bhel org chart

7/27/2019 BHEL Org Chart

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A n n u a l R e p

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Contents

1

. Letter to Shareholders 22. Board of Directors 33

. Management Committee 44. Corporate Organisational Structure 65. Corporate Profile 86. Year at a Glance 157. Awards 188. Directors Report 19

Management Discussion and Analysis 25 Brief Resume of Directors 62 Corporate Governance 64 Conservation of Energy 91 Statement Pursuant to Section 212 of theCompanies Act, 1956 93 Independent Auditors Report 94 Comments of C&AG 100

9. Annual Accounts (Standalone) 101

Audited Accounts with Cash Flow Statement &Notes 103

Significant Accounting Policies 12010. Subsidiary Companies 147

Bharat Heavy Plate and Vessels Limited Directors Report 149 Auditors Report 162 Comments of C&AG 167


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Audited Accounts with Cash Flow Statement &Notes 168 Significant Accounting Policies 186BHEL Electrical Machines Limited Directors Report 197

Auditors Report 199 Comments of C&AG 203 Audited Accounts with Cash Flow Statement &Notes 204 Significant Accounting Policies 215

11. Consolidated Financial Statements 221

Independent Auditors Report 223 Audited Accounts with Cash Flow Statement &Notes 225 Significant Accounting Policies 243

12. Additional Information for Stakeholders 259

Ten Years Financials 261 Net Income under US GAAP 263 Economic Value Added (EVA) 265 Value Addition Statement 266 Performance Annual Plan 267 Contribution to Exchequer 267 Product Profile 268 BHEL in India 277

Global Business 27813. Business Responsibility Report of BHEL: 2012-13 28014. Notice 28515. Corporate Social Responsibility 295


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Letter to Shareholders

Dear 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 Indias 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:

1 BHEL has achieved the highest ever turnover of ` 50,156Crore during 2012-13 registering a growth of 1% despiteadverse business conditions. With the Net Profit of` 6,615Crore, we were able to maintain the level of previous fiveyears (2007-12) average profit margins of 14% on the

back of strong focus on manufacturing efficiencies.

2 Recognising the consistent performance over a longerperiod of time, your company has been bestowed with

the coveted Maharatna status by Govt. of India,resulting in further empowerment of the Board forgreater business agility.

3 A total of ` 31,650 Crore of orders were received by yourcompany, 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 ofcompetition.

4 Various initiatives taken by your company in recent pastfor accelerated project execution have started fetchingresults. We were able to synchronise/ commission all timehigh 10,340 MW of power plant equipment including 9,328MW in utility segment. Your company successfullycommissioned Indias first indigenously manufacturedsubcritical set of 600 MW rating on EPC basis at NorthChennai.

5 With the objective of becoming an innovative developer ofclean, 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.

6 Your company has signed MoU with Indian Railways forsetting up a green field coach factory for Mainline ElectricMultiple Unit at Bhilwara, Rajasthan. This is a significantstep in our diversification endeavours.

Positioning for Future

We are at a critical juncture in our history as we endeavour tosustain growth momentum, increase shareholder wealth andfulfil our vision of becoming a global engineering enterprise.We are proud of the work your company has done to augmentmanufacturing capacity, enhance pace of project execution,strengthen engineering and technology capabilities, andpeople development.

1 The Company has adopted its Strategic Plan 2012-17. Theplan attempts to steer the company towards becoming a

global engineering enterprise. Key drivers of our success areexpanding our offerings in Power Sector by


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building EPC capability, focus on Industry businesses,expansion of spares

& services and adoption of collaborative approach.

1 Power sector will continue to remain major contributor

in our top line with transportation and transmissionemerging as next big business verticals. Strategies arein place to strengthen our presence in Nuclear,Renewable and Water segments.

2 Efforts are being made to make supply chain agile andaccelerate project execution through sustained focuson vendor base expansion, scaling up procurementthrough technology initiatives, advancedmanufacturing action, global sourcing etc.

3 We are working towards developing lower rating setswith supercritical parameters providing alternatives tothe Utilities to take advantage of this eco-friendly andfuel efficient technology.

4 To expand our nuclear energy portfoilo, efforts to increasescope by offering products beyond conventional island in

Nuclear business are under way.

5 BHELs collaborative initiatives to address the growingdemand potential in Railway Transportation includingMetro & Suburban Railways include initiative with IndianRailways for setting up a greenfield Mainline ElectricalMultiple Unit (MEMU) Coach Factory in Rajasthan.

6 Considering the National Action Plan on Climate Changetargeting 15% of electricity generation from renewables by

2020, BHEL is looking towards expanding its capacity to

manufacture photo voltaic modules & cells.

7 We have constituted R&M Systems Group (RMSG) toaddress emerging opportunities in Renovation andModernisation of Power Plants.

8 In a bid to address the aspirations of the company to

become a preeminent supplier of Industrial Boiler, NuclearSteam Generator & supplier of equipment for processIndustries, merger of BHPV Vizag with BHEL is under way.Further, in a bid to make headway in new product areaslike Alternators for Traction applications etc. facilities ofBHEL-EML Kasargod, a joint venture of BHEL and KeralaGovt., are being leveraged.

9 Engineering and Technology is our strength. Touphold our reputation for excellence in our corecapability, we will continue to upgrade existingproducts to contemporary levels and develop newproducts through continuous in-house efforts as wellas through acquisition of new technologies.

Conclusion

Looking ahead, the Board and Management of your companywill continue to execute various strategies to develop existingassets, optimize business portfolio through diversification,

strengthen financial performance and drive operationalefficiencies throughout the organization. I am confident thatour strategic endeavours would generate sustainable growth,stronger cash flows, and better returns on capital and greatlyimprove shareholder wealth.

I would like to thank my fellow Directors and members of the

Management Committee for their wisdom and support. I would also

like to extend a special thanks to each and every shareholder of

BHEL, whose trust and confidence have been the motivating force

in all our endeavours. I thank all our customers and business

associates in India and abroad for their unstinted loyalty and

steadfast patronage of our products and services. Various Ministries

of GoI, particularly the Department of Heavy Industry, have been

providing valuable guidance and support in our efforts. Finally, a

word of thanks to more than 48,000 employees of BHEL who are

making these successes happen. I am extremely proud of their

outstanding performance over this period and have full confidence

in their ability to deliver even greater success going forward.

With all the ingredients of success, dedicated people,engineering and technological excellence and right business

strategies in place, your company is well positioned to meetthe demands of a growing industry and deliver the type ofconsistent results for which this company is known for.

I look forward to your unwavering support while continuingthe growth momentum in coming years too.

With best wishes,

New Delhi (B. Prasada Rao)

August 14, 2013Chairman & Managing

Director

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ANNUAL REPORT

2 0 1 2 - 1 3

Board of DirectorsAs on 01.08.2013

Shri B. Prasada RaoChairman & Managing Directo

Ms. Kusumjit SidhuShri Ambuj

Sharma

Additional Secretary & Joint SecretaryFinancial Adviser


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Shri Trimbakdas S. Zanwar Shri S. RaviShri AtulSaraya

Director Director Director (Power)

Shri P.K.Bajpai

Shri R.Krishnan

Shri W.V.K.

Krishna Shankar

Director (Finance) Director (HR) Director (IS&P)

Shri I.P. SinghCompany Secretary

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anagementCommittee

on 18.07.2013


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Standing (Left toRight) :

Akhil Joshi, K.S. Shivaprasad, Rajeev Srivastava, S.V.S. Narayana, Dr. S. Sekar,Arun Singhal,Prakash Chand, Anuj Bhatnagar, N. Ravichander, Rakesh Mathur, S.R. Prasad, A.S.Nagaraja,V.K. Midha, Arvind Gupta, A.K. Ghosh, Rajiv Puri, S. Gopinath

Sitting R-2 (Left toRight) :

K.C. Ramamurthy, S.C. Mittal, Dr. Sukul Lomash, Anil Ahuja, N.K. Bansal, AtulSobti, K.S. Mathur,C.K. Srikhande, A.K. Dave, Umesh Mathur, A. Dasgupta, Subodh Gupta, T.N.Veeraraghavan,B. Shankar, Jainender Kumar

Sitting R-1 (Left toRight) :

P.K. Uppal, A.V. Krishnan, P.K. Bajpai, Atul Saraya, B.Prasada Rao, M.K. Dube, R.Krishnan,M. Rajiv Kumar, W.V.K. Krishna Shankar


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B. PrasadaRao -

Chairman & ManagingDirectorAdditional Charge of:

- Engineering, Research &Development

- Corporate Engineering &Product

Development- Corporate Research &Development

- Advance Research Projects

-Corporate Manufacturing

Technology& Investment Planning

- Corporate Monitoring

-Corporate MaterialsManagement

- Technology Licensing & JointVentures

and M&A

-Centralised Stamping UnitandFabrication Plant

Atul Saraya - Power Sector Business(Marketing, ProjectEngineering,E&C, Project Management,

TechnicalServices, Spares & Services)

M.K. Dube -

Industrial Systems &

Products Business

(Captive Power Plants,

Transmission,Transportation, Defence,Mechanicals,Electricals, Renewables,ProjectManagement)

- Ceramic Business- Component Fabrication Plant- Project Engineering &Systems Division

- Regional Operations Division

P.K. Bajpai - Corporate Finance- Budgeting & Control

- Cost Management- Treasury Management- Accounts & Audit- Taxation- Forex Management- Internal Audit- Financial Services

R. Krishnan - Human Resource- Corporate Communication- Corpoarte Systems andInformation

Technology- CSR, Health, Safety &

Environment

A.V. Krishnan - High Pressure Boiler Plant

- Seamless Steel Tube Plant- Industrial Valves Plant- Welding Research Institute

M. RajivKumar - Power Sector-Eastern Region

P.K. Uppal - International OperationsSubodhGupta -

Captive Power PlantBusiness

- Defence Business- Industry Sector-Project

ManagementJainenderKumar -

Power Sector-ProjectManagement


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A n n u a l R e p o r t

2 0 1 2 - 1 3

B. Shankar - Human Resource & CorporateCommunication

T.N.Veeraraghavan - Boiler Auxiliaries PlantW.V.K. Krishna

Shankar - Industry Sector

A. Dasgupta -Corporate Systems andInformation

TechnologyUmeshMathur - Transmission Business

A.K. Dave - Transformer PlantC.K.Srikhande - Power Sector-Northern Region

K.S. Mathur -Power Sector-ManagementServices

Atul Sobti - Industrial Systems Group

N.K. Bansal -Power Sector-TechnicalServices

Anil Ahuja -Industrials Products Business(Elect. &Mech.)

- Transportation BusinessDr. Sukul

Lomash -

Officer on Special Duty-Corp.

Office

S.C. Mittal -

Finance-Receivables

Management- Contract Closing

K.C.Ramamurthy - Electronics Division

- Electronics Systems Division

S. Gopinath - Piping Centre- Power Plant Piping Unit,

Thirumayam

Rajiv Puri -Project EngineeringManagement

A.K. Ghosh - Power Sector-Southern Region

Arvind Gupta -

Project Engineering & Systems

Division

V.K. Midha - Renewables & Water Business

A.S. Nagaraja - Ceramic Business

S.R. Prasad - Heavy Electrical plant

- Electrical Machines Repair PlantRakeshMathur - Power Sector-Marketing

N.Ravichander - Heavy Power Equipment PlantAnujBhatnagar - Corporate QualityPrakashChand -

Heavy Electrical EquipmentPlant

- Pollution Control ResearchInstitute

Akhil Joshi -Technology Licensing & JointVentures

- Mergers & Acquisitions

Arun Singhal - Power Sector-Western RegionDr. S. Sekar - Corporate Research &

DevelopmentS.V.S.Narayana - Central Foundry Forge PlantRajeevSrivastava - Spares and Services Business

- Heavy Equipment Repair Plant- Renovation & Modernisation

K.S.Shivaprasad -

Secretary, ManagementCommittee


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Corporate Organisational StructureAs on 01.08.2013

BOARD OF DIRECTORS

CHAIRMAN &

MANAGING DIRECTOR

COMMITTEE OF FUNCTIONAL

DIRECTORS

CORPORATE FUNCTIONS *

ED / Corp R&D


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ED / TL & JV, M&A

Tech. Licensing & Joint Ventures

Mergers & Acquisi tions

* Corp. Manufacturing Technology &

Director Investment Planning

Engineering, R&D Corp. Monitoring

Corp. Materials Management

* Centralized Stamping Unit, Jagdishpur

Fabrication Plant, Jagdishpur

* Corp. Engg. & Product Development

Advanced Research Projects

Receivables Management

Exim Policy

ED / Finance & CCG Establishment

Contract Closing Group

Corp. Finance

Budgeting & Budgetary Control

Cost Management

Banking & Insurance

Director

Treasury Management

Pr oject Finance

Finance Accounts & Audit

Ind ir ec t Taxation

Forex Management

Financial Planning & Policies

F inanc ia l Services

Direct Taxation

Internal Audit

Human Resource

Corporate Communication

ED / HR & CC Corp. Productivity Group Medical Services

Legal

ED / CS & IT

Director

Human Resource

Chief Vigilance

Officer

ED / OSD

ED / CQ

Company Secretary

BUSINES

S

SECTOR

S

DirectorPower

DirectorIndustrialSystems

& Products

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A n n u a l R e p o r t

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MANAGEMENT COMMITTEE

OPERATIONS

ED / PS-Marketing

ED / Hydro & Nuclear

ED / PS-ProjectManagement

ED / PS-SSBG

ED / PS-PEM

ED / PS-ER

ED / PS-NR

ED / PS-WR

ED / PS-SR

ED / MSX, SCT, IT

ED / CPP, Defence,PMG

ED / TBG

ED / TBD, IPM & IPE

ED / ROD & CFP

ED / CBU

ED / PE&SD

ED / InternationalOperations

1Power

SectorMarketing

2PS

Marketing,Hydro&Nuclear

3Project

Management

4Spares

&ServicesBusiness

Group$

5Heavy

EquipmentRepairPlant,Varanasi

6R&MSystemsGroup,Bhopal

7Project

EngineeringManagement

8Technical

Services

9PS

EasternRegion,Kolkata

10PS

NorthernRegion,NOIDA

11PS

WesternRegion,Nagpur

12 PS SouthernRegion,Chennai

13 ManagementServices

14 PS HQ- Quality,Safety & MM

15 PS-Human

Resources

16 Captive PowerPlantBusiness

17 DefenceBusiness

18 ProjectManagementGroup

19 Renewables &WaterBusiness

20 TransmissionBusinessGroup

21 TransportationBusiness

22 TransportationSystemsGroup

23 IndustrialProducts

Business(Elect &Mech.)

24 RegionalOperationsDivision

1 ComponentFabricationPlant,Rudrapur

25 ElectroPorcelainsDivision,Bangalore

2

6

InsulatorPlant,Jagdishpur

2

7

Pro

jectEngg.&SystemsDivis

ion,Hyderabad

2

8

Ov

ersea

s Business


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ED / Bhopal

ED / Jhansi

ED / HEEP,Haridwar

ED / CFFP,Haridwar

ED / HPEP,Hyderabad

ED / Trichy

ED / Thirumayam& PC

ED / BAP,Ranipet

ED / EDN,Bangalore

ED / ISG,Bangalore

1 Heavy ElectricalPlant, Bhopal

2 Centre forElectricTransportation, Bhopal

3 EMRP, Mumbai

4 TransformerPlant, Jhansi

5Heavy

ElectricalEquipmentPlant,Haridwar

6

PollutionControlResearchInstitute,Haridwar

7 Central FoundryForge Plant,

Haridwar

8

He

avyPowerEquipmentPlant,

Hyderabad

9

H

igh PressureBoi ler P lant ,Trichy

10 Seamless Steel TubePlant, Trichy

11 Welding ResearchInstitute, Trichy

12 Industr ia l Va lvesPlant, Goindwal

13 Piping Centre,Chennai

14 Power Plant PipingUnit, Thirumayam

15 Boiler Auxilliary Plant,Ranipet

16 Electronics Division,Bangalore

17 Electronics SystemsDivision,Bangalore

18 Industrial SystemsGroup, Bangalore


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$Matrixreporting toDirecto

r(IS&P) forIndustrysectorBusiness *PresentlyreporttoCMD

7

bhel org chart

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