Driving sustainable growth ABB India Annual Report 2009

Contents

01 Board of directors and other information 02 5 year highlights 07 Corporate Management Committee 11 Notice to members 12 Directors’ report 26 Management’s discussion and analysis 31 CEO / CFO certification 32 Auditors’ report 36 Balance sheet, profit & loss account and schedules 47 Notes to accounts 65 Cash flow statement 67 Balance sheet abstract and company’s general business profile

ABB Limited

Board of Directors Gary Steel, Chairman Biplab Majumder, Vice Chairman & Managing Director N.S. Raghavan Nasser Munjee D. E. Udwadia A. K. Dasgupta Peter Leupp Francis Duggan (w.e.f. 26.02.2010) Bernhard Jucker (upto 20.03.2009) Veli-Matti Reinikkala (upto 31.03.2009) K. Rajagopal, Whole-time Director (upto 31.07.2009)

Bankers Canara Bank Citibank N.A. DBS Bank Limited Deutsche Bank AG HDFC Bank Limited ICICI Bank Limited IDBI Bank Limited State Bank of India The Hongkong & Sanghai Banking Corporation Limited The Royal Bank of Scotland N.V. Union Bank of India Yes Bank Limited

Company Secretary B. Gururaj Corporate Management Committee Biplab Majumder Amlan Datta Majumdar S. Ramesh Shankar N. Venu B. Gururaj Prakash Nayak Madhav Digraskar R. Narayanan Venkatesh Prasad G.N.V. Subba Rao Madhav Vemuri Ranjan K. De S. Karun

Auditors S.R. BATLIBOI & CO. Chartered Accountants

Registered Office 2nd Floor, East Wing, Khanija Bhavan, 49, Race Course Road, Bengaluru- 560 001.

Registrar & Share Transfer Agents Karvy Computershare Private Limited No. 51/2, T.K.N.Complex, Vanivilas Road, Opp. National College, Basavanagudi, Bengaluru - 560 004.

ABB Limited, India, Annual Report 2009

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1 0.8 15.7 2. Annual Report 2009 .0 3.394.673.2 16.9 4.274.1 2.8 11.6 16.324.097.097.7 8.Rs Profit After Taxes as % to Average Net Worth 9.477.2 2.9 21.2 21.190.0 5.332.3 5.3 15.6 423.0 15. India.7 7.4 Other Data Gross Fixed Assets Debt Equity Ratio Net Worth Per Equity Share .4 495.8 2.919.3 24.9 423.5 6.3 8.6 2.3 2.2 35.4 1.7 16.858.013.0 0.1 23.0 4.4 0.4 4.8 Income and Profits Sales & Other Income Operating Profit Before Interest and Depreciation Profit Before Tax Tax Profit After Tax Dividend / Dividend Tax Retained Earnings 63.2 29.00:1 76.186.8 23.692.466.358.474.00:1 99.050.0 5.5 27.118.6 27.141.6 3.928.810.0 32.0 5.1 545.5 11.564.005.694.4 2.917.8 30.622.2 5.7 16.797.7 0.024.097.6 8.6 69.7 558.8 20.6 3.123.0 2.674.627.7 60.5 9.3 25.8 3.386.3 423.012.232.916.0 10.1 483.7 43.4 Excludes revaluation of fixed assets and revaluation reserve.046.208. 2 ABB Limited.Rs Dividend Per Equity Share .838.754.1 1.829.01:1 42.504.7 6.0 1.8 423.5 Year highlights (Rs in Millions) Description 2009 2008 2007 2006 2005 Sources of Funds Share Capital Reserves Net Worth Borrowings Funds Employed 423.046.00:1 113.727.890.8 389.8 1.403.546.7 8.9 4.4 3.3 1.5 24.01:1 55.647.6 8.9 5.5 0.5 11.6 0.Rs Earnings Per Equity Share .8 8.825.

000 60.000 10.546.000 40.000 30.477 60.014 69.000 0 05 06 07 08 09 2.000 2.187 4.000 4.496 10.000 7.000 2.675 63. .000 2.842 10.500 0 05 06 07 08 09 7.500 5.000 6.052 5.8 Return on capital employed (%) 54.000 8.000 6.000 8.141 6.000 0 05 06 07 08 09 30.000 1.000 70.4 3.000 0 40 30 24.916.7 3.382 10.2 50.500 46.000 4.6 Number of employees Revenue per employee (Rs in Thousands) 50 43.000 5.000 20.186.5 10.535 20 10 0 05 06 07 08 09 Excludes revaluation of fixed assets and revaluation reserve.000 3.000 50.726 6.6 Employees and Productivity 12.5 year Highlights Revenues (Rs in Millions) 80.5 10.439 5.1 4.098 Profit after tax (Rs in Millions) 8.474.1 5.403.222 7.141 43.

Our portfolio ranges from light switches to robots and from huge electrical transformers to control systems that manage entire power networks and factories. energy-efficient generation. We provide solutions for secure.” . We help our customers meet their challenges with minimum environmental impact. That’s why ABB stands for “Power and productivity for a better world. transmission and distribution of electricity and for increasing productivity in industrial. commercial and utility operations.This is ABB ABB is one of the world’s leading power and automation engineering companies.

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8 service centers.000 employees in the country. 3 logistic warehouses and a network of over 850 channel partners. domain expertise and project execution abilities.ABB in India ABB operations in India are in excess of one billion US dollars and the company has 14 manufacturing facilities and over 6. While the topline grows as we create value for customers. . focus on productivity. operational efficiencies and working capital management continues to ensure profitability. ABB has an extensive countrywide presence with around 18 marketing offices. wide offering portfolio and unique ability to package solutions and provide a single window approach to verticals continue to be a key differentiator. The company’s technology strengths. ABB continues to bring value to customers in India through leading edge technologies. India is the largest engineering design and R&D resource base for ABB Group worldwide.

Legal & Compliance and Company Secretary Prakash Nayak Head – Power Systems Madhav Digraskar Head – Power Products R Narayanan Head – Discrete Automation and Motion Venkatesh Prasad Head – Low Voltage Products G N V Subbarao Head – Process Automation Madhav Vemuri Head – Corporate Research Ranjan K De Head – Institutional Sales S Karun Head – Service and EHS .ABB India corporate management team Biplab Majumder Vice Chairman & Managing Director Amlan Datta Majumdar Chief Financial Officer Ramesh Shankar Head – Human Resources N Venu Head – Sales and Marketing B Gururaj Head .

power systems offer instrumentation. switchgear. Additional highlights include flexible alternating current transmission systems (FACTS). high-voltage direct current (HVDC) systems and network management systems. It also offers all the services needed to ensure products’ performance and extend their lifespan. Substations and substation automation systems are key areas.Our business Ensuring grid reliability Power products Power products are the key components to transmit and distribute electricity. In power generation. The division is subdivided into four business units. circuit breakers. The division is subdivided into three business units. cables and associated equipment. control and electrification of power plants. The division incorporates the ABB manufacturing network for transformers. Power systems Power systems offer turnkey systems and services for power transmission and distribution grids and for power plants. .

motion and control for a wide range of automation applications. installations and electronic equipment from electrical overload. The division further makes KNX systems that integrate and automate a building‘s electrical installations. wiring accessories. solutions and related services that increase industrial productivity and energy efficiency. The leading position in wind generators and a growing offering in solar complement the industrial focus. chemicals and pharmaceuticals. generators. power electronics and robotics provide power. . control products. power. programmable logic controllers (PLCs). Its motors. switches. ventilation systems and security and data communication networks.Improving industrial productivity Discrete automation and motion This division provides products. automation and optimization of industrial processes. The industries served include oil and gas. enclosures and cable systems to protect people. pulp and paper. marine and turbocharging. leveraging joint technology. drives. metals and minerals. Low voltage products The low voltage products division manufactures low-voltage circuit breakers. Key customer benefits include improved asset productivity and energy savings. Process automation The main focus of this business is to provide customers with products and solutions for instrumentation. channels and operation platforms.

Supporting the differently-abled ABB has outsourced assembly of simple components to organizations. Prerana and Seva Tirth in Bengaluru and Vadodara respectively.000 litres at a village which will ease the water problem for 200 more families. eatables and clothes to the flood victims. The support includes facility upgradation covering school buildings. ABB in India also received the CII Leadership and Excellence Award in Environment Health & Safety (EHS) for the southern region. In 2009.000 people living in 1. health camps and excursions. and their social. and initiatives such as teachers’ training sessions. to support its lighting needs. toilets. Vadodara. Social performance . in the desert region of Rajasthan have been given the gift of solar-powered residential lighting. This money provided essential commodities such as milk.137 homes in seven remote villages in the districts of Barmer and Jodhpur. rain water harvesting and vermiculture. to help over 100 colleagues live a life of dignity by facilitating a regular source of income. In 2009. attendance in schools has also seen a rise by 20% and new avenues for employment have been created. classrooms. Environment initiatives include green-cover maintenance. in the last 3 years. Education ABB has adopted six schools covering over 5.Sustainability ABB contributes to society through its business activities. income levels for families have increased by 25%. medicines. Support to natural calamities ABB in India and its employees assisted the relief and rehabilitation operations for the victims of the floods in North Karnataka and Bihar with monetary contributions. community centre and maternity centre. Environment ABB in India installed and commissioned its first photovoltaic solar plant at its Nelamangala facility. the ABB greening initiatives in Bengaluru received awards for the Best Maintained Garden and Traffic Islands. Kolkata and MS (Maharaja Sayajirao) University.is a key element of the company’s sustainability goals.500 children. To support improved nutrition. library etc.both within the company and in the communities where ABB operates .Jadavpur University. In 2009. near its major manufacturing hubs. ABB provides mid-day meals to the students from the schools in Bengaluru with the help of Akshaya Patra Foundation. With this project. Over 90% of the cost of this program is paid for by the employees. For the third time in a row. environmental and economic impact. . ABB provided the centres with computers. Access to electricity project More than 7. The ABB Jürgen Dormann Foundation for Engineering Education signed partnership agreements with two more universities in India . over 10 million litres of water was collected to improve the water table while supporting the greenery. extending the outsourcing initiative to making engineering drawings in AutoCAD. ABB constructed another water tank of capacity 30. lighting facilities were extended to all schools.

if declared at the Annual General Meeting. shall be transferred. Khanija Bhavan. PROXIES IN ORDER TO BE EFFECTIVE MUST BE DULY FILLED. 2010. SIGNED AND SHOULD BE DEPOSITED AT THE COMPANY’S REGISTERED OFFICE NOT LATER THAN FORTY–EIGHT HOURS BEFORE THE COMMENCEMENT OF THE MEETING. To consider and if thought fit. pursuant to Article 152 of the Articles of Association of the Company and who holds office upto the date of this Annual General Meeting under Section 260 of the Companies Act. “Chancery”.Notice to Members NOTICE is hereby given that the SIXTIETH ANNUAL GENERAL MEETING of the Members of ABB Limited will be held at The Atria Hotel.R. to pass with or without modification(s). 49. 2010.. STAMPED. Bengaluru – 560 001. Gururaj Company Secretary b) 6. 6 is annexed hereto. S. 2010 Registered Office: 2nd Floor. on Tuesday. By Order of the Board For ABB Limited B. PARTNERSHIP FIRMS. offers himself for re-election.M. Members should bring the duly filled in attendance slip sent herewith for attending the meeting. E. Chartered Accountants having registration number 301003E. 2010 at 11. Special Business: 6. BATLIBOI & CO. No. East Wing. 4.1. who retires by rotation at this Annual General Meeting. consider and adopt the Audited Balance Sheet as at December 31. to the Investor Education and Protection Fund. 2010 to May 11. and being eligible. have been transferred to the Investor Education and Protection Fund. 5. To receive. D. 1. 5. ETC. May 11. Francis Duggan. under Section 205-A of the Companies Act. as Statutory Auditors of the Company to hold office from the conclusion of this Annual General Meeting until the conclusion of the next Annual General Meeting and to authorize the Board of Directors to fix their remuneration. N.. Bengaluru – 560 001. Raghavan. no claim shall rest with the Company in respect of such amount. 1956. on or before May 4. To appoint a Director in place of Mr. To declare a dividend on equity shares. SOCIETIES. liable to retire by rotation”. 2. 2002. 3. Annual Report 2009 11 . 4. established under Section 205C of the said Act. offers himself for re-election. ABB Limited. 2. onwards are requested to forward their claims to the Company’s Registrar and Share Transfer Agents. Race Course Road. setting out the material facts in respect of special business under item No. who was appointed as an Additional Director by the Board of Directors of the Company on February 26. 2001. MUST BE SUPPORTED BY APPROPRIATE RESOLUTION / AUTHORITY AS APPLICABLE. 3. The Explanatory Statement pursuant to Section 173(2) of the Companies Act. 2009 and the Audited Profit & Loss Account for the year ended on that date and the Reports of the Directors and the Auditors thereon. Members are requested to note that dividends not encashed or remaining unclaimed for a period of seven (7) years from the date of transfer to the Company’s Unpaid Dividend Account. the following resolution as an Ordinary Resolution: “RESOLVED THAT Mr. 2010. The dividend. ISSUED ON BEHALF OF THE APPOINTING ORGANISATION. To appoint M/s.00 A. will be paid on or after May 13. India. (IST) to transact the following business: Ordinary Business: Notes: 1. as recommended by the Board of Directors of the Company. be and is hereby appointed as a Director of the Company. 1956. and being eligible. 1956 and in respect of whom the Company has received a notice in writing from a member proposing his candidature for the office of Director. To appoint a Director in place of Mr. Place : Bengaluru Date : February 26. It may be noted that once the unclaimed dividend is transferred to the Investor Education and Protection Fund as above. Members who have not yet encashed the dividend warrant(s) from the financial year ended December 31. The Register of Members and the Share Transfer Books of the Company will remain closed from May 5. Udwadia. 2010 as per the list to be furnished by National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) in respect of shares held in dematerialized form. S. It may also be noted that the unclaimed dividend amounts which were lying with the Company upto the year ended on December 31. to those Members whose names stand registered on the Company’s Register of Members:a) as Beneficial Owners as at the end of business hours on May 4. 2010 (both days inclusive) for the purpose of payment of dividend. who retires by rotation at this Annual General Meeting. as Members in the Register of Members of the Company after giving effect to valid share transfers lodged with the Company. Palace Road. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT ONE OR MORE PROXY(IES) TO ATTEND AND VOTE INSTEAD OF HIMSELF / HERSELF AND A PROXY NEED NOT BE A MEMBER OF THE COMPANY. PROXIES SUBMITTED ON BEHALF OF LIMITED COMPANIES.

concerned or interested in the said resolution. Members holding shares in physical form can avail of the nomination facility by filing Form 2B (in duplicate) with the Company or its Registrar & Share Transfer Agents which will be made available on request and in case of shares held in dematerialised form. the changes. if any. Karvy Computershare Private Limited. registration number to the Company’s registered office address or its Registrars & Share Transfer Agents. appointed Mr. Basavanagudi. at the address mentioned above. has made it mandatory effective July 2. 11. in their registered addresses. along with a photocopy of both sides of the PAN card.Complex. 2007 and June 25. Annual Report 2009 . The Company has received a notice under Section 257 of the Companies Act. Francis Duggan as an Additional Director effective that date. 2007 for every participant in the securities / capital market to furnish Income Tax Permanent Account Number (PAN No. or to their respective Depository Participant (“DP”) in case the shares are held in dematerialised form. investor. 51/2. Vittal Rao Nagar. Shareholders holding shares in physical form are requested to submit the copy of the PAN card of all holders including joint holders duly attested by the Notary Public / Gazetted Officer / Bank Manager under their Official Seal and stating their full name and address. 2010 8.com to enable investors to register their complaints / queries. Except Mr.from a member proposing the candidature of Mr. 1956. In terms of Section 260 of the Companies Act. T.560 004. Shareholders holding shares in electronic form are required to furnish their PAN No to their Depository Participant with whom they maintain their account along with the documents as required by them. Gururaj Company Secretary Place: Bengaluru Date: February 26. As required under clause 49 (IV) (G) of the Listing Agreement of the Stock Exchanges. Securities and Exchange Board of India vide its circular dated April 27.helpdesk@in. either to the Company or to its Registrar and Share Transfer Agents. Registered Office: 2nd Floor. Unit: ABB Limited.K. Khanija Bhavan. 12 ABB Limited. India. The Company has designated an exclusive e-mail id viz. 1956 and Article 152 of the Articles of Association of the Company.). Opp.N. Bengaluru . in any way. none of the other Directors is. Francis Duggan holds office as Director upto the date of the ensuing Annual General Meeting of the Company and is eligible for re-appointment as Director. viz. 2010.500 081. Race Course Road. Francis Duggan. 6 The Board of Directors of the Company at its meeting held on February 26. for the office of Director. Members are requested to intimate. 49. 2007. Accordingly all shareholders are required to submit their PAN No. of the accompanying Notice. East Wing. Mr. By Order of the Board For ABB Limited B. 17-24. Vanivilas Road. The Board considers that his association as Director will be beneficial and in the interest of the Company. the nomination has to be lodged with their DP.7. indicating their folio number. National College. The Directors recommend the passing of resolution set out at Item No. Hyderabad . 9.. (b) Plot No. 1956 Item No. Karvy Computershare Private Limited..6. Bengaluru – 560 001. Annexure to Notice Explanatory Statement under Section 173(2) of the Companies Act. duly attested. along with the deposit of Rs 500/. the relevant details of persons seeking re-appointment/ appointment as Directors are furnished in the Corporate Governance Section of this Annual Report.abb. (a) No. if any. Madhapur. 10. Francis Duggan.

forming part of this report.000. to the Investor Education and Protection Fund established by the Central Government.632 4.103.332.994 For the year ended December 31. 1988. Financial Results (Rs in Thousands) For the year ended December 31. All the units of the Company have been awarded OHSAS18001 certification for the health and safety system.74 compared to Rs 25. Profit after tax at Rs 3. India.908. Reduction in profit was mainly attributable to lower sales.023 5.805.618 million at the end of the previous year. 2001.063/.102. Environment.correspondingly decreased to Rs 16. rain water harvesting and greening initiatives.858. please refer to the management’s discussion and analysis section of the annual report. was transferred during the year 2009.652) 3. 2009. health and safety are given high priority.000 466.lying with the Company for a period of seven years pertaining to year ended on December 31.each. Revenues of all the segments were lower than the previous year except Automation Products which saw a moderate growth of 4%. Conservation of Energy. ABB Limited. All the manufacturing units of the Company have received certificates for ISO 14001 (EMS). adverse impact from fair valuations of forward foreign exchange and embedded derivative contracts and additional cost incurred for exit/ foreclosure of rural electrification business.546.632 6.847 million were 8% higher compared to Rs 80.000 423.102.675 million in the previous year. 1956.83 in the previous year. read with the Companies (Disclosure of Particulars in the Report of Board of Directors) Rules. Annual Report 2009 13 .787 million compared to Rs 61. Earnings and Outgo Technology Absorption.098 million compared to Rs 69. Performance Review Orders received during the year at Rs 86.274 million compared to Rs 8. waste management.000) (38.060 5. Environment. 2009 Profit Before Taxation Less: Provision for Tax .Deferred Tax .541 million in the previous year.474.103.198 79.273. Some of these include energy conservation. Sales and other income for the year were lower by 9% at Rs 63.Current Tax . 2009 on 211. For detailed analysis of the performance. Several environmental management projects are underway across the locations.178 4. 2008 8.060 1.440 Dividend Your Directors recommend payment of a dividend at the rate of Rs 2/(Rupees Two only) per share for the year ended December 31. Profit before tax was lower at Rs 5.000. Order backlog at the end of 2009 was healthy at Rs 84.930 6.000) 90.375 equity shares of Rs 2/. Health and Safety The Company has in place a system for controlling and monitoring pollutants at all factories complying with environmental standards and legislation. are given in Annexure – A.028 607.Fringe Benefit Tax Profit After Tax Balance Brought Forward from last year Amount available for Appropriation Appropriations General Reserve Proposed Dividend Corporate Dividend Tax Balance Carried Forward 3. Foreign Exchange The particulars as prescribed under sub-section (1)(e) of Section 217 of the Companies Act.474 million in the previous year.332 million in the previous year.Directors’ Report Your Directors have pleasure in presenting their Sixtieth Annual Report and Audited Accounts for the year ended December 31.391 556.230 556.130 627.023 2.255 (39. the unclaimed dividend amount aggregating to Rs 899.100 5.546 million for the year has reduced by 35% compared to Rs 5.210 (90. 1956.817 72. Earning per equity share of face value of Rs 2/. Transfer to Investor Education and Protection Fund In terms of Section 205C of the Companies Act.

Particulars of Employees The statement under sub-section (2A) of Section 217 of the Companies Act. Bernhard Jucker was appointed as an Alternate Director for Mr. Raghavan. shareholding are provided in the Report on Corporate Governance forming part of the Annual Report. S. iv.R. 1956. and the annual accounts have been prepared on a going concern basis. Corporate Governance As required under Clause 49 of the Listing Agreement of Stock Exchanges. 2009 and of the profit of the Company for the year ended on that date. M/s. appropriate accounting policies have been selected and applied consistently and such judgements and estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at December 31. Your Directors place on record their appreciation of the valuable services rendered by the above Directors during their tenure as Directors / Alternate Director of the Company. Board of Directors Mr. BATLIBOI & CO. Peter Leupp during the period from April 30. which forms part of this report. India. Bernhard Jucker and Mr. Veli-Matti Reinikkala. confirming their eligibility for reappointment as Auditors of the Company.B shall. 1956. proper and sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act. a report on Corporate Governance and a Certificate from M/s D. Mr. 2009 and March 31. the applicable accounting standards have been followed by the Company. Auditors The Company’s Auditors. confirming compliance with the requirements of Corporate Governance are given in Annexure – C and Annexure – D respectively. Directors of the Company resigned effective March 20.. Francis Duggan was appointed as an Additional Director of the Company with effect from February 26. 1956.B. 1975. as amended and forming part of this report is given in Annexure . N. for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities. 2010 Gary Steel Chairman iii. 1956. names of companies in which they hold directorships and memberships / chairmanships of Board Committees. The said Annexure . As stipulated under Clause 49 of the Listing Agreement with the Stock Exchanges. K Rajagopal. be provided to the Members on request made to the Company Secretary. 14 ABB Limited. 2009 respectively. 2009 to July 31. E. 2009. Shressha & Associates. however. the Directors to the best of their knowledge and belief confirm that: i. Practicing Company Secretaries. nature of their expertise in specific functional areas. Whole-time Director of the Company resigned effective July 31. Mr. For and on behalf of the Board Place: Bengaluru Date: February 26. D. Directors of the Company are due for retirement by rotation and are eligible for re-appointment. 2010. read with the Companies (Particulars of Employees) Rules. Mr. 2009. Chartered Accountants. Mr. The Company has received a requisite certificate from them pursuant to Section 224(1B) of the Companies Act. Directors’ Responsibility Statement Pursuant to Section 217 (2AA) of the Companies Act. R. Udwadia and Mr. Annual Report 2009 . ii. brief profile of the Directors proposed to be re-appointed / appointed. S. in the preparation of the annual accounts. hold office upto the conclusion of the ensuing Annual General Meeting.

technologies and application pays to the Group companies royalties/ license fees. 2. adoption to local environment and other improvements/ cost saving actions are carried out locally. This saving. replacement of inefficient central air conditioned plant with efficient AC plants. switches and fuses of different ratings. competency required. however. 20 kA frame mounted compact substation 12 kV 800A. 1988. water saving activities. compressed air systems. assemblies for hybrid switchgear type PASS and double bus bar switchgear Local manufacturing of 615 series relays Development of indigenous components for switching mechanism Technology absorption for traction motors. improved measurement range and accuracy level. standardisation of design of assemblies.1 Technical Development • • • • • • 2. helping customer in avoiding costlier investments. cost reduction and increased acceptability of products in local and global markets. installation of VFD on compressors.A to Directors’ Report Conservation of Energy. R&D also helped in adopting some of the new products with the existing legacy system installed at the customer plants. Energy conservation measures taken during the year included • • • • • • • • • • Optimum utilisation of maximum demand load HV (11kV) capacitor banks installed for HV machine testing to improve the system power factor to 0. benefits have also been reflected in terms of improvement of product reliability and quality. all major R&D efforts are pooled centrally at the Group level. adaptation and innovation 2. Company as a beneficiary of these developments in terms of new products. better aesthetics.99 Maximised use of sun light during day time reducing illumination requirement. Technology absorption. Total energy saving as a result of measures taken is estimated at 2 million kWh units of energy per annum. 13. 2.Annexure . Total expenditure on such development efforts during the year is estimated to be Rs 10 million. as the Company’s production processes are not energy intensive. air circuit breakers. 1. components for 145 kV circuit breaker.1 kA outdoor breaker ABB Limited.3 Expenditure on Research & Development Considering nature of research and development. Apart from strengthening of technical base. Technology Absorption. Proposed areas of work include use of LPG and natural gas for thermic fluid heating for ovens. Foreign Exchange Earnings and Outgo . has no appreciable impact on cost of goods.2 New Products Developed: • • • • • • • • • • 145 kV new design LTBD circuit breaker 33 kV 400A centre break disconnector 145 kV 2500A double break disconnector 180 kVA auxiliary railway converter Dry type transformer New design for small frame motors for domestic and export market 36 kV vacuum circuit breaker 36 kV indoor switchgear type unigear ZS2 12 kV 630A. India. sub-assemblies and components of various products. time frame. Annual Report 2009 15 . LCD based human machine interface for REJ603 Benefits derived as a result of the R&D efforts Multifold benefits were accrued as a result of R&D activities.355 ACS 510 drives for general purpose industry Global cabinet design for LV drives Manufacturing of cabinet for ACS 5000 MV drives Optimisation of dimensions of unigear switchgear Technology adaptation and innovation: • • Unigear panel localisation and range expansion Localisation of contactors. amount and also to optimise overall cost. TEFC range machines Indicating meter with digital display for analog power line carrier terminal type ETL4X and ETL8X Bidding tool for Electrics for balance of plant Design for HMI603. Conservation of energy Energy conservation continued to be priority area for the Company. Total amount incurred for these fees during the year was Rs 790 million. With proper planning and awareness consumption of electricity and diesel was reduced as compared to previous year. servo control voltage stabilisers for lighting. selection of energy efficient plant and machineries as per BEE guidelines. MCCBs. Localisation of products manufacturing.Companies (Disclosure of particulars in the Report of Board of Directors) Rules. This aspect was considered while designing of new factory at Nelamangala Induction of a hot dip impregnation machine for two baking ovens and use of 40 kW oven for 135 kW oven at Faridabad plant Replacement of all incandescent lamps with CFL Control over compressed air leakages Use of solar powered street lights at Bangalore plant Awareness and training programmes for employees Energy audits and corrective actions Switching off lights and air conditioners during breaks and when not essential Product Improvements: • • • • • • • • • • • 400 kV circuit breaker 4000A suitable for Indian conditions Polymer insulators for current and capacitor voltage transformers Surge capacitor for GCB application Development of IP 65 protection for frame size 160 and 180 Online machine monitoring system for electrical rotating machines New insulation scheme for motors in classified hazardous area in line with Global Standards Product certification for IP 55 for foot and flange motors in frame size 280 . complexity.

3. Machine life expectancy analysis studies earned significant revenues. India. 2010 Gary Steel Chairman 16 ABB Limited. Construction of wind power generator motor factory for export at Vadodara is in advance stage of completion. Segment’s export orders received included 128 circuit breakers from a utility of Brazil. components.2 Foreign exchange earnings and outgo (a) Activities related to Exports.1 • • • • • • • • • • • • • • • • • • • • • • • • Technologies imported during last five years 'A’ range contactors up to 40A 2005 Residual current circuit breakers 2005 PR521 and PR512 relays 2005 SPAD 346C relays 2005 Operating mechanism. Spain for electric motors. Several strategies adopted in past few years resulted in continuous growth in the export orders. a large order from Nigeria for 800. With management focus. products and services from India by the ABB Group companies. tools and engineering services is on increase. Internal sourcing within group of products.431 million.5 kW 2007 Shunt reactors 2008 MCD-80 band pass and ETL-600 2008 145 kV. During Place: Bengaluru Date: February 26.5 kV circuit breakers. 36 kV outdoor breakers and 964 MVA of 132/33 kV of power transformers from Saudi Arabia. strategies and increasing sourcing of components. reflecting a growth of 31% over previous year. Significant orders received included supply for wind power generator motors to Denmark. Metals and minerals business units of process automation division are group internal centre of excellence for metals and cement businesses and have secured several orders particularly from Middle East and South Asia regions. (b) Total foreign exchange used and earned (Rs in Millions) i) ii) Foreign exchange earned (including deemed exports) Foreign exchange used 8. A major order from Arcelor-Mittal for Tube Mill at Saudi Arabia was received during the year. Annual Report 2009 .904 For and on behalf of the Board Above technologies have been fully absorbed.BLK 222 245 kV CB 2005 ACS 550 Drives 2005 Residual Current Device (RCD) 2007 Localisation of TMAX/EMAX MCCBs 2007 TA 25 Relays 2007 HT Motors M3BM 2007 Three phase LV induction Motors up to 7. high current rectifier order from Indonesia. development of new export markets for products and services. Ethiopia and other countries. 4 & 5 2009 ACS 510 drives for general purpose industry 2009 Global cabinet design LV drives and ACS 5000 MV drives 2009 145 kV new design LTBD circuit breaker 2009 Dry type transformer 2009 Shunt reactor 50 MVAr. 400 kV 2009 the year orders were received for the first time from new markets/ countries. export plans During the year export orders received was Rs 7.3. It continued as a global feeder factory within the group for 72. maiden order for 300 kV disconnector from Indonesia for POSO energy. prospects for growth of exports in coming years remains high. Malaysia. initiatives taken to increase exports. Imported Technologies 3. Power products segment further consolidated its position in the export market and had growth in export orders of 28%. Orders received grew by 15%. overall revenues during the year at Rs 5. Power system segment also received a major substation order from Bangladesh. except for contactors size 4 & 5 and dry type transformer. supply of coils and rewinding of generator stators from United Kingdom and from ABB. SF6 circuit breaker LTB145D1/B 2008 REF601 relays 2008 Fuseless capacitors 2008 Unigear double bus bar switchgear 2009 TEFC range of machines (HXR range) 100 – 1400 kW 2009 Contactors size 3. Due to significant higher revenues from certain large value projects in last year.770 22.021 million were lower by 4%. Automation product segment continued to pursue export sales promotional activities.

reviewing the quarterly/half-yearly/annual financial statements.e. Board of Directors (i) Composition / Category of Directors / Attendance at Meetings / Directorships & Committee Memberships in other companies as on December 31. N. of Board Meetings attended No.K. Dasgupta Mr. Audit Committee (i) Terms of Reference The Audit Committee is responsible for overseeing the Company’s financial reporting process. Bernhard Jucker** Mr.. S. Udwadia Mr. 2009. Peter Leupp Mr. K. (ii) No. reviewing with the management on the financial statements and adequacy of internal audit function. 2009 Directorships / Mandatory Committee Memberships in Other Companies Directorship in Private Companies Directorship in Public Companies Attendance No. ABB Limited. external and internal auditors and the Board of Directors of the Company. the quarterly performance of the Company and the financial results. 2009. 2009 to July 31. The Company provides detailed information on various issues concerning the Company’s business and financial performance. Corporate Governance Philosophy The Company is committed to good Corporate Governance. 3. of Board Meetings held during 2009 Name Category of Director Mr. keeping in view the needs and interests of all its stakeholders. Raghavan Mr. Annual Report 2009 Mandatory Committee Chairmanships 1 1 3 1 17 Mandatory Committee Memberships Last AGM attendance . Biplab Majumder (Vice Chairman & Managing Director) Mr. Veli-Matti Reinikkala# * ** # Non-executive Executive Executive Non-executive & Independent Non-executive & Independent Non-executive & Independent Non-executive Non-executive & Independent Non-executive Non-executive 4 4 4 4 4 4 4 4 4 4 3 4 3 3 3 4 1 3 3 - Yes Yes Yes Yes Yes Yes NA Yes No NA 1 1 2 14 12 6 1 - 8 1 7 - 1 1 4 7 1 - Mr K Rajagopal resigned as Whole-time Director of the Company with effect from July 31. April 30. A . The Company fully realises the rights of its shareholders to information on the performance of the Company and considers itself a trustee of its shareholders. The Committee acts as a link between the management. recommending the appointment/ re-appointment of statutory auditors and fixation of audit fees. Mr Veli-Matti Reinikkala resigned as Director of the Company with effect from March 31. reviewing the significant internal audit findings/related party transactions. Nasser Munjee Mr. on February 20. The Board has held four meetings during the financial year 2009 i. Rajagopal * Mr. D. The Company is committed to transparency in all its dealings and places emphasis on business ethics. India. but however he was appointed as an Alternate Director for Mr Peter Leupp during the period from April 30. The basic philosophy of Corporate Governance in the Company is to achieve business excellence and dedicate itself for increasing long-term shareholder value. 2009 and he attended the Board Meeting held on April 30.Annexure – C to Directors’ Report Report on Corporate Governance 1. 2009. 2009. to its shareholders. July 31 and October 30. 2. Gary Steel (Chairman) Mr. reviewing the Management Discussion and Analysis of financial condition and result of operations. 2009 None of the Non-executive Directors has any pecuniary relationship or transaction with the Company. E. Mr Bernhard Jucker resigned as Director of the Company with effect from March 20. of Board Meetings held in the Financial Year 2009 and dates on which held The Board meets at least once in a quarter to consider amongst other business.

the Committee has discharged such other role/function as envisaged under Clause 49 of the Listing Agreement of the Stock Exchanges and the provisions of Section 292A of the Companies Act. the Chairman being Non-executive and Independent. Udwadia Mr. Mr K Rajagopal resigned as Whole-time Director of the Company effective July 31. Raghavan (Chairman) Mr.The Committee discussed with the external auditors their audit methodology. Dasgupta (iii) Remuneration Policy/Criteria of payments to Non-executive Directors The Company has a credible and transparent policy in determining and accounting for the remuneration of the Executive/Non-executive Directors. of meetings attended 4 4 5 3 18 ABB Limited. track record. as regards composition of Audit Committee. April 30. 1956. Nasser Munjee (Chairman) Mr. N. Nasser Munjee Mr. 2009. K. Annual Report 2009 . on February 19. audit planning and significant observations/suggestions made by them. K.200 400 400 400 400 Stock Option Nil Nil Nil Nil Nil Nil Pension Nil Nil Nil Nil Nil Nil No. name of members & Chairperson. Dasgupta 4. Remuneration Committee (i) Terms of Reference The role of the Remuneration Committee is to recommend to the Board. N. Biplab Majumder Mr. Udwadia Mr. (ii) Composition. Gary Steel Mr. A. As a policy. N. E. the remuneration package for the Managing / Executive Directors (s). No meeting of the Committee was held during the financial year 2009. The Committee has held five meetings during the financial year 2009 i. K. The composition of the Audit Committee as on December 31. D.S. Their remuneration is governed by the external competitive environment. Raghavan Mr. The composition of the Remuneration Committee as on December 31. Raghavan Mr. potential.513 4. A. individual performance and performance of the Company as well as industry standards. June 20. Dasgupta (*) ** subject to the approval of the Board. In addition. The remuneration determined for the Executive/Non-executive Directors is subject to the approval of the Board of Directors and the Members. K. 2009 and the attendance of members at the meetings of the Audit Committee held during the financial year 2009 were as follows: Members of Audit Committee Mr. 2009 is as under: Members of Remuneration Committee Mr.662 1. The Audit Committee presently consists of four Non-executive Independent Directors. S. D. 2009. name of members & Chairperson. 1956.e. Sitting Fees Nil Nil 85 70 110 60 Salary & Perquisites 13. The Committee also discussed major issues related to risk management and compliances.820 NA NA NA NA Commission Payable(*) 3. July 31 and October 30. A. (ii) Composition. the Non-Independent Directors are not paid sitting fees. The Non-executive Independent Directors are compensated by way of a commission and the criteria being their attendance in the Board/Committee Meetings.. (iv) Details of remuneration to all the Directors paid / payable for the financial year 2009 (Rs in Thousands) Name Mr. meetings held during the year and attendance at meetings The Company has complied with the requirements of Clause 49 of the Listing Agreement of the Stock Exchanges and Section 292A of the Companies Act. E. Rajagopal** Mr. India. meetings held during the year and attendance at meetings The Remuneration Committee presently consists of 3 Non-executive Directors. S.

e. Bengaluru – 560 001 The Atria Hotel.m.00 a.1.Legal & Compliance and Company Secretary is the Compliance Officer of the Company. wherein the approval of the members was obtained for (a) amendment to Articles of Association of the Company and (b) payment of Commission to Non-executive Directors.00 a.m. Mr.. In order to expedite the process. 2009 Tuesday June 3. of investors’ complaints received during 2009 294 No. “Chancery”. The composition of Investors’ Grievance Committee as at December 31. Biplab Majumder. Biplab Majumder The details of investors’ complaints received and resolved during the financial year 2009 is as under: No. General Body Meetings (i) Location and time where last three Annual General Meetings (AGMs) held For the Year 2008 2007 2006 (ii) Venue The Lalit Ashok. Bengaluru – 560 001 The Atria Hotel. of investors’ complaints resolved during 2009 294 Investors’ complaints pending at the end of 2009 NIL No.Fixed Component / Performance Linked Incentive / Criteria The Executive Directors of the Company are entitled to an annual performance related commission based on the results achieved against the targets fixed and determined by the Board. Gururaj. Palace Road. of meetings attended 4 3 4 6. Raghavan Mr. 2007 Time 11. No.00 p. the Board of Directors has also delegated the authority severally to the Vice Chairman & Managing Director (VC & MD) and the Company Secretary to approve the share transfers and accordingly. Four meetings of Investors’ Grievance Committee were held during the financial year 2009 i. April 30. May 19. E. D. Two Special Resolutions had been passed in the Annual General Meeting of the Company held on May 25. 2008 and May 19. Bengaluru – 560 001 Day & Date Tuesday. “Chancery”. Kumara Krupa High Grounds. N. 2009 and attendance of the Committee members at these meetings were as follows: Members of Investors’ Grievance Committee Mr. No severance fee is payable by the Company on termination of the agreement. May 25.e. Palace Road. 2007. S. Service Contract / Notice Period / Severance Fees a) b) 5. ABB Limited.m. AGM held on June 3. The Contract of Service entered into by the Company with Mr. on February 20. July 31 and October 30. Annual Report 2009 19 . (IST) 3. Senior Vice President . the VC & MD or the Company Secretary approves the transfer / transmission of shares generally at a frequency of about twice a month. B. (IST) 11.1. 2009. 2009. provides that the Company and the Vice Chairman & Managing Director shall be entitled to terminate the agreement by giving 90 days notice in writing on either side. No. 2008 Friday. “Kalinga”. India. Vice Chairman & Managing Director. Udwadia (Chairman) Mr.. Shareholders’ Committee The Board of Directors of the Company has set up an Investors’ Grievance Committee which has been authorised to approve the transfer / transmission / transposition of shares. (IST) Special Resolution passed in the previous three Annual General Meetings No Special Resolution was passed in the last two Annual General Meetings i.

Means of Communication (i) Quarterly Financial Results / Official News Releases The quarterly / half-yearly / annual financial results are published in The Economic Times / Business Standard / Financial Express (English Daily) and Samyukta Karnataka (Kannada Daily). 2010 at 11. Time and Venue: The Company will be holding its 60th Annual General Meeting on Tuesday. The Company has adopted Whistle Blower Policy of ABB Group. The financial results and the official news releases are also placed on the Company’s website www.abb.. The Company has fully complied with the mandatory requirements of Clause 49 of the Listing Agreement of the Stock Exchanges. The employees of the Company have access to approach the Management on any issues relating to Code of Conduct/Business Ethics. Agenda: (a) (b) (c) (d) (e) Adoption of Audited Accounts. May 11. the Company has adopted one non-mandatory requirement of clause 49 of the Listing Agreement. which has been constituted to determine the remuneration package of the Executive Director(s). Stock Exchanges or any other Statutory Authority on matters relating to capital markets.helpdesk@in. (iii) Whistle Blower Policy and affirmation that no personnel have been denied access to the Audit Committee. 7. viz. India. Date. the Company does not have any proposal to pass any special resolution by way of postal ballot. Chartered Accountants.00 a.co. Batliboi and Co.(iii) Postal Ballot No postal ballot was conducted in the year 2009. Further. Neither any penalty nor any stricture has been passed by SEBI. ABB Group has a business ethics hotline maintained at Group’s headquarter at Zurich for making any compliant by anyone on compliance issues. “Chancery”.abb. Palace Road. 9. There was no materially significant related party transaction during the year having potential conflict with the interests of the Company. No. in the last three years. 8. The Company has a dedicated help desk with e-mail ID: investor. As on date.m. The Company has complied with all the requirements of the Listing Agreement of the Stock Exchanges as well as regulations and guidelines of SEBI. S. penalties and strictures imposed on the Company by the Stock Exchanges or SEBI or any statutory authorities or any matter related to capital markets during the last three years.com in the Secretarial Department for providing necessary information to the investors. Remuneration Committee of the Board. as Auditors Appointment of Director 20 ABB Limited. (i) General Shareholder Information Annual General Meeting Day. (ii) Details of non-compliance by the Company.1. R. Annual Report 2009 . Bengaluru – 560 001.in. Disclosures (i) Disclosures on materially significant related party transactions. (iv) Details of compliance with mandatory requirements and adoption of the non-mandatory requirements of this clause. (IST) at The Atria Hotel. Directors’ and Auditors’ Report Declaration of Dividend Re-election of Directors retiring by rotation Re-appointment of M/s.

5. 4. Gas and Petrochemicals. aged 66. corporate restructuring. joint ventures etc. Ltd 19. Eureka Forbes Ltd. Ltd. NIL NIL ABB Limited. Singapore Syndicated Research Worldwide Pvt. AstraZeneca Pharma India Ltd. Ltd. Shareholding in ABB Limited 2600 Shares Mr. 11. Quantum Advisors Pvt. Ltd. Udwadia. Government of India for 9 years handling various responsibilities in the Corps of Electrical and Mechanical Engineers. aged 70. Mr. Nadathur Arts Pvt. Ltd. 8. E. 5. 7. 17. WABCO-TVS (India) Ltd. Raghavan Mr. 4. JM Financial & Investment Consultancy Services Pvt. N. Wyeth Ltd. India. Mechanalysis (India) Ltd. is a graduate in Electrical Engineering. 15. 10. foreign collaboration. which is one of the leading law-firms in Mumbai. Committee Memberships Audit Committee 1. Ltd. Nadathur Fareast Pte. 6. Wyeth Ltd. Ojas Ventures Fund Pte. Duggan aged 50. has obtained a Post Graduate Degree from the University of Mumbai. The Bombay Burmah Trading Corp. Mr. 13. Currently he is the Region Manager for India. He has been working with ABB for the past 25 years. including Transmission & Distribution Manager in Poland. Raghavan. 2. NIL Flame-Tao Knoware Pvt. AstraZeneca Pharma India Ltd. D. Pvt.. is a graduate Engineer. 18. Duggan has held various high-profile positions across the company. He has nearly five decades of active law practice and has acquired invaluable knowledge. Ananta Holdings Pvt. Ltd. Udwadia Mr. 6. He worked as an Engineer in Andhra Pradesh State Electricity Board and as Head . Rossi Gearmotors (India) Pvt. 16. mergers / acquisitions & takeovers. MPS Ltd. ADF Foods Ltd. IDFC Private Equity Nadathur Holdings and Investments Pvt. 4. Ltd. Annual Report 2009 21 . ITD Cementation India Ltd.Electrical Department in Kothari Sugars and Chemicals Limited.. 14. 7. WABCO-TVS (India) Ltd. JM Financial Consultants Pvt. S. The Bombay Burmah Trading Corp. JM Financial Trustee Co. IDFC Private Equity Mr.(ii) Profile of Directors seeking re-appointment/appointment The profile of Directors who are seeking re-appointment / appointment at the Annual General Meeting is furnished below: Brief profile of Directors and nature of their expertise in functional areas Directorships/Committee Memberships in other companies Directorships 1. 6. 2. Ltd. Global Business Area Manager for Oil. 3. Habasit lakoka Pvt. JM Financial Ltd. Francis Duggan Mr. experience and expertise in various matters viz. Conservation Corporation of India Pvt. Committee Memberships Audit Committee 1. 7. Country Manager of the Czech Republic. 3. Ltd. Ltd. Ltd. He was the Joint Managing Director of Infosys Technologies Limited for 19 years. Ltd. Development Credit Bank Ltd. Directorships 1. 9. 5. 12. Nitesh Estates Ltd. Development Credit Bank Ltd. 8. Trichy. He is a solicitor by profession and is a senior partner of a law firm ‘Udwadia & Udeshi’. Ltd. Ltd. MPS Ltd. as well as Head of Group Account Management. corporate laws. He is also the Chairman of AstraZeneca Pharma India Limited and Vice Chairman of MPS Limited. He is also on the boards of several reputed public as well as private companies. ITD Cementation India Ltd. 3. He served in the Ministry of Defence. Middle East and Africa (IMA). 2. Ltd.

December) excluding Extra Ordinary General Meeting(s).00 452.35 827.00 NSE (Rs.45 343.70 3478.30 15732.00 820. 2010 to May 11.35 3517.70 4143.05 High 3147. (vi) Listing on Stock Exchanges The equity shares of the Company are currently listed at National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).95 5138. Annual Report 2009 .05 392.00 344.45 15356.78 High 519.00 5221.00 360.60 8619.35 414.15 BSE Sensex High 10469.20 2969.15 723.94 Low 8631.75 4743.00 808.55 2539.95 Bombay Stock Exchange 500002 ISIN INE117A01022 Period 2009 January February March April May June July August September October November December 22 ABB Limited.29 11621.90 820.80 648.30 14016. to those shareholders whose names appear on the Company’s Register of Members as on May 4.00 834.00 432.87 10127.75 4353.56 16577.10 641. 2010.80 788.75 3123.09 11492.00 Low 420.75 5087.00 763.40 4693.90 786.99 14684.65 478. during the year 2009 was as follows: BSE (Rs.00 806.50 730.17 17290. 2010 May.46 17142. 2010 April.17 9546.52 17493.65 2677.00 560.72 9724.80 560.10 642.20 4669. 2010 (iv) Date of Book Closure The Company’s Register of Members and Share Transfer Books will remain closed for the purpose of payment of dividend from May 5. if any.(iii) Financial Year Indicative calendar of events for the year 2010 (January .50 4538.00 834.25 786.25 3918. as recommended by the Board of Directors.) High 517.54 15600. 2010 October.50 4943.00 700.60 4687.95 13219.) Low 422. (vii) Stock Code National Stock Exchange ABB (viii) Market Price Data The market price data of the Company’s shares traded in the Bombay Stock Exchange and the National Stock Exchange. appropriate listing fee to both the Stock Exchanges where the Company’s equity shares are listed. The Company has paid till date.72 15805.25 4509.10 14930.00 480.15 648. if declared at the ensuing Annual General Meeting will be paid on or after May 13.85 NSE Nifty Low 2661.55 703.00 414. 2010.45 777.00 697.10 649.00 728.22 8047.15 707.00 649.45 4576.45 2965.00 731.48 17530.00 700. (v) Dividend Payment Date The dividend.00 765. 2010 July.20 15330.50 359.00 827. 2010 (both days inclusive). India.00 723.81 16002.00 433.60 5181. are as under: Fourth Quarter Financial Results (Year 2009) First Quarter Financial Results Annual General Meeting Second Quarter Financial Results Third Quarter Financial Results February.

BSE Sensex and NSE Nifty ABB Limited.(ix) Performance in comparison to broad-based indices viz.. Annual Report 2009 23 . India.

of shares 110420285 446193 3500 43318448 979900 6030284 21308653 5934434 23466678 211908375 % 52.2009 Shareholders ABB Asea Brown Boveri Ltd.: 080-26621192 Fax No.81 1.50 0.68 100.44 100. India. No.12.K.(x) Registrar and Share Transfer Agents Karvy Computershare Private Limited. 17-24.500 081. the VC & MD or the Company Secretary approve the transfer/transmission of shares generally at a frequency of about twice a month.28 3.07 100.12. Tel.08 86. of Shares held 18676873 2625092 4644175 2287980 183674255 211908375 %age of equity capital 8. Bengaluru . However. 51/2. Vanivilas Road.: 040-23420814 E-mail: mailmanager@karvy.00 24 ABB Limited.Complex.560 004. of Shareholders 111741 382 230 31 75 112459 No.11 0. Sweden Non-Resident Individuals / OCBs Directors and their relatives LIC / UTI / Other Insurance Cos.44 0. National College.11 0. shares in the physical form are processed by the Registrar & Share Transfer Agents and approved by the Investors’ Grievance Committee.06 2.37 2.19 1. Madhapur. are transferable through the depository system.00 (xiii) Distribution of Shareholding as on December 31.80 11.com (xi) Share Transfer System The Company’s shares being in compulsory demat list. Zurich & ABB Norden Holdings AB. Opp.46 2.21 0. the Board of Directors has also delegated the authority severally to the Vice Chairman & Managing Director (VC & MD) and the Company Secretary to approve the share transfers and accordingly.N. Tel. Annual Report 2009 . Hyderabad . 2009 Category 1 – 5000 5001 – 10000 10001 – 50000 50001 – 100000 100001 and above Total No. No.38 11.00 20. Vittal Rao Nagar. In order to expedite the process. Nationalised Banks / Other Banks Mutual Funds Foreign Institutional Investors Bodies Corporate / Trust General Public Total No. (Unit: ABB Limited) (1) No.: 080-41312645 E-mail: sksharma@karvy. T.22 0.00 17. (xii) Shareholding Pattern As on 31.00 As on 31.24 2.2008 No.85 10. Basavanagudi. of shares 110420285 459231 5225 37088502 584473 7848964 26215035 5047432 24239228 211908375 % 52.com (2) Plot No.70 12. The share transfer process is reviewed by the said Committee.: 040-23420815-28 Fax No.

East Wing. 49. (xvii) Plant Locations The Company’s plants are located at Bengaluru. Annual Report 2009 25 .(xiv) Dematerialisation of Shares and liquidity The equity shares of the Company are available under dematerialised form with National Securities Depository Limited (NSDL) and Central Depository Services (India) Ltd. there is no impact on the equity share capital of the Company. (CDSL). Mumbai. 2010 Gary Steel Chairman ABB Limited. (xvi) Code of Conduct The Company has in place a Code of Conduct applicable to the Board Members as well as the Senior Management and the same has been hosted on the Company’s website. As on December 31. Bengaluru . 2009. India. (101. Faridabad. 101.in (xix) Non-Mandatory Requirements Remuneration Committee of the Board to determine the remuneration package for the Executive Director(s).. Haridwar. Race Course Road. (xviii)Address for Correspondence ABB Limited 2nd Floor. 2008).e. For and on behalf of the Board Place : Bengaluru Date : February 26. the Company has been allotted with new ISIN i. INE117A01022.99% of the total shares. The Company’s equity shares are compulsorily traded in the dematerialised form. Consequent to sub-division of the face value of equity share of the Company. (xv) Outstanding GDRs / ADRs / Warrants or any Convertible Instruments.487 equity shares were in dematerialised form representing 47. All the Board Members and the Senior Management Personnel have affirmed compliance with the Code of Conduct.432.. 2009.87% of the total shares as on December 31.abb. Nashik and Vadodara. conversion date and likely impact on equity As on date.com Corporate Website: www. ADRs or any other Convertible Instruments and as such.560 001 Phone: 080-22949150 to 22949153 Fax: 080-22949148 Corporate Secretarial E-mail ID: investor.abb. the Company has not issued GDRs. Khanija Bhavan. as on December 31.helpdesk@in.co.703.577 equity shares of the Company have been dematerialised representing 47.

For D. We have obtained all the information and explanations. On the basis of our examination of the records produced. No. 6119 26 ABB Limited. We have examined all relevant records of ABB Limited (the Company) for the purpose of certifying compliance of the conditions of Corporate Governance under Clause 49 of the Listing Agreement with National Stock Exchange of India Limited (NSE). Our examination was limited to the procedure and implementation thereof. we certify that the Company has complied with: (a) (b) all the mandatory requirements of the said Clause 49 of the Listing Agreement. and Bombay Stock Exchange Limited (BSE).R. The compliance of the conditions of Corporate Governance is the responsibility of the management. Annual Report 2009 . This certificate is neither an assurance as to the future viability of the Company nor the efficacy or effectiveness with which the management has conducted the affairs of the Company. 2010 D.D to Directors’ Report Corporate Governance Compliance Certificate To The Members of ABB Limited. India. explanations and information furnished. 2009.R.Shressha Proprietor C.Annexure . P.Shressha & Associates Company Secretaries Place: Bengaluru Date: February 26. which to the best of our knowledge and belief were necessary for the purposes of certification. for the financial year ended December 31. the following non-mandatory requirement of the said Clause 49 – “Constitution of Remuneration Committee”.

orders for Process Automation segment were significantly lower. metros.541 million. the Company secured orders worth Rs 86. order receipt for Power Products segment had remained at the same level as achieved in last year.192 65 2008 25. And all time high order backlog.83 in the previous year. railways.Management’s Discussion and Analysis Operating Results of the Company During the year 2009.054 2.332 million in the previous year.632 million. However additional capacity of over 60. credit risk. investment decisions by our customers.478 42. There have been significant investment plans both by public and private sectors for other infrastructure projects also in the areas of airports. During the year. Company’s order backlog at the end of the year increased by 38% to Rs 84. (Rs in Millions) Orders Received Order Backlog Revenues Result 2009 33. As a result. Cash flow. management is optimistic about volume growth of the Company in coming years. In line with attractive long term returns.74 compared to Rs 25. During the year.000 MW is under construction and for most of these projects fuel linkage has been established.675 million. Profitable growth in the short term may be influenced by market competition. development of transmission network and power distribution improvements.028 With energy shortage increasing in the country and Central Government’s focus on power sector reforms and introduction of national electricity policy in past few years have reflected in increasing investment in capacity addition. management continued to pursue several cost optimisation measures.608 26. from operations was significantly higher than the previous year. Central Government has finalised Restructured Accelerated Power Development and Reforms (R-APDRP) for augmenting and strengthening power distribution network in India. relative share of project orders were higher compared to product orders which delayed conversion of these orders into revenues. Profit before tax was lower at Rs 5. water irrigation etc. Revenues during the year were at Rs 63. ports. National grid is being planned and it is envisaged to have 37. the business is expected to grow. Annual Report 2009 27 . Business Segment Analysis Please refer to note 4. Net profit after tax at Rs 3. Slowing down of orders for products. Against power generation capacity addition target of 78. decision to exit from rural electrification business in Power Systems segment and requests from certain customers to defer the supplies affected overall revenue growth. continued investments in power and other infrastructure projects. The Company had good inflow of orders from Power Systems and Automation Products segments. particularly industrial sector customers.098 million.653 17. roads. actual capacity addition till year end has been rather low. a modest 8% higher than the previous year’s orders of Rs 80. potential for increase in exports. Central Government’s stimulus package had positive impact on investments and liquidity in the economy. were either deferred or dropped. Schedule 16.546 million for the year was lower by 35% compared to the previous year.787 million as compared to Rs 61. adequate manufacturing and engineering capacities coupled with various management strategies and access to global technologies.847 million. particularly in the first two quarters of the year. recent pickup in growth rate in the manufacturing sector. Central Governments stimulus packages have helped in improving liquidity and investments in power and infrastructure sector. building of organisation and manufacturing capacities for higher expected scale of operation and significant provision against receivables due to higher credit and other risks.700 MW during the eleventh five year plan (2007-12). successful closure of rural electrification and certain other large projects.274 million as compared to Rs 8. This had affected rate of overall growth in order receipt during the year. Profit before tax for the year was lower on account of lower revenues.000 MW of inter-regional capacity comprising of high capacity HVDC and HVAC lines to be completed by the year 2011-12. Power Systems Segment (PS) The summarised performance of the segment is as under. Power Systems (PS) Power Products (PP) Process Automation (PA) Automation Products (AP) 2009 26 % 29 % 18 % 27 % 2008 31 % 28 % 18 % 23 % Relative share of revenues from Power Systems segment reduced significantly during the year with corresponding increase in revenue share from Power and Automation Products segments. ABB Limited. which partially helped in improving the profitability. Power Grid Corporation of India Limited (PGCIL) is expected to invest over Rs 500 billion on enhancing power transmission capacity in next two years. Consequently. for detailed description of the Company’s business segments. The relative distribution of revenues amongst the segments is as under. cost of early exit/foreclosure of certain contracts in rural electrification business. adverse impact from fair valuation of forward foreign exchange and embedded derivative contracts. however. Outlook for the Company With improvement in economic scenario.618 million at the beginning of the year. increased credit risk. better liquidity environment. registering a decline of 9% over the previous year’s revenues of Rs 69. Due to slowing down of global and Indian economy and liquidity crunch particularly in early part of the year.131 23. the Company has completed majority of manufacturing capacities expansion projects and continued to expand its range of offering and introduced several new products. Earnings per equity share (face value Rs 2) was also lower at Rs 16. India. Investment in fixed assets during the year was Rs 1.

investment by industries was lower. have affected the price levels. In complex projects we shall introduce world class systems and plan to deploy world class experts from the parent company. 15 number power transformers from NTPC Limited for Vishnugad project. continuous introduction of new products and expected increase in demand for power products from utilities as well as industrial sector. electrical balance of plant package for 2X250 MW Chhabra – II from Indure Private Limited. execution of lower margin orders and adverse impact from fair valuation of foreign exchange forward and embedded derivative contracts. Manufacturing capacity enhancement for power transformers and traction transformers at Vadodara. Cash flow from operations was better during the year due to collection of old receivables and higher advances from customers for the large order receipt during the year. and lower order receipt/backlog for certain business units. margin slippages in certain contracts. 33 kV packaged substation. exit costs of rural electrification business and successful closure of certain large projects pose a challenge towards realisation of normal profit levels in the short term. Power Products Segment (PP) The summarised performance of the segment is as under. During the year orders and revenues remained broadly at the same level as of the previous year. Cash flows from the operation was better during the year. 145 kV LTB D light circuit breaker. There is also increasing focus on non conventional source of energy like solar and wind due to environment considerations and global warming concerns. These trends are favourable to this segment. Central Government’s stimulus package had positive impact on the business environment. 4000A centre break disconnector. deferment of deliveries by the private sector customers for electrical balance of plant. 2500A double break disconnector and current transformers and capacitor voltage transformers with polymer insulators.742 20. increasing competency in the area of project management. during the year. particularly from China and Korea. Power Systems segment booked several large orders during the year. and excess capacity for certain products. Outlook for the segment continues to be positive with comfortable order backlog. To maintain competitive edge in the market. Profit of the segment was significantly lower compared to previous year due to lower revenues. erection. Major orders received during the year included 18 number power transformers of various ratings from NTPC Limited for Mauda project. 13 number power transformers of various ratings from TATA Projects Limited for Krishnapatnam project. Orders received in Power Systems segment grew by 31% during the year. electrical balance of plant for 2X800 MW thermal power plant at Krishnapatnam from TATA Projects Limited. higher manufacturing capacities. outlook for the segment is positive. shunt reactors and capacity augmentation for high voltage circuit breakers and instrument transformers were commissioned. 33 kV. This segment also witnessed increase in number of competitors from both domestic as well as overseas. 750V DC third rail traction electrification and SCADA system from Bangalore Metro Rail Corporation Limited. Considering improving economic environment and good order backlog position. Internal organisation has been recently reorganised to optimise resources and bringing management focus. project controlling and supply chain management. 19 number power transformers of various ratings from Neyveli Lignite Corporation Limited for Tuticorin project. impact of exit/foreclosure of certain rural electrification projects.170 2008 24. Profit was lower compared to last year due to lower price realisation for high and medium voltage switchgears and higher provision against receivables. (Rs in Millions) Orders Received Order Backlog Revenues Result 2009 23. 6 bay of 220 kV hybrid switchgears from GMR Energy Limited for barge mounted power plant at Kakinada and an export order for supply of 36 kV OHB breakers for Rs 323 million. turbines and generator (BTG) and balance of plant (BOP). With favourable environment. bushings.601 The business environment for the power transmission and distribution sector continued to be positive as detailed under Power Systems segment. 400 kV. Annual Report 2009 .Most utilities prefer to order substation packages on turnkey basis and power plant developers prefer to go in for procurement by splitting the packages for boilers. Wardha and Agra from PGCIL. Due to slow down in the Indian economy and liquidity crunch. project risk reviews. India. It is also to be noted that there is increasing demand for new technologies like gas insulated switchgears due to space constraint in urban areas. Series of short circuit tests of transformers of various ratings were completed during the year. This segment also booked large value internal orders for transformers and HV/MV breakers from Power Systems segment. This included shunt reactor 50 MVAr. 220/132/33 kV transmission substations at Srinagar from Power Transmission Corporation of Uttaranchal Limited. dry type transformers. 145 kV. electrical balance of plant packages for 1X500 MW Korba thermal power plant from INDU Projects Limited and supply. Several new players have entered in extra high voltage space increasing competition resulting in lower price levels for substation packages. testing and commissioning of power supply receiving/distribution system. However due to competitive market.492 2. indoor unigear switchgear at Nashik and HV capacitor at Bangalore are under implementation and will be completed during 2010.629 19. During the year several 400/220/132 kV substations were commissioned for PGCIL and other customers. During the year new manufacturing facilities for small power transformers.062 16. 28 ABB Limited. several new products were introduced/supplied by the segment. Power Systems segment continued its focus in the area of safety. Revenues during the year were lower by 25% due to Company’s decision to exit from rural electrification business due to cash flow and safety concerns.980 20. 33 kV indoor switchgear type ZS2 equipped with Vacuum circuit breaker type VD4. The major orders received during the year included 765/400 kV transmission substations at Bilaspur.936 2. Increasing number of utilities are preferring to buy on turnkey basis from EPC contractors.

Grasim Cements Limited cement plant at Kotputil. pulp. Punj Lloyd Limited for LPG terminal. non-ferrous metals. cold rolling mill at Korba for BALCO. beverages. revenues and profits during the year were lower than the previous year. The industry has significant latent opportunities for investments from trend of increasing per capita consumptions for all metals. For improving efficiencies. With pickup of automobile sector and investments in power generation and other infrastructure segment.268 Slow down in Indian economy and lower investments in industrial sector effected orders and revenues for standard products. segment focused on service opportunities and had significant growth in orders and revenues from the service business. With slow down in investment for new capacity enhancement projects. Arcelor-Mittal and Tata Group. With limited global opportunities.679 7. food. India. With good order backlog. waste water and telecom.335 13.632 18. Tata Projects Limited for blast furnace BF5-Rourkela Steel Plant. outlook for the segment remains positive. food. liquidity crunch and capacity built-up in anticipation of demand growth have adversely affected the demand for new equipment and systems provided by the segment from later part of the year 2008. Newer opportunities are expected from Middle East and South East Asian markets where internal market allocation has been given to the segment for metals and minerals businesses. demand for cement. Demand for building electrical products was lower due to slow down in the real estate segment.488 2008 15.830 17. Due to lower demand for standard products and lower price realisation from increased competition. The global market meltdown.297 12. Some of the proposed investments were either deferred or dropped. Megha Engineering and Infrastructure Limited for ONGC Assam renewable project. Overall growth in orders and revenues of the segment during the year was 13% and 4% respectively. competition in India is increasing. Major plants/systems for electrical and automation solutions commissioned during the year includes cold rolling mill for Dharampal Industries Limited. Vedanta Aluminium Limited LT package for pot lines. control over expenses and new recruitments were exercised throughout the year. iron. hot rolling mill – plate mill at Vasind for JSW Steels Limited. clinkerisation plant for Star Cement Limited. with improvements in consumer sentiments. Jindal group and Bhushan group have announced their plans for investment in steel sector in India. pumps. adverse impact of foreign exchange rates and capacity build up cost affected the profitability of the segment. Profitability of the segment was further affected due to adverse impact from fair valuation of foreign exchange derivatives.048 2008 20. bucket wheel excavator for Neyveli Lignite Corporation Limited. beverages and wind energy. boiler machinery. The global steel majors like POSCO. industries are investing for retrofit and up gradation projects. cement and paper. water. availability of finance and industrial growth. Steel Authority of India Limited. Active sectors during the year were capital goods.022 2. Safety at project sites continued as major focus area and training programmes were conducted during the year for risk reviews. steel and coal handling equipment is expected to increase. For certain customer orders there was delay in conversion of order backlog into revenues due to delay in the projects. paper.100 1. steel. automotive. cement. Automation Products Segment (AP) The summarised performance of the segment is as under. Segment was able to sustain its market position in all the product ranges.401 12. Bhushan Power and Steel Limited for cold rolling mill and Diesel Locomotive Works for TPR61 Turbochargers.376 2. Prism Cements Limited and Jaiprakash Associates Limited for cement plants. Dubai. Cash flow from the operating activities was better during the year.848 The Industrial climate in the country remained buoyant for several years till middle of 2008. ThyssenKrupp Industries Limited for internal coal handling plant for Mundra power plant. (Rs in Millions) Orders Received Order Backlog Revenues Result 2009 12. To minimise adverse impact of business slow down. This was more than compensated by very good order receipt and revenues from power electronics and medium voltage drives business units.Process Automation Segment (PA) The summarised performance of the segment is as under. The major orders received include Arcelor-Mittal for Tube Mill at Saudi Arabia. variflex winder and Janus calendar for Ballarpur Industries Limited. chemicals. There was marketing focus on original equipment manufacturer (OEM) segment including HVAC.659 13. orders received.334 1. Customers are splitting the packages for smaller group of products limiting the opportunities for the segment in terms of volume and margin. The segment has received several large orders for electrical and automation solutions during the year. In the later part of the year 2009. infrastructure. compressor. Operating cash flows were lower due to delay in payments from the customers. lower consumer spending. Focus in the material handling sector has been increased to secure orders for coal handling plants. Annual Report 2009 29 . Due to adverse external environment. increase in growth rate of industrial production and expectation of firming up of the new and deferred investment plan by the customers. Orders were received from major ABB Limited.265 13. The outlook for Process Automation segment shall improve gradually with additional emphasis on service business particularly with ABB Full Service Concept which is being introduced as a major revenue stream. Ariyalur cement line II for Chettinad Cements Limited. there were early signs of new investments in brown and green field projects. SCADA systems at nine locations for ONGC and systems for paper machine. (Rs in Millions) Orders Received Order Backlog Revenues Result 2009 23.

30 ABB Limited. Internal Control System The Company has in place effective systems of internal control ensuring accurate. Kirloskar Brothers Limited. Audit plans are prepared in advance based on risk assessment. 2002 and clause 49 of the listing agreement with the stock exchanges.OEMs like Sulzer Limited. As in the past. Maharashtra were inaugurated in early part of the year. observations and recommendations of the internal and external auditors with reference to significant risk areas and adequacy of internal controls. water.241 million compared to Rs 3. the management has established adequate internal control procedures over financial reporting. As per the requirements of Sarbanes Oxley Act. Major orders received includes Vedanta Aluminium Limited for supply and commissioning of high current rectifier system and associated equipments for expansion of aluminum smelter at Jharsuguda. Atlas Copco Limited. Win Wind for LV drives for wind converters. to create an employee centric reward system and to create a culture of appreciation within the Company. Collections from industrial customers and channel partners improved in the later part of the year. Thermax Limited. There were selective recruitments during the year and employee strength was rationalised in line with the business environment. safeguarding the assets and interests of the Company and ensuring compliance with laws and regulations. Company had borrowing position in most part of the year and interest income from placement of temporary surplus funds as fixed deposits with the banks reduced to Rs 11 million compared to Rs 85 million in the previous year. Cash flow from operation during the year improved significantly. The company had 6. Segment received several large orders during the year from various sectors of the industry. reliable and speedy compilation of financial information. Availability of funds from banking sector improved and rate of interest reduced during the year. The Company has also put in place a well-defined organisation structure. To recognise exemplary performances. of all the employees was carried out. During the year two employee unions were merged at a location and process for management of third party service providers was streamlined. Bangalore and new Machine service unit at Taloja. Segment’s new modern factory for manufacturing of breakers. The Company has an exhaustive budgetary control system and the management regularly reviews actual performance. the industrial relations continued to remain cordial at all the locations of the Company. Excess industry capacity. Action learning workshops were launched and technical skill enhancement trainings were provided to the employees across all the levels in organisation. ‘E-initiatives’ continued to yield good results with the B2B transactions running over Rs 5 billion.222 (previous year 6. increase in competition and volatility of foreign exchange rates continue to be the risks for the segment.482 million at the end of the previous year. Execution and commissioning of large systems during the year included high current rectifiers at Vedanta Aluminium Limited and 180 kVA traction converters for Indian Railways. During the year goal setting exercise. employee driven reward programme called ‘EMPower’ was launched. As in the past. ports and harbors. followed by a mid-term performance review. Other European customers including Win Wind. India. Orissa. Megha Engineering and Infrastructure Limited for equipment for lift irrigation project at Dumagudem. Internal audit also conducts follow up reviews to ensure implementation of its recommendations and suggestions. Finance There was improvement in liquidity position in economy from second half of the year compared to short of crisis situation witnessed during later part of the previous year. The Company has an internal audit department that conducts regular audits to ensure adequacy of the control system. employer branding and robust functional assessments processes were carried out. adherence to management instructions and legal compliance. New HR initiatives were aligned to support business needs. empowering employees at all levels and launching structured reward and recognition mechanisms. Annual Report 2009 . With improvement in industrial production in the later part of the year. Ingersoll Rand (India) Limited. This initiative was taken up from a feedback from an employee engagement survey in 2008. Bharat Aluminium Company Limited for supply and commissioning of high current rectifiers for aluminium smelter at Korba. RNS Infrastructure Limited for equipments for KNNL lift irrigation project. This is expected to optimise management efforts in the coming years. The Audit committee of the Board of Directors periodically reviews the audit plans. maintain efficient distribution network and continuous range expansion to secure fair share of the market. However higher investment in receivable continues to remain area of concern. LV system and power electronics at Nelamangala. Interest expenses during the year reduced to Rs 256 million compared to Rs 347 million in the previous year. overall outlook for the segment remains positive. Net cash position (cash and bank balances less loan fund) at the end of the year was higher at Rs 5. clear authority levels and detailed internal guidelines for conducting business transactions. drives. New wind generator motor factory at Vadodara is in advance stage of completion. Segment has plans to increase thrust on marketing activities in potential growth areas like railways. Special emphasis was laid on talent management by rolling out a new and comprehensive employee performance and development appraisal programme in the later part of the year. During the year. other European customers for wind generators and Bombardier Transportation India Limited for traction motors as well as other low voltage products and Relays. Company has maintained excellent relationship with major banks operating in India and was able to avail and negotiate favourable terms for various banking facilities. The Company continued to hedge all its foreign currency exposures for imports and exports to protect contract stage margins. The channel partner network remained over 850 during the year which contributed to revenues of Rs 12 billion. detailed customer evaluation and credit limit fixation process were established and physical verification of all the fixed assets of the Company was carried out and these assets were bar coded to support future efficient verification process. To attract and recruit bright professionals. comfortable order backlog and capacities available for faster deliveries. wind. This has been achieved by continuously investing in learning and development programmes creating a positive work environment.496) employees at the end of 2009. Human Resources Employee engagement remained the key focus of human resource (HR) function. Cethar Vessel Limited.

Place: Bengaluru Date: February 26. We have indicated to the auditors and the audit committee that there are (i) (ii) (iii) significant improvement in internal controls over financial reporting during the year. of which we are aware and the steps we have taken. if any. In our opinion. Annual Report 2009 31 . to rectify these deficiencies. 3. if any. there are adequate internal controls over financial reporting. deficiencies in the design or operation of internal controls over financial reporting. which are fraudulent. We accept responsibility for establishing and maintaining internal controls over financial reporting and we have evaluated the effectiveness of internal control systems of the company over financial reporting and we have disclosed to the auditors and the audit committee. there are. these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be misleading. 2009 and to the best of our knowledge and belief. applicable laws and regulations. propose to take. India. We have reviewed the financial statements and cash flow statement of ABB Limited for the year ended December 31. no instance of fraud of which we have become aware and the involvement therein. of the management or an employee having a significant role in the company's internal control system on financial reporting. 1. (i) (ii) 2.CEO / CFO Certification To The Board of Directors ABB Limited We certify that. To the best of our knowledge and belief. 4. illegal or violating the company’s code of conduct. no transactions entered into by the company during the year. 2010 Biplab Majumder Chief Executive Officer Vice Chairman & Managing Director Amlan Datta Majumdar Chief Financial Officer Sr. Vice President-Finance ABB Limited. no significant changes in accounting policies during the year. these statements together present a true and fair view of the company's affairs and are in compliance with existing accounting standards.

Auditors’ Report To The Members of ABB Limited

1.

We have audited the attached balance sheet of ABB Limited (‘the Company’) as at December 31, 2009 and also the profit and loss account and the cash flow statement for the year ended on that date annexed thereto. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in India. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. As required by the Companies (Auditor’s Report) Order, 2003 (as amended) issued by the Central Government of India in terms of subsection (4A) of Section 227 of the Companies Act, 1956, we enclose in the Annexure a statement on the matters specified in paragraphs 4 and 5 of the said Order. Further to our comments in the Annexure referred to above, we report that: i. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit; In our opinion, proper books of account as required by law have been kept by the Company so far as appears from our examination of those books; The balance sheet, profit and loss account and cash flow statement dealt with by this report are in agreement with the books of account ;

iv.

In our opinion, the balance sheet, profit and loss account and cash flow statement dealt with by this report comply with the accounting standards referred to in sub-section (3C) of section 211 of the Companies Act, 1956; On the basis of the written representations received from the directors, as on December 31, 2009, and taken on record by the Board of Directors, we report that none of the directors is disqualified as on December 31, 2009 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the Companies Act, 1956; In our opinion and to the best of our information and according to the explanations given to us, the said accounts give the information required by the Companies Act, 1956, in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India; a) b) c) in the case of the balance sheet, of the state of affairs of the Company as at December 31, 2009; in the case of the profit and loss account, of the profit for the year ended on that date; and in the case of cash flow statement, of the cash flows for the year ended on that date. For S.R. BATLIBOI & CO. Chartered Accountants per Sunil Bhumralkar Partner Membership No. 35141

v.

2.

vi.

3.

4.

ii.

iii.

Bengaluru, India February 26, 2010

32

ABB Limited, India, Annual Report 2009

Annexure referred to in paragraph 3 of our report of even date
Re: ABB Limited (‘the Company’)

(i)

(a)

The Company has maintained proper records showing full particulars, including quantitative details and situation of fixed assets. The Company has a regular programme of physical verification of fixed assets which, in our opinion, is reasonable having regard to the size of the Company and the nature of its assets. In accordance with this programme, all the fixed assets were physically verified by the management during the year and we are informed that no material discrepancies were noticed on such verification. There was no substantial disposal of fixed assets during the year. The management has conducted physical verification of inventory at reasonable intervals during the year. The procedures of physical verification of inventory followed by the management are reasonable and adequate in relation to the size of the Company and the nature of its business. The Company is maintaining proper records of inventory and no material discrepancies were noticed on physical verification. As informed to us, the Company has not granted any loans, secured or unsecured to companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956. As informed to us, the Company has not taken any loans, secured or unsecured from companies, firms or other parties covered in the register maintained under section 301 of the Companies Act, 1956.

(v)

(b)

According to the information and explanations provided by the management, we are of the opinion that the particulars of contracts or arrangements referred to in section 301 of the Act that need to be entered into the register maintained under section 301 have been so entered. None of the transactions made in pursuance of such contracts or arrangements exceed the value of Rupees five lakh in respect of any one such party in the financial year. The Company has not accepted any deposits from the public. In our opinion, the Company has an internal audit system commensurate with the size and nature of its business.

(vi) (vii)

(c) (ii) (a)

(b)

(viii) We have broadly reviewed the books of account maintained by the Company pursuant to the rules made by the Central Government for the maintenance of cost records under section 209(1)(d) of the Companies Act, 1956, and are of the opinion that prima facie, the prescribed accounts and records have been made and maintained. (ix) (a) According to the records of the Company, the Company is regular in depositing undisputed statutory dues including provident fund, investor education and protection fund, employees’ state insurance, income-tax, sales-tax, wealth-tax, service-tax, customs duty, excise duty, cess and other material statutory dues with the appropriate authorities. According to the information and explanations given to us, no undisputed amounts payable in respect of provident fund, investor education and protection fund, employees’ state insurance, income-tax, sales-tax, wealth-tax, service-tax, customs duty, excise duty, cess and other material statutory dues were outstanding, at the year end, for a period of more than six months from the date they became payable. According to the records of the Company, the dues outstanding of income-tax, sales-tax, wealth-tax, service-tax, customs duty, excise duty, cess and other material statutory dues on account of any dispute, are as follows:

(c)

(iii)

(a)

(b)

(b)

(iv)

In our opinion and according to the information and explanations given to us, there is an adequate internal control system commensurate with the size of the Company and the nature of its business, for the purchase of inventory and fixed assets and for the sale of goods and services. During the course of our audit, no major weakness has been noticed in the internal control system in respect of these areas. During the course of our audit, we have not observed any continuing failure to correct major weakness in internal control system of the Company.

(c)

ABB Limited, India, Annual Report 2009

33

Name of the statute Customs Act

Nature of dues Tariff classification

Amount * (Rs in Thousands) 534,183 15,150 194

Period to which the amount relates 2002-07 2008-09 2008-09 1997-06 2003-06 2003-07 2003-06 2004-05 2005-06 1995-96 2006-07 1999-01 2003-08 2006-07 2003-07 1994-07 1998-03 2003-04 2003-07 2005-06 1994-95 1986-94

Forum where dispute is pending Customs Excise and Service Tax Appellate Tribunal (CESTAT) Additional Commissioner of Customs Joint Commissioner of Customs CESTAT Commissioner, Central Excise and Service Tax Commissioner, Central Excise and Service Tax Commissioner (Appeals) CESTAT High Court Deputy Commissioner (Appeals) Joint Commissioner of Commercial Taxes (Appeals) Sales Tax Appellate Tribunal Deputy Commissioner (Appeals) Joint Commissioner of Commercial Taxes (Appeals) High Court Sales Tax Appellate Tribunal Deputy Commissioner (Appeals) Joint Commissioner (Appeals) Joint Commissioner of Commercial Taxes (Appeals) Sales Tax Appellate Tribunal High Court High Court

Finance Act,1994 (Service Tax Provisions)

Tax on freight charges and erection services

13,426 17,011

Tax on foreign payments

17,547 2,516 3,998

Tax on freight charges and erection services Sales Tax Act Works contract tax charged

3,422 2,450 35,325 14,692

Differential tax charged

13,571 947 50,235 284,213

Submission of statutory forms

18,153 11,316 6,876 7,014 900

Faridabad Development Act [Octroi]

Product classification

30,400

* Net of Rs 633,310 paid under protest. (x) The Company has no accumulated losses at the end of the financial year and it has not incurred cash losses in the current and immediately preceding financial year. Based on our audit procedures and as per the information and explanations given by the management, we are of the opinion that the Company has not defaulted in repayment of dues to a financial institution, bank or debenture holders. According to the information and explanations given to us and based on the documents and records produced to us, the Company has not granted loans and advances on the basis of security by way of pledge of shares, debentures and other securities. (xiii) In our opinion, the Company is not a chit fund or a nidhi / mutual benefit fund / society. Therefore, the provisions of clause 4(xiii) of the Companies (Auditor’s Report) Order, 2003 (as amended) are not applicable to the Company. (xiv) In our opinion, the Company is not dealing in or trading in shares, securities, debentures and other investments. Accordingly, the provisions of clause 4(xiv) of the Companies (Auditor’s Report) Order, 2003 (as amended) are not applicable to the Company. (xv) According to the information and explanations given to us, the Company has not given any guarantee for loans taken by others from bank or financial institutions.

(xi)

(xii)

34

ABB Limited, India, Annual Report 2009

2010 (xxi) The management has represented that during an internal investigation conducted by the Company. (xvii) According to the information and explanations given to us and on an overall examination of the balance sheet of the Company.(xvi) The Company did not have any term loans outstanding during the year. Based upon the audit procedures performed for the purpose of reporting the true and fair view of the financial statements and as per the information and explanations given by the management we report that no fraud on or by the Company has been noticed or reported during the course of our audit. (xix) The Company did not have any outstanding debentures during the year. 1956. India. (xx) The Company has not raised any money through a public issue during the year. an instance of inappropriate conduct by certain employees of the Company was observed and that there are no financial implications on the Company arising out of such inappropriate conduct. For S.R. Annual Report 2009 35 . we report that no funds raised on short-term basis have been used for long-term investment. ABB Limited. Chartered Accountants per Sunil Bhumralkar Partner Membership No. (xviii) The Company has not made any preferential allotment of shares to parties or companies covered in the register maintained under section 301 of the Companies Act. 35141 Bengaluru. BATLIBOI & CO. India February 26.

768 10 11 per Sunil Bhumralkar Partner Membership No.332 Application of Funds Fixed Assets Gross Block Less: Depreciation and Amortisation Net Block Capital Work in Progress including Capital Advances Investments Deferred Tax Assets (net) Current Assets.Balance Sheet As at December 31.391 4 16(10) 5 6 7 8 9 7.054 21.482.894.298 5.206.596.332 16 0 7.715 21.R.244 6.203.325 1.833.494 5.765 16.861 47.618.768 16(9) 16(10) 24. BATLIBOI & CO.819 2.515 24.687 168.731.869.227.215.375.061.332 423.517.163.817 23.813.664.326 1.817 20.758.783.881 3. Loans and Advances Inventories Sundry Debtors Cash and Bank Balances Other Current Assets Loans and Advances Less: Current Liabilities and Provisions Current Liabilities Provisions Net Current Assets Notes to the Accounts The Schedules referred to above form an integral part of the accounts.206 13.663 46. India.887 24.492.237.812.405 3. 2010 Chairman Vice Chairman & Managing Director Director Director Director Director Director Chief Financial Officer Company Secretary Bengaluru.792.450.577.470 611.061 28.296 1.998.636 2.189.260 31.145 6.313 3.027 3.458.227. As per our report of even date For S.534 29.869 3. 2009 Sources of Funds Shareholders’ Funds Share Capital Reserves and Surplus Loan Funds Finance Lease Obligations Deferred Tax Liability (net) Schedule 2009 (Rs in Thousands) 2008 1 2 423.294. February 26.426.439 31. Chartered Accountants 3 8. 2010 36 ABB Limited. 35141 For and on behalf of the Board Gary Steel Biplab Majumder Peter Leupp Francis Duggan Nasser Munjee D E Udwadia A K Dasgupta Amlan Datta Majumdar B Gururaj Bengaluru.237.652 29. Annual Report 2009 .319.176.792 966 7.237. February 26.924 1.172.340 6.034 21.282 33.765.532 202 38.241.

716 5.198 79.130 627.210 (90.83 Basic and Diluted Earnings per Equity Share (in Rs) (Face value Rs 2 per share) Notes to the Accounts 16(3) 16 The Schedules referred to above form an integral part of the accounts As per our report of even date For S.230 556.652) 73.000) 90.600 61.273. 2010 ABB Limited.440 2. Chartered Accountants For and on behalf of the Board Gary Steel Biplab Majumder Peter Leupp Francis Duggan Nasser Munjee D E Udwadia A K Dasgupta Amlan Datta Majumdar B Gururaj Bengaluru.067 8.386.102.994 1.418 2.391 556. 35141 Chairman Vice Chairman & Managing Director Director Director Director Director Director Chief Financial Officer Company Secretary Bengaluru.R.473 57.000 423.192 69.000) (38.945.000.178.000 466.605 thousand (Previous year .391 5.805.Profit and Loss Account For the year ended December 31.014 725.805 346.097.632 4.823.728 3.504.507 49.060 25.029.315 1.100 14 15 Profit Before Tax Provision for Tax: Current Tax Deferred Tax Fringe Benefits Tax* * includes writeback of excess provision in respect of previous years Rs 57.Rs Nil) Profit After Tax Add: Balance brought forward Profit available for appropriation Appropriations General Reserve Proposed Dividend Corporate Dividend Tax Balance carried forward 3.370.103.710 45.076 68.930 6.028 607.304.032.946 61.255 (39.178 4.710 2.613 366.474. BATLIBOI & CO. India.402.372.696 12 13 62.342.103.242 57.026. 2009 Income Sales and Services Less : Excise Duty on Sales Sales and Services (Net) Other Income Expenditure Cost of Materials and Erection Services Personnel Expenses Other Expenses Depreciation/ Amortisation Less: Transfer from Revaluation Reserve Interest Expenses Less : Expenses Capitalised Schedule 2009 (Rs in Thousands) 2008 64. February 26.102.839.696 63.815 487.637 7.060 5.023 16.817 72.790 369.332.74 5.632 6.674.892.746 485.023 3.058 256. February 26.804 2.858.546.000.346 8.573. 2010 37 per Sunil Bhumralkar Partner Membership No.013 43.181 4.138. Annual Report 2009 .189 15.

India. 2009 2009 2008 Schedule 1 .000.000 Equity Shares of Rs 2 each 425.500.(Rs in Thousands) As at December 31. pursuant to contracts for consideration other than cash. 38 ABB Limited.772.000 500.465 and 51.000 .185. Subscribed and Paid Up 211.375 Equity Shares of Rs 2 each 423.330 equity shares of Rs 2 each are held by ABB Norden Holdings AB.817 423. 1.945 equity shares of Rs 2 each issued as fully paid up bonus shares by capitalisation of the General Reserve Account and Securities Premium Account respectively. 97. a subsidiary of the ultimate holding company.000 750.57% cumulative preference shares of Rs 100 each on cancellation of the preference shares in terms of a Scheme of Compromise between the Company and its preference/equity shareholders in 1988.000 11% Redeemable 10 year.000 425.525 equity shares of Rs 2 each allotted as fully paid up at par.879.000 equity shares of Rs 2 each issued to the holders of 40.540.Share Capital Authorised 212. Switzerland.000 75.219.908. Cumulative Preference Shares of Rs 100 each 75.817 Notes : Share Capital includes: a) b) c) d) 46. Zurich. Annual Report 2009 . the ultimate holding company and 12.000 Issued.955 equity shares of Rs 2 each are held by ABB Asea Brown Boveri Limited.000 500. Sweden.8. 42.

848 2.178 23.000 2009 2008 ABB Limited.774 593.000 3.000 10.813.746) 140.000 19.632 20.500 (2.000.382.765.348 4.028 593.613) 142.386.990 145.000 142.000 22.000) 6.(Rs in Thousands) As at December 31.000 (4.500 5.990 10. 2009 Schedule 2 .500) 4.971 75.387 (2.971 75.348 14.379.515 556.000. Annual Report 2009 39 .774 (2.348 4.Reserves and Surplus Capital Reserve Account Capital Redemption Reserve Account Revaluation Reserve Account As per last Balance Sheet Transferred to Profit and Loss Account Securities Premium Account Foreign Projects Reserve Account As per last Balance Sheet Transferred to General Reserve Account General Reserve Account As per last Balance Sheet Transferred from Foreign Projects Reserve Account Transferred from Profit and Loss Account Profit and Loss Account Balance carried forward 607.382. India.715 19.

646 5. 2.607 47.625 487.206.615 688.709 716.998 63.274 14.797.819 96.2008 A. 2009 Depreciation/ Amortisation For the Year Deductions As at December 31.083 368.785 433. 2009 is Rs 140.178 12.054 605.517 5.391 15.990 140.187 1.200 4.695 14.797.053.513 688.878 10.125 41.346 47.028 thousand (Previous Year Rs 142.157 106.800 5.470 72.149 1.960 1.999 41.380 6.905 9. 2009 (Rs in Thousands) Net Block As at December 31.211 5.401 1.068 94.950 6.962. Intangible Assets Technical Know-how Fees Capitalised Software Total Intangible Assets Previous Year 155.418 15.183 14.008 Capital Work in Progress including Capital Advances Grand Total Notes : 1.340 2.353.502 7.180 2.026 165.461 4.761 122.664 7.531 8.391 7. Net block of such revalued assets as at December 31.297 2.375.869 253.781 46.498 91.332.948 50.896.170 49.778 83.500 6.191 4.304 203.494 2.569.341 21.827 28.257.145 6.609.815.407 38.674 1.010 145.623 12.450 76.368 213.302 71 85 540. 2009 Schedule 3 .490 232 320.995 54.997 257.749 13. India.105 70.135 4.894.209 8.573.658 48.568 33.450 3.989.330 27.316.615 26.018 1.061.623.249 6.751 109.671 1.689 1.748 24. 1986 and 1996.739 11.590 34.296 59.850 17.068 94.905 2.412 1. 2009 As at December 31.757 655 1.563 8.816 272.781 3.141 11.808 2.958 412.082 21.185 435.636 7.628 18.769.163.827.409 2.508 632.204 11.458.441 412.333 601.209 7.344. 2009 As at January 1.697 7.804 369.178 12. Tangible Assets 1.314 4.859 108. factory and other buildings and residential quarters were revalued during 1985.913 2.001.122 1.419 1.494 1.610.179 605.984.411 309.200 4.061.750 1.861 90.677 8.206.723 570.897 26.873 378.420 162. 2009 Additions Deductions As at December 31.731.790 107.As at December 31.687 1.632 81. 40 ABB Limited.916 10. Residential Quarters include cost of shares in Lotus Court Private Limited Rs 56 thousand (Previous Year .988 8.141 11.195 5.279 19.924 6.425.885 140.Fixed Assets Gross Block Description As at January 1.414 6. Certain freehold and leasehold land.959 72.819 5.304 2.664.901 259.411. Annual Report 2009 .487 448.271 56.519.909 401.Rs 56 thousand).218 76. Own Assets Freehold Land Leasehold Land Leasehold Improvements Factory Buildings Other Buildings Residential Quarters Plant and Machinery Furniture and Fixtures Vehicles 366.990 136.058 365.531 27.325 83.774 thousand).664.249.790 5.885 138.667 366.563.319 80.828 97. Leased Assets Plant and Machinery Vehicles Total Tangible Assets B.043 6.450 101 4.013 2.349.368 169.697 181.792.784 475.778 368.478 46.833.821 1.551 440.844.705 1.

200) 5.500.000 441.25% Government of India Bonds of Rs 100 each Others: Quoted: Nil (Previous Year .000.244 601.500.192 168.792 10.(Rs in Thousands) As at December 31.000 (Previous Year . 2009 Schedule 4 .2) 6. Annual Report 2009 41 .217 Notes: Quoted Investments aggregate (Market value .Rs 137.617 159. Previous Year .386.667 each (Previous Year Rs 1.027 ABB Limited.600 2009 2008 9. India.496) 6.617 200.1.95% 15 Year Non-Cumulative Bonds of Karnataka Water & Sanitation Pooled Fund Trust of Rs 916.2.600 10.520 thousand.000 (Previous Year .163 thousand) Unquoted Investments aggregate 9.25% 10 Year Tax Free Nuclear Power Corporation Limited Infrastructure Bonds of Rs 1.60% Tax Free Bonds 2009 of Rs 100 each fully paid up in Unit Trust of India Nil (Previous Year .000 each fully paid up Unquoted: 10 (Previous Year .027 611.000) 6.5% Non-Redeemable Debentures of Bengal Chamber of Commerce and Industry.000 each) 1.10) 5.1000) Shares of Rs 25 each fully paid up in Co-operative Bank of Baroda Nil (Previous Year . 241.167 25 9.Rs 591.000 25 2 10.600 159.Investments Long Term (At Cost): Non Trade: Government Securities Quoted: 1.192 159.000.

648 1.758.677 4.043 1.009 6.426.223 30. b) Hongkong & Shanghai Banking Corporation Ltd.816. Annual Report 2009 .205. Sri Lanka.026 28. 5.007 3.539 698.061 3.075 1.587.638.On Current Account .215.682 22.(Rs in Thousands) As at December 31.026 14.226 3.095 42 ABB Limited.On Current Account 1.241.377. 2008 Maximum amount outstanding at any time during the year 8. India.131 13.531.046.324 1. Bangladesh.On Margin Account With Non Scheduled Banks .454 17.534 2009 2008 Schedule 6 .933.888 18.294.775 12.756 30.122 3.594 5.009...597 19.990.Cash and Bank Balances Cash and Cheques on hand Balances with Scheduled Banks .129 1.554 915 1.113 1.180.553.638.219.016 4.Sundry Debtors (also refer to schedule 16(5)) Unsecured : Debts outstanding for a period exceeding six months .454 2.482.225. 2009 As at December 31.405 Current Accounts with Non Scheduled Banks include As at December 31.939.Inventories Stores and Spares Raw Materials and Components Goods in Transit .037.033 7.202 Maximum amount outstanding at any time during the previous year 5.985 8. 2009 Schedule 5 .923.101 15.913 556.984 562.172.On Deposit Account .644 1.Considered Good .385.666 3.298 11.043 39.Considered Doubtful Other Debts .633 a) Hongkong & Shanghai Banking Corporation Ltd.886 583.917 16.577.313 1.869 Schedule 7 .180.775 29.Considered Good Less: Provision for Doubtful Debts 12.899.Raw Materials and Components Finished Goods Work-in-Progress 3.

021 29. India.596.768.Current Liabilities Acceptances Sundry Creditors .817 72.326 Schedule 11 .Loans and Advances (also refer to schedule 16(5)) Unsecured : Loans.655 724.812.048 2.411 34. 2009 Schedule 8 . Considered Good Advances recoverable in cash or in kind or for value to be received: .169 115.265 3.663 1.934 1.965 11.176.354 3.198 79.027 Schedule 9 .738.399 1.517.088 7.450.356 1.789 9.696 53.064 2.661 2.881 2009 2008 ABB Limited.832.203.685 709.556 5.028 38.769.Dues to Micro and Small Enterprises (also refer to schedule 16(27)) .011 29.769.491 800.Others Advance Payment from Customers Billing in Excess of Contract Revenue Investor Protection and Education Fund shall be credited for unclaimed dividends amount when due 228.Provisions Proposed Dividend Corporate Dividend Tax Income Tax (net of advance tax) Fringe Benefits Tax (net of advance tax) Provident Fund Long term employee benefits Others .439 466.204 6.102 747.196.309 2.395 16.861 Schedule 10 .062.655 29.(Rs in Thousands) As at December 31.738.866 1.326.282 174.869.556.673 6.050 3.864 31.795.777.Considered Good .230 149.136 14.784.618.Considered Doubtful Less: Provision for Doubtful Advances Income Tax (net of provision) Fringe Benefits Tax (net of provision) Balances with Customs.356 1.078 46.068 14.511 3.Other Current Assets Contract Revenue in Excess of Billing and Unbilled Revenue Interest Accrued on Investments and Fixed Deposits 3.404 3. Annual Report 2009 43 .102 34.651 2.707.268.534.(also refer to schedule 16(24)) 423. Port Trusts and Excise Authorities 1.309 2.161 16.529 91.742 709.616 17.500.924 5.803.

410 (151.730) Production of Finished Goods Quantity 3.071) 83.470) 1.000) 6.571) (-) (-) 13.589.277) 332 (-) 747 (-) (-) (-) 393 (-) 5.07.986 (869.808) 1.864 (121.512) 960.502 (1.035) 61.156 (393) (5.166.For the year ended December 31. 2009 Schedule 12 .265) 2.780 (3.875) 100.842) 62. Motors and Other Machines Switchgear of all types PLCC Equipment Multiplexures Telemetering Equipment Turbochargers Transformers Electronic Control and Supply Units for Variable Speed Drives and other applications Mini Computer/Microprocessor based Systems Power Capacitors of all types Robotics Gas Analysers and Systems Process Control Instruments Others Project Items Erection.663 477.Capacities.183 (1. Nos.098. Production.372.452) 3.664.887 (3.893) 7.790) (-) (-) Rupees in Thousands 4.502 (1. Commissioning and Engineering Services HP Nos.447 (5.356) 7.037) 21.503.648 (482.180) 47 (74) 228 (250) 26. Nos.969 (332) 19.350) (-) 5.154) (-) 698.917) 733.664.932) Note: The Company's products are exempt from licensing requirement under the industrial policy by virtue of notification No.021.810) 432.639 (507. Stock and Turnover (also refer to schedule 16(11)) (Figures in brackets are in respect of previous year) Annual Capacities Class of goods Quant.948) 31 (78) 2 (10) 634 (327) 16.740) (178.321 (747) (-) 96 (-) 3.650) (234.648) Turnover of Finished Goods Quantity 3.91.222.591 3.287.394.734 (4.073) (16.512 7. MVA Nos.397) 916.192) 47 (74) 228 (250) 26.062.887 298.571 (-) (-) (-) (8.184) 3.149.850.315) (168.454 (583.231 (15.539) (-) 12.803) (-) (-) (-) Closing Stock of Finished Goods Quantity 106. Installed 3.648 (34.251.000 (3.110) 35.088 (214. 44 ABB Limited.211 (28.273.367 3.078 4.700 (34.691) 557.482.000 (100.427.216 (1.503 (5. Nos.690) 5.802.430) 322. Nos.915) 31 (78) 2 (10) 628 (336) 15.838 (713.282 (28.326 (524.505) (-) (26.700) 74 (74) 400 (300) 45.734 (12.912 (3.373.572) (3.297 (3.216 33 (-) (-) (-) (9) (-) 129 (9) (-) 12 (-) (-) (-) 13 (-) (-) (-) (-) Rupees in Thousands 168.000) Value Rs in Thousands MVAR Nos.155.084 (394.587.403) 121.393 (792.370. India.525 (3.375 (16.110 (18.850) 100 (100) 150 (150) 650 (480) 18.059) 20.303 (-) 29.839.071 (6.197.261) (16.698) (7.014 (68.035 (96.000 (45.767 (7.177.836) 178.216) (33) (-) (-) 6 (-) 316 (-) 58 (129) (-) 123 (12) (-) (-) 65 (13) (-) (-) (-) Rupees in Thousands 131.589. Nos.809 (516. Annual Report 2009 .460 (87.610 (3. 4.290 (-) 83.500 (2.000) Opening Stock of Finished Goods Quantity 151.930.934.170) 17.599) 6.904.151) 30.894) 214.060. 477 (E) of 25.698 (304.151) 30.154 (-) (-) 583. Nos.572 (144.250. Denom.801 (3.027 (6.915 (15.155) 13.

146 99.123 88.599 16.992 160.006 23.407 4.111 34.304.254 183. Wages and Bonus Gratuity Provident Fund Contribution to Superannuation and other Funds Workmen and Staff Welfare Expenses Other Personnel Expenses 3.378.476 thousand) Others Profit on Sale of Fixed Assets (net) Profit on Sale of Investment (net) Scrap Sales Commission Income Exchange Rate Difference .389 thousand. Annual Report 2009 45 .752 141. Previous Year Rs 18.122 17.780 3.892.Personnel Expenses Salaries.332 158.236 10.450 474.Gain (net) (includes gain / (loss) on fair valuation of derivative contracts) Miscellaneous Income 336.024 76.094 80.637 ABB Limited.370. India.293 172.712 104.029.192 156.852 2009 2008 Schedule 14 .677 137.Other Income Interest Long Term Investment Deposit with Banks (Tax deducted at source Rs 1.124 46.803 38.143 46.696 311.170 725.018 159.913 169.346 3.(Rs in Thousands) For the year ended December 31. 2009 Schedule 13 .539 84.231 200.404 1.

312 187.210 173.336.592 271.790 321.036 38.056 341.112 70.993 148.195 155.931 143.054 274.815 1.949 476.559 70.Other Expenses Tools and Stores Royalty and Technology Fees Freight and Forwarding (net of recovery) Postage and Telephone Commission (to other than sole selling agent) Discount Power.514 338.312 909.007.852 940.339 578.504 106.Loss (net) (includes gain/(loss) on fair valuation of derivative contracts) Miscellaneous 1.047.899 7.970 54. Fuel and Water Travelling and Conveyance Insurance Rates and Taxes Rent Repairs : Buildings Plant and Machinery Others Provision for Doubtful Debts and Advances Bad Debts / Advances Written Off Loss on Sale of Fixed Assets (net) Loss on Sale of Investment (net) Printing and Stationery Bank Charges Legal and Professional Trade Mark Fees Information Technology Expenses Exchange Rate Difference . 2009 Schedule 15 .261 1.684 30.681 230.784 61.257 92.595 916.623 20.752 131.725 586.197 25.272 81.298 265.283 790.402 8.698 147. India.449 2.352 101.026.266 36.020 2009 2008 46 ABB Limited.871 207.138. Annual Report 2009 .(Rs in Thousands) For the year ended December 31.552 21.007 464.124 94.616 731.093 113.998 452.402 526.954 40.

assets are written down to their recoverable amount. Significant Accounting Policies 2. The carrying amounts are reviewed at each balance sheet date when required to assess whether they are recorded in excess of their recoverable amounts.Notes to the Accounts 1. Capitalised software costs over a period of five years. ABB Limited.3. Assets individually costing Rs 5. Basis of Preparation of Financial Statements The financial statements have been prepared to comply in all material respects with the notified accounting standards by Companies Accounting Standards Rules. 1956. All costs relating to upgradations/ enhancements are generally charged off as revenue expenditure unless they bring significant additional benefits of lasting nature. Assets acquired under finance lease from April 1. levies and any directly attributable cost of bringing the asset to its working condition for the intended use. The following assets are depreciated / amortised on the straight line method over a period of their estimated useful lives: • • • Leasehold land and leasehold improvements over the remaining period of the lease. except for revaluation of certain land and building. which provide significant future economic benefits. 2. 1956. Technical know-how fees over a period of six years. India. 2001 are capitalised at the lower of their fair value and the present value of the minimum lease payments. Fixed Assets (Tangible and Intangible) Fixed assets are stated at the cost of acquisition. 2. Actual results could differ from these estimates. Depreciation/Amortisation Depreciation on assets (except those described below) is provided on the straight-line method at the rates and in the manner prescribed in Schedule XIV to the Companies Act. The financial statements have been prepared under the historical cost convention on an accrual basis except for revaluation of certain fixed assets.Schedule 16 . Cost of fixed assets comprises purchase price.1. Capitalised software includes costs on Enterprise Resource Planning (ERP) Project and other costs relating to software. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities as at the date of the financial statements and reported amounts of revenues and expenses during the reporting period.000 or less are depreciated fully in the year of purchase. solutions and services in areas of Automation and Power technology. 2006 (as amended) and the relevant provisions of the Companies Act. duties. Besides catering to Indian domestic market. Any revision to accounting estimates is recognised prospectively in current and future periods. less accumulated depreciation and impairment losses. Annual Report 2009 47 . 2.2. The recoverable amount is the greater of the assets’ net selling price and value in use. which management considers as being representative of the useful economic lives of such assets.4. The Company has extensive installed base for manufacturing and a countrywide marketing and service presence. Nature of Operations ABB Limited (‘the Company’) has served utility and industry customers for over 60 years with the complete range of engineering. in accordance with the accounting principles generally accepted in India. the Company is also playing an increasing role in the global market. Own manufactured assets are capitalised at cost including an appropriate share of overheads. Depreciation is provided from the date of capitalisation till the date of sale of assets. and where carrying values exceed this estimated recoverable amount. Advances paid towards the acquisition of fixed assets outstanding at each balance sheet date and the cost of fixed assets not ready for their intended use before such date are disclosed under capital work in progress. Borrowing costs related to the acquisition or construction of the qualifying fixed assets for the period up to the completion of their acquisition or construction are capitalised. ERP Project costs comprise license fees and cost of system integration services. 2. products. if any.

Contributions to the recognised Provident Fund/ Gratuity Fund and provision for other long term employee benefits . Long-term investments are carried at cost. Current investments are carried at lower of cost and fair value. Investments Investments that are readily realisable and intended to be held for not more than a year are classified as current investments. are made on the basis of actuarial valuations made at the end of each financial year and are charged to the profit and loss account during the year. Interest income is recognised on the time proportion method. 48 ABB Limited.leave. Actuarial gains and losses are recognised immediately in the profit and loss account. Contract revenue earned in excess of billing has been reflected under “Other Current Assets” and billing in excess of contract revenue has been reflected under “Current Liabilities” in the balance sheet. Employee Benefits Contribution to Superannuation Fund. Net sales are stated at contractual realisable values. 2. These are reviewed at each balance sheet date and adjusted to reflect the current management estimates. Provision for obsolescence is made wherever necessary. • • • • • • 2. a defined contribution scheme. net of excise duty. 1956. Annual Report 2009 . All other investments are classified as long-term investments. Revenue Recognition • Sales of products and services are recognised when significant risks and rewards of ownership of products are passed on to customers or when the service has been provided. defined benefit schemes. Dividend income is recognised when the right to receive dividend is established. provision for diminution in value is made to recognise a decline other than temporary in the value of the investments. Goods in Transit – at actual cost. 2. Provisions A provision is recognised when the Company has a present obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation.at rates determined on the moving weighted average method. India. 2.Assets under finance lease are depreciated over the lower of the lease term or the useful life of the asset unless there is reasonable certainty that the Company will obtain ownership. Inventories Inventories are stated at the lower of cost and net realisable value. Work-in-progress and finished goods . in respect of which a reliable estimate can be made based on technical evaluation and past experience. direct labour and manufacturing overheads.6. wherein such assets are depreciated on the straight-line method at the rates prescribed in Schedule XIV to the Companies Act. Commission income is recognised as per contracts/receipt of credit note.at full absorption cost method based on annual average cost of production which includes direct materials. 2. in proportion that the contract costs incurred for work performed up to the reporting date bear to the estimated total contract costs. The cost of various categories of inventories is arrived at as follows: • • • Stores. raw materials and components . Liquidated damages/ penalties are provided for as per the contract terms wherever there is a delayed delivery attributable to the Company. Provisions are not discounted to its present value and are determined based on management estimate required to settle the obligation at the balance sheet date.5.8. spares. Full provision is made for any loss in the year in which it is first foreseen. However. value added tax and trade discounts. There are no other obligations other than the contribution payable to the Superannuation Fund Trust.9. In case of large transformers. Excise duty is included in the value of finished goods inventory. is made at pre-determined rates to the Superannuation Fund Trust and is charged to the profit and loss account. revenue is recognised on achievement of contractual milestone. Revenues from long-term contracts are recognised on the percentage of completion method. sales tax. service tax.7. Revenue recognised in excess of billing has been reflected under "Other Current Assets" as Unbilled Revenue.

12. Exchange differences arising on foreign currency transactions settled during the year are recognised in the profit and loss account for the year.2.391 16. Annual Report 2009 49 .908.83 2009 2008 ABB Limited. Foreign Currency Transactions Foreign currency transactions are recorded by applying the daily exchange rates.130 25. India. Operating Leases Leases. 2010. For the year ended December 31. are classified as operating leases. Research and Development All revenue expenses pertaining to research and development are charged to the profit and loss account in the year in which they are incurred and development expenditure of capital nature is capitalised as fixed assets. deferred tax and fringe benefits tax.908. The Company uses derivative financial instruments such as forward exchange contracts to hedge its risks associated with foreign currency fluctuations. 2009.375 5. 3. Deferred tax assets are reviewed at each balance sheet date for its realisability. The current charge for income tax and fringe benefits tax is measured at the amount expected to be paid to the tax authorities in accordance with the Indian Income Tax Act. Provision for current income tax is made on the basis of the results of the year although the actual liability will be computed and paid on the basis of the results for the year ending March 31. 2009 has withdrawn FBT with effect from April 1. Gain or loss on fair valuation of forward exchange contracts for hedging highly forecasted transactions and embedded derivative contracts are recognised in the profit and loss account for the year in which it occurs. Deferred tax assets arising from timing differences are recognised to the extent there is reasonable certainty that the assets can be realised in future. The Company provides for and discloses the fringe benefits tax (FBT) in accordance with the provisions of section 115WC of the Income Tax Act. The deferred tax for timing differences between the book and tax profits for the year is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date. The Finance Act. Earnings Per Share a) b) c) Weighted average number of Equity Shares of Rs 2 each outstanding during the year Net profit after tax attributable to equity shareholders (Rs in thousand) Basic and Diluted Earnings Per Share (in Rs) 211. and depreciated as per the Company’s policy.10.375 3. Operating lease payments are recognised as an expense in the profit and loss account on a straight-line basis over the lease term. 2. where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item.13. All foreign currency denominated monetary assets and liabilities are translated at the exchange rates prevailing on the balance sheet date. Gain or loss on restatement of forward exchange contracts for hedging underlying outstandings at the balance sheet date are recognised in the profit and loss account for the year in which it occurs. 2. 1961. 2.546.474. The resultant exchange differences are recognised in the profit and loss account for the year.11.74 211. Taxation Tax expense comprises current tax. The premium or discount on such contracts is recognised in the profit and loss account over the period of the contract.

high and medium voltage switchgears. low voltage products. ii) iii) The accounting policies used in the preparation of the financial statements of the Company are also applied for segment reporting. instrumentation and power electronics. India. network management systems and utility communications. Power Products Segment (PP) manufactures. which include utilities. industries. expenses. Corporate and other revenues. engineers. Others Segment consist of robotics systems. circuit breakers. assets and liabilities to the extent not allocable to segments are disclosed in the reconciliation of reportable segments with the financial statements. power. Segment Reporting A) Primary Segment Reporting (by Business Segments) i) Composition of Business Segments The Company’s business segments are organized around products and system solutions provided to its customers. The industries served include oil and gas. variable speed drives. iv) 50 ABB Limited. v) Figures in brackets are in respect of the previous year. within an overall optimisation objective for the Company. supplies key components to transmit and distribute electricity. Power Systems Segment (PS) offers turnkey systems and services for transmission and distributions for power grid and power plants. Segment revenues. channel partners and original equipment manufacturers. pulps and paper. plant optimization and industry specific application knowledge. high voltage direct current systems. The segment offers the instrumentation. expenses. Automation Products Segment (AP) provides products to improve customers’ productivity with high efficiency motors. metals and minerals. Annual Report 2009 . control and the entire balance of power plants. capacitors. improving power supply and energy efficiency. The segment produces transformers. chemicals and pharmaceuticals. distribution relays etc. Process Automation Segment (PA) provides customers with integrated solutions for control. Inter Segment Transfer Pricing Inter segment prices are normally negotiated amongst the segments with reference to the costs. market prices and business risks. which are directly attributable to the segment or are allocated on an appropriate basis. assets and liabilities are those. marine and turbo charging. which improve performance and energy efficiency through flexible alternating current transmission systems.4.

492.955 (75.152) 2.563 (48.418 (98.802.470.242 (–346. Annual Report 2009 51 .141 (2.478) Capital Expenditure 30.064.265) 8.324.804.442) As per Financial Statements ABB Limited. India.436) 29.936.802.277 (193.022) Segment Revenues 17.436) 9.375.189.414) Segment Liabilities 9.344 (1.632.206 (1.818.389 (7.174 (17.250 (–125.379.130) Capital Expenditure 828.036) Automation Products 16.474.073.298) Power Products 16. (360.vi) Segment Revenues.504.470.365 (31.343) 498.621.941) Others Segment 561.597 (787.097.674.631) 52.488.555 (17.009.310) 3.957 (9.538) (-) (-) (-) 55.546.133) 603.725) 138.082 (477.926 (13.695 (–58.920) 3.567) 162.814) 568.921 (14.446.346 (5.888 (1.642.650.275) 1.478.818.449.900.898.345 (1.343) (-) (-) 63.635) 167.717) –5.Unallocated (net) Inter Segment Sales Interest Expense Provision for tax 67.610) 2.232) –272.232) 46.726) 828.738 (5.483 (22.331) 40 (6.446) 19.660.400 (1.085 (7.563 (48.708 (12.650.110 (210.326 (98.206 (1.245) 207.710 (69.392.008 (23.973.533 (6.606 (3.641) 11.765 (33.146.785.995.810) 6.761) 67.955 (75.009.066 (229.099.389 (32.047.101 (475.370.601.802.267.882 (900.866.127.192.224) 4.879) 2.721) 191.022.486 (8.995) 135.294.028.720.486 (8.050.240) (-) (-) (-) 1.700) Total 61.859 (11.133) 5.675) Depreciation / Amortisation 13.575) 7.865.726) 1.319.051) 32.716) (-) (-) (-) 31.065.870.878) 365.111.333.721 (68.165 (13.391 (5.608) 23.271 (20.169.534 (6.866.603 (–2.807 (2.118) Revenues Total Segments Corporate .029) 5.346 (–5.134.170.474) 2.885.477 (611.725.101. Results and Other Information (Rs in Thousands) Power Systems External Sales (net of Excise Duty) Inter Segment Sales 16.688) Process Automation 11.507) Assets 46.086.279.097 (54.812 (284.279.747 (22.974) Liabilities 29.731 (18.248 (490.455) 18.324.050.440.804.253.858.576 (809.759.260 (1.419 (2.413) 314.380) 5.041) 537.365 (31.149) Segment Results 65.512) 30.557.192) (-) –256.290.570 (408.129.878) 804.665 (7.976) 12.431) Segment Assets 14.870.786) 167.590 (14.710) 1.349 (10.880) 126.402) Other operating Income 168.163.663) vii) Reconciliation of Reportable Segments with the Financial Statements Results / Net Profit 5.727.045 (151.442.600) –1.550 (2.847.172) 12.773 (59.065.893 (2.054.

are as under: a) Sundry Debtors .070 - 72.296 thousand) payable within one year and Rs 131.256. Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) 450.215 8.282 (2.340.118) (Rs in Thousands) As at December 31.011.009) 4.634. Amounts due from companies under the same management as defined in sub-section (1-B) of Section 370 of the Companies Act. 1956.Previous Year Rs 134.281 (64.974) 1.197 thousand).632.620) Total 62. Rental expenses towards cancelable and non-cancelable oprating lease charged to the profit and loss account amounts to Rs 230.533 thousand (Previous year Rs 63.ABB Global Industries and Services Limited b) Loans and Advances .055 1.B) Secondary Segment Reporting (by Geographical Segments) Secondary segment disclosures are reported on the basis of geographical location of customers.967) 1.498) Rest of World 5. 5.154. These lease agreements are normally for one to ten years and have option of renewal on expiry of lease period based on mutual agreement.557. 52 ABB Limited.949 thousand (Previous Year Rs 130.074.790) 55.823) Total Assets 54.328 (5.660.901 thousand. The Company has taken several premises under cancelable and non-cancelable operating leases.122 (2.2009.368 - 1.609 (69. Annual Report 2009 . Contingent Liabilities i) ii) Claims against the Company not acknowledged as debts in respect of sales tax. (Rs in Thousands) India Revenues 57.Raman Boards Limited (Maximum amount due during the year Rs Nil.685.442. excise and other matters Bills discounted The above excludes bills co-accepted by the customers’ bankers/guaranteed by the State Governments Rs 1.893 thousand) .097 (54.637 7.790 2.300.815 (52. Previous Year Rs 24.941 thousand (Previous Year Rs Nil) payable later than five years as on December 31.984 thousand) 6. The Company has non-cancelable operating lease obligations of Rs 46.208 68.123.552 thousand (Previous Year Rs 207. India.431.428 (25.965) Capital Expenditure 1.628.384 - 1.307.473 thousand (Previous Year Rs 17.042 - iii) 130.198.090.379 83.774 thousand) Income tax matters in dispute 2009 2008 160.ABB Global Industries and Services Limited (Maximum amount due during the year Rs 74.550 (2.494.213 thousand) payable later than one year but not later than five years and Rs 77.

2009 in respect of these assets are as follows:. Capacities.562) Deferred Tax Liability 11.1 Capacities a) Installed capacities are as certified by the Managing Director. 2009 (211) (-) Total (211) Interest Not Due (9) (-) (9) Present Value of Minimum Lease Payments (202) (-) (202) 10. 1961 Lease Finance Provisions for doubtful debts and advances Others 14.9. “Others” represent internally manufactured components.562) (38.034) 617. 1961 Expenditure under Section 43B of the Income-tax Act.(Figures in brackets are in respect of the previous year): (Rs in Thousands) Due Within one year Later than one year and not later than five years Total Minimum Lease Payments outstanding as on December 31.159 (458. Production. Minimum lease payments outstanding as of December 31. Finance Lease Obligations The Company normally acquires computers and vehicles under finance lease with the respective underlying assets as security.2 Production a) b) Production of finished goods is inclusive of production for captive use. Since the quantitative denominations of these items are dissimilar.476) 618. sold during the year. ABB Limited.193 (496. Annual Report 2009 53 . it is impracticable to disclose the quantitative information in respect of production and turnover. Deferred Tax The break up of net deferred tax assets / (liability) as at December 31. but not verified by the auditors.193 (496.114 (35.007) 37. 2009 is as follows: (Figures in brackets are in respect of the previous year): (Rs in Thousands) Deferred Tax Asset Timing differences on account of: Difference between book depreciation and depreciation under the Income-tax Act. Stock and Turnover (Refer Schedule 12) 11. India.630 (413. 11. The Company considers these ‘meant for sale’ when actually sold.976) (69) 566.415 (9.528) Net Deferred Tax Assets / Liability 966 617. being a technical matter.

010 For the purpose of para 4D (c) of Part II of Schedule VI to the Companies Act.769.010 Imported Indigenously acquired % 39.00 7.284 * 2009 Amount 62.236.521 169.940 16. components and spare parts are assumed to mean those incorporated in the product finally sold and not those used as spares for the repairs and maintenance of Plant and Machinery.137 20.298 (Rs in Thousands) 13.662.796.594.478 % 33.4 Work-in-Progress a) The Work-in-Progress at the beginning of the year amounted to Rs 1.493 434.27 100.665 20. India.122 98.609 3. Earnings in Foreign Exchange (on accrual basis) i) Export of goods .928. Purchases of these items during the year aggregated to Rs 23.146.596 thousand). b) 11. 1956.606.948 ii) iii) iv) 34.308 * 2008 Amount 51.00 7.727 11. it is impracticable to disclose the quantitative information in respect thereof.835.704.Direct on FOB basis .299. * Since the quantity denominations and the type of components are dissimilar in nature.262.477 1.873 13.73 66.058 thousand).034 1.751 7.478 Quantity 717 2.450 17.181.899. Since the quantitative denominations of these items are dissimilar. Annual Report 2009 .568 18.410 17.124 1.026. 54 ABB Limited.662.093 2.55 100.3 Project items a) These comprise sale of equipment and miscellaneous items meant for execution of projects and trading items. Quantity Ferrous Metals Non-Ferrous Metals Components Others MT MT 1.597 427.842 704.427.009 thousand (Previous Year Rs 1. it is impracticable to disclose the quantitative information in respect thereof.45 60.11. (Rs in Thousands) For the year ended December 31.374.Deemed Exports (including local currency) Goods supplied/services rendered locally against foreign exchange remittances Erection & Other Services Other Income : a) Commission b) Others 2009 2008 4.844 2.808.596 8.181 295.058 4. Consumption of Raw Materials and Components For the year ended December 31.539 8.165.362.639 thousand (Previous Year Rs 26. 12.835.751 18.

662 1.301. Amount remitted during the year in foreign currency.434 10.563 25.973 3.455.143.937 24.914 20. Value of imports on CIF basis (on accrual basis) Raw Materials and Components including Spares Finished Goods Capital Goods including Technical Know-how Project items 11.882 843.813 325 290 ABB Limited.926 915.600 2.590 2. Number of non resident shareholders Number of equity shares held by them on which dividend was paid Year ended to which the dividend related December 31.109 1.115 3. Expenditure in foreign currency (on accrual basis) Royalty and Technology Fees Trade Mark Fees Commission and Discount Professional / Project Consultancy Others 776.523 25.020.965 2.990 2007 242.187.420.200 1.852 141 42.357 15.281 19.030. Amount remitted 3 110. India.640. Annual Report 2009 55 . 14.183 464.926 3 110.(Rs in Thousands) For the year ended December 31.573 5.669 2009 2008 Managerial Remuneration a) i) ii) Directors’ fee Other remuneration Salary Commission to Managing Director Commission to Whole-time Director Commission to Independent Directors Contribution to Provident and other funds Other perquisites 8.275 2.267 232.376 16.461 7.436 341.120 9.211 6.423 6.420.531 319.284 2.123 2.569.795 25. on account of dividend i) ii) iii) iv) 17.261 233 50.695.349.401 1.708 1.990 2008 242.603.

275 6.742 5.031 889.475 4. India.813 18.336 thousand was paid as commission to Managing Director. Commission to Managing Director and Whole-time Director is subject to further recommendation and approval of Remuneration Committee and the Board of Directors.514 64.395 thousand (Previous Year Rs 21. During the year the Company has capitalised interest on borrowing cost Rs 2.Group Reporting Fee .903 88.899.990 3.293 thousand).000 3.600 200 263 19.742 1.387 thousand) being interest on fixed period loans. 20. 1956 @ 1% of the profits computed above Commission to Managing Director Commission to Whole-time Director Commission to Independent Directors 1.800 2.300 2. Rs 2.248 3. Annual Report 2009 . 56 ABB Limited.994 8.579 5.263 6. Auditors' Remuneration (for audit services excluding service tax) i) ii) iii) Audit fee Tax Audit Fee Other Services . 18. Interest charge for the year includes Rs 9 thousand (Previous Year Rs 4. For the year ended December 31.200 1.440 25.298 552.900 3.167 thousand was paid as commission to Whole-time Director and Rs 1.514 8.784 631.963. 1956 @ 10% of the profits computed above Maximum permissible remuneration to Independent Directors under Section 198 of the Companies Act.200 thousand was paid as commission to Independent Directors based on recommendation and approval of Remuneration Committee and Board of Directors.970 452.824.000 400 650 20. Research and development expenditure of Rs Nil (Previous Year Rs 21.332.545 64.508 586.Quarterly Limited Review Fee .000 2.120 72. 1956 Profit Before Tax as per profit and loss account Add: Managerial remuneration Loss on sale of fixed assets Loss on sale of Investment Provision for doubtful debts and advances 25.483 58.SOX Fee .425 7.573 Less: Profit on sale of fixed assets Net Profit as per Section 349 of the Companies Act.600 6. Rs 1.708 1.831 582.401 1.826.105 8.273.475 19.662 1.625 1.(Rs in Thousands) For the year ended December 31.Others iv) Reimbursement of out of pocket expenses 4.462 5.2008. b) Computation of Net Profit as per Section 349 of the Companies Act. 1956 Maximum permissible remuneration to Whole-time Directors under Section 198 of the Companies Act.191 2.715 thousand) on revenue account has been incurred during the year.384 2009 2008 Remuneration to Directors does not include provision for leave encashment and gratuity as it is provided in the books on the basis of actuarial valuation for the Company as a whole.

Ltd. Sweden ABB Technology Ltd. zo. Ltd.... Tlalnepantla. Canada ABB BV. Turkey ABB Malaysia Sdn Bhd. Helsinki. Montevideo. Australia ABB Automation Co.o. China ABB South Africa (Pty) Ltd. Ltd.932.. Casablanca.A. Heidelberg.A.. Luanda. Moscow.. Angola ABB Electrical Industries Ltd.. United Arab Emirates ABB Automation LLC. Skovlunde.234. Finland ABB Power Systems and Automation Techology S. Switzerland ABB Secheron S.. Beijing..L. Norway ABB AS. Lima. Germany ABB AG. Panama. India. China ABB (Hong Kong) Ltd. Beijing. Bahrain. Vienna..A.).823 71.392 68.598 6.982 2008 22 Related Party Disclosures a) List of Related Parties Party where control exists: ABB Asea Brown Boveri Limited. Satigny. Subang Jaya. Germany ABB Automation L. China ABB Bomem Inc. Doha. Riyadh.. Zaventem. China ABB Beijing Drive Systems Co. South Africa ABB Sp.A.V. Shanghai. Quebec. Uruguay ABB Contracting Company.. Istanbul. Ltd. Switzerland ABB Technology SA. Mexico ABB N. Sunninghill. Switzerland ABB Service Co. Poland ABB Stotz-Kontaki GmbH.A. Saudi Arabia ABB d. Tirat Carmel. France ABB S. 2009 for all the contracts in progress The amount of customer advances outstanding for contracts in progress as at December 31. Osasco. Italy ABB s.819. Mannheim. Hong Kong. Beijing. Rotterdam.331 7. Netherlands ABB Chongqing Transformer Company Ltd. Amsterdam.623. B.528. Baden. 2009 The amount of retentions due from customers for contracts in progress as at December 31. Serbia ABB Ecuador S. Chile ABB S.. Rueil-Malmaison. Province Of China ABB Ltd.871.093 3.C. Saudi Arabia ABB Shanghai Motors Co..A.. 2009 26.. Panama ABB S. Switzerland ABB Mexico S. Taipei. Construction Contracts Contract revenue recognised as revenue for the year ended December 31.. Mannheim..C.S. Brazil ABB Limited.. Denmark ABB AB. Germany ABB Technologies Ltd. Tallinn. Buenos Aires. Zurich. de C.(Rs in Thousands) 2009 21. Qatar ABB S. Malaysia ABB Management Services Ltd. Austria ABB AS. Abidjan. Quito. Saudi Arabia ABB Electrical Machines Ltd.o. Netherlands ABB Capital. Croatia ABB Ltda. Ltd... Sweden ABB AG. Al Khobar.. Ladenburg. Pakistan ABB A/S.. Lda.A.044.. Argentina ABB S.864 28.L. Västerås. Germany ABB Bailey Beijing Controls Co. Morocco ABB S. Belgium ABB Near East Trading Ltd. Ecuador ABB Electrica SGPS.427 3. China ABB Electroengineering Ltd.V. China ABB CL Logistic S. Västeras. Warsaw.r.A.. Cote D'Ivoire ABB Ltd.. Taiwan.J.. Milan. Jordan ABB Oy. Abu Dhabi.411. Riyadh. Belgrade.. Sydney.. Egypt ABB Qatar LLC. 2009 Aggregate amount of contract costs incurred and recognised profits (less recognised losses) up to December 31..S.A. Riyadh. Czech Republic ABB Schweiz AG.p. Russian Federation ABB Automation Products GmbH.. Moscow. Russian Federation ABB Elektrik Sanayi A. Hong Kong ABB (P.A.. Peru ABB S. Amman.A.. Zurich (Holding Company) Other Related parties with whom transactions have taken place during the year: Fellow subsidiaries: ABB (China) Ltd. Praque. Zagreb... Ltd. Chongqing City. Santiago.L. Estonia ABB Australia Pty Limited. Iran ABB (Pvt) Ltd.o. Saudi Arabia ABB Automation GmbH. Sanghai. Teheran. Cairo. Bahrain ABB Technology AB.o. Annual Report 2009 57 ..V.A. Israel ABB Technologies W.E. Lahore. Zurich. Billingstad....

. China ABB Transmission & Distribuition Automation Equipment (Xiamen) Co. Switzerland ABB International Marketing Ltd. United Arab Emirates ABB Industriunderhall AB. CT. August 1.f. Jakarta. Metamorphossis Attica. Budapest.. France ABB Global Industries and Services Limited.e.. Tokyo. Saudi Arabia PT ABB Installation Materials.A.A. Hong Kong ABB Turbo-Systems AG. September 1. K Rajagopal (From August 1. United Arab Emirates ABB Industries FZ. Riyadh. Shanghai. 2009) Mr. China ABB Holdings (Pty) Ltd. Singapore ABB Information Systems Ltd. Ltd. Mauritius Asea Brown Boveri Ltda. Lusaka. Xinhui (Guangdong). Vietnam ABB Ltd. Ltd.. Hanoi.ABB Engg. China ABB. Abuja. Biplab Majumder Mr. Ltd. Inc. Xi'an. Laurent. Abu Dhabi. Jordan. Amlan Datta Majumdar (w. Rueil Malmaison cedex.o. Zurich. Bolivia Asea Brown Boveri S. Zambia ABB Ltd. Hong Kong. New Zealand ABB Limited.. China ABB Transmissione & Distribution Ltd.. Slovakia ABBNG Limited. Dubai.K. Norwalk.. Xiamen. La Paz. Paranaque. Lid.C.f. Beijing.A.. South Korea ABB LV Installation Materials Co..... South Africa ABB Holdings Sdn. Port Louis. Amman. Germany Electrical Materials Center. Safat. Fujian. Sunninghill..L. Warrington. Dar Es Salaam.. Japan ABB Limited. Bangkok. Ireland ABB Ltd. Dublin. Zurich. Baden. Ukraine ABB Ltd.. Fujian Province. Jakarta. Ltd. Columbia Asea Brown Boveri Ltda. Technologies Co.. Auckland. Roigheim. Switzerland ABB Jiangjin Turbo Systems Company Limited. Quebec. Cairo. (KSCC). Caracas. China ABB K.. Ltd. Sweden ABB Industry Pte. Bengaluru.A.). China ABB. Ltd. Metro Manila... China ABB Engineering Trading and Service Ltd. Switzerland ABB UAB. Malaysia ABB Inc. Indonesia PT ABB Transmission and Distribution. 2008 on divestment of shares by the Company) Key Management Personnel: Managing Director: Whole-time Director: Chief Financial Officer: Mr.. 2009) Mr. Greece Asea Brown Boveri S. Egypt Busch-Jaeger Elektro GmbH. Kiev.E. St. Xi'an Power Capacitor Company Limited. s.. Menden. Bogotá... Philippines ABB.e. Jakarta. Bratislava. Indonesia Pucaro Elektro-Isolierstoffe GmbH.. China ABB.. 2009) 58 ABB Limited. Jordan ABB Ltd. Spain Asea Brown Boveri S. Tanzania ABB Limited. Vilnius. Degerfors. China ABB Xiamen Switchgear Co. 2009 to August 31. Germany Associate : (erstwhile) Integra Hindustan Control Limited (ceased to be associate from 25th April. Nigeria Asea Brown Boveri Ltd. Venezuela Asea Brown Boveri S. Germany ABB Ltd. Mannheim/Lüdenscheid. Peter's Port.. India ABB High Voltage Switchgear Co. Jakarta. Guernsey ABB France SAS. St. Canada ABB Industries (L. Thailand ABB Limited. Bhd.. Lithuania ABB Xiamen Electrical Controlgear Co. Ltd. Seoul. Subang Jaya. Xiamen. United States ABB Inc. Indonesia PT ABB Jasa Indonesia.. Beijing. Annual Report 2009 . United Arab Emirates ABB Turbo Systems (Hong Kong) Limited. Xinhui Low Voltage Switchgear Co. Hungary ABB ESAP Limited. Madrid.. United Kingdom ABB Logistics Center Europe GmbH.. China ABB Xiamen Low Voltage Equipment Co. Dubai. India. Kuwait ABB Engineering (Shanghai) Ltd. Chongqing. K Rajagopal (ceased to be director w.r. Indonesia PT ABB Sakti Industri..

347 164.ABB Technology Ltd. Annual Report 2009 59 . Engineering and Other Services Holding Company Fellow Subsidiaries .435 287. India .534 310.A. Switzerland .551 1.394. Zurich.646 v) Expenditure on Information technology.ABB Management Services Limited.969 3.623 215. St.ABB Oy.199 1.Other fellow subsidiaries 687. Zurich.138. All other cases have been grouped and disclosed as 'other fellow subsidiaries'.ABB Global Industries and Services Limited.948 1.952 168. Helsinki.585.080 795..640.852 15.ABB Schweiz AG..763 375.875 2008 ABB Limited.245 155.226 464.454.Other fellow subsidiaries Integra Hindustan Control Limited (an erstwhile associate) ii) Purchases of Raw Materials.799 5. Switzerland .567 4.663 751.ABB AB.ABB Global Industries and Services Limited.591 3.593 13.664 25.848 2.632 14.152 1.010. i) Sales.110.713 1.459.p.363 490.ABB ESAP Limited. Bengaluru. India . Components and Project items Fellow Subsidiaries .157. India.984. Bengaluru.577.(Rs in Thousands) 2009 b) Transactions with related parties Transaction value in excess of 10% with a fellow subsidiary has been individually disclosed below.149. Sweden . Västerås.400 41. Trade-mark.039 2. Finland .850.268 396.361. Västerås.517 5.261 341.994 4.ABB S.269 2.Other fellow subsidiaries Integra Hindustan Control Limited (an associate) iii) Expenditure on ESAP Charges Fellow Subsidiaries .641 18.ABB Information Systems Ltd.602.225. Milan.881 323.628. Switzerland .012 101.ABB AB.Other fellow subsidiaries 472. Guernsey iv) Expenditure on Royalty. Peters' Port.844 3. Zurich.214 896.983 63. Sweden . Technical and Consultancy Services Holding Company Fellow Subsidiaries .211.689 2. Switzerland . Italy . Services and Other income Fellow Subsidiaries .462 36..235 2. Baden.238 1.

Sweden .691 25.353. Helsinki.293 9. Milan.450 1. Bengaluru.ABB AG Mannheim.ABB Västerås. Sweden .Other fellow subsidiaries 1.101 5.471 viii) Capital expenditure Fellow Subsidiaries .379 6. Switzerland .891 825 825 2008 60 ABB Limited.084 6.ABB Global Industries and Services Limited. India . Helsinki.A.832 ix) Fixed assets (sold) Fellow Subsidiaries ..093.ABB Oy. Switzerland x) Outstanding balances Debtors and Advances Holding Company Fellow Subsidiaries: . Västerås.ABB AB Västerås.ABB AB.167. Sweden .531 18.ABB Global Industries and Services Limited.050 7.950 7.063.174 119.121 534 1.148.603 1.035. Bengaluru.633 2. Bengaluru.096 10.486.099 59.536 141. France . Finland . Italy . India .098 793 13.p.950 908.(Rs in Thousands) 2009 vi) Interest Expenses Fellow Subsidiaries . Sweden .700 12.ABB Turbo-System AG.335 912.805 101.062 23.ABB AB.024 1. Helsinki. India . Västerås. Germany .474.Other fellow subsidiaries 33.852 19.453 945.ABB. Baden.174 41.ABB Global Industries and Services Limited.471.573. Baden. Finland . Oy.ABB Oy. Rueil Malmaison cedex.743 7.ABB International Marketing Limited.604 2. Finland vii) Capital expenditure for Technical Know-how Fellow Subsidiaries .528 4.Other fellow subsidiaries 15.ABB Global Industries and Services Limited.007 162. Annual Report 2009 . Helsinki.ABB S.297 8.970 1.488 45.099 1.212 3.737 23. Switzerland .ABB France SAS. Finland .950 59.292 171.Other fellow subsidiaries Creditors Holding Company Fellow Subsidiaries: .ABB Schweiz AG.448 1.128 115.646 4.278 159.640 13.808 845. India. India . Bengaluru. Zurich.ABB Oy.

734 215.175 6. 2008.206) Class of provisions Warranties Additions 244.561) Sales Tax Litigations Restructuring 21.456 (630. Provisions a) Movement in provisions: (Figures in brackets are in respect of the previous year) (Rs in Thousands) As at January 1.160) 1.458) 59. K Rajagopal for 2008 is for the period upto February 18. K Rajagopal is for the period February 19.607 (216.206 (66.336 27.042) 53. Provision for restructuring represents the liability that is expected to materialise in respect of units hived off in past. ABB Limited. 2009.458 (58. Provision made as at December 31. Bengaluru.167) b.643 798 2.020 2.336 27.513) (-) (39.330 (25. 2008.589 15. 2009 and to Mr. The remuneration to Chief Financial Officer Mr. India xii) Dividend Paid during the year Holding Company Fellow Subsidiaries xiii) Remuneration to Managing Director xiv) Remuneration to Whole-time Director xv) Remuneration to Chief Financial Officer 215. d. Provision for litigation represents claims against the Company not acknowledged as debts that are expected to materialise in respect of matters in litigation.589 17. Amlan Datta Majumdar for the period September 1 to December 31.604 8. 2009 is for the period from January 1 to July 31.000 430.018) 1. 2009 686. The remuneration to Whole-time Director Mr. India.160) 1.000) As at December 31.000) (-) (26.042 (778. The remuneration to Chief Financial Officer includes payment made to Mr. 2009.ABB Global Industries and Services Limited.334 (3. c.000 2008 Remuneration to directors and chief financial officer does not include provision for leave encashment and gratuity as it is provided in the books on the basis of actuarial valuation for the Company as a whole. 61 Unused Amounts reversed 65.024 thousand).482 (173. 2009 630. 23. 2008 to December 31.160 (57. systems and services. K Rajagopal for the year ended December 31. Warranties: The Company provides warranties for its products. The pro rata difference between the forward contract rate and the exchange rate on the date of transaction to be charged to profit and loss account is Rs 58.892) 2.810 (57. Annual Report 2009 .206 (1.373) b) Nature of provisions: a. 24. K Rajagopal for the period August 1 to August 31.(Rs in Thousands) 2009 xi) Unsecured loan taken (repaid during the year) Fellow Subsidiaries: .223 thousand (Previous Year Rs 5.462 (21.235.461 (106.930) 33.650 (-) (-) Amounts used 122.079) 57. The remuneration to Whole-time Director for 2008 to Mr. 2009 represents the amount of the expected cost based on technical evaluation and past experience of meeting such obligations. undertaking to repair or replace the items that fail to perform satisfactorily during the warranty period.431) (15. Provision for Sales Tax represents mainly the differential sales tax liability on account of non collection of declaration forms.

The scheme detailed above is managed and administered. 28.573. India.748.979. The Company has defined benefit gratuity plan and provident fund plan managed by trusts.997 2.459 828 828 - iii) iv) v) Note: The information has been given in respect of only those suppliers who have intimated the Company that they are registered as micro and small enterprises. Wages and Bonus. 2008 228.990 thousand). which is applicable to employee share based payment plans. Excise duty on sales amounting to Rs 2. 2006 (MSMED Act) as at December 31. Accordingly. During the year. The employees of the Company are entitled to purchase shares of ABB Asea Brown Boveri Ltd.388 thousand).395 828 ii) 271.879 thousand (Previous Year Rs 136. The Institute of Chartered Accounants of India has issued a Guidance Note on Accounting for ‘Employee Share-based Payments’..076 thousand) has been reduced from sales in profit and loss account and excise duty on increase in inventory of finished goods amounting to Rs 9.998.877 thousand).567 thousand) towards the above including administrative charges and this has been charged in the profit and loss account under the head Salaries.25. Small and Medium Enterprises Development Act.072 thousand).974 thousand). Zurich (the ultimate holding company) on the settlement date. 2009 Principal amount Interest The amount of interest due and payable for the period of delay in making payment (beyond the appointed day during the year) The amount of interest accrued and remaining unpaid for the year ending December 31. 29.500 25 113 - 357. 62 ABB Limited.032. Forward cover for expected future purchases or highly probable forecast transaction as of balance sheet date is Rs 1. 26.929.575 thousand (Previous Year Rs 453 thousand) has been accounted in the profit and loss account under the head ‘Cost of Materials and Erection Services’. the company is of the opinion that there is no further accounting treatment/ disclosure required under the said Guidance Note.462 thousand (Previous Year Rs 35. except for the obligation towards expenses cross charged above.067 5. Derivative Instruments i) ii) iii) iv) v) Forward cover for foreign currency debtors outstanding as of balance sheet date is Rs 1.404 thousand (Previous Year Rs 6. 2009.530 thousand (Previous Year Rs 2. Annual Report 2009 . 2009 Principal amount Interest The amount of interest paid by the Company along with the amounts of the payment made to the supplier beyond the appointed day for the year ending December 31. 27. Forward cover for expected future sales or highly probable forecast transaction as of balance sheet date is Rs 2.136 88 174.896. 2009.292.696 thousand (Previous Year Rs 5. compensation benefits in respect of the scheme is assessed and accounted by the ultimate holding company. The Company has amounts due to Micro and Small Enterprises under The Micro. (Rs in Thousands) 2009 i) The principal amount and the interest due thereon remaining unpaid to any supplier as at December 31. The amount of further interest remaining due and payable for the earlier years. Foreign currency exposure (net) that are not hedged by derivative instruments or otherwise is Rs 668.480 thousand (Previous Year Rs 6. Forward cover for foreign currency creditors outstanding as of balance sheet date is Rs 6.352.301 thousand (Previous Year Rs 2. at a price fixed based on the fair market price on the grant date under ABB Employee Share Acquisition Plan. The following table summarises the component of net benefit expenses recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet. the Company has been cross charged Rs 15.922.

124 412.049 1.131 132.939) 575.570 540.580 146.983 136.959) (891) 46. 8.25% p.529 iv) v) 48.485 91.727 (6.881 28.752 1.3 100.048.520 iii) 40.048.302 491.a.270 (2.6 23.252 78.094 129.210 136.654 (146.00% p.426) 53.9 17.097 39.990 1.0 12.527.836 (6.849 2.737) 540.839 (38.086.022 (30.4 100.302 491.124 (38.871) 125.836 (6.00% p. at fair value Contributions Expected return on plan assets Actuarial (loss) / gain Benefits paid Plan assets at the end of the period.00% p. 6.572) 39.50% p.048) (30.520 335.146 93.796) 2.086.737) (1.169) 35.885 25.0 520.848 88.302 48.169) 419.048.022 (40. at fair value Actual return on plan assets Expected return on plan assets Actuarial (loss) / gain on plan assets Actual return on plan assets Present value of the defined benefit obligation Plan assets at the end of the period.153 93.996 337.654 (203. 7. 8.1 32. at fair value Liability recognised in the balance sheet Cost for the period Current service cost Interest cost Expected return on plan assets Actuarial loss/(gain) Expense recognised in the statement of profit & loss Investment details (% invested) GOI Securities State Government Securities PSU Securities Special Deposit Scheme Others (including bank balances) Experience adjustment Defined benefit obligation Plan assets Surplus / (Deficit) Experience adjustments on plan liabilities Experience adjustments on plan assets 520.a.885 25.097 (203. 8.293 2.401 1.3 100.881 1.675 520.482.990 (34.570 540.807) (37. Annual Report 2009 63 .650 46.426 (2. 8.123 38.1 22.822.751) 30.959 (1.768.922 39.935 40.992 46.426 (2.752 1.3 100.250 (53.768.097 147.a.572) 1.768.751) (34.a.5 11.3 9.622 1.990 34.6 13.421 132. India.807) 2.2009 Gratuity i) Change in benefit obligations Projected benefit obligations at beginning of the period Current service cost Contribution by plan participants (employees) Interest cost Benefits paid Actuarial loss / (gain) Projected benefit obligations (PBO) at the end of the period Change in plan assets Plan assets at the beginning of the period.302 1.768.752) (38.520 53.50% p.911 575.529) 1.a. ABB Limited.0 1.049 ii) 491.8 9.570 Provident Fund 1.a.293 2.097 520.839 (34.0 9.a.836) 46.893) 80.629 (132.822.922 39.732 91.871) vii) viii) Assumptions Interest rate for discount Estimated rate of return on plan assets 7.169) 51.580) 8.629 (177.293 (Rs in Thousands) 2008 Gratuity Provident Fund 430.50% p.048) 28.169 38.983 239.049 1.881 (28.048) 39.562 146.a.049 129.7 19. 6.086.881 39.0 2.732 247.493 99.50% p.822.9 30.0 575.4 9.959 (1.965 1.421) 51.4 17.018 vi) 33.871) (177.751) 35.124 38.240 (1.822.9 15.5 14.

35141 For and on behalf of the Board Gary Steel Biplab Majumder Peter Leupp Francis Duggan Nasser Munjee D E Udwadia A K Dasgupta Amlan Datta Majumdar B Gururaj Bengaluru. to conform with the current year’s classifications. As per our report of even date For S. BATLIBOI & CO. February 26. 2010 Chairman Vice Chairman & Managing Director Director Director Director Director Director Chief Financial Officer Company Secretary Bengaluru. interest rate for discount and overall expected rate of return on assets have been considered based on relevant economic factors such as inflation. ii) iii) 30. The attrition rate for gratuity varies from 1% to 8% for various age groups.960 thousand) to Gratuity Fund and Rs 89. February 26. Annual Report 2009 .091 thousand (Previous Year Rs 108. India. The figures of the previous year have been regrouped / reclassified. The Company expects to contribute Rs 50.919 thousand) to Provident Fund in 2009. where necessary. Chartered Accountants per Sunil Bhumralkar Partner Membership No.Notes : i) Assumptions relating to future salary increases. market growth and other factors applicable to the period over which the obligation is expected to be settled.R.700 thousand (Previous Year Rs 96. 2010 64 ABB Limited. attrition.

157 2.549) (1.301) 70.994 8.544.550) 13.681 Movement in Working Capital (Increase)/ Decrease in Sundry Debtors (Increase)/ Decrease in Inventories (Increase)/ Decrease in Other Current Assets (Increase)/ Decrease in Loans and Advances Increase/ (Decrease) in Current Liabilities and Provisions Cash Generated from Operations Direct Taxes Paid (net of refunds) Net Cash generated from Operating Activities 1.687.065. (net) Loss / (Profit) on Sale of Investments.143) 346.632.449 2.482 194.575.129 (1.952 116.231.914 (2. Cash Flow from Investing Activities Purchase of Fixed Assets Proceeds from sale of Fixed Assets Sale/Maturity of Investments Interest Received Net Cash used in Investing Activities (1.573) 329.332.943 1.235 (46.565.777.080 439.733 B.876 (5.193.432) (1.293) 256.273.677) (141. Annual Report 2009 65 .059.655) 6.006) (23.453.246.414 (2.172.252) (1.237 (867. 2009 2009 2008 A. Cash Flow from Operating Activities Net Profit Before Tax 5.828.383) 2.581) ABB Limited.242 5.600 9.539.979 275.784) (2.787 366.058 9.038) 3.378.668 (86.970 (183.527) 598.440 Adjustments for Depreciation/ Amortisation Unrealised Losses/ (Gains) on Restatement of Monetary Assets (net) Unrealised Losses/ (Gains) on Restatement of Monetary Liabilities (net) Loss / (Profit) on Sale of Fixed Assets. (net) Interest Income Interest Expense Operating Profit before Working Capital Changes 485.926) 81.204 (985.222 (2.Cash Flow Statement (Rs in Thousands) For the year ended December 31.075.489) 196. India.805 (104.720.

2010 66 ABB Limited.009.313 5.417) (896.241.554 915 3.(Rs in Thousands) For the year ended December 31.172.021 thousand (Previous Year Rs 10. The figures of the previous year have been regrouped/reclassified.000 (28.405 (2.965.779 thousand) being restricted cash.527) (544.600) (544. Annual Report 2009 .271) (800.211 8. to conform with the classification of the current year.482.202) (255. Cash Flow from Financing Activities Proceeds from new Borrowings Repayment of Borrowings Interest Paid Dividend (Including corporate Dividend Tax) paid Net Cash used in Financing Activities 28. Chartered Accountants per Sunil Bhumralkar Partner Membership No.531.On Deposit Account .435.On Margin Account 1.633 1.960. February 26.428. 2010 Chairman Vice Chairman & Managing Director Director Director Director Director Director Chief Financial Officer Company Secretary Bengaluru. 2009 2008 Cash and cheques on hand Balances With Banks . 35141 For and on behalf of the Board Gary Steel Biplab Majumder Peter Leupp Francis Duggan Nasser Munjee D E Udwadia A K Dasgupta Amlan Datta Majumdar B Gururaj Bengaluru.R.060. 2009 2009 2008 C. Cash Flow Statement is made using the indirect method.475) Net Increase/ (Decrease) in Cash and Cash Equivalents (A+B+C) Cash and Cash Equivalents (Opening Balance) Cash and Cash Equivalents (Closing Balance) 1.458) (346.313 Notes: 1) 2) 3) Cash and Cash Equivalents at the end of the year represent cash and cheques on hand and cash and deposits with banks.129 1.260 3.482.313 Components of Cash and Cash Equivalents as at December 31.435. BATLIBOI & CO.092 3.946.405 1.000 (11.016 5.000) 11.759. where necessary.482. As per our report of even date For S. February 26.941.636 3. India.241. Cash and Cash Equivalents includes unclaimed dividend and margin deposit of Rs 11.On Current Account .323) 6.

Annual Report 2009 67 . (ITC Code) Product Description 85.35 Switchgears of all types 85. (ITC Code) Product Description Item Code No. Expenditure NIL Investments 168792 Unsecured Loans NIL Reserve and Surplus 23813515 24237332 NIL State Code 0 8 II Capital Raised During the year (Rs In Thousands) Public Issue III Position of Mobilisation and Deployment of Funds (Rs in Thousands) Total Liabilities IV Performance of the Company (Rs in Thousand) Turnover V Generic Names of Three Principal Products/Services of Company (as per monetary terms) Item Code No.Balance Sheet Abstract and Company’s General Business Profile I Registration Details Registration No.04 Transformers 85.Profit/Loss After Tax +3546391 57823716 Misc.74 Dividend Rate % 100 +/.04 Electronic Control and Supply Units for Variable Speed Drives and other applications ABB Limited. (ITC Code) Product Description Item Code No. Balance Sheet Date L32202KA1949PLC032923 31 Date 12 Month 09 Year Rights Issue NIL Bonus Issue NIL Private Placement NIL Total Assets 24237332 Sources of Funds Paid Up Capital 423817 Secured Loans NIL Deferred Tax Liability NIL Application of Funds Net Fixed Assets 7894687 Net Current Assets 16172887 Accumulated Losses NIL Deferred Tax Assets 966 Total Expenditure 63097710 +/.Profit/Loss Before Tax +5273994 Earnings per share in Rs 16. India.

Notes 68 ABB Limited. Annual Report 2009 . India.

................................ “Chancery”....... No...........................................................00 a.......................... May 11... in the district of ....................... of ...........................................m............................ Bengaluru ....... 2................................................. Bengaluru ........................................... A Member/Proxy holder attending the meeting must bring the Attendance Slip to the meeting and hand it over at the entrance duly signed... A Proxy need not be a member of the Company................................ No.................................... A Member/Proxy holder attending the meeting should bring copy of the Annual Report for reference at the meeting......................  PROXY FORM  ABB Limited Registered Office : 2nd Floor........... No.. Khanija Bhavan 49...  ......... in the district of ........................................560 001 DP.... SIGNATURE OF MEMBER/S .............................. DP........ East Wing............................................00 a........ The proxy must be returned so as to reach the Registered office of the Company 2nd Floor............m......... ATTENDANCE SLIP ABB Limited Registered Office : 2nd Floor...................................... being a Member/ Members of ABB Limited....... Id Affix a Re 1/Revenue Stamp Client Id/ Folio No........... or failing him/her ... 2010 at 11........ of Shares I hereby record my presence at the SIXTIETH ANNUAL GENERAL MEETING of the Company at The Atria Hotel.. East Wing... Khanija Bhavan 49.............................. of ...... Bengaluru ................................................... Note: 1................. Id NAME & ADDRESS OF THE REGISTERED SHAREHOLDER Client Id/ Folio No................................................ East Wing.... Signed this ... Palace Road...................................560 001 on Tuesday................................. 2............. Bengaluru – 560 001................ 49................................. Bengaluru ........................ Race Course Road.............. of Shares Notes: 1................................................................................. and at any adjournment thereof......... as my/our Proxy to attend and vote for me/us and on my/our behalf at the SIXTIETH ANNUAL GENERAL MEETING of the Company at The Atria Hotel................................ Khanija Bhavan............................. day of ........... SIGNATURE OF THE ATTENDING MEMBER / PROXY ................................. “Chancery”......... hereby appoint ...........................560 001...................................................................... No................. 2010 at 11......... Race Course Road..................... 1........... of........... on Tuesday... Race Course Road............................... Palace Road... 1.................................. I/We ...... in the district of .. not less than FORTY-EIGHT HOURS before the time for holding the aforesaid meeting...... May 11...............560 001.............................. 2010....

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in .abb.© Copyright 2010 ABB.co. East Wing Khanija Bhavan 49. ABB Limited Corporate Communications 2nd Floor. Race Course Road Bangalore 560 001 India Tel: +91 80 2294 9150 Fax: +91 80 2294 9148 www. All rights reserved.

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