2. ACKNOWLEDGEMENT
My first regard is to almighty God, it was my trust and belief on him, which enable me to
embark upon this task, move on the righteous path and recede the realm of facts. So success is
lock and hard is the key. My training place is AREVA T&D India Ltd. Naini, Allahabad,
immensely helped me to utilize my knowledge practically. I express my heartfelt thanks to Mr.
Manoj RAI (GENRAL MANAGER ALLAHABAD) who helped me to carry out this project.
Under his Guidance and blessing I was able to fulfill the requirement of my University.
I would also like to thanks Mr. Amit Srivastav (COST CONTROLLER) and Mr Anshul
Mehrotra (PSS DEPARTMENT) for his most precious contribution and help in this project .
I am very much thankful to other staff members of “AREVA T&D NAINI “ without their help I
would not be able to finish this project .
In last I am thankful to all my friend and my parents who provide me all his experience
and encourage me constantly to complete this project.
VIKASH OJHA
MBA (Finance)
SIMCA (ALLAHABAD)

3. OBJECTIVES
An objective is the most important part of a summer training project report. The objective
is the bull’s eye, which a trainer has to hit. The objective determines the path on which a trainer
has to walk on, and help him/her by not deviating from the path.
The objective of this project report is to provide knowledge about “Financial ratio and working
capital analyses” and its improvement in AREVA T&D Naini, Allahabad.
The main motto of this project is solving the following purposes:
• FINANCIAL RATIO
• WORKING CAPITAL RATIO

4. COMPANY PROFILE
What is the origin of AREVA name?
AREVA was created in 2001. When it was announced, on 30th November 2000, the CEA
industries, COGEMA, Framatome ANP and FCI were to merge, a French business daily
compared the future structure of the company to “a Cistercian abbey that weds perfect
symmetry to great dignity”.
This gives company the idea as they began the search for new name, of looking at a
list of such edifices to see if one of their names suited their purpose. They wanted a simple
name, one that phonetically pleasant and easy to pronounce and one that sounded modern as
opposed to fashionable, one that stirred the imagination.
Their inspiration came from the region of Avila in Northern Spain, location of
Arevalo Abbey. Its name, minus one syllable, became AREVA.

5. AREVA, WORLDWIDE
Areva is a French public multinational industrial conglomerate that deals in energy, especially in
nuclear power. The parent company is incorporated under French law as a société anonyme (public
corporation). The French State owns more than 90%. Areva is just a name, inspired by Arevalo
Abbey in Spain. The real name of the company is S.A. des Participations du Commissariat à
Atomique.
With manufacturing facilities in 43 countries and a sales network in more than 100, AREVA offers
customers reliable technological solutions for CO2-free power generation and electricity
transmission and distribution. Areva is the world leader in nuclear power and the only company to
cover all industrial activities in this field. Areva’s 65,000 employees are committed to continuous
improvement on a daily basis, making sustainable development the focal point of the group’s
industrial strategy. The company is engaged in nuclear power generation and transmission &
distribution of electrical energy. It is the only company with a presence in each industrial activity
linked to nuclear energy: mining, chemistry, enrichment, combustibles, services, engineering,
nuclear propulsion and reactors, treatment, recycling, stabilization, and dismantling. It is the world
leader in nuclear power and the only company to cover all industrial activities in this field. Areva
specializes in infrastructure.
AREVA, The Global specialist in energy & transport infrastructure is in the business of providing
quality solutions & system design. AREVA is the government organization of France. It acquired
the Transfer & Distribution division of ALSTOM, a private organization of France in 2004. It
acquired the Naini division of Alstom in September 2005. The organization is World leader in

6. energy business. It is No.1 in the entire nuclear cycle. It is No.3 in electricity transmission and
distribution.
AREVA: A RECOGNIZED LEADERSHIP
 World leader in the energy business
1. No.1 in the entire nuclear cycle
2. No.3 in electricity transmission and distribution
 Company’s Mission
1. Innovate to contribute to ever cleaner, safer and economical CO2-free power generation
and electricity transmission and distribution.
 Company’s 2011 Objectives
1. Achieve one-third of the world nuclear market and a €5Bn sales revenue
2. Deliver a double digit operating margin
3. Reach a significant position in CO2 free production systems
Areva Way
The AREVA way represents AREVA core beliefs, values and aspirations. It illustrates a vision
structure that guides the thoughts and actions of AREVA people in attaining the ultimate goal of
becoming No.1 AREVA. It stipulates the way in which the goal is realized AREVA’s principles
"Enable everyone to have access to ever cleaner, safer and cheaper energy"

7. HISTORY OF AREVA T&D
125 YEARS OF HIGH PERFORMANCE
AREVA T&D’s leading position in today’s energy market follows over 125 years of pioneering
innovation, technological expertise and unwavering commitment to quality. From our initial

8. Creation in 1878 to company growing worldwide presence today, AREVA T&D has gone from
strength to strength.
1878 :
Creation of Societe Alsacienne De Construction Mecanques (SACM) in France, predecessor of
AREVA T&D
1918 :
Creation of English Electric Company Limited (Later known as GEC) in the UK.
1928 :
SACM merges with Thomson-Houston, forming ALSTHOM SA.
1983 :
ALSTHOM SA acquiers Compagnie Electro-Mecanique(CEM).
1986 :
Acquisition of Sprecher and Schuh’s high and medium voltage activities.
1988 :
Acquisition of the Relays and instrument transformer divisions of Schlumberger Industrie.
Merger with General Electric Company (GEC) to create GEC-ALSTHOM, later known as
ALSTOM.

9. 1996 :
Acquisition of Allgemeine Electricitats-Gesellschaft(AEG).
1998 :
Acquisition of CEGELEC T&D.
2003 :
Four joint ventures in China
2004 :
ALSTOM T&D joins the AREVA group, to form AREAV T&D.
2006 :
Acquisition of the high-voltage activity of the RITZ Group.
2007 :
Acquisition of Passoni & Villa, manufacturer of high voltage bushings. Acquisition of VEI
Power distribution S.P.A.’s medium-voltage activities in Italy.
2008 :
Acquisition of the Finish company Nokian Capacitors Ltd., manufacturer of power system
components, such as capacitors.

13. COMPANY PROFILE WORLDWIDE

14. The AREVA group is organized around a Supervisory Board, an Executive Board and
an Executive Committee assisted by the Corporate Departments. These bodies supervise and
pilot the group operations, divided into four divisions organized
as business units.
With manufacturing facilities in 40 countries and a sales network
in more than 100, AREVA offers customers reliable technological solutions for CO2-free power
generation and electricity transmission and distribution. Company is the world leader in nuclear
power and the only company to cover all industrial activities in this field. Our 58,000 employees
are committed to continuous improvement on a daily basis, making sustainable development the
focal point of the group’s industrial strategy. AREVA’s businesses help meet the 21st century’s
greatest challenges: making energy available to all, protecting the planet, and acting responsibly
towards future generations.

15. SIMPLIFIED LEGAL ORGANIZATION CHART
OPERATIONS:
AREVA has three operation divisions:
1. AREVA NC
2. AREVA NP
3. AREVA T&D

16. 1- AREVA NC: World leader in the nuclear fuel cycle AREVA NC, a wholly owned subsidiary
of the AREVA group, is an industrial group active in the energy sector offering utilities all over
the world a full range of products and services for nuclear power generation. From uranium
mining, conversion and enrichment through spent fuel reprocessing and recycling. AREVA NC
has expertise in every business related to uranium processing (mining, conversion, enrichment,
and used fuel treatment and recycling) and to nuclear facility cleanup and dismantling.
With some 6000 metric tons of natural uranium production per year representing around
15% of world production, AREVA NC is a world leader in natural uranium production. Societie
des Mines de Jouac operated the last uranium mine in France. The mine was shut down in 2001
after the reserves were mined out. Today, AREVA NC operates mines in Niger, Canada and
Kazakhstan. To maintain its market position and replace its reserves, the company continues to
explore for uranium, mostly in Canada, Niger and Central Asia. Applying the know-how
acquired in uranium exploration and mining, AREVA NC successfully diversified into gold, in
particular is Sudan, Australia and France. In addition, AREVA NC has an equity investment in
Eramet, a mining and metallurgy company nickel mines, and in Eramet’s subsidiaries Comilog
and Eramet Manganese, specialized in manganese mining and transformation respectively.
The group is the third ranked producer in uranium production and controls 20% of its
resources with 250000 metric tons of long term uranium resources, 80000 metric tons of medium
term resources and140000 metric tons of reserves ready to be mined enabling it to sustain and
increase current production levels representing 14% of world production. Considering the
renewed interest in nuclear power, AREVA plans to double production by 2012.

17. 2-AREVA NP is headquartered in Paris (France) with main subsidiaries in the United States and
Germany. AREVA has a 66 percent and Siemens a 34 percent stake in the company. AREVA
NP is an AREVA group company dedicated to the design and construction of nuclear power
plants and research reactors, engineering, instrumentation & control, modernization maintenance
and repair services, components manufacture and supply of nuclear fuel. AREVA NP has a total
workforce of 14200 employees and is active in Eastern and Western Europe, North and South
America, Asia and Africa.
As a committed leader in the development and growth of nuclear power, AREVA NP
offers experience, R&D and unparalleled innovation and expertise in engineering, major project
management, fuel, equipment and services supply for all reactors technologies, primarily for
PWRs and BWRs. Serving as Original Equipment Manufacturer (OEM)
AREVA NP has built about 100 nuclear plants in 11 countries that provide about 30% of
the world’s total installed power capacity and its experienced resources remain focused on the
local needs of individual clients, wherever in the world they may be. AREVA NP’s priority it to
provide the best solutions to meet challenges faced by electrical utilities worldwide. The
company further improves plant performance, reduces operating costs and extends plant lifetime
and thus helps the customers power the world with safe, clean and cost-effective nuclear energy.
AREVA NP Energy Business is organized into four divisions covering the nuclear power
cycle and electricity transmission and distribution:
• Fuel sector (AREVA Front-End Division)
• Plants sector (AREVA Reactors and Services Division)

18. • Nuclear Services sector (AREVA Reactors and Services division)
• Equipment sector (AREVA Reactors and Services division)

19. 3-T&D DIVISION:
The AREVA T&D division supplies products, systems and services for electricity transmission
and distribution. They are used to regulate, switch, transform and dispatch electric current in
electric power networks connecting the power plant to the final user. AREVA T&D products and

20. solutions play an essential role in electricity network reliability, quality and safety. The division's
customers are electric utilities as well as the oil, mining and metals, wind energy, paper and
glass, transportation, and power engineering industries. This division consists of the
four following business units:
(A) PRODUCTS
The Products business unit designs, manufactures and delivers a complete range of products
covering every stage of electric power transmission and distribution. The business unit's
specialized equipment is used for:
• high voltage power transmission (52 kV-800 kV): conventional equipment, insulated
substations, instrument transformers and power transformers;
• medium voltage primary and secondary power distribution (3 kV-52 kV): compact transformer
substations, distribution transformers, circuit breakers, switchgear, engine starting cells and
lightning arrestors.
Substation control and safety.
The business unit operates production units in 25 countries on six continents. The group serves
more than 30,000 customers around the globe. The key strengths of the Products business are its
research and development expertise, its understanding of changing customer requirements,
quality management and optimized production site operation.

21. (b)SYSTEMS:
The Systems business unit offers turnkey projects and grid management systems. Customers turn
to the Systems business unit for substation engineering experience, electric power supply system
expertise, command of advanced technologies, and project management know-how.
The business unit's main customers are power companies and industrial groups that use large
quantities of electricity.
The unit offers:
• high voltage and medium voltage substations;
• power electronics for direct-current substations and systems to increase existing grid capacity
and quality;
• operating systems for transmission and distribution networks;
• electric power market management systems.
The Systems business unit's key strengths are technology and applications expertise, particularly
in power electronics, know-how in real-time electric current management, and partnerships with
suppliers.
(c)SERVICES:
In addition to product-related services, the Services business unit provides network management
services, operating support, and maintenance services to power companies. The business unit
offers medium and long-term contracts covering the entire life cycle of its customers' electric
power systems. These contracts allow power companies to optimize equipment costs and
performance while ensuring operator safety.

22. The Services business unit offers a wide range of services:
• power system engineering, consulting, training, and transmission and distribution expertise;
• long-term maintenance contracts for products and substations;
• repair services, spare parts and product start-up services;
• electrical substation upgrading and refurbishing;
• information technology support for grid management systems and safety/control products.
The key strengths of the Services business unit are a keen understanding of its customers and the
T&D products they use, the ability to supply products and related services, quick turnaround
times, and project management expertise.
(d)AUTOMATION:
The Automation business unit answers to demand for fully integrated energy management
networks. The business is built around three main activities: automation and information
systems, automation products and application and support services. The business unit supplies
equipment and information technology systems, including computerized power management
systems used to operate power transmission networks, determine customer needs and regulate
the flow of power from power plants to the distribution network.
In particular, the business unit provides Information Systems solutions for deregulated energy
industry applications, large information technology control systems (SCADA) and
telecommunications equipment for power lines. The Automation business unit also provides
equipment for power networks and substation protection, control and monitoring.

23. AREVA T&D INDIA LIMITED
Innovation, Growth, Leadership…
AREVA T&D INDIA LIMITED is a subsidiary of AREVA, France. It came to India by
acquiring the worldwide T&D sector of Alsthom, France. AREVA T&D INDIA LIMITED,
formerly known as ALSTOM LIMITED was originally incorporated as General Electric
Company of India (GECI) in 1911. GECI was amalgamated with the English Electric Company
of India (EEI) in April 1993 and the name was changed to GEC Alsthom India. The company
was promoted by GEC Alsthom, Netherlands, which has interests in GEC Alsthom Triveni. The
name of the company was changed from Alstom Limited to Areva T&D India Limited from 23rd
September, 2005.
AREVA T&D currently employs over 4600 people in India across 16 Manufacturing Units and
22 Sales Offices. The company has been a trend- setter in the field of high voltage switchgear
and was the first to build the 765 KV sub- station in India with National Thermal Power
Corporation Limited (NTPC) at SIPAT, Chhattisgarh. Around 70% of power flow in India’s
transmission grids is managed by AREVA T&D’s Automation solutions.
Areva T&D India divides its business in verticals like, Systems, Products, Automation, and
Services.
• Products
Company’s Products segment comprises of Power Transformers, Instrument Transformers,
Circuit breakers and Medium Voltage Switch Gears. The company is present in products of upto
765 KV. Areva T&D mainly focuses on Medium Voltage (MV) to Extra High Voltage (EHV)
products.
EHV Products: 132 KV and above
HV Products: 66 KV and Above

24. MV Products: 33 KV and Below
LV Products: 11 KV and Below (Not present)
• Systems
Under this segment the company undertakes turnkey projects like building substations and
switchyards. The company is also present in high-end areas like 765 KV substations, HVDC
Substations and Gas Insulated Substations.
• Automation
Automation segment comprises of hardware and software for managing energy flows from Load
Dispatch Centres. It includes Supervisory Control and Data Acquisition (SCADA) used for
managing smooth energy flows from a centralized location.
• Services
This segment comprises services for network planning and after sales services for products and
systems business.

25. An Integrated Offer- 4 Division
To answer its customers’ needs, AREVA’s development strategy is based on a balanced
presence in Europe, North and South America and Asia. For its nuclear operations, the group
offers its customers’ valued solutions throughout the cycle:
1. Front-End Division: This is the first division of AREVA which includes uranium ore
exploration, mining, concentration, conversion and enrichment; nuclear fuel design and
fabrication.
2. Reactors & Services Division: This division includes design and construction of nuclear
reactors and other non co2 emitting power generation system; supply of products and
services for nuclear power plant maintenance, upgrades and operations.
3. Back-End Division: This division offers solutions for the management of used fuel. It
includes treatment and recycling of used fuel; cleanup of nuclear facilities; nuclear
logistics. It is organized into five business units: Nuclear Site Value, Recycling,
Logistics, Clean-up and Engineering.
4. Transmission & Distribution (T&D) Division: This division includes transmission and
distribution operations which provide products, systems, automation and services
designed to transport and distribute electricity from the power plant to the final user.

26. EXPANSION OF AREVA T&D INDIA LIMITED
HOSUR:
 The unit located at Bangalore is moved to a new site at Hosur to achieve the following
objectives:
 To build products up to Extra High Voltage (765 kV) and Ultra High Voltage (1200 kV)
for the emerging needs of India’s transmission grid.
 To build extra capacities to take care of both domestic and export market.
. .
VADODARA:
AREVA T&D India has inaugurated its largest manufacturing site at Vadodara
 Four world class industrial units on one site
 Delivering extra and ultra high voltage (EHV & UHV) transformers
AREVA T&D India has inaugurated four new factories at a Greenfield site in Vadodara,
State of Gujarat on March 30, 2008. These four factories are amongst a total of eight advanced
technology manufacturing facilities that are being opened by AREVA on three sites across India.
Shri Narendra Modi, Chief Minister of Gujurat inaugurated the new facility, situated near
Kotambi village, in Vadodara, in the presence of Mr. Philippe Guillemot, Chairman and CEO of
AREVA T&D, and other senior company representatives and customers. The four factories at
Vadodara together cover an industrial surface of 350,000 sqm of which more than 69,000 sqm is
the covered surface. These factories are:
1. Power Transformer factory with the largest testing capabilities in India: In addition
to AREVA’s existing power transformer factory at Naini (State of Uttar Pradesh), the
new factory in Vadodara will manufacture power transformers up to 1200kV AC and
800kV DC, supporting India’s growing needs in UHV AC & UHV DC network
developments.

27. 2. The second Distribution Transformer factory in India: Vadodara also manufactures
Distribution Transformers, which adds additional capacity to the existing facility at
Naini. This new factory will improve geographical coverage across India, ensuring the
close proximity to customers. The Vadodara factory will supply oil-immersed
distribution transformers up to 30MVA.
3. Primary Distribution Equipment: The Primary Distribution factory manufactures
outdoor and indoor vacuum circuit breakers and air insulated switchboards up to 36kV.
Modern design circuit breakers will require less welding and contain some 40% less raw
materials, to help reduce CO2 emissions and electricity used during production.
4. Secondary Distribution Equipment: The Secondary Distribution factory manufactures
gas insulated switchgear to 36kV for distribution networks, MXR reclosers for overhead
lines, and prefabricated substations. The factories incorporate world class manufacturing
equipment and facilities, latest generation high tech equipments: high speed core cutting
line; semi automatic winding machines, and an impulse generator 1000. In the power
transformer factory, handling facilities for weights over 500 tons are sized for the
production of the largest power transformers for Ultra High Voltage applications.
PADAPPAI:
AREVA T&D inaugurates India’s first Gas Insulated Substation manufacturing facility at
Padappai
 Site to also manufacture ultra high voltage (1200 kV) switchgear
AREVA T&D India has inaugurated its latest state-of-the-art High Voltage
manufacturing site at Padappai, near Chennai on March 31, 2009. The new site is home to three
specific factories, manufacturing gas insulated substations, circuit breakers and disconnecting
switches. These new factories are amongst a total of eight that are being inaugurated on three
sites in Vadodara, Padappai and Hosur by AREVA T&D.

28. At Padappai, Thiru Arcot Veeraswamy, honourable Minister for Electricity, government
of Tamil Nadu inaugurated the new facility, during an official ceremony, which took place in the
presence of Philippe Guillemot, Chairman and CEO of AREVA T&D, together with invited
guests and customers.
With its three factories, the Padappai site is AREVA T&D’s hub facility in the region for high
voltage, and fully equipped to meet India’s demand for extra and ultra high voltage equipment
(up to 1200kV). It has an industrial surface of 58,000 sqm, with 20,300 sqm of covered
workshop areas.
1. Gas Insulated Substation (GIS) factory: In line with AREVA T&D’s localization
strategy to become closer to its customers, Padappai is India’s FIRST manufacturing
facility for Gas Insulated Substations (GIS). AREVA T&D is the world leader in GIS,
including in India. At Padappai, AREVA will manufacture GIS up to 400kV.
2. Circuit Breakers factory: The second of the Padappai factories manufactures and tests
live tank circuit breakers from up to 1200kV. AREVA is already the first company to
manufacture in India circuit breakers with full spring operating mechanisms and thermal
blast chambers. As a global leader in the circuit breaker product segment and number one
in India since 1996, AREVA T&D is bringing its advanced know-how to what will be a
manufacturing centre of excellence.
3. Disconnecting Switches factory: The third factory manufactures disconnecting switches
from up to 1200kV. Benefiting from AREVA T&D’s worldwide leadership position in
Disconnectors, is the AREVA’s first disconnector factory in India.

29. HISTORY OF AREVA AT NAINI, INDIA
History of AREVA at Naini is not so long. As AREVA has taken over Naini T&D division from
ALSTOM in 27 September 2005 as well as the following division of India:
• Kolkata.
• Chennai.
AREVA T&D NAINI WORKS
The Naini site is one of AREVA T&D’s successful and highly developed power
transformer production plants. Globally, we have factories and technical centers dedicated to
power transformers in nine countries spread across four continents. Incorporated in 1957, the
Naini transformer factory has more than 50 years of excellent operating experience in
manufacturing power and distribution transformers.
Before 23rd September 2005 it was known as Alstom Limited. It is located 12 km from
Allahabad in the state of Uttar Pradesh (about 600 kms from New Delhi & 800 kms from
Kolkata). The unit is spread over a total are of 87276 meter square providing employment to
nearly 700 people. The unit has the certification of IMS. The unit is engaged in the production of
power transformers, distribution transformers and MV product lines. It is the only unit in India
producing the oil base transformers. The Naini factory pioneered in the manufacture of shell type
furnace transformers in India and holds “Numero Uno” position in arc furnace duty transformers.

30. AREVA Naini has supplied the largest number of transformers in this category to its customers
all over the country
The range of products at Naini Works
The product range includes power transformers of all types up to 400 kV class series
and distribution transformers.
• Distribution and Power Transformers up to 400 kv class
• Dry type Mining Transformers
• Single phase track side transformers for railways
• Rectifier transformers
• Shunt reactors of coreless and gapped core types
• Current limiting series reactors
• Sealed type air/glass cushioned transformers
• Air furnace transformers
• Furnace transformers for calcium carbide, Ferro silicon, Ferro manganese, Ferro chrome
• Drycol breathers
• On load tap changers
• Radiators suitable for transformers
• Auto booster transformers

31. At present Naini Works has the capacity to manufacture 6000 MVA Power Transformer
annually.
EXPORTS
Zimbabwe Brazil
China Myanmar
Argentina Australia
Bangladesh Bhutan
Malaysia Nigeria
Kenya Iran
Columbia Croatia
Greece Malawi
Nepal Uganda
Vietnam Canada
France UK
Libya Tanzania

32. Major Customers in India
• All State Electricity Board
• Power Grid Corporation of India
• National Hydro Power Electric Corporation
• Kolkata Electric Supply Corporation
• Ahmedabad Electricity Company
• New Delhi Municipal Corporation
• Tata Iron and Steel Company (TISCO)
• Bhilai Steel Plant
• Indian Iron and Steel Company
• Bharat Heavy Electricals Limited (BHEL)
• Kribhco
• National Fertilizers Limited
• ACC
• Birla Cement
• Century Cement
• L&T
• Western Collieries
• Eastern Coalfield
• Santa Eastern Coalfield
• Oil and Natural Gas Corporation
• Indian Oil Corporation Ltd
• HPCL

33. • Cochin Refinery
• Reliance Textiles
• ABB
• TC Engineers
• POIL
• Engineers India Ltd
• Indian Railways
• HINDALCO
• Bihar Caustic and Chemicals Limited
• Ashok Leyland
• Damodar Valley Project
• GRIDCO
Market competition
Major Competitors in India
a) ABB
b) BHEL
c) CGL
d) EMCO
e) BBL

34. f) Siemens
g) Crompton Greaves
h) TELK
i) L&T
j) SCHINDER
k) ECE
l) T&R
The power transformer-manufacturing unit at Naini works, Allahabad, India belongs to the
Tower Transformer Business that is a part of the power Transmission & Distribution Sector
(T&D), which was part of the ALSTOM.
The transformer division is further divided into two:
• Power Transformers.
• Distribution Transformers.

35. THE PRODUCT POWER TRANSFORMERS, NAINI WORKS:
The Naini unit plant was set up in 1957 and today it can provide upto 400kv transformers. At
present, the units for power transformer in India are located at one place, Naini, Allahabad.
The competitors:
Some if its prominent competitors are BHEL, TELK, CGL, ABB, SIEMENS and EMCO and
others.
The range:
AREVA Transformer Unit at Naini offers the following rage of products:
• Power transformers up to 315 MVA 3 phase & 600 MVA 3 phase bank, 400 kV class.
• Single-phase trackside Transformer for Railways.
• Transformers for Locomotives.
• Scott connected Transformer up to 200 kV.
• Rectifier Transformers.
• Shunt reactors of coreless and gapped core type.
• Current limiting series reactors.
• Arc furnace transformers.
The unit has a well-maintained private railway siding, which allows consignments weighing
upto180 tones to be dispatched by Rail wagon. Road dispatches are affected through special low
bed trailers that are provided by dedicated transporters and can handle consignment weights up
to 250 tones.

36. The efficiency of transformers is rated between 96% to 99% if the user takes the proper care, 25
years is generally is the normal transformer life.
The range of products at Naini Works
Other feature:
At AREVA T&D India Ltd, Naini Works the goal is customer satisfaction. To give after sales
service the attention is deserves Naini units’ as a separate division staff with highly competent
and experienced technical personnel supported by a countrywide network. This division
undertakes site erection, testing, commissioning of all types of Transformers up to 400 kV class.
Response within 24 hours is always the objective and the unit has established its performance in
this area of operation.

37. Quality assurance
The Quality systems of AREVA T&D India Ltd, Naini works, transformer units at Naini are
certified as ISO 9001. Design Control Procedure, Contract reviews, Vendor control and
incoming materials and acceptance all follows the documented system. The transformers are
manufactured in accordance with standard quality plan or the job specific quality plan approved
by the customer. To ensure the customer’s specifications are met, each order is treated as a
project and allocated to a dedicated team responsible for complete execution. Critical inspection
procedures are applied at all stages of manufacture and detailed inspection records are
maintained. In addition, internal audits are conducted at regular intervals to ensure strict
compliance to Quality Systems.
Design Activities:
The computer-aided design is completely integrated in the AREVA T&D India, Ltd. Naini
Works, transformer business structure and allows exact specifications to be met. The CAD center
also facilitates manufactured to meet delivery commitments.
Advanced Computer Design & Draught employs state-of-the-art software like ‘SLIM’ for
Electro-magnetic field analysis and ‘FEM’ to optimism Electrical, Mechanical & Thermal
characteristics. This ensures on errors-free, highly reliable and economic product delivered on
time.
Research & Development:
One of the major challenges at AREVA T&D Naini works Research and Development where
“future always means now” is reduction of losses. On-Load losses cause the efficiency of the

38. transformer to drop. To reduce these losses, several possibilities are examined, including
improvement in magnetic circuits and reduction of Eddy current linked to the leakage flux.
There is continuos rapport with other AREVA transformer units across the globe in
order to be a world class manufacturer and keep up-to-date With the latest technology and design
practices.

39. Corporate Social responsibility (CSR)
In line with sustainable development commitments, the company is committed Corporate Social
Responsibility (CSR). The units of the company provide proactive support for local projects of
social and cultural interest, with continued active participation from employees. The units of
Company are committed to developing harmonious relations with the stakeholders. The societal
projects include long term projects, which are initiated with the financial and organization
supports from AREVA Foundation.
Key actions undertaken during the year in line with the CSR initiatives were: (Naini units)
 Institutional training imparted to 320 engineering students.
 Knowledge management conference was conducted by Motilal Nehru National Institute of
Technology (MNNIT) with plant visits and interactive session to professors and faculties of
various colleges from 16 states.
 Support to the National Symposium on “Environment Pollution” organized aby Allahabad
Agriculture Institute.
 Promoting local cultural activities such as Triveni Mahotsav, jhanda Diwas and Roop kahta
that helped in community building.
 Supported the Allahabad Consumer Protection Society in their education for poor
programme.
 Donated Desktop Computers to the Kalpana Chawla Memorial Trust, Allahabad.
 Contributed to and supported the National Sports Acadamy, Khel Gaon, Allahabad
organizing celebration 2008.

40. Sustainable Development & Continuous improvement: (Naini unit)
 Naini unit received the Allahabad Managerial Association Excellence Award in recognition
to its growing performance over the years and following exemplary managerial practices for
the growth of the organization, employees and communities.
 Testing Transformer with working voltage class of 7500 KVA was successfully commissioned on
DTI unit. The unique testing transformer reduces the test configuration changeover overtime from
2 hours to 5 minutes.
Company’s philosophy on Corporate Governance
 Customer’ satisfaction
 Profitability
 Responsibilities
 Integrity
 Excellence
 Sincerity
 Parternership

41. SWOT ANALYSIS
STRENGTH
• HUMAN RESOURCE
The employee strength of the Company stands at around 3,500 as on December 31, 2007. During
the year under review, hiring quality work force and retention of talent posed a serious challenge
to the Company, and this was carefully addressed. AREVA`s HR team is sufficiently geared up
to meet these challenges.
• TECHNOLOGICALLY STRONG
AREVA is fully equipped to face the technological challenges of the T&D market and has
various solutions in its portfolio to address most of the segment.
• BRAND VALUE
The brand value of AREVA T&D is well recognized in the market.
• EXPANSION
Capacities of the manufacturing plants are being continuously increased to meet the increased
demand of the market.
• STRONG COMMUNICATION NETWORK
One-on-one meetings with the investor community and web based interactive sessions to discuss
the progress and performance of the Company.

42. • STRONG FINANCE AND ACCOUNTING SERVICES
Finance Shared Service Centre at Chennai, in each location, the accounting and controlling team
is being segregated with clearly defined responsibilities. The accounting team emphasizes strict
implementation of various accounting standards with the implementation of Internal Controls to
foster best practices. The controlling team concentrates on profit optimization actions to boost
profitability growth. Both accounting and controlling processes are aimed at becoming
benchmarks in world class finance.
WEAKNESS
• Even after adapting new IT enabled processes there are number of paper works carried
out in AREVA which is a bottle neck in its functioning.
• AREVA has heavily experienced staff but they are not well versed with IT applications.
• The prime customers for the company are SEB in the MV switchgear segment. They
don't pay the dues on time making the company lose interest cost on the due amount.
• The production process has to wait for a number of different approvals.

43. OPPORTUNITY
• The increasing requirement of High Voltage Substations provides a good opportunity for
the growth of our Turnkey Systems, Products, Automation and Service businesses.
• Power Grid is also planning to scale up the voltage level of the Transmission Network in
the country to 800kV DC by 2010 and to 1200kV AC by 2012. This will provide a
significant opportunity for companies engaged in the manufacture of high technology
equipment.
• Areva`s upcoming manufacturing facilities at Varodara, Hosur and Padappai will enable
Areva to meet the needs of the growing market in the future.
• Areva is the first to have launched the construction of a local manufacturing facility for
High Voltage Gas Insulated Switchgears.
THREATS
• A delay in funding, results in a further delay in the award of projects. During the previous
year, we observed a delay of several months for projects earmarked under World Bank
financing. Several large 765 kV substations & HVDC are to be implemented in the 11th
plan. A delay in such projects would have an impact on the planned growth of AREVA.
• A rise in raw material costs, especially metals may put a strain on margins. The price of
copper, the main raw material required by your Company has increased substantially
during the last year.

44. • Accelerated Power Development and Reform Program 2 is an important investment
scheduled during the 11th plan, but not cleared by the Government. This may impact the
growth of the Distribution segment business.
• Future IPOs of private sector power projects, if not completed on time, may affect the
growth of the T&D business.
• Further, any unforeseen slowdowns affecting the growth of the Indian economy, may
adversely affect investments in the Power sector.

45. OBJECTIVES OF THE STUDY
Following are the objectives of the present study:
• To provide a financial report that gives a complete picture of the financial state of the
company.
• To analyze the financial statement of the company and give a proper suggestion for
improvement.
• Interpret the financial data.
• Interpret and analyse the ratios of the company.
• Interpretation and suggestion for the working capital management of the company
through important ratios and graphs.
RESEARCH METHODOLOGY
Research process consists of series of the action or step necessary to effectively carry out
research and desired sequencing of these steps- -
Research Design
Collection of data
Analysis of data
Research design
“A Research Design is the arrangement of conditions for collection and Analysis of
Data in a Manner that aims to combined relevance to the research purpose with
economy in Procedure”
For the collection of data, I interviewed with the people of the organization. Before going for any
interview with any of the in charge of different departments of the company I used to prepare a
list of questions in according to fulfill my purpose of collecting data.
I visited to different departments of the company to collect information, which helped me to
understand the process and the nature of the organization.

46. Data collection
Sources of collecting data:
Company SAP
Interview with Officers & Employees
Purchase order
Sale contract
Invoices
Other record files
Company site
Annual report 2008,2009
Analysis of data
For the analysis of data I used two types of tools:
Financial tools
Statistical tools
Financial tools
The different financial tools I have used in the project are ratios analysis, trend analysis,
comparative analysis and common size analysis. With the help of these tools I analyzed different
items of the balance sheet and profit and loss account of the company.
Statistical Tools
I have used bar graphs, tables, and pie chart to show the trend of the company and to compare
the financial data.

47. LIMITATIONS OF THE STUDY
During the summer training, the researcher faces many problems. Some of them, which I faced
during my summer training, are mentioned as follows:
The Topic was new to me and so broad to cover all the fields in just 2-3 months.
One of the constrain in the completion of project was the busy environment of the
organization.
All the necessary data were not available to me due to company’s confidential matter.

48. FUNCTIONS OF DEPARTMENT AT AREVA T&D
1- EXCISE & SALES TAX DEPARTMENT-
The Levy
Excise duty is the single largest source of revenue for central government in India. Authority to
impose excise duty by government has been given by article 246 of constitution and at entry no-
84 of list no i( union list) and entry no 51 of list no ii(state list).under this authority constitution
bifurcates alcoholic liquors opium and narcotics from other goods and duty is levied on these
products by state government called as state excise duty. Central excise is a tax on act of
manufacture or production while sales taxis a tax on act of sale of goods. For manufacture of all
the goods duty is levied by central government called central excise.
At present the rate of excise duty for most of the product is @8% + educational Cess @ 2% of
ED + secondary & higher educational Cess @ 1% of ED except some items such as petroleum
products where the rate of ED is still 14%.
Registration
Every manufacture / First and second stage dealer of dutiable excisable goods desiring to issue
Cenvetable invoices is required to take a central excise registration. However if a manufacturer is
SSI and his yearly clearance is less than Rs. 90 lacs then he is not require to get himself
registered with central excise (Rule 9 of Central Excise Rules 2002).
Procedure for Registration
Before starting production or dealership to issue cenvatable invoice, an application in prescribed
format (annexure -1) with PAN no., detail of goods to be manufactured and retail of premises has
got to be submitted to Asstt./ Dy. Commissioner of Central Excise. A registration certificate
allocating PAN based 15 digit registration no shall be issued within 7 days.
Even if there is some change in information furnished or change in constitution of the firm, the
registration will not change. However the change has got to be intimated to issuing authority
within 30 days of the change.
If the factory is required to be closed down or business is not carried, registration certificate
should be surrendered to the Superintendent of Central Excise.

49. The Excise duty is payable on “transaction value” which means the price actually paid or
payable for the goods, when sold , and includes in addition to the amount charged as a price, any
amount that the buyer is liable to pay to, or on behalf of, the assesses, by reason of, or in
connection with the sale, whether payable at the time of the sale or at any other time, including,
but not limited to, any amount charged for, or to make provision for, advertising or publicity,
marketing and selling organization expenses, storage, outward handling, servicing, warranty,
commission or any other matter; but does not include the amount of duty of excise, sales tax and
other taxes, if any, actually paid or actually payable on such goods.
Invoice-
Under rule 11 of Central Excise Rules2002, The excisable goods will generally be removed
from a factory under cover of an INVOICE. The invoice shall be serially numbered in triplicate
and shall contain the registration number, address of the concerned Central Excise Division,
name of the consignee, description, classification, time and date of removal, mode of transport
and vehicle registration number, rate of duty, quantity and value, of goods and the duty payable
thereon.
Before making use of the invoice series, in each financial year the serial numbers of the same
shall be intimated to the Superintendent of Central Excise having jurisdiction.
Excise Procedure-
Removal of Goods, Payment Of Duty & Assessment As per rule 6, assesses shall himself assess
the duty payable on the excisable goods and under rule 12 submit following returns:-
ER-1- Monthly return to be submitted by tenth of every month for production , clearance,
duty payable and duty paid for previous month( annexure-3).
ER-4- Annual financial information statement to be submitted by 20th November of
every year (Annexure-4).
RR-5- Annual information regarding principle inputs to be submitted by 30th April of
every year (Annexure-5)
ER-6- Monthly return to be submitted by 10th of every month for receipt and
consumption of principle inputs for previous month. (Annexure-6)

50. Role of IEEMA (Indian Electrical and Electronics Manufacturer’s Association)-
IEEMA issue prices of raw materials every month. The price quoted is based on the cost of raw
material and labor cost as on the date of quotation. In case of any change in price, then supplier
give additional bill on the name of price variation. It is a liability of customer to pay that bill. It
may increase or decrease. In both cases details must be given. Price variation is calculated
according to following formulae-
P=Po/100 (13+23 C/Co+28 ES/ESo+7 IS/ISo+7 IM/IMo+7 TO/TOo+15 W/Wo)
Where,
P= Price payable as adjusted in accordance with above formulae
Po= Price Quoted
Co=Average LME settlement price of copper wire bars, two months prior to the date of tendering
ESo=C&F price of CRGO, one month prior to the date of tendering
ISo=Wholesale price index no. for iron and steel, three months prior to the date of tendering
Imo=Price of insulating material, one month prior to the date of tendering
TOo=Price of transformer oil, one month prior to the date of tendering
Wo=All India average consumer price index no. for industrial workers as published by labor
bureau , Ministry of Labor, Government of India, three months prior to the date of tendering

51. Production of Transformer
Naini Unit-
DISTRIBUTION TRANSFORMER(11KV-132KV)
POWER TRANSFORMER(132KV-400KV)
MAJOR REQUIREMENT
3M MAN
MACHINE
MATERIAL
MAJOR COMPONENTS
STEEL-
(A)CRGO (COLD-ROLLED GRAIN ORIENTED SILICON STEEL)- CRGO is 100% imported
from Germany, UK, US, Russia, etc..
(B)MILD STEEL- Major suppliers are SAIL, TATA, ESSAR, etc.
COPPER- It is good conductor of electricity , so coils of transformer are made from
copper. Ratio of copper in transformer is 30%. Copper is purchased as raw materials and send it
to sub vendors and they give it as our need.
INSULATOR-
Paper
Oil
Wood
TRANSFORMER OIL
BUSHING etc.
In transformer paper and oil are used for insulation

52. MANUFACTURING
Different steps are involved in manufacturing are shown in this flow chart-
Core cutting
Coil winding
Core building
Dummy coil assembly
Active part assembly
Tanking
Testing
Dispatch

53. MANUFACTURING
Manufacturing plays vital role in supply chain system. It completes with the help of many steps
and these steps are interrelated to each other. In manufacturing one step act as supplier for other
step and other step act as customer for previous step so, manufacturing proceed in a specific
manner. Manufacturing of specific job will be completed in two to three month. Different
manpower involves in different steps of manufacturing. Various steps of manufacturing are
describe as follows-
Core cutting and core assembly-The basic raw material is core. It is made up of Cold Rolled
Grain Oriented steel (CRGO), also known as lamination. CRGO purchased from A.K.Steel
Corporation Butler U.S.A. Laminations are cut according to design given by customer. These
sheets are of 0.23 to 0.35mm in thickness. These laminations are assembled in such a manner
that there are no gaps between joints of two consecutive sheets. The entire assembly is done on a
frame with the help of a tie rod and core bolts. The entire core assembly is lifted and is used;
mainly Meter cut line is used for giving specific shape.
Coil winding- The winding are design to ensure high short circuit withstand capability, uniform
surge voltage distribution and effective heat dissipation are critical to transformer reliability.
Winding are made on layer setting winding machine vertical as well as horizontal machines are
available. A solid cylinder former of predetermine diameter and length is used as base for
winding disc and layer winding are manufacturing according to design requirement. Complete
set of low voltage, high voltage and tap winding are assembled at this stage. Moisture content in
insulating material of winding assembly is removed by oven (winding autoclave) and before
assembly winding are individually pressed in a hydraulic press to required size.
Core and coil assembly- The component produced in coil winding and core assembly stage is then
taken into core coil assembly stage. The core assembly is vertically placed with the foot plate
touching a special assembly platform. The top yoke of the core is renamed and the winding are
assembled with core. Special core is given to electrical connections of leads and tap changes. All
the necessary joints are made secured by applying special patented crimping technology carried
out by trained personnel.

54. Vacuum drying- The active part can absorb moisture during assembly process; therefore, a final
drying process is carried out in a completely automated vapors phase drying plant. This ensure
through and uniform drying resulting in a clean and dry core coil assembly which ensure long
transformer life.
Tanking – The core coil assembly after drying and the tank supplied by the fabrication
department are taken into tank up stage. C ore coil assembly is placed into tank after complete
trimming and tightening procedure and properly locked up. Fitting like drain values, high voltage
and low voltage bushing, conservator, oil level indicator and explosion vent are fitted on the
tank.
INSPECTION
Basically three types of inspection carried out by customer are as follows –
Pre-inspection- Pre-inspection done, when raw material purchased from supplier or vendors.
In-process inspection- This type of inspection is carried out during manufacturing or product
development.
Final-inspection- This type of inspection is done when product is finally developed and ready
for dispatch.
TESTING
Testing laboratory Designed following the most modern concepts of high voltage technology
available, in the testing laboratories all transformer and reactors are subjected to the routine tests
and measurement specified and accordance with IEC (International Electro-chemical
Commission) Keema, Netherlands and IS (Indian Standard) New Delhi specification. These
routine tests may be complemented by type and special tests, which are carried out at the
customer’s request or as part of an internal sampling procedure to monitor quality on an ongoing
basic.
Testing on reactor-
Routine test for 400kv class-
Resistance Measurement (winding)
Magnetizing Current
Insulation Resistance Value

55. Flash Test
Partial Discharge Test
Reactant Measurement
Noise Level
Vibration
Impulse Test
Switching Impulse Test
Loss Measurement Test (with ten delta method)
Type test- Only one method is used in type test-
Temperature Rise TestSpecial tests-
Zero Phase Sequence Test (relay trip)
Capacitance Test & Delta Measurement
Stress Measurement Test
MANUFACTURING PROCESSES
CORE CUTTING
The cold rolled, grain-oriented silicon steel (GOS) lamination are cut by microprocessor-
controlled slitting and cropping machines with an extremely high dimensional accuracy.
CORE BUILDING
Core laminations are carefully assembled and built-up erected on a specially made core building
platform, avoiding any unnecessary mechanical stresses.
COIL WINDING
Spiral, helical, continuous, intershielded and interleaved disc windings with multiple strands of
copper conductors are our standard for power transformer.

56. ASSEMBLY & TERMINAL GEAR
After pre-assembly, the coils are lowered on to the core legs. After top-yoke filling, they are
clamped using a hydraulic tool that ensures uniformly simultaneous pressure to secure the
windings. The current carrying joints are made by a fully automatic crimping machine.
DRYING & IMPREGNATION
A highly efficient vapor phase drying process, which ensures complete moisture extraction with
uniform heating at 120°c for 96 hrs, is used to coils and insulation components. In the presence
of vapor short circuits will happened.
TANKING
During tanking and final pipe assembly work, bushings and coolers are fitted onto the
transformer to prepare it for testing. Specially design, sophisticated tools and handling equipment
is employed to carry out all final assembly activities.
TESTING
The factory test laboratory is fully equipped to conduct all routine and type tests as per national,
international and in-house standards. On request, special tests such as Frequency Response
analysis (FRA) can also be conducted.
PACKING, DISPATCH & DELIVERING
Road dispatches used special low-bed mechanical / hydraulic trailers provided by dedicated
transporter to accommodate large consignments.

57. PURCHASE DEPARTMENT
SOURCING:-
Sourcing refers to “a number of procurement practices, aimed at finding, evaluating and
engaging suppliers of goods and services.”
Sourcing in Areva refer to the strategic planning of procurement of the material with best
quality at the best possible rates with best delivery schedules without comprising on Areva
values and quality.
BASIC FUNCTIONS
Market analysis
Vendor mapping
Vendor evaluation
Procurement
Performance monitering
Minimising the vender data base
Strategic procurement from soc(CHINA, INDIA, COREA)
Rate agreements
Vendor development
CHALLENGES IN SOURCING
Hike in raw material price
Availability issue in certain commodities like oil bushing
Reduce the customer complaints
Quality issues
Supplier OTIF(on time in full)
Inventry management

58. TYPES OF PURCHASE ORDER
Import P.O.-deals with import
Capital P.O.-capex procurement
Production P.O.-deals with the bought out items in production
Subcontracting P.O.-deals with the processing work on raw material
Non production P.O.- deals with the genex procurement
Basic terminology in purchase
INCO Terms
Payment terms
Warranty and guarantee
Lead time
Earlier designing was done manually but now, in present time it is prepared by target softwares.
Designing works before releasing the tender.
I S O (INTERNATIONAL SALES ORGANITION) place the Tender in marketing
department and marketing department send it to design department for technical analysis and
subsequent preparation of PMS ( Price Make-up Sheet )
Designing will be prepared based on the following basic requirement of the customer :
1:- M.V.A.(MEGA VOLTAGE AMPERE)RATING
2:- VOLTAGE RATIO (220/132/11)
3:- PERCENTAGE IMPENDNCE (REDUCE FAULT)
(IMPENDNCE MEANCE COMBANITAION OF RESISTANCE AND INDUCTION)
4:-TAPS (OLTC, OCTC)
5:-CONNECTION TYPE (STAR, DELTA)

59. This preliminary design as per specification is completed and decides and estimates abouts 80%
cost of copper and core. Overall costing depends upon the above analysis of Core and Copper.
Preparation of price making sheet and guarantee technical particulars by design department , will
take from two to seven days.Complete set of Tender documents are being submitted to the
customer for their review and analysis. If being L1, and adhering to the Technical requirement of
the customer , order will be placed on us. Role of Design Department commences after getting
the order. They do detail engineering and designing of the job as per the approved GTP. This is
the mutual exercise of the Electrical and the Mechanical Team. Complete drawings in turn will
be send to the customer via Marketing department for their approval/comment. If there is any
comment from the customer , then that comment will be incorporated after discussion and
mutual agreement with the customer. After getting the final approval from the customer, Design
department releases the drawings to the purchase department for the procurement of the raw
material and other long lead items.
Planning Department—
MAIN RESPONSIBILITIES
• Hands on knowledge of Planning , Commercial aspects, Material procurement coordination ,
Site management issues
• Erection and Commissioning of substation
• Site identification and Survey.
• Drawings preparation and approvals and coordination .
• Forecasting of material required for project.
• BOQ of line & substation.
• Communicating and coordinating with client & vendors.
• Invoicing of supplied material to client.
• Daily progress report and gap analysis
• Implementing quality and safety plan.
• Knowledge of Cable Laying., termination
• Statutory documentation
• Plant Electrical work execution
• Auditing

60. This position will be responsible for :
Management of GIS substation orders from the date of receipt of commercially and technically
clarified order to the date of final handover to the customer at site.
1. Project Management
Set-up project organisation (team-time-cost) and appropriate action plans. Prepare milestones
and deliverables
2.Customer interface
Communication with the customer to clarify all technical requirements and delivery deadlines
during contract implementation.
3. Production coordination
Interface with Sourcing, SCM and Production to ensure the timely manufacturing of the
equipment in order to meet the contractual deadlines
4. Interface with GIS Service
Coordinate site erection and commissioning with GIS service. Scheduling, resource planning
etc.
Company Description
AREVA T&D is one of the top three global players in Transmission and Distribution of energy.
As a world leader in T&D, AREVA provides a complete range of innovative Products, Systems
and Services across whole energy value chain. AREVA's global presence is spread across 160
countries with 30000 customers.
AREVA T&D India is a subsidiary of AREVA T&D, France. AREVA T&D has a strong
presence in India, with a diverse range of products that include Transformers and Circuit
Breakers, Switchgears, Relays and Substations. Control Panels, Vacuum Interrupters, Power
Relays. It also provides turnkey solutions like Transmission Projects, HVDC, and e-BOP
projects, FACTS, SCADA and Power Line Carrier Communication (PLCCs). The Company's
automation solutions manage approximately 70% of the load flow in the country.
AREVA T&D India is one of the largest French employers in India, with more than 4,200
employees across its various locations

61. SAP (Systems Applications and Products)
SAP was founded in 1972 in Walldorf, Germany. It stands for Systems, Applications and
Products in Data Processing. Over the years, it has grown and evolved to become the world
premier provider of client/server business solutions for which it is so well known today. The
SAP R/3 enterprise application suite for open client/server systems has established a new
standards for providing business information management solutions.
SAP, started in 1972 by five former IBM employees in Mannheim, Germany, states that it is the
world's largest inter-enterprise software company and the world's fourth-largest independent
software supplier, overall. The original name for SAP was German: Systeme, Anwendungen,
Produkte, and German for "Systems Applications and Products." The original SAP idea was to
provide customers with the ability to interact with a common corporate database for a
comprehensive range of applications. Gradually, the applications have been assembled and today
many corporations, including IBM and Microsoft, are using SAP products to run their own
businesses.
In 1973 the SAP R/1 solution was launched. Six years later, in 1979, SAP launched SAP R/2. In
1981, SAP brought a completely re-designed solution to market. With the change from R/2 to
R/3 in 1992, SAP followed the trend from mainframe computing to client-server architectures.
The development of SAP internet strategy with mySAP.com redesigned the concept of business
processes (integration via Internet). SAP was awarded Industry Week’s Best Managed
Companies in 1999.
SAP R/3 is arranged into distinct functional modules, covering the typical functions in place in
an organization. The most widely used modules are –
1. Financials (FI)
2. Controlling (CO)
3. Human Resources (HR)
4. Materials Management (MM)
5. Sales & Distribution (SD) and
6. Production Planning (PP)
SAP R/3 is a client/server based application, utilizing a 3-tiered model. A presentation layer, or
client, interfaces with the user. The application layer houses all the business specific logic and
the database layer records and stores all the information about the system, including transactional
and configuration data. SAP R/3 functionality is structured using its own proprietary language
called ABAP (Advanced Business Application Programming). ABAP, or ABAP/4 is a fourth

62. generation language (4GL), geared towards the creation of simple, yet powerful programs. R/3
also offers a complete development environment where developers can either modify existing
SAP code to modify existing functionality or develop their own functions, whether reports or
complete transactional systems within the SAP framework. Thus we deal with the various tasks
and activities carried out in sales, delivery and billing. Key processes are-
1. Creating Sales Orders-
There are various types of orders with which I have to deal such as.
a. Domestic Order
b. InterUnit
c. Export
d. Price Variance
e. Free of Charge
f. Repair
g. Spare Parts
h. Debit Memo Request
i. Credit Memo Request
2. Delivery- Delivery consists of four steps
a. Outbound Delivery
b. Picking
c. Packing
d. Goods Issue

63. 3. Billing- There is following types of billinga.
a. Proforma
b. Invoice
c. Cancellation Document
d. Debit Memo
e. Credit Memo
There are specific transaction codes for all the above mentioned transactions such as VA01 for
creating new sales order, VL01N for outbound delivery etc.
BILLS PAYABLE & RECEIVABLE-
Mode of payment-
Cash
Cheque
Letter of credit
Direct payment
Note- In AREVA payment occur through letter of credit
Letter of Credit-
Letter of credit is most secure instrument available to international traders. It is A
commitment by a bank on behalf of the buyer that payment will be made to the exporter
provided that the terms and conditions have been met, has verified, through the presentation of
all required documents. The buyer pays its bank to render the service. It is useful when reliable
credit information about a buyer is difficult to obtain. It also protects the buyer since no payment
obligation arises until the goods have been delivered as promised.
Document Collection-
It is a transaction whereby the exporter interests the collection of the payment to the
exporter’s bank which sends documents to importer’s bank along with instruction for payments,
lading receipt, insurance, bills of entry, etc.

64. Types of letter of credit-
Confirmed
Unconfirmed
Confirmed Letter-
Payment beneficiary bank immediate after submission of documents to the supplier (when there
is no discrepancy in documents)
Beneficiary bank send a reimbursement letter to applicant bank
Memo send to applicant for acceptance .Within 7 days after issuing a memo by applicant bank
will make a payment without confirmation of applicant
After material receipt
Document required
-(a) Acceptance letter
(b) Form AL
(c) Original triplicate exchange control copy
PAYMENT PROCEDURE –
FILLING OF LETTER OF CREDIT APPLICATION FORM
APLICATIONBANK ISSUE A LETTER OF CREDIT BASED ON APPLICATION
ONE COPY TO BENEFICIARY TO APPLICANT BANK
BENEFICIARY BANK SENT TO SUPPLIER
IF SOME AMENDMENT REQUIRE THEN SUPPLIER INFORMED IT TO APPLICANT
THE AMENDMENT LETTER SEND TO BANK
AFTER AMENDMENT IT’S SENT TO BENEFICIARY BANK

65. PAYMENT AGAINST LETTER OF CREDIT (UNCONFIRMED)
Payment against letter of credit
After shipment of material
Document as per letter of credit to be submitted with beneficiary bank
Beneficiary bank sent it to applicant for acceptance
Applicant bank sends a memo to applicant for acceptance
After acceptance by applicant(original document releases to applicant by bank)
Bank will remit the payment to supplier on due date and debit applicant account on due date
Accounts Department
(Bills Payable Process)
Assume that we have already got customer order
Particulars Quantity (kg) Rate (Rs)
Copper ----- ----
CRGO ----- ----
Transformer oil ----- ----

66. tank ----- ----
Design Dept
Material requirement Planning(MRP)
Purchase Requisition (PR)
Purchase Order (PO)
Create Sourcing Team
Vendor
Requisition material check by the factory gate man like- purchase order no., vehicle no., goods,
etc.
Goods received by store department
Checking
MIGO entry (assuming that no damage of goods and no insurance claims)
Stock A/c Dr.
To GR/IR (goods received / inventory received)

67. Checked by Quality department
Account department
Availed of CENVAT
Bills Processing
Accounting – GR/IR Dr
To Creditor A/c
(payments are made through bank)
Payment EFT (Electronic fund transfer)
Creditor A/c Dr.
To Bank A/c
(Bills Receivable process )
Sales
Invoice
Billing( If delivery instruction received ),
6 sheets prepared- 1- Original copy (Customer copy)
2- Duplicate copy to Tranporter
3- Sales tax Department
4- A/c dept. & Excise Dept.
5- Gate Entry
6- Extra copy

68. Released Entry
Accounts Entry – Debtors A/c Dr.
To Sales A/c
To Excise
Debtor Ageing
Cash collection instruction by Accounts Dept.

69. PSS History in India
SDS PSS
»Naini
Naini, 27/07/2010

70. PSS activity in India
 2004 : Reliance tender : 100 PSS – Concrete enclosure won
 2004 : Technology transfer from STF – Mistral IND
 2005 : Delivery of Reliance & BECIL.
 2006 : Last delivery of Reliance and few contracts (200 K€)
4 > Titre de la présentation - Date - Références 4
PSS activity in India
 2006 : Building of PSS shop floor
 2007 : Few orders, Concrete enclosure not adapted to the main
market due to specification in steel
 March 2007 : Sub-PL Prefabricated Substation, action plan to
build up the Indian business
 Dedicated team
 Development of a new range of product (steel enclosure)
 Steel enclosure launch (Indian electricity, Elecrama, ISO meeting)
5 > Titre de la présentation - Date - Références 5

71. PSS activity in India
 2008 : Official launch of the activity
 Full Clipper M range of product
 Commercial promotion
 Target of Tertiary and Industry segment
 Promotion of Clipper M in Export through Sub PL Business Dev
 Sales: 1250 K€
6 > Titre de la présentation - Date - Références 6
PSS activity in India
 2009 : Execution of big contracts, Industrialisation of the activity
 Growth in export order : 4,5 M€
 Growth in India : 2 M€ mainly in Industry (70% MS)
 Deep study of the Utility segment, segment mapping and
competition benchmark in Q3  New product development launch
 Capacity extension
 Sales : 8.6 M€
 Hindalco, TISCO, ETDE, BHEL, BEST, Railways, Jusco, Lavasa are
list of some customers.
7 > Titre de la présentation - Date - Références 7

72. Unit key elements – PSS
Unit Picture Key Data and Figures
Site area - NAI: 4818 m²
Built-up area: 3387 m²
 Production area: 2511 m²
 Outdoor facilities: 1430 m²
Capacity : 700 PSS
Sales 2009: 8.6 M€
Employees: 44
2009 PSS Indian Sales
Utility
Main Markets: - Industries 5%
- Builders (High End)
B&C Inf
- Export 26%
 Export share 2009 : 62%, 2010 : 35%
Indus
62%
Other
7%
8 > Titre de la présentation - Date - Références 8
Product Range India
Safe and IEC type tested, adapted to all types of
secondary distribution applications,
in concrete, metal or GRC light concrete materials
Indian special : Utility Clipper
PRESTO ALTO A ALTO F ALTO D ALTO L CLIPPER C CLIPPER M
MISTRAL CONCERTO ICEBERG CLIPPER MOBILE TETRIS
UTILITY PSS
9 > Titre de la présentation - Date - Références 9

73. PSS activity in India
 2010 : Full offer and innovation
 Maintain of the position in Industry with the flexible Clipper M and
high quality LV cubicles for Industry : up to 2500 KVA
 Breakthrough in Utility with cost effective Utility Clipper and LV
boards : up to 1000 KVA
 Innovation with the Tower PSS designed for Utilities : up to 400 KVA
 Target renewable energy segment : Solar and Wind-farm with GRC
 Full range available for Export (Target : East Africa and South Asia)
 OIT : 14400 K€, Sales : 12400 K€, Contr. OI : 1200 K€
10 > Titre de la présentation - Date - Références 10

74. MEANING OF RATIO ANALYSIS
MEANING:
The ratio analysis is one of the most useful and common method analyzing financial statements. As
compared to other tools of financial analysis, the ratio analysis provides very useful conclusions about
various aspects of the working, like financial position, solvency, stability, liquidity and profitability of an
enterprise.
The term “Ratio” refers to the numerical or quantitative relationship between two
items/variables.
NATURE:
Ratio analysis is a powerful tool of financial analysis. In financial analysis, a ratio is used as a
benchmark. For evaluating the financial position and performance of a firm. The relationship
between two accounting Figures, expressed mathematically, is known as a financial ratio. Ratios
help to summaries large quantities of financial data and to make qualitative judgment about the
firm’s financial performance.
This relationship is an index or yardstick, which permits a qualitative judgment to be formed
about the firm’s ability to meet its current obligations. It measures the firm’s liquidity .The
greater the ratio, the Greater the firm’s liquidity and vice-versa. The point to note is that a ratio
reflecting a quantitative relationship helps to form a qualitative judgment. Such is the nature of
all financial ratios.

75. ROLE OF RATIO ANALYSIS:
1: Aid in financial forecasting—Ratio analysis is very helpful in financial forecasting. Ratios
relating to past sales, profits and financial position form the basis for setting future trends.
2: Aid in comparison—With the help of ratio analysis, ideal ratio can be composed and they can
be used for comparing a firm’s progress and performance. Inter firm comparison or comparison
with industry averages is made possible by the ratio analysis.
3: Financial solvency of the firm—Ratio analysis indicates the trends in financial solvency of the
firm.
Solvency has two dimensions- long-term solvency & short-term solvency. Long term solvency
refers to the Financial viability of a firm. Short-term solvency is the liquidity position of the firm.
4. Communication value—Different financial ratios communicate the strength and financial
standing of the form to the internal and external parties. They indicate the overall profitability of
the firm.
5. Other uses— Financial ratios are very helpful in the diagnosis and financial health of a firm.
They highlight the liquidity, solvency, profitability and capital gearing etc. of the firm. They are
useful tool of analysis of financial performance.

76. USERS OF RATIO ANALYSIS
1 Trade creditors are interested in firm’s ability to meet their claims over a very short period of
time.
2. Suppliers of long-term debts are concerned with the firm’s long-term solvency and survival.
They analyze the firm’s profitability over time, its ability to generate cash to be able to pay
interest and repay principal and the relationship between various sources of funds.
3. Investors, who have invested their money in the firm share , are most concerned about the
firm’s earning.
4. Management of the firm would be interested in every aspect of the ratio analysis. It is their
overall responsibility to see that the resources of the firm are used most effectively and
efficiently, and that the firm’s financial condition is sound.
FINANCIAL RATIOS AND UTILITY
A ratio may be defined as a fixed relationship in degree or number between two numbers. In finance,
ratios are used to point out relationships that are not obvious from the raw data. Some uses of ratios are
following: -
1. To compare different companies in same industry. Ratios can highlight the factors
associated with successful and unsuccessful firms. They can reveal strong firms and weak
firms, overvalued undervalued firms.
2. To compare different industries. Every industry has its own unique set of operating and
financial characteristics. These can be identified with the help of ratios.

77. 3. To compare performance in different time periods. Over a period of years, a firm or a
industry develop certain norms That may indicate future success or failure. If relationship
changes in firm's data over different time periods, the ratio may provide clues and trends of
future problems.
INTERPRETATION OF THE RATIOS
• The interpretation of ratios is an important factor. The inherent limitations of ratio
analysis should be kept in mind while interpreting them.
• The impact of factors such as price level changes, change in accounting policies,
window dressing etc., should also be kept in mind when attempting to interpret ratios.
The interpretation of ratios can be made in the following ways.
1. Single absolute ratio
2. Group of ratios
3. Historical comparison
4. Projected ratios
5. Inter-firm comparison

78. ADVANTAGES OF RATIO ANALYSIS
For expressing trends: financial ratio are generally used to reveal from the past financial
records the cost, sales, profits and other important factors .
For setting standard : On the basis of various financial ratios of the concerned certain
standards may be established for various economics activities . for e.g. current ratio must be two
, or average collection period must not be exceed 60 days
For showing changes: Financial ratios are helped in highlighting the various changes in
financial activities during different time period . it also helps in effective communication and
speedy implementation.
For effective control: Ratio analysis are used have a proper control over performance and
cost. They are great assistance to locate the weak spots in the business so that management can
pay attention to those spots will in time and take remedial measures.
For comparing efficiency: Inter firm and intra firm comparison are made on the basis of
accounting ratios to compare the performance of the enterprise with that of the firm and industry.
By comparing the operational results during various time period of the concern , trends can be
established for future forecasting.

79. LIMITATIONS OF RATIO ANALYSIS
“A single ratio in itself is meaningless –it does not furnish a complete picture”
Kennedy
Accounting ratios ignore qualitative factors : Accounting ratios are calculated from
the figures expressed in monetary terms . the conclusions derived there from may be misleading
and confusing.
Limited use of single ratio: One single ratio used without reference to other
ratio may produce misleading results. While forming an opinion about the financial
soundness n operating efficiency of an enterprise the combined effect of the various ratios
must also be taken into account so that results are correctly interpreted.
Price level changes : changes in the price level may adversely affect the comparison of
figures for different years . this limitations of ratios will be much highlighted when we
calculate ‘sales to fixed assets ratio’.
Effect of personal ability and basis of the analyst : Ratios are based on
accounting data. The analysis and interpretations are directly effected with the ability and
carefulness of the analyst himself.

80. GUIDELINES OR PRECAUTIONS FOR USE OF RATIOS:
The calculation of ratios may not be a difficult task but their use is not easy. Following
guidelines or factors may be kept in mind while interpreting various ratios are;
• Accuracy of financial statements
• Objective or purpose of analysis
• Selection of ratios
• Use of standards
• Caliber of the analysis
IMPORTANCE OF RATIO ANALYSIS
• Aid to measure general efficiency
• Aid to measure financial solvency
• Aid in forecasting and planning
• Facilitate decision making
• Aid in corrective action
• Aid in intra-firm comparison
• Act as a good communication
• Evaluation of efficiency
• Effective tool

81. CLASSIFICATIONS OF RATIOS
The use of ratio analysis is not confined to financial manager only. There are different parties
interested in the ratio analysis for knowing the financial position of a firm for different purposes.
Various accounting ratios can be classified as follows:
 Liquidity ratio
 Leverage ratio
 Activity ratio
 Profitability ratio
LIQUIDITY RATIOS:
It is extremely essential for a form to be able to meet its obligations as they become due.
Liquidity ratios measure the ability of the firm to cover its current obligations. Liquidity ratios by
establishing a relationship between cash others current assets provide a quick measure of
liquidity. A firm should ensure that it does not suffer from lack liquidity, and also that it is not
too much liquid. The failure of a company to meet its obligations, due to lack of sufficient
liquidity, will result in bad credit image, loss of creditors confidence, or even lawsuits resulting
in the closure of the company. A very high degree of liquidity is also bad, as idle assets earn
nothing. The firm’s funds will be unnecessarily tied up in current assets. Therefore it is necessary
to strike a proper balance between liquidity and lacks of liquidity.
Important Liquidity Ratios are:
a) Current Ratio
b) Quick Ratio
CURRENT RATIO
Current Ratio is defined as the relationship between current assets and current liabilities. This
ratio is also known as "working capital ratio". It is a measure of general liquidity and is most
widely used to make the analysis for short term financial position or liquidity of a firm.
CURRENT RATIO = CURRENT ASSETS
CURRENT LIABILITIES

82. The two basic components of this ratio are:
1) Current Assets
2) Current Liabilities
Current assets include cash, marketable securities, bills receivables, sundry debtors, inventories,
work in progress and prepaid expenses. Current liabilities include outstanding expenses, bills
payable, sundry creditors, bank overdraft, accrued expenses, short term advances, income tax
payable, dividend payable.
Year 2009 2008 2007
Current Ratio 1.342 1.307 1.368
Table 1
1.38
1.37
1.36
1.35
1.34
1.33 2009
1.32 2008
1.31
2007
1.3
1.29
1.28
1.27
CURRENT RATIO
Fig 1
Interpretation: A relatively high current ratio is an indication that the firm is liquid and has the
ability to pay its current obligations in time and when they become due. On the other hand, a
relatively low current ratio represents that the liquidity position of the firm is not good and the
firm shall not be able to pay its current liabilities in time. A ratio equal to or near to the rule of
thumb 2:1 i.e current assets double the current liabilities is considered as a standard or normal or
satisfactory. We can easily see from the above diagram that in all the three years i.e. 2007, 2008
and 2009, the current ratio is below ideal standard.

83. QUICK RATIO
Liquid Ratio is also termed as "Acid Test Ratio" or "Liquid Ratio". An asset is said to be liquid
if it can be converted into cash with a short period without loss of value.
QUICK RATIO = LIQUID ASSETS___
CURRENT LIABILITIES
The two basic components of this ratio are:
1) Liquid Assets
2) Current Liabilities
Liquid asset includes marketable securities, cash & bank, debtors and bills receivables.
Year 2009 2008 2007
Liquid Ratio 1.112 1.074 1.16
Table 2
1.18
1.16
1.14
1.12
2009
1.1
2008
1.08
2007
1.06
1.04
1.02
LIQUID RATIO
Fig 2
Interpretation: A high ratio is an indication that the firm is liquid and has the ability to meet its
current or liquid liabilities in time and on the other hand a low liquidity ratio represents that the
firm's liquidity position is not good. As a rule of thumb ratio of 1:1 is considered to be
satisfactory.
It can be interpreted from the above diagram that in all the three years i.e. 2007, 2008 and 2009,
the quick ratio is above than ideal standard.

84. LEVERAGE RATIO
The term solvency refers to the ability of a concern to meet its long term obligation. The long
term indebtedness of a firm includes debenture holders.
Financial institutions provide medium and long term loans and other creditors sale goods on
installment basis. The long term creditors of firm are primary interested in knowing the firm’s
ability to pay regular interest on long-term borrowings, repayment of the principal amount at the
maturity and the security of their loans.
Accordingly, long term solvency ratios indicate a firm’s ability to meet the fixed interest and cost
and repayment schedules associated with its long-term borrowing.
The following ratios serve the purpose of determining the solvency of the concern.
 Debt-Equity Ratio
 Debt to Total Fund Ratio
 Proprietary Ratio
 Fixed Assets to Proprietor’s Fund Ratio
 Capital Gearing Ratio
DEBT EQUITYRATIO
This ratio expresses the relationship between capital contributed by creditors and that contributed
by owners. It expresses the degree of protection provided by the owners for the creditors. The
higher the ratio, the greater the risk being assumed by creditors. A more highly leveraged
company has a more limited debt capacity.
DEBT EQUITY RATIO= DEBT
EQUITY
Whereas, Debt includes Debentures, Mortgage Loan, Bank Loan, Loan from financial
institutions and Public Deposits etc. and Equity includes Equity Share Capital, Preference Share
Capital, Share Premium, General Reserve, Capital Reserve, Other Reserves and Credit Balance
of P&L Account.

85. Year 2009 2008 2007
Debt Equity Ratio 0.885 0.6471 0.1842
Table 3
1
0.9
0.8
0.7
0.6
2009
0.5
0.4 2008
0.3 2007
0.2
0.1
0
DEBT EQUITY RATIO
Fig 3
Interpretation: Though the ideal standard is 2:1, in all the three year company has this ratio
much below than its ideal standard which means there are very less external equity in
comparison to internal equity.
DEBT TO TOTAL FUND RATIO
This ratio is a variation of the debt equity ratio and gives the same indication as the debt equity
ratio. In this ratio, debt is expressed in relation to total funds, i.e. , both equity and debt. It is
calculated as under:
DEBT TO TOTAL FUND RATIO = DEBT______
EQUITY + DEBT
Year 2009 2008 2007
Debt To Total Fund Ratio 0.46971 0.3929 0.1556
Table 4

86. 0.5
0.45
0.4
0.35
0.3
2009
0.25
2008
0.2
2007
0.15
0.1
0.05
0
DEBT TO TOTAL FUND RATIO
Fig 4
Interpretation: Generally, debt to total funds ratio of 0.67:1 is considered satisfactory. A higher
ratio than this is generally treated as indicator of risky financial position from the long- term
point of view. While with the Areva this ratio is much below than ideal standards in all the three
years i.e. 2007, 2008 and 2009.
PROPRIETORY RATIO
This ratio indicates the proportion of total funds provided by owners or shareholders. It is
calculated as under:
PROPRIETARY RATIO = EQUTIY____
EQUITY +DEBT
Year 2009 2008 2007
Proprietary Ratio 0.5302 0.607 0.8443
Table 5

87. 0.9
0.8
0.7
0.6
0.5 2009
0.4 2008
0.3 2007
0.2
0.1
0
PROPREITARY RATIO
Fig 5
Interpretation: This ratio should be .33:1 or more than that. In all the three years this ratio is
above its ideal standard which means that the firm is less dependent on external sources of
finance.
FIXED ASSETS TO PROPRIETORS FUND RATIO
This ratio indicates the extent to which proprietors fund are sunk into the fixed assets.
FIXED ASSET TO PROPRIETORS FUND RATIO = FIXED ASSET____________
PROPRIETORS FUND (i.e. NET WORTH)
Year 2009 2008 2007
Fixed Asset To Proprietor Fund Ratio 1.027 0.892 0.417
Table 6

88. 1.2
1
0.8
2009
0.6
2008
2007
0.4
0.2
0
FIXED ASSET TO PROPRIETOR FUND RATIO
Fig 6
Interpretation: If this ratio is less than 100% it would mean that proprietors funds are more than
fixed assets and a part of working capital is provided by the proprietors. The lower the ratio, the
better it is for the long-term solvency of business because more proprietors’ funds will be
available for working capital. It can be seen that in all the three years this ratio is much below
than ideal standard which shows a good solvency position for the company.
CAPITAL GEARING RATIO
This ratio establishes a relationship between equity capital (including all reserves and
undistributed profits) and fixed cost bearing capital. In fixed cost bearing capital we include
preference share capital and fixed interest bearing loans. Thus,
CAPITAL GEARING RATIO= EQUITY SHARE CAPITAL +RESERVE + P&L
BALANCE
FIXED COST BEARING CAPITAL
Whereas, Fixed Cost bearing capital= Preference Share Capital+ Debentures+ Long Term Loan

89. Year 2009 2008 2007
Capital Gearing Ratio 13.613 17.55 13.302
Table 7
20
18
16
14
12
2009
10
2008
8
2007
6
4
2
0
CAPITAL GEARING RATIO
Fig 7
Interpretation: In all the three years we see a low capital gearing ratio. Low capital gearing
mean the amount of fixed cost bearing is less than the equity share capital.