Major research project Alstom T&D India ltd

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SANSKRITI SCHOOL OF BUSINESS
A STUDY OF FINANCE CONTROLLING/OVERHEAD CONTROL OF ALSTOM T&D
INDIA LTD.
UNDER THE GUIDANCE OF:
MR. GAURAV SRIVASTAVA
Submitted by:
ASHA MEENA
POST GRADUATION DIPLOMA IN MANAGEMENT
Table of contents
TOPICS PAGE NO.

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ACKNOWLEDGEMENT 3
ALSTOM IN INDIA 5
ALSTOM T&D INDIA LIMITED 16
PRODUCTION PROCESS 28
ORGANISATIONAL CHART 29
EXECUTIVE SUMMARY 30
LITERATURE REVIEW 34
RESEARCH METHODOLOGY 39
RESEARCH DESIGN 39
DATA COLLECTION 39
ANALYSIS OF DATA 40
FINDINGS AND OBSERVATIONS 43
RATIO ANALYSIS 46
RECOMMENDATIONS AND SUGGESTIONS 51
REFERENCES & BIBLIOGRAPHY 52
BOOKS 52
WEBSITES 53
ANNUAL REPORT 53
APPENDICES 54
QUESTIONNAIRE 54
Acknowledgement
An acknowledgement is not a mere formality but an expression of deep
gratitude & communicates application. I am thankful to Miss Sonali Mungale,
HR Site Head at ALSTOM T&D India Ltd. and Mr. Bobby George, Dean
(Academics) SSB who has provided me the opportunity to do this project in this
prestigious organization.

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I take this opportunity to express my gratitude & thanks to Mr. Gaurav
Kumar Srivastava, Site Finance Controller for giving me his very precious time
for guiding me & for going through the report patiently for giving me
suggestions & comments on the various aspects. His guidance at each milestone
of my project was invaluable in shaping my project as it has come out.
I express my gratitude towards Mr. Anuj Kumar Sinha, Finance Manager
& Mr. Ranjit Goletar, Finance Assistant Manager who has always cleared my
doubts and helped me out to move my project in the right direction. He has
always provided me new ideas and introduced new concepts to my knowledge. I
have learnt a lot from both of them, which will definitely help in my future
career. I would like to thank them for their constant encouragement and
patience.
It is my pleasure to thank all the respondents who have given me their
precious time to fill up the questionnaire and sharing their views about the stress
they experience at workplace. They have been very frank in their opinion which
makes my research as unbiased and totally fair in nature. They have been very
patient and co-operative with me throughout the process of data collection.
Finally I would like to thank all those who have guided me in the
successful completion of my project. I would like to thank my father who has
always been with me throughout my project and encouraged me to do my best.
He stood with me through thick and thin during my project completion time.
ASHA MEENA
P.G.D.M 4th
SEM
DECLARATION
I Asha Meena, a student of PGDM 4th semester from

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Sanskriti School Of Business, Vadodara, hereby declare that the project report
entitled “a study of FINANCE CONTROLLING/OVERHEAD CONTROL OF ALSTOM T&D INDIALTD.”
, is the outcome of my own work & the same is not submitted to any other
institute for any award of any degree or professional diploma.
Date: ASHA MEENA
Place: PGDM
4th
SEM

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ALSTOM IN INDIA
Alstom,a globalleader inenergy generation,transmission and rail
infrastructure,has gained an enviable reputation through the quality of
its products and services.We are committed to customersatisfaction by
continuously improving our products and setting the benchmark for
innovative and environmentally conscious technologies.In India, Alstom
offers full range of products and services for power generation, transport
and transmission sector.
In the power sector,Alstom is a leader in clean technologies forall types
of fuel including gas, coal, hydro, nuclear, solar, wind, etc. It offers a
comprehensive range of power generation solutions - from integrated
power plant to associated services including plant modernisation,
maintenance and operational support.
A promoterof sustainable mobility, the Transport sectoris the only multi
specialistconstructor in the railway sectorcovering everything from
rolling stock and maintenance to signalling and infrastructures.
The Grid sectoroffers products,power electronics,automation and
turnkey solutions, alongside a full range of services,to its customers
across high, extra high and ultra-high voltages (66 kV to 765 kV/1200
kV). It designs and manufactures equipment and engineered turnkey
solutions to manage power grids and transmit electricity from the power
plant to the large end-user, be it a distribution utility or an industrial
process orproductionfacility.

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INTRODUCTION
Alstom has been associated with India’s progress for a century and has a long-
standing reputation for providing highly innovative and sustainable solutions for
meeting the country’s energy and transport requirements. The company has full
capabilities in engineering, manufacturing, project management and supply of power
generation, transmission and transport sector requirements. Since its inception in the
year 1911, the company has been at the forefront of leading-edge technology at
every level, serving these three infrastructure markets essential to economic, social
and environmental development of India.
The company works with a number of strategic partners in India to offer a wide range
of solutions for every sector – Power, Transport & Grid.
With power transmission now included in the business portfolio, Alstom in India looks
forward to new synergies amongst its three core sectors and is well poised to offer
end-to-end solutions to its customers.
Alstom India Statistics
 Around 9,000 employees in India
 Three R & D Centres in Bengaluru (Power and Transport), Vadodara (Power)
and Hosur (Grid)
 Two Engineering Centres for Power in Noida, Kolkata
 Manufacturing Units
1. Power – Vadodara, Durgapur, Shahabad, Sanand*
2. Transport – Coimbatore, Sricity
3. Grid – Padappai, Pallavaram, Hosur, Vadodara, Naini
 Global Engineering & Software Centre for Railway & Metro in Bengaluru for
Transport
 Metro & Railway Signalling Engineering and Software Centre in Bengaluru

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ALSTOM IN INDIA
1911:
First factory built in Kolkata.
1950:
Participated in setting up the first major manufacturing unit of BHEL, Bhopal
1959:
Power Boilers facility established in Durgapur
1963:
Boiler/Mill facility established in Shahabad
1992:
Asea Brown Boveri Management Limited (ABBML) established in Bombay
1999:
Asea Brown Boveri Management Limited (ABBML) became ABB ALSTOM Power India Limited
(ABBPL)
2000:
ABB ALSTOM Power India Limited (ABBPL) became ALSTOM Power India Limited
2002:
ALSTOM Power India Limited became ALSTOM Projects India Ltd.
2004:
Hydro manufacturing facility established in Vadodara
2005:
Strategic partnership with Infosys in the areas of Global R&D, Engineering and Engineering services.
2008:
Global Technological Centre (GTC) established in Vadodara
2009:
- Foundation stone laid of power equipment manufacturing plant at Mundra in Gujarat.
- Three Green Field manufacturing units were setup in Hosur, Padappai and Vadodara
2012:
Areva T&D became Alstom T&D India Limited
ALSTOM Projects India Limited became ALSTOM India Limited.

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Country President's Profile
Mr. Rathin Basu
Country President – ALSTOM India & South Asia
Rathin Basu holds BTech (Electronics) from Science College, Calcutta University and BSc (Honours
in Physics) from St Xavier's, Calcutta University.
Rathin has worked in NTPC during 1978-1983 as Senior Engineer where he was the lead Engineer
for design, project management and commissioning of India's 1st Computer Control systems for
Singrauli Super Thermal Power Plant. During 1983-84 he worked for ESPL/Westinghouse as Division
Head to create a new Distributed Control System business.
He then joined the Alstom Group's subsidiary Cegelec India in 1985. During 1986-1987 he was
posted in Paris HQ to lead a group of Franco-Indian Engineers to execute NTPC's 6x500 MW Data
Acquistion Systems for Korba & Ramagunadm Super Thermal Power Plants. In 1989 he was
appointed as CEO and achieved turnaround of the business and led the growth of Cegelec India
during the period from 1989 to 2002.
From 2003 to 2007 he was Vice-President, with a P&L responsibility, for Global Power Distribution
Business, based in Paris. During this period, he led the turnaround of this business and
simultaneously doubled the business volume to +600 MEuro.
In 2007 Rathin returned to India to lead Alstom T&D India's growth to market leadership in the T&D
domain and development of the transmission business. Since 2007, over the last 7 years under his
leadership, Alstom T&D India made significant contribution in building a strong electrical grid for India
involving AC and DC technologies, leading to trippling the Transmission business volume.
He is member of CII's National Committee on Power, FICCI's Power Committee and CII's Capital
Goods committee. He also chairs CII's 'Transmission Group'.
He has attended INSEAD (France) for 'Advanced Management Programme' and London Business
School for a short programme on 'Global Electricity Markets'.

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Main Executives
Mr.Rathin Basu
Country President – ALSTOM India & South Asia
Managing Director, ALSTOM T&D India
Mr.Patrick Ledermann
Vice President Thermal and Renewable Power, Alstom India
Regional Vice President Global Power Sales (GPS), India Region
Mr.S. M. Momaya
Whole-time Director & Chief Financial Officer
Ms.Sapna Lalwani
Country Communication Director, ALSTOM India & South Asia
Mr.Amaresh Singh
Country Human Resources Director
Mr.Hiren Vyas
Country Legal Director
Mr.Ashish Ohri
Director - India IT SSC Country Representative.

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FOCUS ON
QUALITYPOLICY
CORPORATESOCIAL RESPONSIBILITY
ENVIRONMENTHEALTH AND SAFETYPOLICY

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CORPORATE SOCIAL RESPONSIBILITY
Unique initiative to electrify rural India through Dry Gasification system: Alstom
Foundation collaborated with Husk Power Systems (HPS) to fund the Dry
Gasification process for low-cost manufacturing and retro-fitting of the gasifiers at the
existing 65 power plant sites of HPS in Bihar.
Green Orphanage for Disadvantaged Children inaugurated in Karnataka: To
support the local community and preserve the environment, Alstom Foundation
inaugurated an eco-friendly structure in Chamarajnagar, Karnataka using solar
heating, solar lighting, fly ash bricks and natural stones. The Project christened as
‘Green Orphanage’, aims to educate, rehabilitate and socially integrate 40
disadvantaged children by providing them shelter and vocational skills. This project
is in sync with Alstom Foundation’s ambition to become a key contributor to
sustainable development around the world.
The Kumaun Spring Recharge Initiative: Launched under the aegis of Alstom
Foundation, the initiative will recharge 30 springs in the Kumaun region of the
Himalayas for a period of over two years by basing it on the principles of
hydrogeology.

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Restoring farming in Gujarat, India:Alstom Foundation is actively involved in
restoring the soil to increase agricultural productivity in remote areas of Gujarat,
which has suffered years of erosion from monsoons.
Windmills for salt farmers: Alstom Foundation also proposes to erect 50 windmills
over a period of one year in an effort to help farmers switch from fossil fuel to
renewable source of energy.
Kanya Kelawani Project: Alstom contributed towards the cause of ‘Kanya Kelawani’
- meaning providing Education to the Girl Child, to ensure girl child education in
Gujarat. It was done on the occasion of dedicating the first GT26 based combined
cycle power plant project to the Nation.
Education Initiatives: As a part of the education initiative, Alstom facilities in
Durgapur and Shahabad have constructed a school building and provided it with the
infrastructure along with financial assistance for the children residing in those areas.

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ENVIRONMENT HEALTH AND SAFETY

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Strategic Partnerships
Alstom in India has made strategic partnerships with strong local players to bring in
frontline technologies, to enhance the quality and efficiency of the power sector.
2009: Alstom and BharatForgeLtd (BFL) Joint Venture
The Alstom-Bharat Forge JV will manufacture Supercritical Turbines and Auxiliaries
equipments with an annual capacity of 5000 MW.
2005: Alstom-BHEL tie-up
Alstom and BHEL entered into a 15-years license agreement for manufacture,
supply and technology transfer for super critical boilers.
2005: Infosys R&D Centre
Alstom teamed up with Infosys, to set up an R&D centre at the Infosys campus in
Bengaluru.
1999: NTPC Alstom Power ServiceLimited (NASL)
The 50:50 joint venture undertakes renovation, modernisation, retrofit and
refurbishment of old and ageing power plants.

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ALSTOM T&D India Limited
With a 100 years of presence in India, Alstom T&D India is a leading player in the
Power Transmission business with a product portfolio ranging from Medium Voltage
to Extra High Voltage (765 kV) for the Utility, Industry and Infrastructure markets.
Alstom T&D India has a predominant presence in all stages of the power supply
chain, with a wide range of products that include Power Transformers, Circuit
Breakers, Gas Insulated Switchgears, Instrument Transformers, Protection Relays
and Power System Automation equipments.
Over the years it has become the leading turnkey solution provider for Transmission
Projects, HVDC, e-BOP projects, FACTS, Network Management System and Power
Line Carrier Communication (PLCCs). Alstom Grid India’s widely expanded and
highly skilled Service business helps its customers to install commission and
maintain its equipments and offerings to achieve the best results.
With 3500+ employees and 8 manufacturing units, Alstom T&D India is clearly the
undisputed market leader in India and is future ready to meet the demands for
equipments and services even at Ultra High Voltage levels (1200 kV).
With an increased demand for energy worldwide, and consumption forecasts
predicting energy production increases of around 80% between 2006 and 2030*,
Alstom T&D India’s dedicated teams combine their skills to deliver customer-valued
solutions to build smarter, more stable, more efficient and environmentally friendly
electricity grids worldwide.
Alstom T&D India, as one of the three global players in electrical transmission,
boasts technologies and expertise which have always ensured higher safety,
reliability, capacity of power grids around the world and well-positioned to meet the
energy challenges of today and tomorrow.
Alstom T&D India is the first company in India to successfully manufacture India's
first 1200 kV Capacitor Voltage Transformer and invest in manufacturing of all
transmission products upto 765 kV and above. It is also the first company to
manufacture fully localized 765 kV Power Transformer and Instrument Transformer
and commission India’s first indigenously developed 765 kV Substation for LANCO
Infratech. Alstom T&D India is the first company to manufacture 800 kV Circuit
Breaker for NTPC Sipat and deliver first 765 kV substation in India.

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POWER GRID TRANSPORT
ALSTOM GROUP
POWER GRID TRANSPORT
TURBINES
GENERATORS
BOILERS
ENVIRONMENT
EQUIPMENTS
POWER TRANSFORMERS
AUTOMATION
SWITCHGEAR (AIS/GIS)
SOLUTIONS
RAIL SYSTEM
SIGNALLING

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Power
Alstom Power - A global leader in the world of power generation
Alstom Power designs, manufactures, supplies and services state-of-the-art products and
systems for the power generation sector and industrial markets. Alstom is also the leading
provider of conventional islands for nuclear plants and paves the way in renewable energy
solutions through its strong position in the hydropower market and its recent entry into the wind
power market.
 Vast experience in the design, manufacture, installation and servicing of power generation
equipment, having supplied over 25% of the world’s installed capacity.
 World leading technologies in all of the key areas of power generation
 Environmentally friendly solutions, such as NOx systems, which go beyond compliance and
help reduce plant emissions for existing installations
Power generation in India
ALSTOM - Provider of the Cleanest Integrated Power
Alstom Power in India has full capabilities in engineering, manufacturing, project management
and supply of power generation equipment and solutions. Alstom combines local presence and
knowledge with global resources to deliver world – class services and solutions.
Alstom in India:
 Has most up–to–date technologies
 Has formed strategic relationships with strong local players to be close to the market and
bring frontline technologies to enhance the quality and efficiency of the power sector
 Supports India’s rapid economic growth through the big project’s launched by the Indian
government .

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Transport
Rail transport: Towards sustainable mobility
A promoter of sustainable mobility, Alstom Transport develops and markets the most
complete range of systems, equipment and service in the railway market. The
company is one of the leaders in the world transport market.
Alstom India is multi-specialist rail transport solutions supplier offering cutting-edge
products and services to four distinct types of customers: urban transit authorities
and operators; rail freight and intercity passenger rail operators; rolling stock and
infrastructure owners
Alstom supplies the complete trains, its sub-systems, signaling & telecommunication
systems, rail power supply and rail traction systems, track works (permanent way)
including their life term maintenances to turnkey system. Alstom also designs,
produce, install all infrastructures for the rail network to upgrade safety and
performance of existing networks, or as part of new turnkey solutions. Through
project management, we aid financing and supply ready-to-run systems as varied as
an air-rail link in Stockholm or an automatic metro line in Singapore
We also provide a host of service options in maintenance and renovation for
passenger and freight rolling stock, regardless the manufacturer. The company
keeps investing in research and development, creating the most modern
technologies of the planet.

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Grid
A Global leader in electricaltransmission
 Market leader in transmission business in India since 2008
 Armed with technological expertise, it ensures higher safety, reliability and capacity of
power grids around the world
 Provides the most advanced electrical grid solutions to meet world electricity demand
 At the heart of the development of Smart Grid, Alstom Grid offers products, services
and integrated energy management solutions across the full energy value chain
 Alstom Grid's solutions bring electricity from the source onto the power network through
high-voltage substations and technologies to manage power grids worldwide.

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Mission
Alstom Grid has one clear vision: to develop innovative solutions for a flexible, reliable, affor
dable and sustainable electrical grid, everywhere.
Alstom Grid designs, manufactures, installs and services the power transmission and
distribution products and systems that empower the planet’s low carbon economy.
Alstom Grid has over 130 years’ experience and ranks among the top three in the electrical
transmission sector with an annual sales turnover of more than €3.8 billion.
Alstom Grid’s 17,000 employees are spread across 87 manufacturing and engineering sites
worldwide and have one common mission: to be our customer’s trusted partner, from the
source to the smart city.
We boast a complete portfolio of power equipment and software solutions for the efficient
transmission of electricity to serve our customers across the entire energy chain. Our
customers include: power generators (thermal and renewable), electrical utilities, industries,
infrastructures and cities.
HIGH VOLTAGE PRODUCTS AND AC SUBSTATIONS
Alstom Grid designs turnkey projects and manufactures a full range of equipment for long-
distance transmission at voltages up to 1200 kV: switchgears for air-insulated substations
(AIS) or gas-insulated substations (GIS), instrument transformers, circuit breakers,
disconnectors, power transformers and substation automation solutions.
SERVICES
Alstom Grid offers services to optimise the electrical infrastructure, increase return on
investment, and increase the lifecycle of existing electrical grids. 1,000 Alstom Grid
employees work in the field close to our customers, providing expertise in service in the
areas of network design and asset consultancy, condition-monitoring analysis, predictive
maintenance, emergency support, ad-hoc maintenance or long-term service contracts.
POWER ELECTRONICS AND GRID AUTOMATION
Network Management Systems:We provide software solutions and platforms for grid
control rooms and market management systems, in charge of piloting and controlling the
power grid including: Energy Management Systems (EMS), Distribution Management
Systems (DMS), Market Management Systems (MMS).
Substation Automation Solutions:We deliver high-performance, mission-critical solutions
that protect, control and monitor electrical substations and grids for utilities and electro-

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intensive industries. These include MiCOM Agile protection relays, measurement devices
and HA MIDOS; DS Agile substation digital control systems (DCS); DAPserver RTU based
control applications; protection, and control schemes and engineered panel solutions (CCS);
and customer support services, including substations commissioning and refurbishment.
Power electronics equipment: We provide high-performance applications for the
Alternative Current (AC) / Direct Current (DC) conversion and for the interconnection of DC
and AC power in High Voltage (HV) and Medium Voltage (MV) grids, for different uses: long-
distance HVDC lines (LCC or VSC), power quality stabilisation (FACTS), and DC converters
for the connection of specific energy resources (offshore wind farms, MV renewable energy
sources, battery storage, etc.).
INTEGRATED SMART SOLUTIONS
Alstom Grid provides equipment either individually or as packaged “smart solutions”,
according to customer needs. Such solutions include the following integrated offers:
 Renewable energy integration :Integrating and managing renewable energy
sources such as offshore and onshore wind farms and solar farms.
 Smart Grids :Embedded digital controls, Information Technologies (IT) and smart
power equipment to monitor and manage in real-time electricity transmission, from
source to smart city.
 Supergrids :Broad AC/DC meshed transmission grids that allow high volume
electricity trading across great distances. They also ensure reliability, massive
integration of renewable energies and improved grid efficiency.
PRODUCTS AND SERVICES
Providing the most advanced electrical grid solutions to meet
world electricity demand
 POWER TRANSFORMERS : With strong references up to
800 kV and 2750 MVA in major power networks worldwide,
Alstom Grid is one of the world leaders in the manufacturing of
electrical power transformers and reactors.

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As a pioneer in this field, our expertise in electrical power transformers extends to all
levels, from generation to HVDC systems and all kinds of special industrial
applications.
A world leaderin electricalpower transformers for over 100 years
Alstom Grid can count on thirteen dedicated facilities on four continents to produce
power transformers with a current production capacity of more than 130,000 MVA.
This global manufacturing footprint, coupled with efficient technology transfer
programs, enable us to offer the most adapted solution - for every need, everywhere
and with the same top-class level of quality.
Our intensive research into new products and solutions drives the process of
continuous improvement. As proof of our technological leadership, our experts
actively participate in internationally renowned workgroups and conferences.
From low to extra-high voltage and small to very large power ratings, standardised to
the most complex designs - whatever you need, we have the right solution.
Our offering features:
 Conventional power transformers
 Generator step-up transformers
 Oil-immersed reactors (shunt and series)
 Special transformers for transmission networks
 Special transformers for industrial applications
 Railways on-board transformers
 MS 3000 transformers monitoring system
 Green Power Transformers offering
 Low-maintenance transformer: Hermetik
 Services
Product Catalogue
MS 3000 Transformers' monitoring system Special transformers for industrial applications

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Conventional Power Transformers
Generator Step-up (GSU) transformers Rio Madeira Converter Transformers
Oil-immersed Reactors Green Power Transformers offering
Special Transformers for Railways infrastructures

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 AUTOMATION : Providing utilities and industry with the
mission critical software systems and equipment needed to
manage the flow of electricity in transmission and distribution
grids.
Alstom Grid’s digital substations are an integrated solution. They deliver substation
footprint reduction, offer smart situational awareness dashboards, enhance safety,
and reduce the cost of ownership.
Our substation automation system also ensures grid stability and protects and
controls substations. Our solution offers IEC 61850 compliance including process
bus 9-2, ready for digital substations.
 DS Agile - Digital control system
 DAPserver - Multi-function substation controller
 Agile protection relays - Intelligent Electronic Devices (IEDs) for transmission
and distribution
 PMU, measurement, merging and recording products
 Ethernet switches and time synchronism
 Reason - Advanced measurement and process bus solutions for digital
substations
 COSI - Digital instrument transformers
 Customer support services including substation commissioning, refurbishment
and training.

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SWITCHGEAR (AIS/GIS)
ELECTRICAL SUBSTATION AIS (AIR-INSULATED
SUBSTATIONS): We provide engineered air-insulated
substations worldwide and manufacture all key elements of the
substation in our globally based manufacturing facilities.
Product highlights
Power transformers:
With strong references up to 800 kV and 2750 MVA in major power networks worldwide,
Alstom Grid is one of the world leaders in the manufacturing of electrical power
transformers and reactors.
Substation automation:
We provide utilities and industry with the mission critical software systems and equipment
needed to manage the flow of electricity in transmission and distribution grids, ensuring
stability, protection and control.
Instrumenttransformers:
Alstom Grid offers a comprehensive range of Instrument Transformers up to 1200 kV
including Current Transformers, Combined Metering Unit, Inductive (AC&GIS), Capacitor
and Power Voltage Transformers and Line Traps.
Circuitbreakers:
The circuit breaker portfolio covers Live Tank (GL range), Dead Tank (DT range) and hybrid
modules ranging from 36 kV to 1200 kV and Generator Circuit Breakers for power
generation installations up to 1500 MW.
Disconnectors:
The DSC portfolio covers high voltage disconnectors, compact modules and power
connectors.The ratings go from 36 kV to 1200 kV AC and 800 kV DC, catering for all types
of substation layout around the world.
Telecommunication:
Alstom Grid is a full-scope provider of operational telecom solutions and dedicated products
for electrical power delivery systems. Our portfolio is composed of advanced and proven
technologies adapted for operation in harsh electromagnetic and climatic conditions.

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ELECTRICAL SUBSTATION GIS (GAS-INSULATED
SUBSTATIONS): We provide networks and industrials with
state-of-the-art gas-insulated substations from 72.5 kV to 800
kV.
Our offering features:
 The most compact GIS range with optimized products at all voltage levels
 Reliable and available substations throughout life cycle, even during critical phases
 Fully eco-designed products and expertise in SF6 management
 Smart Grid ready substations thanks to leadership in digital solutions for protection and
control, as well as for condition monitoring
 First class spring-mechanisms
Based on 45 years of field experience and an outstanding agility, we offer solutions to fulfil
all kinds of customer needs: all single-line diagrams and arrangements and all applications
ranging from power supply to industrial plants, to on and offshore platforms, to urban and
underground substations, and to high voltage and UHV transmission substations.
There is no compromise on safety and stringent design rules are applied to ensure the
safety of substation operators at all times. Our safety rules partitioning, the accessibility of
the devices and critical information, and visual checks with viewports.
Compactness is a key feature and we have continuously reduced the dimensions of the GIS
substations. Since the beginning of the GIS industry in the 1960s, dimensions have been
divided by 5. Compactness enables us to significantly reduce the overall cost of projects by
reducing the dimensions of the buildings, and making transport and erection easier and
faster.
Our substations do not just feature the best reliability, but the best availability records.
Availability is the result of a combination of factors: GIS design, spare parts management
and MTTR, and continuity of service during critical maintenance, repair and extension
phases.
Eco-design from the stage one and expertise in SF6 management are hallmarks of our
dedication to make sure natural resources are preserved and global warming is limited.
We have a track record of 20,000 GIS bays in 2500 substations in 100 countries.

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PRODUCTION PROCESS
START
CORE SLITTING &
CUTTING
WINDING
CORE BUILDING NESTING, COIL ASSEMBLY & COIL
STACKER
CORE COIL
ASSEMBLY
ACTIVE PART VAPOUR PHASE DRYING
TANKING
PREPARATION FOR FINAL ACCEPTANCE TEST (FAT)
FINAL TESTING
DISPATCH

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Organisational Chart

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Executive summary
 Vadodara: A modern green facility manufacturing power transformers built
in 2009 produces Transformers above 765 kV (Extra High Voltage) used for
Power generation. Also, tested 1200 kV (Ultra High Voltage) to enhance their
testing capabilities for future projects. Mostly 3 type of Transformers are
manufactured in past few years :
i. Step-Up Generator Transformer (Single and three phase types)
ii. Inter connected transformer (Single and three phase type)
iii. Shunt reactor (Single and three phase type)
 Naini : The old factory since 1957 manufactures power transformers for the
clients up to 400 kV, 500 MVA per unit. It manufactures transformers of three
type:
i. Step-Up Generator Transformer (Single and three phase types)
ii. Inter connected transformer (Single and three phase type)
iii. Shunt reactor (Single and three phase type)
LTI VADODARA FACTORY
The Alstom Grid Transformer’s facility at Vadodara specializes in manufacturing
power transformers and provides solutions for sub-stations. As one of the few world
class facilities of the Grid Sector’s Power transformers division it caters to its clients
around the globe, especially in South Asia.
It manufactured and tested a 400 kV, 355MVA, Generator-transformer set as its first
product for LancoInfratech Ltd. In 2009
In 2012 the facility successfully manufactured and tested a 1200 kV, 333MVA testing
transformer for its future testing capabilities for shunt reactors to reach the highest
ratings.
The facility is being expanded further for manufacturing HVDC transformers for 1st
time in India for HVDC grids and associated projects.
LTI MARKET SHARE

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Year Market Order Intake MS%
2011-12 99,442 28,489 29%
2012-13 50,035 7,020 14%
2013-14 24,420 1,780 7%
765 kV Market Share (2013-14)
Row Labels
Sum of Total
MVA MS%
ABB 14220 56.1%
CGL 5380 21.2%
ALSTOM 2716 10.7%
TBEA 1520 6.0%
ZTR 1520 6.0%
25356
99,442
50,035
24,42028,489
7,020 1,780
29%
14%
7%
0%
5%
10%
15%
20%
25%
30%
35%
-
20,000
40,000
60,000
80,000
100,000
120,000
2011-12 2012-13 2013-14
Actual
LTI (in MVA)
Market OI MS%

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Competitors
 Toshiba
 Entry in PGCIL 765 kV AT market
 Impact – Entry level pricing in initial tenders
 Impact on market share
 BHEL
 Entry in NTPC 765 kV market
 Can participate in 765 kV BOOT market
 Low factory loading of ABB, Siemens and CG Bhopal leading to price
pressure in 765 kV AT
Alstom Objective – Sustain Market Share and be in No.1
position in Transformer business, which demands high Order
Input in a market where demand / supply gap is + 30%.
Limitations :
 Strongly dependent on only 1 customer (PGCIL)
 Delay in order decision by PGCIL for bulk tenders leading to lack of clarity of
price trends
 Demand Supply gap widening
ABB, 56.1%
CGL, 21.2%
ALSTOM, 10.7%
TBEA, 6.0% ZTR, 6.0%

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Challenges :
 Improve competitiveness by optimizing Design
 Reduce material cost by strong Sourcing support
 Optimize overheads
 Resource management
 Improve competitiveness by optimizing Design:
This challenge is particularly driven by Technical team and is the most critical
responsibility as it directly has implication on Product cost.
 Reduce material cost by strong Sourcing support:
Once design optimization is done, next biggest challenge is to get the resources at
right cost. For which support of Sourcing + Finance is being taken. However this
involves lot of detailed working, comparisons and trend review which needs
extensive study and sharing of data which was limitation during the training.
 Optimizeoverheads:
Overhead plays an important role in making any company competitive in
the market. Though in terms of %age it varies from 5% - 20% of sales
value but it drives the ProductPrice in the market and right size
overheads is the objective of all the companies.In LTI Vadodara unit,
strong management focus has been emphasized to control the
overheads and since it does not involve much technical support, during
the training Overhead Analysis has been performed and focus was done
as how we can control , monitor the overheads and educate
Management team so that they contribute to the organization by
reducing / sustaining the level of overheads beside increase due to
inflation or other external factors.
 Resource management:
This one covers a very wide area and mind storming process, that is done by the top
level management by making policies and decisions regarding resource and its
optimum utilization, cross functional team work is done between Planning,
Commercial and Finance.

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LITERATURE REVIEW
In the world of manufacturing—ascompetition becomesmore intense and
customersdemand more services—it is importantthatmanagementnotonly
controlits overhead butalso understand how itis assigned to productsand
ultimately reported on the company'sfinancialstatements.
OVERHEADS : Overheads may be defined as all indirect costs incurred for the
production of goods or services. Overheads are also known in cost accounting
terminology as ‘On Cost’, ‘Burden’, Indirect Expenses etc. Indirect cost or overheads
are those expenses which cannot be identified or related to a specific or particular
product or service. These overheads are not ‘allocated’ but are appointed (divided)
among various products or cost centres like: rent, insurance, telephone charges etc.
According to Whelon : “Overheads may be defined as the cost of
indirect material, indirect labour and other indirect expenses
including services as these cannot conveniently charged to a specific
unit. It means overheads are all expenses other than direct
expenses.”
Blocker and WeItmer : "Overhead costs are operating cost of a
business enterprise which cannot be traced directly to a particular
unit of output. Further such costs are invisible or unaccountable."
As the production these days is involving capital intensive industries and
on the mass scale with automatic machines and computerised system. All
this has resulted into heavy expenditure on indirect cost which means
increase in overheads.
Overhead expenses these days are very significant in the total cost of
production. So these overhead needs careful analysis for cost calculation
and control of cost. The overhead analysis, classification and
apportionment to a cost centre plays a significant role in various types of
managerial decision-making. Minimisation of overheads (control on
wastage) is very important to keep a watch on the cost of production and
production planning.
Eg: If the product or service costs you ₹100 to produce or provide, you might
want to charge ₹115 to make a profit. But if you also spend ₹100,000 yearly on
your rent, heat, warehousing, etc., that might break down to another ₹20 per
unit or service. So, to make your profit, you would have to tack on ₹20
overhead per unit to charge ₹135 in order to make back the cost of the
product/service, the overhead, and then profit as well.

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Overheads
Production overhead Non-production overh
Productionoverheads:
Referred as factory overhead, factory burden, and manufacturing support
costs, refers to indirect factory-related costs that are incurred when a product
is manufactured.
Along with costs such as direct material and direct labour, the cost of
manufacturing overhead must be assigned to each unit produced so that
Inventoryand Costof Goods Sold are valued and reported
according to Generally AcceptedAccountingPrinciples
(GAAP)
Includes such things as the electricity used to operate the factory equipment,
depreciation on the factory equipment and building, factory supplies and
factory personnel (other than direct labour).
Factory overhead
Factory overhead is the costs incurred during the manufacturing process,
not including the costs of direct labour and materials.
Factory overhead can have variable or fixed nature, depending on whether
overhead changes in direct proportion with productionvolumes. The following
are some examples of factory overhead costs:
OVERHEADS
PRODUCTION OVERHEAD NON-PRODUCTION OVERHEAD

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 Production supervisor salaries
 Quality assurance salaries
 Materials management salaries
 Factory rent
 Factory utilities
 Factory building insurance
 Fringe benefits
 Depreciation
 Equipment setup costs
 Equipment maintenance
 Factory supplies
Examples of fixed and variable factory overhead costs
Variable Factory Overhead Examples Fixed Factory Overhead Examples
 Electricity
 Heating
 Water
 Indirect Materials
 Indirect Labour
 Depreciation
 Property taxes
 Property insurance
 Salaries for non-production
employees

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Non-production overheads:
Costs (sometimes referred to as "administrative overhead") represent a
manufacturer's expenses that occur apart from the actual manufacturing
function.
Non manufacturing costs include Selling, Generaland Administrative
(SG&A) expenses, and Interest Expense.
They are not assigned to inventory or to the cost of goods sold. Instead,
nonmanufacturing costs are simply reported as expenses on the income
statement at the time they are incurred.
Examples include the compensation of nonmanufacturing personnel;
occupancy expenses for nonmanufacturing facilities (rent, light, heat, property
taxes, maintenance, etc.); depreciation of nonmanufacturing equipment;
expenses for automobiles and trucks used to sell and deliver products.
Non-productiveoverheads costs arefurther divided into the following
categories:
1. Marketing andselling costs
2. Administrative costs
Examples of marketing and selling costs include advertising costs, order
taking costs and salaries of sales persons etc.
Examples of administrative costs include salaries of executives,
accounting costs, and general administration costs etc.

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Production overheads and Non-production overheads
includes both controllable and uncontrollable costs
Controllable and uncontrollable costs
CONTROLLABLE OVERHEADS:These are those costs which can be
influenced by the action of a specified member of an organization. It means those
costs which are partly within the control of the management. In general direct
material, direct labour etc. are under the control of the lower level of management.
The misuse where can be checked or can be controlled are known as controllable
overheads.
UNCONTROLLABLE OVERHEADS: These are those costs which cannot be
influenced by the action of a specified member of an undertaking, that is to say which
are not within the control of management. As for example rent of building, insurance,
salaries of the managerial staff and so on.
You will probably not, however, be able to control or influence the Chief
Executive’s salary, the rental or lease payments on the office in which
you work or the business rates that you pay. These are uncontrollable
costs for you.
Although they may be controllable for senior management, who can perhaps
influence these costs to some degree. An understanding of controllable and
uncontrollable costs is vital when holding people accountable for budgets and
when seeking to reduce expenditure. People should only be held accountable
for costs that they can control. And if you want to reduce costs, you need to
find out who can actually control them.
 In non-production overheads most of the costs falls under the category of
uncontrollable costs, just few like fees of region, corporate fees etc are
somewhere comes under the controllable costs but that too relates with the top
level management decision making and their policies. Salaries and fringe
benefits of selling, general and administrative personnel. This would include the
company president, vice presidents, managers, and other employees in the
nonmanufacturing functions of the company.
 In production overheads 40% of the costs comes under the heading of
controllable includes electricity, contract labour, consumables, water, utility, travel
etc where as 60% of the costs falls under uncontrollable costs like depreciation
on assets, property taxes, property insurance.

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Research methodology
Research process consists of series of the action or step necessary to
effectively carry out research and desired sequencing of these steps-
 Research Design
 Collection of data
 Analysis of data
Research Design
“A Research Design is the arrangementof conditionsfor collection and Analysis
of Data in a Manner thataims to combined relevance to the research purpose
with economy in Procedure”
For the collection of data, interviewed with the people of the organization.
Before going for any interview with any of the in charge of different
departments of the company, used to prepare a list of questions in according
to full fill my purposeof collecting data.
Visited to differentdepartments of the company to collect information, which
helped me to understand the process and the nature of the organization.
Data Collection
Sources of collecting data:
Interview with Officers and Employees
Company site
Annual report2011-12, 2012-13, 2013-14

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Analysis Of Data
For the analysisof data I used two types of tools:
 Financial tools
 Statistical tools
Financial tools
The different financial tools have used in the project are ratios analysis &
comparativeanalysis. With the help of these tools, analyzed different items of
the balance sheet and profitand loss account of the company.
Statistical Tools
Used bar graphs, tables, and pie chart to show the trend of the company and
to compare the financial data.
LIMITATIONS OF THE STUDY
During the summer training, the researcher faces many problems. Some of
them, faced during summer training, are mentioned as follows:
 The Topic was new to me and so broad to cover all the fields in just2-3
months.
 One of the constrain in the completion of projectwas the busy
environmentof the organization.
 All the necessary data were not available to me due to company’s
confidential matter.

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MANPOWER/CONTRACT LABOURS
 Started my work and internship with the Labour Contract/Manpower,
supported by finance controller.
 He guided me & told to reconcile the total number of contract labours function
wise with HR data.
 HR personnel, then provided the past data and required information.
 Then proceed with field work by going to the shop floor & getting the names
of each departmental head.
 Listed out the names of all agencies from where contract labours are
belonging.
 Interview and cross verification with those contract labours.
 Gained in-depth knowledge regarding nature of work, process of wages etc.
ELECTRICITY
 Moved towards the field of power (electricity), guided by finance controller.
 Directed to take everyday electricity readings for coming 15-20 days.
 Contacted with respective authorized person.
 Supported by finance manager by self examining thoroughly with the process
& functioning related to electricity.
 Further provided the brief information of supply from GEB & the allocation to
different departments, area & floors etc.
 Consumption pattern of all units in Alstom T&D INDIA LTD., how much they
are consuming and where ( in which process or production).
 This exposure gifted the opportunity to practically observe the process of
electricity & allocation towards each department.
 Started, work by regularly going 15-20 days to the shop floor.
 After taking readings, comparing it with the recorded excel sheet in the
system.

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 There itself doing cross verification, resultant getting actual data (whether
matched or not?)
 In case left with wide difference in cross verification, immediately contacted to
maintenance manager and executive maintenance.
 Recorded the supply from GEB to ALSTOM- to check any difference in
demand & supply gap.
 Due to regularity and hard work, electricity daily readings are also now a part
of dash board and being daily updated time wise.
 It had been a very good and memorable experience for me.

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FINDINGS AND OBSERVATIONS
 MANPOWER/CONTRACT LABOURS
Cost Structure Nature
People related costs Uncontrollable Salary related cost
Fixed costs Uncontrollable
Related to Assets owned
and depreciation charged
on a monthly basis
Activity related costs Controllable
Directly related to
production
Recharges & other costs Uncontrollable Fees and Services
Activity related costs %age Share Remarks
Other consultancy 1.00%
Related to technical
consultancy taken from
Third Party like BVQI,
ERDA etc
Consumables 9.00%
Related to Production
consumables e.g.
lubricants etc.
Maintenance 26.00%
Maintenance of machine
and site infra
Utilities 61.00%
Includes Electricity,
Water and Diesel
consumption
Other Costs 3.00%
Other misc cost related to
production or services
Activity Related Cost Breakup Forecast 14/15 Forecast 15/16
Maintenance 44,299 33,721
Utilities 1,06,200 1,04,566
Other Costs 4,456 6,741
Total Controllable Cost 1,54,955 1,45,027
Increase in Production Volume from 14/15
level 30%
Increase / (Decrease) in Cost -6.4%

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Noof
Contract
Worker
Manpower Skilled
Semi-
skilled
Unskilled Total Skilled
Semi-
skilled
Unskilled Total
2 2 1 0 1 2 2 1 3
1 1 1 0 0 1 1 0 1
43 43 2 0 39 41 0 39 39
EHS 2 2 0 0 2 2 0 2
Winding 2 2 0 0 2 1 0 1
Insulation 3 3 0 0 3 2 0 2
Store 6 4 2 0 6 4 0 0 4
Store(Hydra/FL) 3 3 0 0 3 3 0 0 3
Dispatch 7 7 0 0 7 5 2 0 7
Dispatch(Carpenter-
Ex-Apexmanpower)
5 3 2
0 5
2 2
0 4
MainttSupervisor 1 1 0 0 1 1 0 1
MainttTechnician 6 2 4 0 6 2 4 0 6
Maintt(Substation) 6 6 0 0 6 6 0 6
Plumber(Substtn) 1 1 0 0 1 1 0 1
CoreCutting 2 0 2 0 2 0 2 0 2
Tanking 4 1 3 0 4 1 1 0 2
Assembly 2 0 2 0 2 0 1 0 1
VPD 3 3 0 0 3 3 0 3
OfficeStaff 5 5 0 0 5 5 0 5
TOTAL 104 47 15 40 102 41 12 40 93
Admin
58 Multiuser
BeforeAnalysis AfterAnalysisandReview
UserDepartment
Maintenance
Admin(Security)

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ELECTRICITY
Description
EQUIPMENT Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
300 KW THERMO OVEN 901 21,011 21,324 22,945 31,629 34,951 34,084 31,771 29,957 41,490
300 KW VPD 6,077 30,197 32,788 32,455 44,268 50,788 47,309 46,392 50,669 51,928
500 KW VPD 27,264 22,044 42,557 46,201 50,908 61,993 51,996 55,408 53,490 54,056
CNC MACHINE 105 - 5,126 4,304 7,241 1,755 3,562 4,074 3,867 2,821
THERMOPACK UNIT 10,353 16,404 21,047 19,817 23,569 25,083 24,603 24,297 24,496 26,948
HOT AIR OVEN 2,814 8,172 9,968 6,261 6,181 8,611 6,643 6,532 7,550 6,909
10 KL FILTRATION PLANT 33,845 33,945 53,812 75,569 1,09,578 1,55,820 1,08,226 1,26,990 92,858 1,11,503
6 KL FILTRATION PLANT 13,671 11,725 18,429 18,295 28,810 40,488 23,949 25,208 17,252 26,762
WINDING SHOP CHILLER 1,14,821 3,48,300 2,21,245 1,30,857 3,86,958 3,35,321 1,12,692 89,684 4,39,144 4,39,635
OFFICE AC 1,06,332 73,111 37,453 29,502 80,949 54,742 34,174 39,284 89,355 76,493
AIR COMPRESSOR 51,396 85,689 76,836 66,978 1,09,507 1,46,395 1,43,050 1,34,454 1,27,796 1,39,332
AHU & AIR WASHER 41,610 1,97,042 1,16,268 70,733 1,51,126 1,78,466 95,789 81,649 1,96,092 1,32,806
SHOP& OFFICE LIGHTING 1,06,060 1,68,988 1,71,882 1,82,489 1,75,700 1,71,150 1,69,083 2,00,241 1,81,727 2,00,069
VPD CHILLER 56,381 79,050 96,410 94,847 1,10,627 1,45,424 1,37,791 1,34,974 1,56,306 1,71,994
TESTLAB & GEN. ROOM 91,041 79,264 80,753 1,79,262 1,94,943 3,01,877 2,13,597 4,41,130 3,52,406 3,46,727
TEST LAB HVAC 3,41,835 41,294 17,111 15,008 83,587 1,29,286 5,954 15,484 86,838 50,552
CLIMATE CHAMBER - - - - - 5,431 27,542 20,883 24,905 30,853
TOP ELECT. CONSUMPTION 10,04,506 12,16,235 10,23,008 9,95,523 15,95,580 18,47,581 12,40,044 14,78,455 19,34,708 19,10,878
Others 1,63,482 3,28,731 4,04,338 5,23,012 4,79,313 5,92,769 4,65,301 3,05,144 3,72,579 5,61,463
TOTAL LTI PLANT 11,67,988 15,44,966 14,27,346 15,18,535 20,74,893 24,40,350 17,05,345 17,83,599 23,07,287 24,72,341
No.ofDays 91 92 92 90 91 92 92 90 91 92
AverageConsumption Per Day 12,835 16,793 15,515 16,873 22,801 26,526 18,536 19,818 25,355 26,873
300 KW THERMO OVEN 30 686 695 767 1,046 1,141 1,113 1,065 988 1,353
300 KW VPD 201 989 1,069 1,078 1,464 1,656 1,540 1,548 1,670 1,693
500 KW VPD 899 730 1,388 1,537 1,677 2,023 1,698 1,852 1,762 1,763
CNC MACHINE 4 - 168 145 239 57 116 135 127 92
THERMOPACK UNIT 342 537 687 661 777 818 802 811 808 879
HOT AIR OVEN 93 266 325 208 204 281 216 217 248 225
10 KL FILTRATION PLANT 1,115 1,117 1,754 2,552 3,628 5,080 3,518 4,237 3,069 3,640
6 KL FILTRATION PLANT 448 388 601 608 949 1,322 780 839 569 873
WINDING SHOP CHILLER 3,826 11,350 7,204 4,345 12,738 10,954 3,672 2,974 14,476 14,339
OFFICE AC 3,504 2,381 1,219 982 2,662 1,787 1,113 1,307 2,945 2,494
AIR COMPRESSOR 1,693 2,794 2,507 2,234 3,608 4,784 4,659 4,471 4,217 4,550
AHU & AIR WASHER 1,378 6,416 3,791 2,344 4,983 5,827 3,131 2,713 6,462 4,328
SHOP& OFFICE LIGHTING 3,498 5,519 5,607 6,084 5,792 5,586 5,510 6,672 5,988 6,528
VPD CHILLER 1,861 2,585 3,142 3,162 3,644 4,747 4,496 4,498 5,150 5,610
TESTLAB & GEN. ROOM 3,002 2,579 2,617 5,845 6,455 9,828 6,962 14,591 11,601 11,325
TEST LAB HVAC 11,198 1,351 553 485 2,747 4,224 193 499 2,861 1,657
CLIMATE CHAMBER - - - - - 181 898 711 822 1,006
TOP ELECT. CONSUMPTION 33,090 39,687 33,326 33,038 52,613 60,295 40,416 49,139 63,764 62,357
Others 5,449 10,742 13,169 17,326 15,801 19,323 15,139 10,290 12,265 18,323
TOTAL LTIPLANT 38,540 50,430 46,495 50,364 68,414 79,619 55,555 59,429 76,029 80,681
Average6 Month 14,828 16,143 24,672 19,164 26118.3
FY2012-13 FY2013-14 FY2014-15

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RATIO ANALYSIS
LIQUIDITY RATIOS :
 CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES
YEAR 2011-12 2012-13 2013-14
CURRENT
RATIO
1.08 1.10 1.15
Interpretation: A relatively high current ratio is an indication that the firm is liquid
and has the ability to pay its current obligations in time and when they become due.
On the other hand, a relatively low current ratio represents that the liquidity position
of the firm is not good and the firm shall not be able to pay its current liabilities in
time. A ratio equal to or near to the rule of thumb 2:1 i.e current assets double the
current liabilities is considered as a standard or normal or satisfactory. We can easily
see from the above table that in all the three years the current ratio is below ideal
standard.
 QUICK RATIO = LIQUID ASSETS / CURRENT LIABILITIES
YEAR 2011-12 2012-13 2013-14
QUICK RATIO 0.89:1 0.88:1 0.95:1
Interpretation: A low liquidity ratio represents that the firm's liquidity position is not
good. As a rule of thumb ratio of 1:1 is considered to be satisfactory.In all the three
years the quick ratio is below than ideal standard.
LEVERAGE RATIO:
 DEBT EQUITY RATIO= DEBT / EQUITY
YEAR 2011-12 2012-13 2013-14
DEBT EQUITY
RATIO
3.27 3.55 2.76

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Interpretation: Though the ideal standard is 2:1, in all the three year company has
this ratio much higher than its ideal standard which means there are very high
external equity in comparison to internal equity.
 DEBT TO TOTAL FUND RATIO = DEBT / EQUITY + DEBT
YEAR 2011-12 2012-13 2013-14
DEBT TO TOTAL
FUND RATIO
0.76 0.78 0.73
Interpretation: Generally, debt to total funds ratio of 0.67:1 is considered
satisfactory. A higher ratio than this is generally treated as indicator of risky financial
position from the long- term point of view.
 PROPRIETARY RATIO = EQUTIY / EQUITY +DEBT
YEAR 2011-12 2012-13 2013-14
PROPRIETARY
RATIO
0.23 0.21 0.26
Interpretation: This ratio should be .33:1 or more than that. In all the three years this
ratio is below its ideal standard which means that the firm is more dependent on
external sources of finance.
 FIXED ASSET TO PROPRIETORS FUND RATIO = FIXED ASSET /
PROPRIETORS FUND (i.e. NET WORTH)
YEAR 2011-12 2012-13 2013-14
FIXED ASSET
TO
PROPRIETORS
FUND RATIO
0.77 0.76 0.61
Interpretation: If this ratio is less than 100% it would mean that proprietors funds
are more than fixed assets and a part of working capital is provided by the
proprietors. The lower the ratio, the better it is for the long-term solvency of business
because more proprietors’ funds will be available for working capital. It can be seen

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that in all the three years this ratio is much below than ideal standard which shows a
good solvency position for the company.
ACTIVITY RATIOS :
 INVENTORY TURNOVER RATIO= SALES / INVENTORY
YEAR 2011-12 2012-13 2013-14
INVENTORY
TURNOVER
RATIO
7.45 4.54 5.16
Interpretation: It can be interpreted from the above table that in the year 20011-12,
the stock turnover ratio is much more in comparison to any of the two year.
 FIXED ASSETS TURNOVER RATIO= COST OF GOODS SOLD
NET FIXED ASSET
YEAR 2011-12 2012-13 2013-14
FIXED ASSET
TURNOVER
RATIO
4.44 3.38 3.74
Interpretation: From the above table it can be seen that there is a fall in the fixed
asset turnover ratio in the year 2012-13.
 WORKING CAPITAL TURNOVER RATIO = COST OF GOODS SOLD
WORKING CAPITAL
YEAR 2011-12 2012-13 2013-14
W.C TURNOVER
RATIO 12.53 6.45 4.59
Interpretation: High working capital turnover ratio is better. A low ratio indicates
inefficient utilization of working capital, but a very high ratio may also be a sign of
insufficient working capital.

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 CAPITAL TURNOVER RATIO: COST OF GOODS SOLD
CAPITAL EMPLOYED
YEAR 2011-12 2012-13 2013-14
CAPITAL
TURNOVER
RATIO
3.18 2.05 1.85
Interpretation: It is used to calculate the rate of return on common equity, and
measure of how well a company uses its stockholder’s equity in producing sales.
From the above table we can see that capital turnover ratio declining year by year.
PROFITABLITY RATIO :
 GROSS MARGIN= GROSS PROFIT / NET SALES *100
YEAR 2011-12 2012-13 2013-14
GROSS MARGIN
RATIO
30.36 33.52 32.07
Interpretation: The ideal level of gross profit margin depends on the industries, how
long the business has been established and other factors. High gross profit margin
indicates that the company can make a reasonable profit, as long as it keeps the
overhead cost in control.
 PROFIT MARGIN= NET INCOME AFTER TAX / NET SALES *100
YEAR 2011-12 2012-13 2013-14
PROFIT MARGIN
RATIO 3.92 2.67 3.32
Interpretation: It is an indicator of how efficient a company is and how well it
controls its costs. The higher the margin is, the more effective the company is in
converting revenue into actual profit. As from the above given table profit margin is
on an average 3.

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 RETURN ON CAPITAL EMPLOYED= EBIT
CAPITAL EMPLOYED
YEAR 2011-12 2012-13 2013-14
PROFIT MARGIN
RATIO 0.34 0.18 0.19
Interpretation: Return on capital employed shows the return earned by the
company on the application of funds. As given in the above table we find that it is
decreasing from year 2012-13 and then remains almost constant, that means returns
earned by the company is not adequate.
 RETURN ON EQUITY= NET INCOME/SHAREHOLDER’S EQUITY
YEAR 2011-12 2012-13 2013-14
PROFIT MARGIN
RATIO
0.19 0.09 0.09
Interpretation: This ratio shows the overall return earned by the equity shareholder
which means the per share return earned. It is clear from the table that this ratio is
decreasing in the year 2012-13 and then remained constant that means profit earned
on per share basis is decreasing which is unfavorable to the shareholders.
 EARNING PER SHARE= NET INCOME AFTER TAX
NUMBER OF SHARES
YEAR 2011-12 2012-13 2013-14
PROFIT MARGIN
RATIO
6.79 3.52 4.78
Interpretation: EPS simply shows the profitability of the firm on a per-share basis.
As it can be seen by the table that EPS ratio in year 2011-12 is better than other two
years which shows that the portion of a company's profit allocated to each
outstanding share of common stock is more in that year.

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RECOMMENDATIONS AND SUGGESTIONS
Cost Initiative Taken
 Manpower / Contractual Labour :
 Improve processes so as to minimize loading / unloading
of materials.
 Review Housekeeping and Contractual manpower
requirement for each function.
 Give authority to function owners to manage contractual
requirement within approved limits.
 Engage unskilled workforce to reduce the cost. Skilled
resource not to be used in production.
 Negotiate with sub - contractor commission charges.
 Give work base contract rather man day contract.
 Electricity :
 Control electricity in Winter season to keep the average
within permissable limit.
 Identify opportunities to maintain same level of
Electricity cost even with inflation in per unit rate.
 Work in implementing Solar system in phased manner.
 Daily monitoring of Electricity consumption to identify
exceptional increase / decrease in consumption.

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REFERENCES & BIBLIOGRAPHY
 BOOKS
1. Title: Research Methodology: Methods and Techniques
Author: C. R. Kothari (2nd
edition)
Publisher: New Age International, 2011
2. Title: Cost Accounting
Author: S P Gupta, Ajay Sharma, Satish Ahuja
Publisher: FK Publications
3. Title: Generally accepted cost and accounting principles and cost accounting
standards
Issued By: The institute of cost and works accountants of India
Website: www.icai.org,
4. Title: Basic Financial Management
Author: Khan & Jain
Publisher: Tata McGraw-Hill Education, 2005
5. Title: Financial Management
Author: I.M. Pandey
Publisher: Vikas Publishing House Pvt. Ltd, 2009

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 WEBSITES
1) http://www.alstom.com/.
2) http://www.alstom.com/india/our-companies/alstom-td-india-limited/.
3) http://www.slideshare.net/.
4) http://en.wikipedia.org/.
5) http://books.google.com.sg/.
6) http://www.investopedia.com/terms/o/overhead.asp.
7) http://www.businessdictionary.com/definition/overhead.html.
8) http://www.accountingtools.com/questions-and-answers/what-is-a-
controllable-variance.html.
9) http://www.accountingcoach.com/nonmanufacturing-overhead/explanation
10)http://www.accountingformanagement.org/manufacturing-and-non-
manufacturing-costs/.
11)http://www.investopedia.com/university/ratios/.
12)http://en.wikipedia.org/wiki/Financial_ratio.
 ANNUAL REPORTS
 Annual Report 2013-2014
APPENDICES

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Questionnaire
Dear Sir/Madam
I am student of PGDM from Sanskriti School of Business,Vadodara, conducting a report on
“A STUDY OF FINANCE CONTROLLING/OVERHEAD CONTROL OF ALSTOM
T&D INDIA LIMITED”. So with regard to this I have formulated a questionnaire. Kindly
complete it and help me in completing my project. I will assure you that the information
given by you will be used purely for academic purpose and will be confidential.
Name:
Age:
Designation:
Education/Qualification:
Department:
e-mail ID:
Contact no.:
Manpower/Contract labours

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1) How many contract labours are there in user departments?
 Admin
 Maintenance
 Manufacturing
2) From which agencies they are belonging?
 Shreenath
 Sodexo
 Star labour
 J.P. Enterprise
3) What are the shift criteria for contract labours & employees
both?
 General (9am-6pm)
 A (8am-3pm)
 B (3pm-11pm)
 C (night)
4) Nature of work/activities they are doing?
--------------------------------------
5) What are the basis on which employees are getting wages?
 Man power basis

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 open contract
 job contract
 daily basis
Suggestions ______________________________
Electricity
1) From where the supply of electricity is coming?
2) Which system is being used in recording and maintaining
database?
3) What is the average supply & consumption of electricity?
4) Which processes/area/unit is consuming most electricity?
5) What is the average expense on electricity?
6) Any activity company is doing on electricity saving
awareness programmes?
Suggestions ___________________________________

Major research project Alstom T&D India ltd

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