Techno Electric & Engineering Company Limited

1 1 Techno Electric & Engineering Company LimitedBoard of DirectorsP. P. Gupta Managing DirectorV. D. Mohile Independent DirectorK. M. Poddar Independent DirectorK. Vasudevan Independent DirectorK. K. Rai Independent DirectorAjay Relan Non-Executive DirectorCompany SecretaryN. BrahmaBankersVijaya BankState Bank of IndiaIDBI BankICICI BankABN AMRO BankStandard Chartered BankAllahabad BankYES BankCitibank S. Kothari & Point21, Old Court House StreetKolkata - 700 001 Registered OfficeP-46A, Radha Bazar LaneKolkata - 700 001 Corporate Office3F, Park Plaza71, Park StreetKolkata - 700 016 Registrar and Share Transfer AgentNiche Technologies Private , Bagree Market, 5th Floor71, B. R. B. Basu RoadKolkata - 700 001Ph. : 2234-2318/3576, 2235-7270 / 7271 / 3070 Fax : 2215-68232 ToThe Members ofTechno Electric & Engineering Co. Directors have pleasure in presenting the 44th AnnualReport together with the Audited Accounts of the Company forthe year ended 31st March, RESULTSYear endedYear ended31st March,31st March,20072006(Rs.)

2 In lacs)(Rs. in lacs)Profit before Interest & before for (including Deferred Income Tax,Fringe Benefit Tax and SecurityTransaction Tax)Profit after brought previous to General for tax onProposed carried Directors have recommended a dividend of 25% (previousyear 20%) on Paid-up Equity Share Capital, per equityshare of Rs. 2/- OF THE OPERATIONSThe Company has achieved a turnover of Rs. lacs ascompared to Rs. lacs and profit after tax of Rs. as compared to lacs during the previous year. Inspite of stiff competition the Company could better its profitsdue to good project management, efficient planning and timelycompletion of REPORTTECHNO Electric & Engineering CO. the year under review the Company has successfullycompleted the following projectszTurnkey Execution Strengthening and Improvement of Sub-Transmission and Distribution Network in GuwahatiElectrical Circle I and in Cachar Electrical Circle Phase IIof ASEB;zFuel Oil (LDO) Handling System and Condensate StorageTanks package for 2 x 500 MW Vindhyachal STPP (STG-III) 9 & 10 of BHEL;zConstruction of new 33/11KV Sub-station, Renovation andModernisation of existing 33/11 KV Sub-station for SaharsaCircle, Bihar of BSEB;zRevamping/Establishment of New DistributionTransformers and associated works in Muzaffarpur Circleof BSEB under APDRP Scheme;zElectrical Installation Works, New Parli 1x250 MW Unit # 1of MSEB;zFuel Oil Handling System for Gautami Stage I 469 MWCCPP of Gautami Power Pvt.

3 Ltd. through ALSTOM;zAsh Water Re-circulation System Package for VindhyachalSTPP, State-III (2x500MW) of NTPC Ltd.;z1x500 MW Sanjay Gandhi TPS Unit # 5 at birsinghpur (MPSEB) Package for Fuel Oil Handling System from BHEL;zCabling, Earthing, Lightning Protection System for 2x500MW Vindhyachal STPP State III of NTPC Ltd. fromBHEL;z400KV Pothead Yard Package at BHEP of J&K SPDCL fromALSTOM;zDM Water Storage Tank & Condensate Storage Tank of1x500 MW, birsinghpur STPP Unit # 5 from BHEL of MPEB;z1x500 MW Bellary Thermal Power Station (Stage-I) for FuelOil System from BHEL of KPCL;zStrengthening and improvement of Sub-transmission anddistribution network in Saharsa Circle (Part I & II) of BSEB from PGCIL; andzElectrical Equipment Erection Package for Unit # 9 & 10 ofStage III (2x500MW) at Vindhyachal Super Thermal PowerProject from BHEL of NTPC works for 220/33 KV Durgapur Sub-Station and 132/33 KVJamuria Sub-Station of DVC; 2x100 MVA, 220/132 KV Sub-Station at Bhadrak of OPTCL; 132/33 KV Sub-Stations in theDistricts of Bankura, Hooghly and Bardhaman on turnkey basisfrom WBSEB; Strengthening and improvement of Sub-transmission and distribution network in Lakhimpur ElectricalCircle of ASEB.

4 Rural Electrification work in Saran-Siwan District3of Bihar under Rajiv Gandhi Grameen Vidyutikaran Yojana;Cabling, Earthing & Lightning Protection system for 1 x 500MW birsinghpur STPP Unit-5 of BHEL; 2 x 250 MW Mejia TPSU nits 5 & 6 of DVC from BHEL; Fuel Oil Handling systempackage for 2 x 250 MW Mejia TPS Unit 5 & 6 of DVC fromBHEL; AND Fuel Oil Handling system package and CondensateStorage Tank package for Amarkantak TPS of MPEB from BHELare progressing satisfactorily and expected to be completed asper the year, the Company has bagged many prestigiousorders. The major amongst them are Fuel Oil Unloading andStorage System & Station Piping Package for Barh at STPP(3x660 MW) of NTPC Ltd.; Transmission System ImprovementProject for 400/220/132KV Sub-station at Gajwel ofAPTRANSCO; Rural Electrification Works in Gopalganj Districtof Bihar under Rajiv Gandhi Grameen Vidyutikaran Yojana(RGGVY) from PGCIL; 132 KV Infrastructure at Borjora (Extn.)

5 Sub-station of DVC; Misc. Tanks Package for 2x210 MW, Unit4&5 at Bakreswar TPS (MP-3), from BHEL; ConstructionPower System (Part-A) for Bina Refinery Project at Bina ( )for Bharat Oman Refinery Ltd.; Yard Piping (Pkg. A-09) for CPP,Phase-2 expansion of NALCO at Angul; Cabling, Earthing &Lightning Protection System for 2x250MW, Chandrapura TPSUnit # 7 & 8 of DVC from BHEL; Aluminium Bus Bars (Part-A,Part-C and Part-D) at Smelter Plant, Angul for Phase-2 Expansionof NALCO; Substation Package (Package A & Package- D)for Transmission System associated with Bihar SubTransmission System, Phase-II, Part-I Project of Bihar StateElectricity Board (BSEB) from PGCIL; AND 40% Fixed SeriesCompensation Package for 400KV D/C Khandwa-SeoniTransmission Line at Khandwa Substation from Company has participated in many prestigious tenders inPublic and Private Sectors and some of them are likely to befinalised shortly in Company s OUTLOOKA ccelerating economic growth and achieving higher standardsof living depend upon the availability of adequate and reliablepower at an affordable price.

6 Power is a critical infrastructure foreconomic development and for improving quality of life. Thecountry is plagued by power shortages on account of inadequategeneration capacity. Based on the projections for demand ofpower in the 16th Electric Power Survey, over 1,00,000 MWadditional generation capacity needs to be added by 2012 tobridge the gap between demand and supply of was a shortfall of 21000 MW of capacity addition duringthe 10th Plan. Ministry of Power has taken a comprehensiveand realistic review of various Power Projects which could notbe completed during the 10th Plan, to commission the same inthe first 2 years of the current plan. Accordingly, target for thecurrent year is 19000 MW. Further, a capacity addition target ofaround 64000 MW is envisaged during the 11th Plan. TheMinistry of Power plans to award all the projects of 11th Planduring the current year itself so that the envisaged capacity ofthe 11th Plan is achieved realistically within the plannedschedule.

7 An integrated approach, including capacity additionthrough nuclear and non-conventional energy has been adoptedfor optimal development of electricity energy. It is estimatedthat nearly Rs. 8,00,000 crores of investments would be neededfor building over 1,00,000 MW of additional power order to accelerate rural electrification, it has been proposedto treat it as a Basic Minimum Service in the Prime Minister sGramodaya Yojana. The Power Ministry also taking a number ofmeasures under the Rajiv Gandhi Grameen Vidyutikaran Yojanato complete electrification of 62,000 villages by 2007. Further,the Finance Minister in his budget speech has proposed toincrease the budgetary support for Accelerated PowerDevelopment and Reforms Programme from Rs. 650 crores toRs. 800 crores and Rajiv Gandhi Grameen Vidyutikaran Yojanafrom Rs. 3000 crores to Rs. 3983 crores. He also announced thatthe power ministry has already awarded 2 (two) Ultra MegaPower Projects and seven more UMPPs are under process.

8 Healso announced that the ministry has taken initiatives facilitatingsetting up of merchant power plants by private developers andprivate participation in transmission Company is well poised to make significant gains from theexecution of large turnkey contracts in the various sub segmentsof the power sector and has already bagged large and prestigiouscontracts in this segment which are currently under order book for the transmission & distribution segment willremain robust in the foreseeable Company has taken all possible steps and participatedvarious tenders, including tenders in the Repairs andMaintenance segment and also bagged many prestigious Ordersin the face of stiff Ajay Relan (Nominee of Citigroup Venture CapitalInternational Growth Partnership Maurutius Limited ) wasappointed as an Additional Director of the Company with effectfrom 22nd November, 2006 and his appointment will beregularised in the ensuing Annual General V.

9 D. Mohile, Director who retires by rotation at the ensuingAnnual General Meeting, and being eligible offers himself forre RESPONSIBILITY STATEMENTYour Directors confirmi)that in the preparation of the annual accounts, the applicableAccounting Standards had been followed along with properexplanation relating to material departures;DIRECTORS REPORT (Contd.)4ii)that the selected accounting policies are reasonable andprudent so as to give a true and fair view of the state ofaffairs of the Company at the end of the Financial Year andof the profit of the Company for that period and appliedthem consistently;iii)that proper and sufficient care has been taken formaintenance of adequate accounting records in accordancewith the provisions of the Companies Act, 1956 forsafeguarding the assets of the Company and for preventingand for detecting fraud and other irregularities;iv) that the accounts for the period ended 31st March, 2007are on a going-concern Auditors M/s S S Kothari & Company , CharteredAccountants retire at the forthcoming Annual General Meetingand being eligible, offer themselves for REPORTThe comments by the Auditors in their report are self-explanatoryand in the opinion of the Board do not require any CAPITALD uring the year the Company has made preferential allotment of80,00,000 Equity Shares of Rs.

10 2/- each at a premium ofRs. 68/- per share and 8,00,000 Warrants (to be converted intoequity shares within 18 months of allotment) at a price ofRs. 80/- per warrant to Citigroup Venture Capital InternationalGrowth Partnership Mauritius Limited and its associatedTrustees and 8,00,000 Warrants to a Promoter Group Companyin compliance with the guidelines prescribed by the Securitiesand Exchange Board of India, resulting in increase in the Issued,Subscribed and Paid up Capital to Rs. 11,09,82,400 comprising55491200 Equity Shares of each which was approved bythe Shareholders at the Extra Ordinary General Meeting held on19th October, OF SHARES WITH NSEThe Equity Shares of the Company have been listed with theNational Stock Exchange of India Limited on and from GOVERNANCEThe Company strongly believes in better Corporate GovernanceDIRECTORS REPORT (Contd.) Techno Electric & Engineering CO. and on behalf of the Board of DirectorsPlace : KolkataP.