A n n u a l R e p o r t
2 0 1 2 - 1 3Contents1.Letter to Shareholders22.Board of Directors33.Management Committee44.Corporate Organisational Structure65.Corporate Profile86.Year at a Glance157.Awards188.Directors’ Report19– Management Discussion and Analysis25– Brief Resume of Directors62–Corporate Governance64–Conservation of Energy91– Statement Pursuant to Section 212 of the Companies Act, 195693–Independent Auditors’ Report94–Comments of C&AG1009.Annual Accounts (Standalone)101– Audited Accounts with Cash Flow Statement & Notes103–Significant Accounting Policies12010.Subsidiary Companies147Bharat Heavy Plate and Vessels Limited–Directors’ Report149–Auditors’ Report162–Comments of C&AG167– Audited Accounts with Cash Flow Statement & Notes168–Significant Accounting Policies186BHEL Electrical Machines Limited–Directors’ Report197–Auditors’ Report199–Comments of C&AG203– Audited Accounts with Cash Flow Statement & Notes204–Significant Accounting Policies21511.Consolidated Financial Statements221–Independent Auditors’ Report223– Audited Accounts with Cash Flow Statement & Notes225–Significant Accounting Policies24312.Additional Information for Stakeholders259–Ten Years Financials261– Net Income under US GAAP263– Economic Value Added (EVA)265–Value Addition Statement266–Performance Annual Plan267–Contribution to Exchequer267–Product Profile268–BHEL in India277–Global Business27813.Business Responsibility Report of BHEL: 2012-1328014.Notice28515.Corporate Social Responsibility295 Letter to Shareholders
The past year has been a defining one for your company BHEL as we became a ‘Maharatna’ company, crossed ` 50,000 Crore turnover mark and achieved the highest ever addition of 10,340 MW to India’s electricity generation capacity while navigating through one of the most difficult economic and business environment of our times. Despite a challenging environment for Indian industry, your company has not lost its focus on creating shareholders’ value. The following outlines the milestones we have achieved during the year 2012-13:
0• BHEL has achieved the highest ever turnover of ` 50,156 Crore during 2012-13 registering a growth of 1% despite adverse business conditions. With the Net Profit of ` 6,615 Crore, we were able to maintain the level of previous five years (2007-12) average profit margins of 14% on the back of strong focus on manufacturing efficiencies.
0• Recognising the consistent performance over a longer period of time, your company has been bestowed with the coveted ‘Maharatna’ status by Govt. of India, resulting in further empowerment of the Board for greater business agility.
0• A total of ` 31,650 Crore of orders were received by your company, which was an increase of 43% over 2011-12. It included 8 nos. of TG, 9 nos. of Boilers and 7 nos. of ESP packages for supercritical sets. Interestingly with market share of 67% in power sector, BHEL continues to maintain its leadership position in Indian market despite rising intensity of competition.
0• Various initiatives taken by your company in recent past for accelerated project execution have started fetching results. We were able to synchronise/ commission all time high 10,340 MW of power plant equipment including 9,328 MW in utility segment. Your company successfully commissioned India’s first indigenously manufactured subcritical set of 600 MW rating on EPC basis at North Chennai.
0• With the objective of becoming an innovative developer of clean, efficient, reliable and affordable products, systems and technologies, we continue to relentlessly strengthen our technology and innovation capabilities. BHEL invested ` 1,252 Crore in R&D during the year. The highest ever 385 patents and copyrights were filed raising the intellectual capital of BHEL to 2,170.
0• Your company has signed MoU with Indian Railways for setting up a green field coach factory for...
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