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GE Power India Ltd.

You can view full text of the latest Director's Report for the company.
Market Cap. (₹) 5110.97 Cr. P/BV 5.80 Book Value (₹) 131.18
52 Week High/Low (₹) 938/684 FV/ML 10/1 P/E(X) 67.79
Bookclosure 23/07/2019 EPS (₹) 11.22 Div Yield (%) 0.79
Year End :2018-03 

Dear Shareholders,

The Directors present the 26th Annual Report of the Company along with the Audited Financial Statements for the financial year ended 31 March 2018 (‘FY 2017-18')


(RS, in million)


Year ended

Year ended

31 March 2018

31 March 2017

Profit/(Loss) before exceptional items, tax, interest and depreciation



Less: Interest/Finance Costs



Less: Depreciation and amortization expense



Profit/ (loss) before exceptional items and tax



Exceptional item



Profit/ (loss) before tax



Provision for taxation

- Current tax



- Tax related to earlier years



- Deferred tax charge/ (credit)



Profit/ (loss) after tax



Balance brought forward from previous year in the statement of profit and loss



Profit available for appropriation




a) Transferred to General Reserve



b) Dividend paid



c) Corporate Dividend Tax (Net) paid



Balance carried forward to Balance Sheet



Proposed Dividend




In compliance with the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (‘the Listing Regulations’), as amended from time to time, your Company has adopted a Dividend Distribution Policy. This policy specifies the parameters of distribution of dividend with objective of delivering sustainable value to its stakeholders. The Dividend Distribution Policy of the Company is annexed as ‘Annexure A' to this Report.

Your Directors are pleased to recommend a dividend of RS,3/- per equity share ( i.e. 30% of the face value of H10/-each) for FY 2017-18 amounting to RS,243.1 million (including Corporate Dividend Tax of RS,41.5 million).


No amount was transferred to reserves during FY 2017-18.

STATE OF COMPANY’S AFFAIRS Operations - The year in review

Electricity is one of the most important engines of growth. Access to affordable electricity improves quality of lives of citizens of any economy. It also opens up avenues of further growth for the economy by improving productivity, and enabling new industrial activities. Your company is focused on this enduring purpose, and is well positioned to be a vital part of the India growth story.

Presently, as per BP Statistical Review of world Energy, India is the 3rd largest consumer of energy and electricity in the world. Inspite of this not all Indian citizens have access to power. Per capita consumption of electricity has improved from 632 units in 2005-06 to ~1200 units in 2017-18. Still, India is ranked very low vis-a-vis other large economies such as China, where per capita consumption is >4000 units per annum. With ~15% of the Indian population having no access to grid connected electricity, and lack of credible reserve margin, India is bound to witness a substantial ‘increase' in demand for electricity in the coming years.

Your company is focused in the largest portion of the India's power generation. Currently, of the total installed base (IB) of ~344GW (March 2018, CEA), coal comprises ~57%, large hydro ~13%, Wind ~10%, Gas ~7%, Solar ~6%, other renewable ~4% and Nuclear ~2%. The generation mix however, is quite different with >80% coming from thermal power plants, and ~10% generation from large hydro power plants.

Conventional sources of electricity are being challenged by a global focus on climate change, which the Government of India (GoI) has vigorously supported through an extensive renewable energy installation program, especially Solar and Wind. This has resulted in renewable sources capturing a significant share of the growth, resources, and available funds for the power sector in the market. While the share of renewable in the Indian electricity mix will increase over time, conventional sources will remain vital to meet the energy requirements of the growing economy. In fact, their role will evolve in increasingly important ways:

1. Ordering of high efficient, low emission supercritical thermal power generation plants will continue for the foreseeable future. During FY2018, orders were placed for ~9GW, and the recently published National Electricity Plan indicates that level will persist, with retirements and replacement of old thermal power plants expected to drive the market.

2. By 2022, existing Thermal power plants will become as clean as any in the world - as defined by local pollutants such as SOx and NOx - when outfitted with Air Quality Control technology following GoI's emission norms.

3. Efficiency enhancements are poised to happen across the country, improving overall plant efficiency, slashing fuel usage and cost, boosting megawatt output, and extending unit life. Furthermore, we see a major reduction in CO2 emissions.

4. Thermal power stations will be called upon to increasingly “balance” the grid when the wind does not blow or the sun does not shine. This positions these stations as essential enablers to the increase of Renewable sources.

5. There is a role for Hydro in India's power mix. Hydro Pump-Storage Power (PSP) plants are a proven solution, and will present a growth opportunity as a balancing source. There has also been encouraging developments in large hydro projects in the last fiscal year with approximately 1GW ordered, and approximately 2GW already tendered.

Your Company, with more than 100 years of experience in the Indian market, and proven technological leadership, is well-positioned to meet the demand for the power generation market in India. We believe in the people who work every day in India's thermal and hydro sector; they are ready to make conventional generation sources a relevant, leading part of the sector's cleaner future.


Your Company's execution Unit at Noida & manufacturing shop at Durgapur, West Bengal, is capable of manufacturing Supercritical & Ultra Supercritical Boilers equipped with the latest manufacturing technologies. Your Company, in partnership with BHEL, accomplished the following milestones in the FY 2017-18:

Commercial Operation Declaration achieved for o 800 MW Unit-2 at RPCL Yermaras o 660 MW Unit-3 at PPGLC Bara o 660 MW Unit-4 at Mouda.

Construction Progress at 2x500 MW Tower Boiler at Neyvelli o Significant erection progress at India’s first 2x500 MW Tower Boiler site at Neyveli - Commercial Operation declaration of one 500 MW unit is expected in fiscal 2018-19.

Key manufacturing progress on ongoing projects with BHEL-GE partnership projects:

2x800 MW North Chennai - Boiler Pressure Parts were dispatched 2x660 MW - Ennore - Boiler Pressure Parts were dispatched

- 2x800 MW - Telangana - Boiler Pressures were dispatched

- All Pressure Parts detailed design associated with all the projects above & 2x800 MW Uppur

Condenser : First Condenser from Durgapur Factory

Your Company's manufacturing shop at Durgapur, West Bengal, has first time designed & manufactured Condenser for 800 MW Telangana thermal power Project. This is a huge accomplishment for development of a new complex product for thermal power station.

Progress on CEL II 1 x 150 MW Sihanoukville, Cambodia:

- Your Company is executing the first CFB Boiler fully designed and manufactured. The Project is in advanced stage of manufacturing and Steel and Pressure Parts have started reaching the site and Erection has started for Steel.

Completed Basic and detailed design Engineering and in advanced stage of manufacturing stage of Pressure Parts and various Steel structures.

Completed major supplies of Boiler items - Boiler Structural Anchor Bolts, Boiler Steel Structural items up to Tier 2, Coal Silos, Part of Duct material, etc.

Started manufacturing of 500 MT of pressure parts & started dispatches from the Durgapur Factory.

New orders from BHEL-GE partnership:

- 2x660 MW Coal Based Ennore SEZ Supercritical Thermal Power Project at Tamil Nadu, India

- 2x660 MW Coal Based Maitree Super Thermal Power Project at Rampal Dist. Bagerhat, Bangladesh.


Your Company executed the following key milestones in the FY 2017-18:

Delivered 5 Mills for Unit-2 of Hassyan Energy PJSC - 4x660 MW Clean Coal Power Plant, Dubai Electricity & Water Authority, Dubai.

Delivered 8 Mills for 1x660 MW Harduaganj Project of UPRVUNL in the state of Uttar Pradesh.


Large new market for services and supplies with new environmental norms for SOx, NOx, etc. FGD market is estimated in excess of ~150GW (includes project commissioned and under execution). Your Company is prepared to address this huge market opportunity.

- Delivered 3 Mills for Arvos Energy India Private Limited (formerly OAK Energy India Private Limited) for Pt. Pln (Persero), Bukit Asam, Indonesia.

- Delivered 2x660 MW Project in Karabiga, Turkey in operation under full load for last 5 months - Performance testing expected in early part of fiscal 2018-19.

Your Company received/achieved the following new orders/milestones in the FY 2017-18 :

Flue Gas Desulphurization (FGD) system at Phase-I (2X800 MW) of its Super Thermal Power Project (STPP) in Telangana

Performance test conducted for ESP supplied for customers - RINL Vizag, GSECL Ukai, Vedanta Aluminum etc.

Supply of multiple domestic projects:

- 2 ESP units with retrofit materials of existing ESP for Iffco Paradeep project.

- 3 new ESP units and 2 existing ESP retrofit materials for Birla Satna plant.

- ESP and RABH material supply for Shree Cement plant at Rajipur, Aurgangabad plant.

- 1 new ESP and 2 ESP retrofit material supply for Tata Jojobera plant.

Supply for multiple International projects like

- 4 ESP materials for 2x600 MW Safi project at Morocco,

- 2 ESP materials for 660 MW Mae Moh plant at Thailand.

- 4 ESP materials for 2x900 MW Opole Project at Estonia

- 1 ESP part materials for Copper smelter plant of Olympic Dam project at Australia

Some more milestones achieved by your Company:

Vindyachal: Successfully commissioned the first limestone-based WFGD (wet flue gas desulphurization) at NTPC’s 500MW power plant at Vindhyachal , Madhya Pradesh. NTPC has issued the Completion of facility certificate.

Ghatampur ESP: First 660 MW ESPs from L&T Mitsubishi Boiler (LMB) for NUPPL Ghatampur project (a JV of NLC and UPRVUNL). The project includes Design & Engg, Manufacturing & Supply and Construction & Commissioning of 18 ESP units for 3x660 MW Coal Fired Power Plant.

Jawaharpur ESP: Major order win for 660 MW ESPs from Korean EPC Doosan Power Systems India for UPRVUNL Jawaharpur. The project includes Design & Engg, Manufacturing & Supply and TFA for Construction & Commissioning of 12 ESP units for 2x660 MW Coal Fired Power Plant.

Obra ESP: Major order win for 660 MW ESPs from Korean EPC Doosan Power Systems India for UPRVUNL Obra EPC bid. The project includes Design & Engg, Manufacturing & Supply and TFA for Construction & Commissioning of 12 ESP units for 2 x 660 MW Coal Fired Power Plant.


Within the energy basket, coal is likely to remain the mainstay of India's energy mix, even as the country moves towards implementing and deploying renewable technology. The country is endowed with easily accessible and abundant coal reserves (fifth largest globally), which are adequate to meet the energy requirements of the Indian economy for the foreseeable future. Importantly, coal based generation, the cheapest and most reliable source of electricity in India, accounts for about 60% of the installed capacity and over 70% of our total electricity generation. The plant utilization (PLF) of coal based plants which was declining for a number of years has stabilized, and as per NEP, this will remain stable through 2027. This implies that a significant amount of generation will come from Coal plants, which will drive higher levels of spending on O&M. This is one of the growth areas identified by Your Company.

As per estimates of various agencies, India was the 3rd largest CO2 emitter and one of the largest SOx, NOx and PM emitter in the world in 2015. The power sector is one of the biggest contributors to these emissions. The efficiency of coal-fired power plants in India is very low, and there is an opportunity to retrofit existing coal-fired power plants to increase their efficiency, and reduce their carbon emission level. About 80% of the power continues to be generated by subcritical units, where there is a substantial potential to improve performance, which will help reduce the variable cost of operations of these units. There are various retrofit options available for these units. For instance, a case study of a successful retrofit execution of steam turbine shaft line in India demonstrated over 14% heat rate improvement at the Gujarat State Electricity Corporation's (GSEC) Ukai unit (Equivalent to ~162,000 Indian vehicles being taken off the road). These efficiency improvement projects can help India in achieving a 33 to 35 percent reduction in the emissions intensity of the country's GDP by 2030, as per the commitment made per the global treaty.

India is also committed to promote Renewable Energy sources for power generation, and it plans to achieve about 40% cumulative electric power installed capacity from non-fossil fuel energy sources by 2030. As a step in this direction, the GoI has taken several initiatives such as scaling up the renewable energy capacity addition target to 227GW by 2022. With the increasing share of renewable in the electricity generation-mix, India’s daily ramp up requirement is likely to be 60-80 GW. Some Coal-based units would be required to address flexibility needs arising from day-of-time and weather based gaps in daily demand / load generation curve.

Your Company is well placed to address customers’ specific needs and improve the power plant efficiency and reduce emission levels from coal-based thermal power plants. Following are the order wins & milestones achieved by Your Company in FY 2017-18

- Won order from NTPC for Supply, Dismantling & Erection of PSH-IV, CSH & LPRH -II package for Barh Super Thermal Power Project, Stage I (3X660 MW)

- Won order from NTPC for Supply of Renovation & Retrofitting of Electro Static Precipitator Package for Feroze Gandhi Unchahar Thermal Power Project, Stage -II (2X210 MW) and commenced supply of material for the same.

- Won order from HPGCL for revival and repair work of Electro Static Precipitator including supply of spare of 2X300 MW unit I & II, DCRTPP, Yamuna Nagar and supplied material for the same.

- Won order from NTPC for Supply of Grinding Elements for Coal Mill 12E10 of Stage I.

- Started supplies for retrofit project of 3X200MW Ansaldo Steam Turbines for NTPC Ramagundam to improve efficiency and output.

- Commissioned Wanakbori 210MW Thermal Power Station under the R&M project of Gujarat State Electricity Corporation GSECL.

- Successfully completed the major boiler upgrade at IFFCO Phulpur, Allahabad, increasing the operating steam pressure and temperature to meet the customer requirements. First in India.


The Gas Power Systems in your Company is part of the MEI region and is engaged in supporting the MEI Region (Middle East and India) for execution of following projects for the FY 2017-18:

Bhola 2 is a 225 MW Gas based EEP project, where GE is supplying two 6F.03 gas turbines, two HRSG's and One Steam Turbine and AUX equipment. The project is under execution and managed from Indian Continent Sub Region.

Shajibazar is a 100 MW Gas based EO project, where GE is supplying one gas turbine LMS 100 and allied MSD’s. The project is under execution and managed from Indian Continent Sub Region.

Khulna is a 300 MW Gas based EO project, where GE is supplying one 9F.03 gas turbine and one Steam Turbine and allied MSD's. The project is managed from Indian Continent Sub Region.

In addition to the above projects, your Company is also involved in providing detailed engineering services; procurement and construction support for several other projects in the region.

Noida Gas Plant engineering is providing support on the basic as well as the detailed engineering work for GPS global projects. Some of the EPC combined cycle projects where GPS Noida Engineering team is involved are Sergipe in Brazil, EVM II in Mexico and Tucuman steam in Argentina. Besides these, there are various Gas Power partner projects such as ALBA and Waad AL Shamal in Middle East, Ghorasal III and Bhola 2 in Bangladesh, Track 4A and Track 4B in Malaysia, Bangkok in Thailand which are currently underway. The Noida team is also involved in NPI support for Fast Power and System engineering in equipment only projects. Additionally, the team is also contributing towards mechanical system and equipment engineering for EEP projects (> 15 projects in engineering and advance release phase for US, Latin America, Africa and South East Asia).

The GPS Noida team is engaged in providing Procurement services for Balance of Plant equipment to global Gas Projects in MEI region. During the year, the team provided procurement services for various Gas Power projects like Alba in Bahrain, Wad Al Shamal in Saudi Arabia, Sabiya in Kuwait, Samawa and Dhiqar in Iraq and Bhola 2 in Bangladesh.

The GPS Noida team is also managing Construction Sites for projects in MEI region. Presently, we have Wad Al Shamal in Saudi Arabia, and Zubair in Iraq being managed by Site personnel from GPS India.


Your Company accomplished following milestones in the FY 2017-18:

- NTPC Mouda (2X660MW) Unit-4 and NTPC Solapur (2X660MW) Unit-1 thermal power station Successfully achieved Trial Run & COD (Commercial Operation Date) with GE's Automation & Controls “Plant Distributed Control System”.

- Automation and Controls was able to strengthen their position in power industry with some key customer wins. Some key deals won included supply and services of Turbine Generator Controls and Excitation systems for Obra (2X660 MW), Jawahapur (2X660 MW) and Excitation systems for Numaligarh Refinery.

The Unit is focused on delivering operational excellence in Automation & Controls Solutions, partnering with customers and being one of the “Centre Of Excellence” for Global Engineering in the world of Automation & Industrial Internet.


While the market for Hydro in India is still waiting for the much awaited new hydropower policy to address regulatory and financial challenges that have stalled many hydro projects, Your Company executed through a difficult market environment.

Following are some key achievements of your Company in FY 2017-18:

Your Company booked a contract with Navayuga Engineering Company Limited for twelve 80 MW vertical semi Kaplan units to be installed at the Polavaram Hydropower Plant, the largest in Southern India. The plant will be operated by the State Government utility APGENCO. The scope of the contract includes the design, engineering, manufacturing, erection, testing and commissioning of the twelve turbines and generators units including most of the Electrical Balance of Plant and Mechanical Balance of Plant.

Your Company booked a Service order from customer Jaiprakash Power Ventures Limited with a scope of design, manufacturing and supply of five nos. fully forged Pelton runners with coating, for 4x100 MW Vishnuprayag project located in the Uttarakhand state of India.

Other milestones:

Your Company commissioned the Thac Mo 75 MW Hydropower Plant located in the Binh Phuoc Province of Vietnam. It has obtained the Provisional Acceptance Certificate from Hydro Power Management Board No. 6, a branch of Electricite du Vietnam (EVN). This followed the successful synchronization to the grid that had happened in July 2017, fully on schedule. The contract is the extension of the Thac Mo hydropower plant that supplies power to the national grid of EVN, covering the southern part of Vietnam.

This project, the first executed in Vietnam by your Company, will become a strong reference in the South East Asia hydropower industry. Since then, your Company has got one more opportunity to collaborate with EVN, when the company was awarded in 2016, an EPC contract for Da Nhim HPP Extension (1x80 MW). The project is running on schedule and is expected to be commissioned in FY18.

- Shuakhevi hydro power project, Georgia - your Company has successfully synchronized the two Francis machines of 89 MW each to the grid, which is now ready to generate electricity. It was a critical event as it was the first Compact High speed Turbine of 89 MW with a speed of 600rpm; and the site team of GE achieved the success in the presence of the customer. The Shuakhevi hydro power project is one of the largest foreign direct investment projects in Georgia to date.

Your Company has another reference at Sikkim state of India with 2x48.5 MW Tashiding project, as the team synchronized it’s two Francis machines at the Tashiding project site on 14 October 2017. The other three successful references being Chuzachen (2x55 MW Francis), Jorethang (2x48 MW Francis) and Dikchu (2x48 MW Francis). The machines of Tashiding project were made ready for wet commissioning within 9 months from pit handover and both the machines were synchronized within 24 hours. Customer issued the “Operation Acceptance Certificate” on 23 November 2017 (38 days from final synchronization) on achieving the “Guaranteed Efficiency and Output” successfully. Tashiding is the 2nd project being executed by your Company for the same customer first one being Jorethang HEP.

Power Plants are a complex integration of power systems, thereby creating challenging conditions for control, and most plants are often not operated at optimal levels. A typical power plant generates more than 1 TB of data, and less than 2% of this data is used. There is a significant opportunity to capture and analyze this data, and provide insights which will enable power plant operators to make better decisions to optimize plant performance. Implementation of digital solutions will result in plants achieving lower emissions, heat rate improvements by at least 1%, (Equivalent to taking ~2.5 Million vehicles off the road) reduced maintenance expenses and higher plant availability. Industrial internet solutions along with integrated retrofit solutions should be applied to all power plants which have a substantial useful life, but are not performing at the desired levels.

Way forward

Within the energy basket, coal is likely to remain the mainstay of India's energy mix even as the country moves towards mainstreaming renewable. As a step in this direction, the GoI has taken several initiatives such as scaling up the renewable energy capacity addition target to 227GW by 2022, deploying the Perform, Achieve and Trade (PAT) scheme for energy efficiency improvements across key energy intensive sectors and adopting new stricter pollution standard norms for SOx, NOx, PM, Hg & water consumption for thermal power plants in India. Given the need to balance the growing environment concerns with the objective of providing affordable power to its citizens, it is important for India to manage coal plants with a holistic approach. There are cases where plants are strong candidates for an efficiency improvement or for flexible operations, and for these cases, an integrated approach to address emissions with flexibility/ efficiency retrofit is needed.

These solutions along with the latest digital technologies will ensure coal-based power plants will continue to be the mainstay of India's power system supplying affordable and reliable power to all Indian citizens, and meeting the growth aspirations of the Indian economy.


The Board of Directors, in compliance with Section 161 of the Companies Act, 2013 (‘the Act') read with the Articles of Association of the Company and upon recommendation of Nomination and Remuneration Committee, appointed:

Mr. Vishal Keerti Wanchoo as an Additional Director and Chairman of the Company w.e.f. 30 May 2017.

- Mr. Sanjeev Agarwal as an Additional Director and Whole-time Director of the Company w.e.f. 30 May 2017.

- Mr. Andrew H DeLeone as an Additional Director of the Company w.e.f. 20 June 2017.

The aforesaid appointments were regularized at the 25th Annual General Meeting of the Company held on 31 July 2017.

In compliance with Sections 196 and 203 of the Act read with Schedule V and other applicable provisions of the Act and the Articles of Association of the Company, Mr. Andrew H DeLeone was appointed as Managing Director of your Company w.e.f. 1 August 2017 till 31 July 2020 subject to the approval of the members and such other approvals as may be required.

In compliance with the provisions of the Act and the Articles of Association of the Company, Mr. Sanjeev Agarwal, Whole-time Director shall retire by rotation at the ensuing Annual General Meeting and is eligible for reappointment.

Pursuant to Section 149 of the Act and Regulation 25 of the Listing Regulations Independent Directors, viz. Dr. Uddesh Kumar Kohli, aged about 77 years and Mr. Arun Kannan Thiagarajan, aged about 73 years were appointed at the 22nd Annual General Meeting held on 25 July 2014 for a period of 5 consecutive years up to 24 July 2019 and Ms. Neera Saggi, aged about 62 years, was appointed at the 24th Annual General Meeting held on 29 July 2016 for a period of 5 consecutive years up to 13 June 2021. Hence the aforesaid Independent Directors are not liable to retire by rotation. However, in compliance with Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) (Amendment) Regulations, 2018 approval of the members of the Company is required for the continuation of directorship of Dr. Uddesh Kumar Kohli as Non-Executive & Independent Director, who has exceeded the age of 75 years.

All the three Independent Directors have declared that they meet the criteria of independence as laid down under Section 149(6) of the Act.

The particulars in respect of directors seeking appointment/ re-appointment/continuation of directorship as required under regulation 36(3) of Listing Regulations and Secretarial Standard on General Meetings (SS-2) issued by the Institute of Company Secretaries of India forms part of the Corporate Governance Report. Your Board recommends their appointment/re-appointment/ continuation of directorship.

Mr. Rathindra Nath Basu and Mr. Ashok Ganesan have taken Global role in GE, in view of the same, Mr. Rathindra Nath Basu resigned from the position of Chairman and Non-Executive Director of the Company w.e.f. close of business hours on 29 May 2017 and Mr. Ashok Ganesan resigned from the office of Managing Director of the Company w.e.f. close of business hours on 31 May 2017 and from the position of Director w.e.f. 20 June 2017. Mr. Alain Christian Spohr superannuated from the Group and accordingly resigned from the position of NonExecutive Director of the Company w.e.f. 30 May 2017. The Board places on record its appreciation for the valuable contributions made by them during their tenure.


The Board meets at regular intervals to discuss on Company/business’s policy, strategy and financial results apart from other Board business. The Board/ Committee Meetings are pre-scheduled and a tentative quarterly / half yearly calendar of the Board and Committee Meetings is discussed and finalised by the Directors in advance to facilitate them to plan their schedule and to ensure meaningful participation in the meetings. The maximum interval between any two Board Meetings did not exceed 120 (one hundred and twenty) days.

The Company’s Board has the following Committees:

Audit Committee (AC)

Nomination and Remuneration Committee (NRC)

Corporate Social Responsibility Committee (CSR)

Stakeholders Relationship Committee (SRC)

The details of composition, meetings and attendance at the meetings of Board and its committees namely AC, NRC, SRC held during FY 2017-18 and its terms of reference are provided in Corporate Governance Report which forms part of this Report.

The Secretarial Standard on Meetings of the Board of Directors (SS-

1) the and Secretarial Standard on General Meetings (SS-2) issued by the Institute of Company Secretaries of India have been duly complied.


Your Company has an Audit Committee of the Board of Directors in place. The terms of reference of the Audit Committee are in line with Section 177 of the Act read with the Companies (Meetings of Board and its Powers) Rules, 2014 and the Listing Regulations, as amended. There were no recommendations made by the Audit Committee which were not accepted by the Board. There were no frauds reported by Auditors of your Company under sub-section 12 of section 143 of the Act for the FY 2017-18.

The Board of Directors reconstituted the Audit Committee w.e.f 12 June 2017. Mr. Vishal Keerti Wanchoo was inducted as a member of the Audit Committee in place of Mr. Rathindra Nath Basu.


Your Company has in place a Nomination and Remuneration Policy to ensure that the Board and top Management is appropriately constituted to meet its fiduciary obligations to stakeholders, to identify and determine the integrity, qualification, expertise and experience of persons who are qualified to become Directors or who may be appointed in senior management and/or as Key Managerial Personnel of the Company. This policy lays down the guidelines relating to appointment and remuneration for Executive Directors, Non-Executive Directors/ Independent Directors, Key Managerial Personnel and Senior Management. The Nomination and Remuneration Policy is annexed as ‘Annexure B' to this Report.


Pursuant to the provisions of the Act and the Listing Regulations, the Non-Executive Non-Independent Directors and the Executive Directors of the Company were evaluated by the Independent Directors of the Company in a separate meeting of Independent Directors held during the year. The formal annual evaluation of the Board as a whole, Chairman of the Company, Committees of the Board namely Audit Committee, Stakeholders Relationship Committee, Corporate Social Responsibility Committee and Nomination and Remuneration Committee and all the Directors were undertaken in the Board meeting. More details on the same including the evaluation mechanism are provided in the Corporate Governance Report which forms part of this Annual Report.


The Statutory Auditors of the Company, M/s. B S R & Co. LLP, Chartered Accountants (Firm Registration Number - 101248W/W-100022) were appointed at the 24th Annual General Meeting of the Company to hold office for a term of 5 (five) consecutive years until the conclusion of the 29th Annual General Meeting of the Company.

Cost Auditors

Pursuant to Section 148 of the Act read with the Companies (Cost Records and Audit) Rules, 2014, as amended, your Directors, on the recommendation of the Audit Committee, appointed M/s. Shome & Banerjee, Cost Accountants as Cost Auditors of your Company for the FY 2018-19 to carry out the cost audit for the applicable business at a remuneration of H3,00,000/- (Rupees Three Lacs only) plus applicable taxes and reimbursement of out of pocket expenses. A Certificate from M/s. Shome & Banerjee, Cost Accountants has been received to the effect that their appointment as Cost Auditors of the Company, would be in accordance with the limits specified under Section 141 of the Act and Rules made there under.

As required under the Act, the remuneration payable to the Cost Auditor is required to be placed before the members of the Company in the general meeting for ratification. Accordingly the Board of Directors of the Company seek members’ ratification for the remuneration payable to M/s Shome & Banerjee, Cost Accountants for the FY 2018-19 at the ensuing Annual General Meeting.

Secretarial Audit

Pursuant to the provisions of Section 204 of the Act read with the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, your Directors appointed M/s. Hemant Singh & Associates, Company Secretaries to undertake the Secretarial Audit of your Company for FY 2017-18. The Report of the Secretarial Auditor for FY 2017-18 is annexed as ‘Annexure C' to this Report.

There were no qualifications, reservations, observations or adverse remarks made by the Auditors in their report.


Your Directors state that:

I. in the preparation of the annual financial statements for the year ended 31 March 2018, the applicable accounting standards have been followed along with proper explanation relating to material departures, if any;

II. such accounting policies have been selected and applied consistently and made such judgments and estimates that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at the end of the financial year 31 March 2018 and of the profit of the Company for that period;

III. proper and sufficient care have been taken for the maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;

IV. the annual financial statements have been prepared on a going concern basis;

V. internal financial controls have been laid down and followed by the Company and that such internal financial controls are adequate and are operating effectively; and

VI. proper systems have been devised to ensure compliance with the provisions of all applicable laws and that such systems were adequate and operating effectively.


GE Power Boilers Services Limited (formerly ALSTOM Power Boilers Services Limited) (‘GEPBSL’) is a wholly owned subsidiary of the Company. It is a non-material non-listed Indian subsidiary since its turnover or net worth (i.e. paid up capital and free reserves) did not exceed 20% of the consolidated turnover or net worth respectively of the Company in the FY 2017-18. It was initially engaged in the business services related to boilers. From the year 2005 it has primarily earned only interest/other income. The aforesaid subsidiary did not have any business operations during the year. During FY 2017-18, GEPBSL had a total income of H3.1 million (Previous Year - RS,1.7 million) along with profit after tax of RS,0.5 million ( Previous Year - (RS,27.5 million)). As at 31 March 2018, GEPBSL’s accumulated losses of RS,33.5 million have eroded it’s paid up equity capital of H3.4 million.

Your Company has a Joint Venture (‘JV’) with ALSTOM Transport S.A. (‘ATSA’) in the name of Alstom Systems India Private Limited. The role of your Company in the JV is limited only to equity participation not exceeding 5% (not exceeding H80 million) and that of ATSA is 95% or more. Your Company is not responsible for the execution and day-to-day management of the transport operations specific to this Project.

In compliance with first proviso to sub-section 3 of section 129 of the Act read with Rule 5 of Companies (Accounts) Rules, 2014, a statement containing salient features of the financial statement of Company's subsidiary in the prescribed format Form AOC-1 is as under :-

Part A Subsidiaries

Name of the subsidiary

The date since when subsidiary was acquired










Invest- Turnover ments














Extent of shareholding

(in %)

GE Power Boilers Services Limited









Reporting period for the subsidiary is same as holding Company's reporting period i.e. from 1 April to 31 March. The above-mentioned subsidiary is not a foreign subsidiary and its reporting currency is Indian Rupee (H)

Part B Associates and Joint Ventures

Statement pursuant to Section 129(3) of the Companies Act, 2013 related to Associate Companies and Joint Ventures - Not applicable


On 02 May 2017, GE Energy Europe BV sold its entire shareholding of 13,789 equity shares of H10/- each (equivalent to 0.02% of the paid up share capital) to another existing promoter of the Company i.e. ALSTOM India Tracking B.V. On account of this transaction GE Energy Europe B.V has ceased to be a promoter of the Company.


In compliance with provisions of Section 129 of the Act read with the Companies (Accounts) Rules, 2014 and Listing Regulations, as amended, your Company has prepared Consolidated Financial Statements in accordance with the requirements of Ind-AS Rules. The Audited Consolidated Financial Statements along with the Auditors' Report thereon forms part of this Annual Report.

Further, as per the fourth proviso of Section 136(1) of the Act, Audited Financial Statements of the subsidiary company have been displayed on the website of the Company viz.

Members interested in obtaining a copy of audited financial statements of the subsidiary company may write to the Company Secretary of the Company.


Your Company is committed to best Corporate Practices based on the principle of transparency, accountability, fairness and integrity to create long term sustainable value for its stakeholders. Your Company has in place Vigil Mechanism (Ombuds and Open Reporting Procedure) to provide an avenue to all Stakeholders to report Concerns, whether actual or potential, about integrity violation or violation of law. In addition, your Company has adopted an internal Code of Conduct namely ‘The Spirit & The Letter’ (‘S&L’) which is followed by anyone who works for or represents GE, which includes your Company. During the year, 40 stakeholders complaints were received out of which 38 complaints have been resolved to the satisfaction of the complainants as at 31 March 2018 and the remaining 2 are under process. Out of the total resolved complaints 40% of the complaints were confirmed.

The aforesaid policies are available on the Company’s website viz.


The Company has not accepted any deposits and as such no amount of principal or interest was outstanding as at the end of FY 2017-18.


For your Company, safety, health and well-being of employees, contractor and customer is of prime importance. Your Company is governed by its EHS directives and instructions to protect itself and its stakeholders. EHS process is managed by highest standards and from time to time, these standards are evaluated. Your Company follows ‘No Harm Policy'. In addition to this, every stakeholder is authorized to ‘Stop Work' when there is a potential threat of individual injury / illness or having chances of property damages. All locations have well-equipped healthcare facilities and arrangement for emergencies. Employees at all levels are given trainings so that they have an understanding of EHS requirements and build a culture of safety and well-being.


The Management Discussion and Analysis is presented in a separate section, which forms part of this Annual Report.


The Corporate Governance Report is presented in a separate section, which forms part of this Annual Report.


During the year, your Company placed Inter-Corporate Deposits (ICDs) upto H2,000 million with GE Power Systems India Private Limited (formerly ALSTOM Bharat Forge India Private Limited) H85 million with GE Renewable R&D India Private Limited and H14 million with GE Power Boilers Services Limited. The rate of interest for aforesaid ICDs were in the range of 7.18% p.a. to 8.70% p.a. All the ICDs were granted in compliance with Section 186 of the Act. The aforesaid ICDs were granted for business purposes only.

Particulars of investments made by your Company have been provided in Note 16 of the Notes to Standalone Financial Statements which forms part of this Annual Report. Your Company has not given any Guarantee during the FY 2017-18, except as specified in the notice of Annual General Meeting.


During the FY 2017-18, Related Party Transactions as defined under Section 188 of the Act read with Companies (Meeting of Board and its Powers) Rules, 2014, and the Listing Regulations, as amended, were at arm's length and in ordinary course of business. Your Company has in place a Related Party Transactions Policy. During the FY 2017-18, your Company entered into material related party transactions, as defined under the Listing Regulations and the Related Party Transaction Policy of the Company, which have been detailed in the notice of the ensuing Annual General Meeting of the Company.

Omnibus approval for related party transactions (at arm's length and in ordinary course of business) which were foreseen and repetitive in nature was obtained from the Audit Committee from time to time. During the period under review, your Company did not enter into any Related Party Transaction which may be considered material in terms of Section 188 of the Act read with Companies (Meeting of Board and its Powers) Rules, 2014, as amended, and thus disclosure in Form AOC-2 is not applicable to the Company. The disclosures pertaining to transactions with Related Parties in compliance with applicable accounting standards have been provided in Note 38 of the Notes to Standalone Financial Statements.


The information on conservation of energy, technology absorption and foreign exchange earnings & outgo as stipulated under Section 134(3)(m) of the Act read with Companies (Accounts) Rules, 2014, as amended, is annexed as ‘Annexure D' to this Report.


The Board of Directors of your Company has laid down a Risk Management Policy for the Company. It identifies elements of risks inherent to the business pertaining to tender and contract execution, operational and financial, environment, health and safety, reputation and image, currency fluctuation, compliance etc. The framework of Internal Financials Controls (IFC) complements the Policy by scientifically identifying, scoping and mapping risks to significant divisions. Risk matrices that map controls against risks in each area, are evaluated periodically. There exists an objective rating criterias for observations and time bound mitigations that are monitored. Every unit and function is required to deploy the control measures and ensure timely reporting. In the opinion of the Board, none of the above mentioned risks threaten the existence of your Company.


GE is an equal opportunity provider organisation that consciously strives to build a work culture that promotes the dignity of all employees. In compliance with the Sexual Harassment of Women at Work Place (Prevention, Prohibition and Redressal) Act, 2013, the Company has in place a policy on Sexual Harassment at workplace. During FY 2017-18, the Company conducted awareness programmes at its various locations in respect to sexual harassment at work place. No case was reported relating to sexual harassment during the FY 2017-18.


The Board of Directors of your Company is satisfied with the internal financial control process with reference to the financial statements. Internal control environment of the Company is reliable with well documented framework to mitigate risks. A detailed analysis is provided in the Management Discussion and Analysis.


The details forming part of the extract of the Annual Return in Form MGT-9 is annexed as ‘Annexure E' to this Report.


The information as required under Section 197 of the Act read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, as amended, in respect of employees of the Company is annexed as ‘Annexure F' to this Report.


There were no significant and material orders passed against your Company by the regulators or courts or tribunals during the FY 2017-18 impacting the going concern status and your Company's operations in future.


There were no material changes and commitments affecting the financial position of the Company which have occurred between the end of FY 2017-18 and the date of the report.


Corporate Social Responsibility and Inclusiveness are part of your Company's Sustainability strategy with products, processes and policies that promote the global agenda on sustainable development.

Your Company’s CSR efforts with local communities during the year were focused on strengthening the projects undertaken by the Company in previous years. Projects on village development, sanitation & hygiene, access to electricity through clean energy, livelihoods, skills development and farm productivity, access to basic healthcare, renovation of school's infrastructure, and support to socioeconomically vulnerable population were given continued support.

Key initiatives which Your Company has been engaged in are as follows:

Livelihoods and Income-Generation Programmes

Your Company continued its ongoing programmes on sustainable income-generation and livelihood support.

It completed the vocational skill programme in partnership with National Skill Development Fund and National Skill Development Corporation at Vadodara and Shahabad. The project was focused on training women in sewing machine operation, general duty assistant in hospitals and vermicomposting, benefitting 500 women to improve their economic prospects as a result of the training.

More than 1,000 workers benefitted from the project in collaboration with Construction Industry Development Council to Recognize Prior Learning (RPL) of construction workers and certify them after a rigorous testing process. The project was undertaken across 8 active construction sites spread over 7 cities and towns, leading to recognized certification on construction skills for the workers.

Villages and Community Development

Since 2015, your Company has taken up a diversified programme on local community development in Shahabad and Durgapur. The programme provides for comprehensive inputs on strengthening farmer capacity, women empowerment, water and sanitation, schools and children, access to electricity and health services.

More than 200 families benefitted on account of the community sanitation project at Shahabad. An additional 60 homes have benefitted through individual household toilets under the programme.

24 farmers have adopted soil and water conservation methods at Shahabad.

135 farmers are part of the milk dairy society initiative at Shahabad and a farmer producer organization (FPO) is under formation which is expected to benefit more than 1,000 farmers.

Schools infrastructure programme has benefitted around 3,000 children in Shahabad and Durgapur with improved facilities in schools.

Solar lanterns have been distributed to more than 150 children in Shahabad and Durgapur.

Audio-video enabled smart class teaching provided in 5 schools thereby benefitting more than 1,500 children in Shahabad.

As part of the watershed and water conservation programme, drip irrigation, farm bunds and ponds have benefitted 23 farmers in Shahabad.

Four tribal villages in Durgapur have been provided with comprehensive infrastructure support to develop them into model villages. The support consists of water supply, solar street lights, paved roads, community centres and support to tribal culture.

- Serving nearly 20 sites in Durgapur and Shahabad, our mobile medical vans have provided more than 40,000 treatments and about 2,000 treatments are provided every month. The project has not only provided door-step health services, but has also saved healthcare costs of the communities.

In Durgapur, since FY 2016-17 your Company has been working to develop livelihood, electricity and healthcare facilities for the people suffering from leprosy in the leprosy colony comprising of sixty five (65) families. With technical and consultative inputs from Department of Fisheries, West Bengal, your Company has provided for two (2) fish ponds to enable community fishing aimed at sustainable livelihood.

The support also consists of a community development centre.

Energy and Environment

During the year, your Company completed and handed over the 40KW solar rooftop solution to Akshaya Patra Foundation. The solution has reduced the energy bill for the central kitchen of Akshaya Patra Foundation in Vadodara to half.

The vulnerable population of three small villages in Bankura, West Bengal have been provided with a microgrid which supports basic access to electricity, solar street lights and a solar-run information, computers and technology (ICT) centre focused on digital learning for children. The project has been a boon to the people of these villages, resulting in improved safety, more convenience, increased economic activity and time for learning.

Women Empowerment

Besides enabling employability and self-reliance through vocational skilling in Shahabad and Durgapur, your Company has provided a Tata Sumo vehicle to a Girls Home in Greater Noida run by the NGO Udayan Care. The vehicle is helping girls and women travelling from remote areas to the IT and Skill Development Centre as well as in schooling, medical emergencies and other such critical needs of the girls, staying at the Girls Home.

In compliance with the provisions of Section 135 of the Act read with applicable rules, your Company has constituted a CSR Committee and has made sending’s towards CSR activities during FY 2017-18. The Annual Report on CSR activities is annexed as ‘Annexure G' to this Report.


Pursuant to Section 124(5) of the Act read with the IEPF Authority (Accounting, Audit, Transfer and Refund) Rules, 2016 (‘the Rules'), all unpaid or unclaimed dividends are required to be transferred by the Company to the IEPF established by the Central Government, after the completion of seven years. In accordance with the aforesaid provisions, H2,259,540/- was transferred to IEPF on 20 September 2017 in respect of dividend for FY 2009-10.

Pursuant to Section 124(6) of the Act read with the Rules, such shares in respect of which dividend has remained unpaid or unclaimed for seven consecutive years shall be transferred to Demat account maintained by IEPF Authority. In accordance with the aforesaid provisions 116,324 equity shares of the Company were transferred to the Demat account maintained by IEPF Authority.

Further, the Company vide letter dated 08 May 2018 has already written to such shareholders, who have not claimed dividend pertaining to FY 2010-11, to claim dividend on or before 14 August 2018. Thereafter the dividend for the year mentioned above shall be transferred to the IEPF and the corresponding eligible shares shall also be transferred to demat account maintained by IEPF.

The details of all unpaid or unclaimed dividends until FY 2016-17 are available on the website of the Company viz. ge-power-india-limited. For more details members are requested to refer to the notice of 26th Annual General Meeting which forms part of this Annual Report.


As per the Listing Regulations top five hundred listed entities based on market capitalization are required to provide Business Responsibility Report describing the initiatives taken by the Company from an environmental, social and governance perspective. In compliance with the aforesaid Regulations, the Business Responsibility Report of the Company is annexed as ‘Annexure H' to this Report.


The Board of Directors take this opportunity to thank all its shareholders, valued customers, banks, Government and statutory authorities, investors and stock exchanges for their continued support to the Company. Your Directors wish to place on record their deep sense of appreciation for the committed services by employees. Your Directors acknowledge with gratitude the encouragement and support extended by the valued shareholders and the Promoters of the Company.

For and on behalf of the Board of Directors

Vishal Keerti Wanchoo

Place: Gurugram Chairman & Non-Executive Director

Date : 14 June 2018 (DIN 02776467)

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