 13,789 fully paid-up equity shares had tendered by public shareholders of the Company and the same had acquired by the Acquirer. The shareholding in the Company of the Acquirer/PAC (“Promoters”), as a result increased to 68.58% from 68.56% as hitherto.

8. CORPORATE SOCIAL RESPONSIBILITY

As per Section 135 of the Companies Act, 2013, a company needs to spend at least two per cent of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. A ‘Corporate Social Responsibility’ (CSR) Committee has been formed by the company as per the act. The CSR Committee and Board had approved the projects with specific outlay on the activities as specified in Schedule VII of the Act, in pursuance of the CSR Policy.

a) Gross amount required to be spent by the Company during the year is RS.19.7 million (previous year RS.47.1 million).

b) Amount spent during the year on :

9. CAPITAL AND OTHER COMMITMENTS

9.1 Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances - RS.83.6 million (31 March 2016 - RS.121.5 million; 1 April 2015 : RS.95.4 million) .

9.2 For commitments relating to lease arrangements, refer note 35 above and for other comittments refer note 2.14.

9.3 Company has working capital facilities from:

a) Canara bank which is secured by first charge on pari passu basis by way of hypothecation of stocks and receivables of the Company on first pari passu basis with other banks under multiple banking arrangement. Available limit is RS.150 million (31 March 2016 : RS.150 million ; 1 April 2015 : RS.150 million).

b) The Company has obtained working capital facility from ICICI bank which are secured by first charge on pari passu basis on the entire stocks and such other movables including book debts, bills, whether documentary or clean, both present and future. Available limit is RS.100 million (31 March 2016 : RS.100 million ; 1 April 2015 : RS.100 million).

Based on the favorable decision in similar cases / legal opinions taken by the Company / discussions with the solicitors etc., the Company believes that it has good cases in respect of all the items listed under (a) and (b) above and hence no provision there against is considered necessary.

It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.

The Company does not expect any reimbursements in respect of the above contingent liabilities.

10. DUES TO MICRO, SMALL AND MEDIUM ENTERPRISES

The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED Act’). The disclosures pursuant to the said MSMED Act are as follows:

11. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - ACCOUNTING CLASSIFICATION

A. Accounting classifications and fair values

The fair value of financial assets and liabilities are included at the amount at which the instrument could be exchanged in current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair value :

1 Fair valuation of financial assets and liabilities, short term maturities is considered as approximate to respective carrying amount due to the short term maturities of these instruments.

2 Fair value of non current financial assets which includes security deposits has not been disclosed as there is no significant differences between carrying value and face value.

3 Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for the expected losses of these receivables.

The following tables shows the carrying amounts and fair value of financial assets and financial liabilities, including their levels in the fair value hierarchy.

Significant estimates

The fair value of financial instruments that are not traded in an active market is determined using valuation techniques. The Company uses its judgement to select a variety of methods and make assumptions that are mainly based on market conditions existing at the end of each reporting period.

12. FINANCIAL RISK MANAGEMENT

Financial risk relates to Company’s ability to meet financial obligations and mitigate exposure to broad market risks, including volatility in foreign currency exchange rates and interest rates and commodity prices; credit risk; and liquidity risk, including risk related to our credit ratings and our availability and cost of funding. Credit risk is the risk of financial loss arising from a customer or counterparty failure to meet its contractual obligations. The Company face credit risk in our industrial businesses, as well as in derivative financial instruments activities. Liquidity risk refers to the potential inability to meet contractual or contingent financial obligations (whether on- or off-balance sheet) as they arise, and could potentially impact Company financial condition or overall safety and soundness.

(A) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the receivables from customers; loans and deposits.

The carrying amounts of financial assets represent the maximum credit risk exposure.

(i) Credit risk management

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry and country in which customers operate.

The Company also regularly assess customer credit risk inherent in the carrying amounts of receivables and contract costs and estimated earnings, including the risk that contractual penalties may not be sufficient to offset our accumulated investment in the event of customer termination. The Company also gain insight into future utilization and cost trends, as well as credit risk, through our knowledge of the installed base of equipment and the close interaction with our customers that comes with supplying critical services and parts over extended periods.

The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

A 1 : High-quality assets, negligible credit risk

A 2 : Quality assets, low credit risk

A 3 : Standard assets, moderate credit risk

A 4 : Substandard assets, relatively high credit risk

A 5 : Low quality assets, very high credit risk

A 6 : Doubtful assets, credit-impaired

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk, the Company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition. It considers available reasonable and supportive forwarding-looking information.

A default on a financial asset is when the counterparty fails to make contractual payments within 3 years of when they fall due. This definition of default is determined by considering the business environment in which entity operates and other economic factors.

(ii) Provision for expected credit losses

The Company allocates each exposure to a credit risk grade based on a variety of data that is determined to be predictive of the risk of loss (including but not limited to external ratings, audited financial statements, management accounts and cash flow projections and available press information about customers) and applying experienced credit judgement. Credit risk grades are defined using qualitative and quantitative factors that are indicative of the risk of loss. The Company provides for expected credit loss based on the following:

Year ended 31 March 2017:

(a) Expected credit loss on financial assets other than trade receivables:

With regards to all financial assets with contractual cash flows other than trade receivable, management believes these to be high quality assets with negligible credit risk. The management believes that the parties from which these financial assets are recoverable, have strong capacity to meet the obligations and where the risk of default is negligible or nil and accordingly no provision for expected credit loss has been provided on these financial assets. Break up of financial assets other than trade receivables have been disclosed on balance sheet.

(b) Expected credit loss for trade receivables under simplified approach:

Based on internal assessment which is driven by the historical experience/ current facts available in relation to default and delays in collection thereof, the expected credit loss for trade receivables is estimated to be in the range of 1%-2%. While the amount of total allowance for credit loss is disclosed in Note 13, the movement thereof during the years ended 31 March 2017 and 31 March 2016 is tabulated below:

(B) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company also monitors the level of expected cash inflows on trade receivables and loans (comprising the undrawn borrowing facilities) together with expected cash outflows on trade payables and other financial liabilities.

(i) Financing arrangements

The Company had access to the following undrawn borrowing facilities as at the end of the reporting period:

(ii) Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements.

(C) Market risk

Market risk is the risk of loss of future earnings, fair value or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowings.

(i) Foreign currency risk

The Company operates internationally and is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and Euro. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows.

The Company use the FX forward instruments to hedge foreign exchange exposures.

Project exposures are hedged to a minimum of 75% once they are contractually binding, and hedges should match the associated cash flows and the contractually stipulated maturities of the project.

The Company designate entire forward contract at forward rate as the hedging instrument. Changes in the full fair value of the forward contract are accounted for through statement of profit and loss in accordance with the type of hedge (fair value hedge).

Price risk

The Company’s exposure to equity securities price risk arises from investments held by the Company and classified in the balance sheet as fair value through OCI (note 44)

At the reporting date, the exposure to unlisted equity securities at fair value was 26.7 MINR. A decrease of 10% or increase of 10% in fair value of unlisted equity securities could have an impact of approximately 2.6 MINR on the OCI or equity. These changes would not have an effect on profit or loss.

13. CAPITAL management

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. Management monitors the return on capital, as well as the level of dividends to equity shareholders.

The board of directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowing and the advantages and security afforded by a sound capital position.

The Company is having nil borrowings as on 31 March 2017 (31 March 2016 : Nil ; 1 April 2015 : Nil ).

14. EXPLANATION OF TRANSITION TO IND AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 2 have been applied in preparing the financial statements for the year ended 31 March 2017, the comparative information presented in these financial statements for the year ended 31 March 2016 and in the preparation of an opening Ind AS balance sheet at 1 April 2015 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with previous GAAP and an explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

A. Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS Optional Exemptions

A.1.1 Property, plant and equipment and intangible assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value. Hence, the carrying value of all property plant and equipments, as on 1 April 2015, has been taken as deemed cost under Ind AS.

Consequently, the amount standing in revaluation reserve as on 1 April 2015, RS.33.9 million, corresponding to those property plant and equipments have been transferred to general reserve. Recoupment from revaluation reserve of RS.2.5 million made during the period ended 31 March 2016 has also been reversed with a corresponding impact on general reserve.

A.1.2 Designation of previously recognised financial instrument

Ind AS 101 permits an entity to designate particular equity investments (other than equity investments in subsidiaries) as at fair value through other comprehensive income (FVOCI) based on facts and circumstances at the date of transition to Ind AS (rather than at initial recognition). Other equity investments are classified at fair value through statement of profit and loss (FVTPL).

The Company has elected to apply this exemption for its investment in equity investments at FVOCI.

A.2 Ind AS mandatory exemptions

A.2.1 Hedge accounting

Hedge accounting can only be applied prospectively from the transition date to transactions that satisfy the hedge accounting criteria in Ind AS 109, at that date.

The Company had designated various hedging relationships as cash flow hedges and fair value hedges under the previous GAAP. On date of transition to Ind AS, the Company had assessed that all the designated hedging relationship qualifies for hedge accounting as per Ind AS 109. Consequently, the Company continues to apply hedge accounting on and after the date of transition to Ind AS.

A.2.2 Estimates

As per Ind AS 101, an entity’s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity’s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.

As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind AS).

The Company’s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statements that were not required under the previous GAAP are listed below:

(a) Investment in equity instruments carried at FVOCI;

(b) Impairment of financial assets based on expected credit loss model.

(c) Determination of the discounted value for financial instruments carried at amortised cost.

A.2.3 Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

B.1 Discounting of financial assets and liabilities

Under previous GAAP, financial assets and liabilities are recorded at their transaction value. Under Ind AS, such items are required to be recognised initially at their fair value and subsequently at amortised cost.

The fair value of such transaction on initial date is determined by applying effective interest method. The difference between the fair value and transaction value on the transaction date is recognized as deferred income/ charge and included in the underlying respective line item (for which the transaction was entered into) following a systematic manner or straight line method, as considered appropriate. The fair value is then accreted to the maturity value using effective interest rate method with corresponding adjustment to finance income/ finance cost, as applicable.

B.2 Trade receivables : expected credit losses

As per Ind AS 109, the Company is required to apply expected credit loss model for recognising the allowance for doubtful debts instead of incurrence based recognition under previous GAAP. This resulted in recognition of additional allowance for credit loss.

B.3 De-commissioning Costs

Under the previous GAAP, the Company was not required to identify any decommissioning costs or asset retirement obligations. However, Ind AS 16 provides that the cost of an item of property, plant and equipment includes the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located.

B.4 Lease equalisation reserve

Under previous GAAP, lease rentals for an operating lease, were required to be recognized as expense on a straight line basis over the lease term by recognizing corresponding lease equalization reserve. However, Under Ind AS, there is no such requirement unless under specific circumstances specified in the Ind AS.

B.5 Unamortised premium on forward contracts

Under Ind AS, unlike previous GAAP, there is no requirement to disclose premium on forward contracts as assets as well as liabilities.

B.6 Proposed dividend

Under the previous GAAP, dividends proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting.

B.7 Mark to market gains

Under previous GAAP, recognition of gains on derivative contracts (including forward exchange contracts which were outside the scope of Accounting Standard 11) was not permitted. Under Ind AS, such gains are also required to be recognised.

B.8 Remeasurement of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amount included in the net interest expenses on the net defined benefit liability are recognized in other comprehensive income instead of statement of profit and loss. Under the previous GAAP, these measurement were forming part of statement of profit and loss for the year.

B.9 Prior period adjustments

Based on facts available as of earlier period dates, certain adjustments as described below were concluded as prior period items and thus recorded as adjustments to opening retained earnings for amounts relating to period prior to 1 April 2015 and through statement of profit and loss for the amounts pertaining to year ended 31 March 2016:

- Provision for contingencies/others amounting to RS.337.0 million pertaining to years prior to 1 April 2015 and RS.31.0 million pertaining to year ended 31 March 2016.

- Reversal of excess royalty provision of RS.83.9 million pertaining to periods prior to 1 April 2015 and RS.180.5 million pertaining to previous year ended 31 March 2016.

- Consequent to re-evaluation of costs to come of certain projects amounting to RS.227.8 million which was pertaining to periods prior to 1 April 2015.

- reversal of cash flow hedge reserve amounting to RS.248.1 million as on 1 April 2015 on re assessment of nature of hedging instruments.

B.10 Deferred tax assets

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind-AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. In addition, the various transitional adjustments lead to different temporary differences. According to the accounting policies, the Company has to account for such differences. Tax effect relating to prior period adjustments is recorded in the periods in which those prior period adjustments have been recorded.

15. PREVIOUS YEAR FIGURES

Previous year figures have been reclassified to conform to this year’s classification.


Mar 31, 2016

1. Corporate Social Responsibility

In accordance with the provisions of Section 135 and Rules there under of the Companies Act, 2013, the Company has a ''Corporate Social Responsibility’(CSR) Committee. The CSR Committee and Board had approved the Projects with specific outlay on the activities as specified in Schedule VII of the Act. During the year ended 31 March 2016, the Company has incurred the CSR expenditure amounting to 42.7 million (previous year - 5.4 million) out of 47.1 million (previous year - 56.8 million) computed at two per cent of the average net profits of the company made during the three immediately preceding financial years, in pursuance of the CSR Policy.

2. Capital and other commitments

3. Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances - Rs,121.5 million (previous year - Rs,95.4 million).

4. The Company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme, of the Government of India, at concessional rates of duty on an undertaking to fulfill quantified exports in the following six to eight years from the date of grant of EPCG license Rs,Nil million (previous year Rs,Nil million)

5. For commitments relating to Lease arrangements, refer note 30 above and for other commitments refer note 2.19.

6. Company has working capital facilities from:

a) Canara Bank which is secured by first charge on pari passu basis by way of hypothecation of stocks and receivables of the company on first pari passu basis with other banks under multiple banking arrangement.

b) Company has obtained working capital facility from ICICI Bank which are secured by first charge on pari passu basis on the entire stocks and such other movables including Book debts, bills, whether documentary or clean, both present and future.

7. Contingent Liabilities

a) Demands relating to Tax matters :-

i) Sales Tax matters - Rs,251.3 million (previous year - Rs,91.1 million)

ii) Work Contract Tax matters - Rs,108.3 million (previous year - Rs,13.8 million)

iii) Excise Duty matters - Rs,168.8 million (previous year - Rs,182.7 million)

iv) Service Tax matters - Rs,128.0 million (previous year - Rs,145.3 million)

b) Demand relating to Labour Cess matter - Rs,18.6 million (previous year - Rs,18.6 million)

Based on the favorable decision in similar cases / legal opinions taken by the Company / discussions with the solicitors etc., the Company believes that it has good cases in respect of all the items listed under (a) and (b) above and hence no provision there against is considered necessary.

It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.

The Company does not expect any reimbursements in respect of the above contingent liabilities.

8. During the year, the Company has assessed remaining milestones for ongoing contracts that have now been realigned to be more based on cost and correspond to output trigger events. Accordingly, the Company now records revenue only upon achievement of the revised milestones. Consequent to the above, the revenue from operation has been postponed and for the year is lower by Rs,1,471.0 million and loss before tax is higher by Rs,226.4 million for the year ended 31 March 2016, as estimated by the management

9. Previous year figures

Previous year figures have been reclassified to conform to this year''s classification.


Mar 31, 2014

1. GENERAL INFORMATION

ALSTOM India Limited (Formerly known as ALSTOM Projects India Limited ) (''AIL'' or ''the Company'') is a publicly owned Company, incorporated on 2 September 1992 as Asea Brown Boveri Management Limited, registered with the Registrar of Companies, Maharashtra.

Its operations includes a composite range of activities viz. engineering, procurement, manufacturing, construction and servicing etc. of power plants and power equipment and transportation systems covering traction, signaling and train control for the railways and metros.

2. SALE OF TRANSPORT BUSINESS

The Board of Directors of the Company at its meeting held on 15 January 2014, has approved the sale and transfer of its transportation system undertaking (the Transport business of the Company) to a group company, ALSTOM Transport India Limited as a going concern on a slump sale basis, for a lump sum consideration without values being assigned to individual assets and liabilities. As per the agreement dated 6 March 2014, the transfer of transport business became effective from end of business hours of 31 March 2014.

The agreed total consideration for slump sale of Rs. 2,869.4 million against the net assets value of Rs. 1,700.4 million as on 31 March 2014 has resulted in capital gain to the Company of Rs. 1,169.0 million, reported as profit on sale of Transport business in the statement of profit and loss as an extraordinary item.

As a result Balance Sheet fgures are not comparable with the previous year .

3. GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

I) Gratuity

The Company has a defined benefit gratuity plan that operates through a Trust. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The plan is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net employee benefit expense recognised in the Statement of profit and Loss and the funded status and amounts recognised in the balance sheet for the respective plans.

e) Actuarial Assumptions for Gratuity:

The estimates of future salary increases, considered in actuarial valuation, take account of infation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

II) Provident Fund

In respect of certain eligible employees, the Company has a provident fund plan which is administered through a trust. The Trust deed provides for the Company to make good any defciency in the interest to be paid by the Trust to it''s members and the income earned by it. Accordingly the plan is as a defined benefit plan. The Company has obtained an actuarial valuation of the Provident fund liability as at the Balance Sheet date and accordingly the Company has recognised a provision of Rs. Nil million (previous year Rs. 2.0 million) towards provident fund liability. The Actuary has not provided the other details to meet the disclosure requirement of the Accounting Standard 15 ""Employee Benefits"" and accordingly the disclosures included are limited to the extent of those provided by the Actuary.

The Company''s expected contribution to the fund in the next year is not presently ascertainable and hence, the contribution expected to be paid to the plan during the annual period beginning after the balance sheet date as required by para 120 (o) of the Accounting Standard – 15 on Employee Benefits is not disclosed.

III) defined Contribution Plan

In respect of defined contribution plan, the Company has recognized the following amounts in the Statement of profit and Loss:

IV) India deferred Incentive Plan (IdIP) :

T h e company grants cash based incentive (other long term employee Benefits) to specified category of employees. The plan is unfunded and the liability is provided on the basis of actuarial valuation. Actuarial gain/loss are recognised in the statement of profit and loss in the period in which they arise.

4. LEASE COMMITMENTS

4.1 Operating leases

The Company normally takes vehicles and premises under non-cancellable operating leases. Minimum lease payments outstanding as at the Year end in respect of these assets are as under:

With respect to all operating leases, lease payments of Rs. 495.6 million (previous year – Rs. 497.1 million) have been recognised as an expense in the Statement of profit and Loss.

There is no contingent rent in the lease agreements. The lease term is for 1-9 years and is renewable at the mutual agreement of both the parties. There is no escalation clause in the lease agreements (other than those disclosed above). There are no restrictions imposed by lease arrangements. There are no subleases.

4.2 Finance leases

The future lease obligations outstanding as of 31 March 2014 in respect of assets taken on finance lease are as follows:

Leasehold improvements include assets costing Rs. Nil million (previous year – Rs. 16.4 million) on finance lease.

5. SEGMENT INFORMATION

The Company has considered the business segment as the primary reporting segment on the basis that the risk and returns of the Company is primarily determined by the nature of products and services. Consequently, the geographical segment has been considered as a secondary segment.

The business segment have been identified on the basis of the nature of products and services, the risks and returns, internal organisation and management structure and the internal performance reporting systems.

5.1 Primary segment reporting - Business segments

The Company''s business segments are classifed into Power and Transport.

Power segment

This segment is engaged in the business of engineering, procurement and construction of power plants. It also manufactures steam raising plant, ancillary equipment, parts of steam generator, pressures vessels and pulverizers.

Transport segment

This segment is engaged in the business of designing, manufacturing, supplying and supporting large scale transportation systems including traction, signaling and train control.

5.2 Inter segment transfers

Segment revenues, segment expenses and segment results include transfers between business segments, that are made based on negotiation between segments with reference to the costs, market prices and business risks, within the overall optimisation objective for the Company and are comparable with competitive market prices charged to external customers. Inter-segment transfers are eliminated on consolidation.

5.3 Allocation of common costs

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

5.4 Unallocated items

Includes general corporate income and expense items, which are not allocated to any business segment.

5.5 Secondary segment reporting -- geographical segments

The analysis of geographical segments is based on the geographical location of the customers.

6. RELATED PARTY

6.1 List of related parties

Parties with whom control exists:

ALSTOM, France (Ultimate Holding Company)

ALSTOM Holdings, France (Holding Company)

ALSTOM Finance BV, Netherlands (Immediate Holding Company)

Parties controlled by the Company (Subsidiaries)

ALSTOM Power Boilers Services Limited, India ALSTOM Boilers India Limited, India

Key managerial personnel (KMP)

Mr. Sunand Sharma – Chairman & Whole-time Director

Mr. Patrick Ledermann – Vice Chairman & Managing Director

M r. S.M. Momaya – Whole-time Director & Chief Financial Officer (upto 31 August 2013) Director (w.e.f 1 September 2013)

Other related parties with whom transactions have taken place during the year (fellow subsidiaries)

ALSTOM (Switzerland) Ltd, ALSTOM (Thailand) Ltd, ALSTOM Asia Pacifc Sdn Bhd, ALSTOM Austria GmbH, ALSTOM Belgium SA, ALSTOM Bharat Forge Power Limited, ALSTOM Brasil Energia e transporte Ltda, Alstom Egypt Power & Transp Projects SAE, ALSTOM Estonia AS, ALSTOM Ferroviaria S.p.A, Alstom Hydro France, ALSTOM Hydro Spain S.L., ALSTOM Hydro Sweden AB, ALSTOM K.K., ALSTOM Konstal Spolka Akcyjna, ALSTOM Korea Ltd, ALSTOM Limited, ALSTOM Ltd, ALSTOM MIDDLE EAST Ltd., ALSTOM Power & Transport Canada Inc, ALSTOM Power GmbH, ALSTOM Power Inc., ALSTOM Power Italia Spa, ALSTOM Power Service GmbH, ALSTOM Power Service Limited, ALSTOM Power Sp.z o.o., ALSTOM Power Sweden, AB ALSTOM Power Systems GmbH, Alstom Power Systems SA, ALSTOM Renewable (Switzerland) Ltd, ALSTOM Renewable Austria GmbH, ALSTOM Renewable Malaysia Sdn Bhd, ALSTOM Renovables Espana S.L, ALSTOM Saudi Arabia Transport and Power Ltd, Alstom Services Sdn Bhd, ALSTOM Taiwan Ltd, ALSTOM Technical Service Shanghai, ALSTOM Transport India Limited, ALSTOM Transport SA, ALSTOM Vannkraft AS, ALSTOM Vietnam Company Ltd, PT ALSTOM Power Energy Systems Indonesia Shangai, ALSTOM Electrical Equipment Ltd, Tianjin ALSTOM Hydro Co. Ltd, ALSTOM Asia Pte Ltd, ALSTOM Beijing Engineering & Technology Co Lt, ALSTOM Grid SAS ALSTOM Holdings, ALSTOM Hong-Kong Ltd, ALSTOM Hydro R&D India Limited, ALSTOM International Mobility Management Ltd, ALSTOM IS&T SAS, ALSTOM Norway AS, ALSTOM Philippines- Inc., ALSTOM Power Boilers Services Limited, ALSTOM Power Consulting AG, ALSTOM Power Service, ALSTOM Power Service (Hong Kong) Limited, ALSTOM S&E Africa (Pty), ALSTOM Signalling Inc., ALSTOM Technologie AG Switzerland, ALSTOM Transport (S) Pte Ltd, ALSTOM Transport BV, PT ALSTOM Transport Indonesia, ALSTOM Nigeria Limited, ALSTOM Ltd., ALSTOM CROATIA Ltd, ALSTOM general turbo SA, ALSTOM Hellas SA, ALSTOM Portugal SA, ALSTOM Power Conversion SA France, Alstom Power Inc Warrenville, ALSTOM Sizhou Elec Power Equipment Ltd, ALSTOM Strongwish co, Ltd, ALSTOM T&D India Limited, Power Service France Protea, ALSTOM Bulgaria EOOD, ALSTOM China Investment Co Ltd, ALSTOM Deutschland AG, Alstom Hydro China Co., Ltd, ALSTOM SA, Alstom Power Asia Pacifc Sdn Bhd, ALSTOM Power Singapore Pte Ltd, WUHAN Boiler Company Ltd, Alstom Boiler Deutschland GmbH, ALSTOM Combined Cycles International Ltd, ALSTOM Israel Ltd, ALSTOM Maroc SA, ALSTOM Support France, ALSTOM Finance BV, Lorelec, ALSTOM Boilers India Limited, ALSTOM Power Hydraulique.

Joint venture under the common control of the Ultimate Holding Company

NTPC ALSTOM Power Services Private Limited

7. Proposal for disposal of a part of auxiliary components business

By way of a letter dated April 01, 2014, the Company had informed the stock exchanges about a press release issued by Alstom, France on April 01, 2014 in respect of its agreement to sell its auxiliary components business to Triton, a leading European investment frm. The Company subsequently informed that on April 07, 2014, it had received a letter from Alstom Finance B.V. (the immediate holding company) dated April 04, 2014 requesting the Board of Directors to consider the proposal for disposal by the Company of its auxiliary components business to an Indian legal entity to be specified by Triton, as a going concern on a slump-sale basis, subject to receipt of all relevant corporate consents and in accordance with applicable laws.

This activity is part of the non-core asset disposal programme, announced by Alstom, France in November 2013. The auxiliary components business proposed to be sold is part of the steam segment within Thermal Power and is active both in the new equipment market and aftermarket services across three product lines: air preheaters and gas-gas heaters for thermal power plants, heat transfer solutions for a variety of petrochemical and industrial processes, and grinding mills for diversifed industrial applications.

Alstom Finance B.V. has requested the Company to consider the proposal favourably and commence the requisite process under Indian law including determination of the fair valuation of the Auxiliary Components Business/Undertaking and obtaining relevant consents to implement the aforesaid proposal.

The financial impact of the above is yet to be ascertained

8. CAPITAL AND OTHER COMMITMENTS

8.1 Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances – Rs. 229.5 million (previous year – Rs. 390.7 million).

8.2 The Company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme, of the Government of India, at concessional rates of duty on an undertaking to fulfll quantifed exports in the following six to eight years from the date of grant of EPCG license Rs. Nil million (previous year Rs. 281.6 million)

8.3 For commitments relating to Lease arrangements, refer Note 32 above and for other commitments refer Note 3.19.

9. CONTINGENT LIABILITIES

a) Demands relating to Tax matters :- i) Sales Tax matters - Rs. 85.5 million (previous year - Rs. 75.0 million)

ii) Work Contract Tax matters - Rs. 13.8 million (previous year - Rs. 13.8 million) iii) Excise Duty matters - Rs. 247.3 million (previous year - Rs. 236.7 million) iv) Service Tax matters - Rs. 93.4 million (previous year - Rs. 88.2 million)

b) Demand relating to Labour Cess matter - Rs. 18.6 million (previous year - Rs. 18.6 million)

Based on the favorable decision in similar cases / legal opinions taken by the Company / discussions with the solicitors etc., the Company believes that it has good cases in respect of all the items listed under (a) and (b) above and hence no provision there against is considered necessary.

It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.

The Company does not expect any reimbursements in respect of the above contingent liabilities.


Mar 31, 2013

1. General information

ALSTOM India Limited (Formerly known as ALSTOM Projects India Limited ) (''AIL'' or ''the Company'') is a publicly owned Company, incorporated on 2 September 1992 as Asea Brown Boveri Management Limited, registered with the Registrar of Companies, Maharashtra.

Its operations includes a composite range of activities viz. engineering, procurement, manufacturing, construction and servicing etc. of power plants and power equipment and transportation systems covering traction, signaling and train control for the railways and metros.

2. Segment information

The Company has considered the business segment as the primary reporting segment on the basis that the risk and returns of the Company is primarily determined by the nature of products and services. Consequently, the geographical segment has been considered as a secondary segment.

The business segment have been identified on the basis of the nature of products and services, the risks and returns, internal organisation and management structure and the internal performance reporting systems.

2.1 Primary segment reporting — Business segments

The Company''s business segments are classified into Power and Transport.

Power segment

This segment is engaged in the business of engineering, procurement and construction of power plants. It also manufactures steam raising plant, ancillary equipment, parts of steam generator, pressures vessels and pulverizers.

Transport segment

This segment is engaged in the business of designing, manufacturing, supplying and supporting large scale transportation systems including traction, signaling and train control.

2.2 Inter segment transfers

Segment revenues, segment expenses and segment results include transfers between business segments, that are made based on negotiation between segments with reference to the costs, market prices and business risks, within the overall optimisation objective for the Company and are comparable with competitive market prices charged to external customers. Inter-segment transfers are eliminated on consolidation.

2.3 Allocation of common costs

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

2.4 Unallocated items

Includes general corporate income and expense items, which are not allocated to any business segment.

3. Related Party

3.1 List of related parties

Parties with whom control exists:

ALSTOM, France (Parent)

ALSTOM Holdings, France (Holding Company)

ALSTOM Finance BV, Netherlands (Immediate Holding Company)

Parties controlled by the Company (Subsidiaries)

ALSTOM Power Boilers Services Limited, India

ALSTOM Boilers India Limited, India

Key managerial personnel (KMP)

Mr. Sunand Sharma - Chairman & Whole-time Director

Mr. Patrick Ledermann - Vice Chairman & Managing Director (w.e.f. 01 October 2012)

Mr. Francois Carpentier - Vice Chairman & Managing Director (upto 01 October 2012)

Mr. S.M. Momaya - Whole-time Director & Chief Financial Officer

Other related parties with whom transactions have taken place during the year (fellow subsidiaries)

Air Preheater Equipamentos LTDA,ALSTOM Middle East Ltd.,ALSTOM (Switzerland) Ltd,ALSTOM (Thailand) Ltd,ALSTOM Asia Pacific Sdn Bhd,ALSTOM Austria GmbH,ALSTOM Beijing Engineering &Technology Co Lt,ALSTOM Belgium SA,ALSTOM Bharat Forge Power Limited,Alstom Boiler Deutschland GmbH,ALSTOM Brasil Energia e transporte Ltda,ALSTOM Bulgaria EOOD,ALSTOM China Investment Co Ltd,ALSTOM CROATIA Ltd,ALSTOM Deutschland AG,ALSTOM Egypt Power & Transp Projects SAE,ALSTOM Estonia AS,ALSTOM Ferroviaria S.p.A,ALSTOM Finance BV,ALSTOM Finland OY,ALSTOM general turbo SA,ALSTOM Grid SAS,ALSTOM Holdings,ALSTOM Hong-Kong Ltd,ALSTOM Hydro France,ALSTOM Hydro R&D India Limited,ALSTOM Hydro Spain S.L.,ALSTOM Hydro Sweden AB,ALSTOM INFRASTRUCTURE ROMANIA SRL,ALSTOM IS&T SAS,ALSTOM K.K.,ALSTOM Konstal Spolka Akcyjna,ALSTOM Korea Ltd,ALSTOM Limited,ALSTOM MIDDLE EAST Ltd.,ALSTOM Nigeria Limited,ALSTOM Norway AS,ALSTOM Philippines- Inc.,ALSTOM Portugal SA,ALSTOM Power & Transport Canada Inc,ALSTOM Power Consulting AG,ALSTOM Power Conversion SA France,ALSTOM Power Hydraulique ,ALSTOM Power Inc.,ALSTOM Power Italia Spa,ALSTOM Power Netherland B.V.,ALSTOM Power SA,ALSTOM Power Service (Hong Kong) Limited,ALSTOM Power Service (Pty) Limited,ALSTOM Power Service GmbH,ALSTOM Power Service Limited,ALSTOM Power Singapore Pte Ltd,ALSTOM Power Sp.z o.o.,ALSTOM Power Sweden AB,ALSTOM Power Systems GmbH,ALSTOM Power Systems SA,ALSTOM S&E Africa (Pty),ALSTOM s.r.o,ALSTOM SA,ALSTOM Saudi Arabia Transport and Power Ltd,ALSTOM Services Sdn Bhd,ALSTOM Signalling Inc.,ALSTOM Sizhou Elec Power Equipment Ltd,ALSTOM Strongwish co, Ltd,ALSTOM T&D India Limited,ALSTOM Technical Service Shanghai,ALSTOM Technologies AG Switzerland,ALSTOM Transport (S) Pte Ltd,ALSTOM Transport BV,ALSTOM Transport India Limited,ALSTOM Transport SA,ALSTOM Vannkraft AS,ALSTOM Vietnam Company Ltd,Lorelec,Power Service France Protea,PT ALSTOM Power Energy Systems Indonesia,Shangai ALSTOM Electrical Equipment Ltd,Technical Transport Consolidation,Tianjin ALSTOM Hydro Co. Ltd,WUHAN Boiler Company Ltd

4. Discontinuing Operations

The Board of Directors at its meeting held on 25 October 2011, had approved the demerger of the boiler business, forming part of the power segment, of the Company, subject to necessary approvals, to ALSTOM Boilers India Limited(ABIL), a wholly owned subsidiary of the Company, from Appointed date of 01 April 2011. Accordingly, the boiler business to be demerged was being considered as discontinuing operations with effect from that date. Following the issuance of the SEBI Circular CIR/CFD/DIL/5/2013 dated k February 2013, the no-objection certificates issued by the stock exchanges in September 2012 in relation to the demerger scheme have expired. As the demerger scheme is yet to be resubmitted in terms of the said Circular, the boiler business is no longer being disclosed as discontinuing operations.

5. Capital and other commitments

5.1 Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances - Rs 390.7 million (previous year - Rs 220 million).

5.2 The Company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme, of the Government of India, at concessional rates of duty on an undertaking to fulfill quantified exports in the following six to eightyears from the date of grant of EPCG license Rs. 281.6 million (previous year Rs. 546.4 million)

5.3 For commitments relating to Lease arrangements, refer Note 31 above and for other comittments refer Note 2.19.

6. Contingent Liabilities

(a) Demands relating to Tax matters :-

(i) Sales Tax matters - Rs 75.0 million (previous year - Rs 16.8 million)

(ii) Work Contract Tax matters - Rs 13.8 million (previous year - Rs 13.8 million)

(iii) Excise Duty matters - Rs 236.7 million (previous year - Rs 233.1 million)

(iv) Service Tax matters - Rs 88.2 million (previous year - Rs 85.5 million)

b) Demand relating to Labour Cess matter - Rs 18.6 million (previous year - Rs 18.6 million)

c) Various other claims not acknowledged as debts Rs. NIL (previous year - Rs. 1.5 million).

Based on the favorable decision in similar cases / legal opinions taken by the Company / discussions with the solicitors etc., the Company believes that it has good cases in respect of all the items listed under (a), (b) and (c) above and hence no provision there against is considered necessary.

It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings.

The Company does not expect any reimbursements in respect of the above contingent liabilities.

7. Dues to micro and small enterprises

The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED Act''). The disclosures pursuant to the said MSMED Act are as follows:

8. Previous year figures

Previous year figures have been reclassified to conform to this year''s classification.


Mar 31, 2012

A. Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

During the year ended 31 March 2012, the amount of dividend per share recognized as distribution to equity shareholders was Rs. 10 (Previous Year 31 March 2011: Rs. 10).

b. Shares allotted as fully paid up pursuant to contract(s) without payment being received in cash (during 5 years immediately preceding 31 March 2012) 6,097,561 Equity shares of Rs. 10 each to be issued with effect from April 1, 2011 to the erstwhile shareholders of ALSTOM Holdings (India) Limited pursuant to the Scheme of Amalgamation without payment being received in cash. Refer note 3(a) above.

**Nature of Security : Finance lease obligation are secured by hypothecation of assets underlying the leases.

**Terms of Repayment: Monthly payment of equated monthly installments beginning from the month subsequent to taking the lease.

*Disclosed under Long term Loans and Advances (refer note 15)

Provision for tax litigation/ disputes represents amounts that the Company is likely to pay on account of demands raised by Tax authorities which have been disputed by the Company. Due to the very nature of the above costs, it is not possible to estimate the timing/ uncertainties relating to their outcome.

Provision for warranty represents estimated costs that the Company is likely to incur during the warranty periods as per the contract obligations in respect of completed construction contracts accounted under AS 7 (Revised) " Construction Contracts". Warranty costs are estimated on the basis of contractual agreement, technical evaluation and past experience. The timing of outflows is expected to be as per warranty periods as specified in various contracts. Provision for warranty is treated as current since the Company does not have an unconditional right to defer settlement of obligation beyond the period of twelve months.

1. Gratuity and other post-employment benefit plans

I) Gratuity

The Company has a defined benefit gratuity plan that operates through a Trust. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The plan is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the respective plans.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the obligation is to be settled.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

Note:

a) Information relating to experience adjustment in the actuarial valuation of gratuity as required by Para 120(n)(ii) of the Accounting Standard 15 on Employee Benefits is not available with the Company.

b) The Company's expected contribution to the fund in the next year is not presently ascertainable and hence, the contribution expected to be paid to the plan during the annual period beginning after the balance sheet date as required by para 120 (o) of the Accounting Standard – 15 on Employee Benefits are not disclosed.

II) Provident Fund

In respect of certain eligible employees, the Company has a provident fund plan which is administered through a trust. The Trust deed provides for the Company to make good any deficiency in the interest to be paid by the Trust to it's members and the income earned by it. Accordingly the plan is as a defined benefit plan. Consequent to the Actuarial Society of India issuing a guidance note on the valuation of provident fund liability, the Company has obtained an actuarial valuation of the Provident fund liability as at the Balance Sheet date. Accordingly the Company has recognised a provision of Rs. 4.1 million towards provident fund liability based on the Actuarial valuation. The Actuary has not provided the other details to meet the disclosure requirement of the Accounting Standard 15 "Employee Benefits" and accordingly the disclosures included are limited to the extent of those provided by the Actuary.

*Included under Employee Benefit Expense in the head Contribution to Provident and Other Funds.

Leasehold improvements include assets costing Rs. 16.4 million (previous year - Rs. 16.4 million) on finance lease. The lease term is for 10 years.

2. Segment information

2.1 Primary segment reporting - Business segments

The Company's business segments are classified into Power and Transport.

Power segment

This segment is engaged in the business of engineering, procurement and construction of power plants. It also manufactures steam raising plant, ancillary equipment, parts of steam generator, pressures vessels and pulverizers.

Transport segment

This segment is engaged in the business of designing, manufacturing, supplying and supporting large scale transportation systems including traction, signaling and train control.

2.2 Inter segment transfers

Segment revenues, segment expenses and segment results include transfers between business segments, that are made based on negotiation between segments with reference to the costs, market prices and business risks, within the overall optimisation objective for the Company and are comparable with competitive market prices charged to external customers. Inter-segment transfers are eliminated on consolidation.

2.3 Allocation of common costs

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

2.4 Unallocated items

Includes general corporate income and expense items, which are not allocated to any business segment.

2.5 Secondary segment reporting — Geographical segments

The analysis of geographical segments is based on the geographical location of the customers.

Mr. Sunand Sharma is the Non - Executive Chairman of the Company who was an employee of ALSTOM Holdings (India) Limited and is deemed to be an employee of the Company with effect from the appointed date (1 April 2011) for the period 01 April 2011 to 31 March 2012 pursuant to the Scheme of amalgamation amongst ALSTOM Holdings (India) Limited (Amalgamating Company), ALSTOM Projects India Limited (Amalgamated Company) and their respective shareholders, which became effective on 20 April 2012 {refer note 3(a) above}. The transactions made by Amalgamating Company with Mr. Sunand Sharma during the aforesaid period have been considered as related party transactions.

Other related parties with whom transactions have taken place during the year (fellow subsidiaries)

Air Preheater Equipamentos LTDA, ALSTOM (Switzerland) Ltd, ALSTOM (Thailand) Ltd, ALSTOM Asia Pacific Sdn Bhd, ALSTOM Austria GmbH, ALSTOM Belgium SA, ALSTOM Bharat Forge Power Limited, ALSTOM Brasil Energiae transported Ltd., ALSTOM Bulgaria EOOD, ALSTOM China Investment Co Ltd, ALSTOM CROATIA Ltd, ALSTOM Deutschland AG, ALSTOM Estonia AS, ALSTOM Ferroviaria SpA, ALSTOM Finland OY, ALSTOM general turbo SA, ALSTOM Grid SAS, ALSTOM Holdings, ALSTOM Hong-Kong Ltd, Alstom Hydro France, ALSTOM Hydro R&D India Limited, ALSTOM Hydro Spain SL, ALSTOM Hydro Sweden AB, ALSTOM INFRASTRUCTURE ROMANIA SRL, ALSTOM IS&T SAS, ALSTOM KK, ALSTOM Limited, ALSTOM Ltd, ALSTOM MIDDLE EAST Ltd, ALSTOM Norway AS, ALSTOM Philippines- Inc, ALSTOM Portugal SA, ALSTOM Power & Transport Canada Inc, ALSTOM Power Consulting AG, ALSTOM Power Inc, ALSTOM Power Italia Spa, ALSTOM Power Nederland BV, ALSTOM Power SA, ALSTOM Power Service, ALSTOM Power Service (Hong Kong) Limited, ALSTOM Power Service (Pty) Limited, ALSTOM Power Service GmbH, ALSTOM Power Spz oo, ALSTOM Power Sweden AB, ALSTOM Power Systems GmbH, Alstom Power Systems SA, ALSTOM S&E Africa (Pty), ALSTOM sro, ALSTOM SA, Alstom Services Sdn Bhd, ALSTOM Signalling Inc, ALSTOM Strongwish co, Ltd, ALSTOM T&D India Limited, ALSTOM Technical Service Shanghai, ALSTOM Technologie AG Switzerland, ALSTOM Transport (S) Pte Ltd, ALSTOM Transport BV, ALSTOM Transport India Limited, ALSTOM Transport SA, ALSTOM Vannkraft AS, ALSTOM Vietnam Company Ltd, Alstom Wind SLU, PT ALSTOM Power Energy Systems Indonesia, Shangai ALSTOM Electrical Equipment Ltd, Technical Transport Consolidation, Tianjin ALSTOM Hydro Co Ltd, WUHAN Boiler Company Ltd., ALSTOM Belgium SA , ALSTOM Egypt Power & Transp Projects SAE , ALSTOM Finance BV, ALSTOM India Limited, ALSTOM Information Tech. Centre SAS, ALSTOM Mexicana S.A. de C.V., ALSTOM Power Hydraulique, ALSTOM Power Hydraulique, ALSTOM Technology Ltd, Lorelec.

3. Discontinuing Operations

ALSTOM Holdings had entered into a letter of binding intent with Shanghai Electric Company of China on 20 April 2011 to combine both partners' activities in the boiler market for power plants. ALSTOM Holdings and Shanghai Electric expect to set-up the joint company once their agreements will be finalised and after the completion of the social and regulatory process, the timing of which is not ascertained.

In pursuance of the above, ALSTOM Holdings (the holding company of the ALSTOM Group of Companies) had requested the Company to consider transfer of its boiler business to a newly incorporated wholly owned subsidiary through a scheme of demerger under Sections 391 to 394 of the Companies Act, 1956.

The Board of Directors of the Company in its meeting held on 25 October 2011 had considered the said request of ALSTOM Holdings and thereafter, subject to approval of the shareholders and creditors and the High Court(s), approved the demerger of the Boiler Business of the Company, subject to the finalisation of the agreement at the Group level, into its wholly owned subsidiary Company, ALSTOM Boilers India Limited ("ABIL") with the Appointed Date of 1 April 2011. The decision was intimated to the stock exchanges on the same date. The Boiler business is part of the Power segment as per Accounting Standard 17 "Segment Reporting". On the basis of the valuation undertaken by an independent valuer, the Board had further granted its approval to the share swap ratio of 1:1, meaning that every shareholder of the Company holding 1 (one) fully paid- up equity shares of Rs.10 (Rupees ten) each in the Company as on the record date (as determined in terms of the Scheme of Demerger) shall, upon sanction of the Scheme of Demerger and upon its becoming effective, be entitled to receive 1 (one) fully paid-up equity shares of Rs.5 (Rupees five) each in ABIL. The Scheme of Demerger, when effective, would result in a reduction of Company's reserves by Rs. 786.1 million as at 31 March 2012.

4. Capital and other commitments

4.1 Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances – Rs 220.0 million (previous year – Rs 356.8 million).

4.2 The Company has imported Capital Goods under the Export Promotion Capital Goods (EPCG) scheme, of the Government of India, at concessional rates of duty on an undertaking to fulfill quantified exports in the following six to eight years from the date of grant of EPCG license Rs. 546.4 million (previous year Rs. 1,153.1 million)

4.3 For commitments relating to Lease arrangements, refer Note 30 above and for other Off Balance Sheet comittments refer Note 2.19.

5. Contingent Liabilities

a) Demand raised by sales tax and excise authorities levying sales tax / works contract tax / excise duty in cases of disputes regarding divisibility of contracts with the customers for supply and erection / installation of goods and other matters - Rs. 367.8 million (previous year – Rs. 250.6 million)

b) Various other claims not acknowledged as debts Rs. 1.5 million (previous year – Rs. 1.3 million).

Based on the favorable decision in similar cases / legal opinions taken by the Company / discussions with the solicitors etc., the Company believes that it has good cases in respect of all the items listed under (a) and (b) above and hence no provision there against is considered necessary.

*Including bought out items, the purchases whereof have been included in material cost and erection services **Project items include equipment and miscellaneous items meant for execution of projects.

6. Previous year figures

The financial statements for the year ended 31 March 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31 March 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements except for accounting of dividends from subsidiaries.


Mar 31, 2011

(All amounts in rupees thousands, unless otherwise specified)

1 BACKGROUND

ALSTOM Projects India Limited (APIL or the Company) is a publicly owned Company, incorporated on 2 September 1992 as Asea Brown Boveri Management Limited, registered with the Registrar of Companies, Maharashtra.

Its business includes a composite range of activities engineering, procurement, manufacturing, construction and servicing etc. of power plants and power equipments and transportation systems covering traction, signalling and train control for the railways and metros.

2 CONTINGENT LIABILITIES NOT PROVIDED FOR

a) Demand raised by sales tax and excise authorities levying sales tax / works contract tax / excise duty in cases of disputes regarding divisibility of contracts with the customers for supply and erection / installation of goods and others - Rs. 250,637 thousand (previous year - Rs. 251,604 thousand)

b) Demand raised by Durgapur Power Limited on delayed payment of electricity bills - Nil (previous year - Rs. 19,000 thousand).

c) Various other claims not acknowledged as debts Rs. 1,373 thousand (previous year - Rs. 6,250 thousand).

Based on the favourable decision in similar cases / legal opinions taken by the Company / discussions with the solicitors etc., the Company believes that it has good cases in respect of all the items listed under (a) and (c) above and hence no provision there against is considered necessary.

3 SEGMENT INFORMATION

3.1 Primary segment reporting - Business segments

The Companys business segments are classified into Power and Transport.

3.1.1 Power segment

This segment is engaged in the business of engineering, procurement and construction of power plants. It also manufactures steam raising plant, ancillary equipment, parts of steam generator, pressures vessels and pulverizers.

3.1.2 Transport segment

This segment is engaged in the business of designing, manufacturing, supplying and supporting large scale transportation systems including traction, signalling and train control.

3.2 Inter segment transfers

Segment revenues, segment expenses and segment results include transfers between business segments, that are made based on negotiation between segments with reference to the costs, market prices and business risks, within the overall optimisation objective for the Company and are comparable with competitive market prices charged to external customers. Inter-segment transfers are eliminated on consolidation.

3.3 Allocation of common costs

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

3.4 Unallocated items

Includes general corporate income and expense items, which are not allocated to any business segment.

3.5 Secondary segment reporting -- Geographical segments

The analysis of geographical segments is based on the geographical location of the customers.

4 RELATED PARTY DISCLOSURES

4.1 List of related parties

4.1.1 Parties with whom control exists:

ALSTOM Holdings (Ultimate Holding Company)

ALSTOM Finance BV (Holding Company)

4.1.2 Parties controlled by the Company (Subsidiaries)

ALSTOM Power Boilers Services Limited

4.1.3 Other related parties with whom transactions have taken place during the year (fellow subsidiaries)

ALSTOM (Switzerland) Ltd, ALSTOM Asia Pacific Sdn Bhd, ALSTOM Austria GmbH, ALSTOM Belgium SA, ALSTOM Bharat Forge Power Limited, ALSTOM Brasil Energia E Transporte Ltda, ALSTOM Bulgaria Eood, ALSTOM Deutschland AG, ALSTOM Egypt Power & Transp Projects SAE, ALSTOM Ferroviaria S.P.A, ALSTOM Finance BV, ALSTOM General Turbo SA, ALSTOM Holdings, ALSTOM Hydro (Switzerland) Ltd, ALSTOM Hydro Austria GmbH, ALSTOM Hydro Equipamentes, ALSTOM Hydro France, ALSTOM Hydro R&D India Limited, ALSTOM Hydro Spain S.L., ALSTOM i.ydro Sweden Ab, ALSTOM India Limited, ALSTOM Information Tech. Centre SAS. ALSTOM Ltd, ALSTOM Mexicana S.A. De C.V., ALSTOM Norway AS, ALSTOM Power Centrales, France, ALSTOM Power Consulting AG, ALSTOM Power Hydraulique, ALSTOM Power Inc USA, ALSTOM Power Inc., ALSTOM Power Italia Spa, ALSTOM Power Nederland B.V., ALSTOM Power Romania, ALSTOM Power Service, ALSTOM Power Service (Hong Kong) Limited, ALSTOM Power Service (Pty) Limited, ALSTOM Power Service GmbH, ALSTOM Power Sp.Z O.O., ALSTOM Power Sweden AB, ALSTOM Power Systems GmbH, ALSTOM Power Systems SA, ALSTOM SA, ALSTOM Services Sdn Bhd, ALSTOM Signalling Inc., ALSTOM Hydro R&D India Limited, ALSTOM Technical Service Shanghai, ALSTOM Technology Ltd, ALSTOM Transport (S) Pte Ltd, ALSTOM Transport BV, ALSTOM Transport SA, ALSTOM Vannkraft AS, Areva T&D India Limited, NTPC ALSTOM Power Services Private Ltd, Pt ALSTOM Power Energy Systems Indonesia, Tianjin ALSTOM Hydro Co. Ltd.

4.1.4 Key managerial personnel (KMP)

Mr. Francois Carpentier - Vice Chairman & Managing Director

Mr. S.M. Momaya - Whole-time Director & Chief Financial Officer

5 LEASE COMMITMENTS

5.1 Operating leases

Lease payments of Rs. 374,640 thousand (previous year - Rs. 375,173 thousand) have been recognised as an expense in the profit and loss account for the year ended 31 March 2011.

There is no contingent rent in the lease agreements. The lease term is for 1-9 years and is renewable at the mutual agreement of both the parties. There is no escalation clause in the lease agreements (other than those disclosed above). There are no restrictions imposed by lease arrangements. There are no subleases.

6 SUPPLEMENTARY PROFIT AND LOSS DATA 9.1 Capacities, production and stock

The Companys products are exempt from licensing requirement under the new industrial policy by virtue of notification No 477 (E) of 25.07.91

Previous year figures are in brackets

Capacities

Installed capacities are as certified by the management, but not verified by the auditors, being a technical matter.

Production

a) Production of finished goods is inclusive of production for captive use.

b) "Others" represent internally manufactured components, meant for sale. Since the quantitative denominations of these items are dissimilar, it would be impracticable to disclose the quantitative information in respect thereof.

Inventories

The finished goods and work-in-progress at the beginning of the year amounted to Rs. 4,290 thousands and Rs. 1,806,211 thousands respectively (previous year Rs. 4,683 thousands and Rs. 436,533 thousands).

7. Managerial remuneration

Whole time directors are covered under the Companys gratuity and leave encashment scheme along with the other employees of the Company. The gratuity/ leave encashment liability is determined for all employees on an independent actuarial valuation. The specific amount of gratuity/ leave encashment for whole time directors cannot be ascertained separately and accordingly the same has not been included above.

8. Acceptances

Total outstanding dues to creditors other than Small and Micro enterprises include acceptances Rs. 124,321 thousand (previous year Rs. 60,673 thousand).

9 GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the respective plans.

included in the head Contribution to Provident and Other Funds.

Notes:

a) Information relating to experience adjustment in the actuarial valuation of gratuity as required by Para 120(n)(ii) of the Accounting Standard 15 on Employee Benefits is not available with the Company.

b) The Companys expected contribution to the fund in the next year is not presently ascertainable and hence, the contribution expected to be paid to the plan during the annual period beginning after the balance sheet date as required by para 120 (o) of the Accounting Standard - 15 on Employee Benefits are not disclosed.

c) Pending issuance of the Guidance Note from the Actuarial Society of India, the companys actuary has expressed his inability to reliably measure the provident fund liability. Accordingly, no additional disclosures as required by Paragraph 120 of AS 15 have been furnished.

10 DISCLOSURE REQUIRED BY ACCOUNTING STANDARD (AS) 29 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Description Opening Balance Provisions made Provisions utilised / Closing Balance during the year reversed during the year Provision for Warranty 155,248 157,089 (73,087) 239,250

Provision for Warranty represents estimated costs that the Company is likely to incur during warranty periods as per the contract obligations in respect of completed construction contracts accounted under AS 7 (Revised) "Construction Contracts". Warranty costs are estimated on the basis of contractual agreement, technical evaluation and past experience. The timing of outflows is expected to be as per warranty periods as specified in various contracts.

11 PRIOR YEAR COMPARATIVES

Previous year amounts have been regrouped/reclassified, wherever necessary, to conform with current years presentation.


Mar 31, 2010

1 BACKGROUND

ALSTOM Projects India Limited (‘APIL’ or ‘the Company’) is a publicly owned Company, incorporated on September 2, 1992 as Asea Brown Boveri Management Limited, registered with the Registrar of Companies, Maharashtra.

Its business include a composite range of activities engineering, procurement, manufacturing, construction and servicing etc. of power plants and power equipments and transportation systems covering traction, signalling and train control for the railways and metros.

2 CAPITAL COMMITMENTS

Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) – Rs 304,834 thousand (previous year – Rs 284,895 thousand).

3 CONTINGENT LIABILITIES NOT PROVIDED FOR

a) Demand raised by sales tax and excise authorities levying sales tax / works contract tax / excise duty in cases of disputes regarding divisibility of contracts with the customers for supply and erection / installation of goods and others – Rs 251,604 thousand (previous year – Rs 20,676 thousand)

b) Demand raised by Durgapur Power Limited on delayed payment of electricity bills – Rs 19,000 thousand (previous year – Rs 37,000 thousand).

c) Differential amount of custom duty in respect of machinery imported under EPCG Scheme Rs–Nil (previous year Rs 109,165 thousand).

d) Various other claims not acknowledged as debts Rs 6,250 thousand (previous year – Rs 6,250 thousand).

Based on the favourable decision in similar cases / legal opinions taken by the Company / discussions with the solicitors etc., the Company believes that it has good cases in respect of all the items listed under (a), (b) and (d) above and hence no provision there against is considered necessary.

4 SEGMENT INFORMATION

4.1 Primary segment reporting – Business segments

The Company’s business segments are classifed into Power and Transport.

4.1.1 Power segment

This segment is engaged in the business of engineering, procurement and construction of power plants. It also manufactures steam raising plant, ancillary equipment, parts of steam generator, pressures vessels and pulverizers.

4.1.2 Transport segment

This segment is engaged in the business of designing, manufacturing, supplying and supporting large scale transportation systems including traction, signalling and train control.

4.2 Inter segment transfers

Segment revenues, segment expenses and segment results include transfers between business segments, that are made based on negotiation between segments with reference to the costs, market prices and business risks, within the overall optimisation objective for the Company and are comparable with competitive market prices charged to external customers. Inter–segment transfers are eliminated on consolidation.

4.3 Allocation of common costs

Common allocable costs are allocated to each segment according to the relative contribution of each segment to the total common costs.

4.4 Unallocated items

Includes general corporate income and expense items which are not allocated to any business segment.

5 RELATED PARTY DISCLOSURES

5.1 List of related parties

5.1.1 Parties with whom control exists:

ALSTOM Holdings (Ultimate Holding Company)

ALSTOM Finance BV (Holding Company)

ALSTOM Enterprise S.A (Holding Company of the Parent)

5.1.2 Parties controlled by the Company (Subsidiaries)

ALSTOM Power Boilers Services Limited

5.1.3 Other related parties with whom transactions have taken place during the year (fellow subsidiaries)

ALSTOM (Switzerland) Ltd, ALSTOM Asia Pacifi c Sdn Bhd, ALSTOM Belgium SA, ALSTOM Bharat Forge Power Ltd, ALSTOM Brasil Energia e transporte Ltda, ALSTOM Bulgaria EOOD, ALSTOM Deutschland AG, ALSTOM Ferroviaria S.p.A, ALSTOM Holdings, ALSTOM Hydro (Switzerland) Ltd, ALSTOM Hydro Austria GmbH, ALSTOM Hydro Equipamentes, ALSTOM Hydro Spain S.L., ALSTOM Hydro Sweden AB, ALSTOM Information Tech. Centre SAS, ALSTOM K.K., ALSTOM Limited, ALSTOM Norway AS, ALSTOM Philippines– Inc., ALSTOM Portugal SA, ALSTOM Power– s.r.o., ALSTOM Power Boilers Services Limited, ALSTOM Power Centrales, France, ALSTOM Power Consulting AG, ALSTOM Power Energy Recovery GmbH, ALSTOM Power Hydraulique, ALSTOM Power Inc USA, ALSTOM Power Italia Spa, ALSTOM Power Nederland B.V., ALSTOM Power Romania, ALSTOM Power SA, ALSTOM Power Service, ALSTOM Power Service (Arabia) Ltd., ALSTOM Power Service GmbH, ALSTOM Power Sp.z o.o., ALSTOM Power Stavan JSC, ALSTOM Power Sweden AB, ALSTOM Power Systems GmbH, ALSTOM Power Systems SA, ALSTOM Signalling Inc., ALSTOM Steam Turbine Limited, ALSTOM Technical Service Shanghai, ALSTOM Technologie AG Switzerland, ALSTOM Transport (S) Pte Ltd, ALSTOM Transport BV, ALSTOM Transport SA, ALSTOM Vannkraft AS, ALSTOM Vietnam Company Ltd, Comelex SA, NTPC ALSTOM Power Services Private Ltd, PT ALSTOM Power Energy Systems Indonesia, Tianjin ALSTOM Hydro Co. Ltd, WUHAN Boiler Company Ltd.

5.1.4 Key managerial personnel (KMP)

Mr. Emmanuel Colombier – Vice Chairman & Managing Director

Mr. S.M. Momaya – Whole–time Director & Chief Financial Officer

6 LEASE COMMITMENTS

6.1 Operating leases

The Company normally takes vehicles and premises under non cancellable operating leases. Minimum lease payments outstanding as at March 31, 2010 in respect of these assets are as under:

The Company’s products are exempt from licensing requirement under the new industrial policy by virtue of notifcation No 477 ( E ) of 25.07.91 Previous year fgures are in brackets

Capacities

Installed capacities are as certifed by the management, but not verifed by the auditors, being a technical matter.

Production

a) Production of fnished goods is inclusive of production for captive use.

b) “Others” represent internally manufactured components, meant for sale. Since the quantitative denominations of these items are dissimilar, it would be impracticable to disclose the quantitative information in respect thereof.

Inventories

The fnished goods and work-in-progress at the beginning of the year amounted to Rs 4,683 thousands and Rs 436,533 thousands respectively (previous year Rs 4,940 thousands and Rs 360,161 thousands).

7 GRATUITY AND OTHER POST–EMPLOYMENT BENEFIT PLANS:

The Company has a defi ned benefi t gratuity plan. Every employee who has completed fi ve years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The scheme is funded with an insurance company in the form of a qualifying insurance policy.

The following tables summarise the components of net benefi t expense recognised in the profi t and loss account and the funded status and amounts recognised in the balance sheet for the respective plans.

8 Current year tax is after adjusting credit of Rs NIL thousand (previous year including Rs 32,037 thousand) related to earlier years.

9 PRIOR YEAR COMPARATIVES

Previous year amounts have been regrouped/reclassifed, wherever necessary, to conform with current year’s presentation.

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