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Capital is essential for the setting up and smooth running of any business Businesses use capital
for construction, renovation, furniture, software, equipment, or machinery. It is also commonly used to
purchase inventory, or to make payroll. Capital is also used often by businesses to put a down payment
down on a piece of commercial real estate. Every business needs funds for two purposes.

ïc ong term funds are required to create production facilities through purchase of fixed
assets such as plants, machineries, lands, buildings & etc
ïc Short term funds are required for the purchase of raw materials, payment of wages, and
other day-to-day expenses. . It is otherwise known as revolving or circulating capital or
working capital.
c
V. According to Guttmann & Dougall-
³Excess of current assets over current liabilities´.
2. According to Park & Gladson-
³The excess of current assets of a business (i.e. cash, accounts
receivables, inventories) over current items owned to employees and others
(such as salaries & wages payable, accounts payable, taxes owned to
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cAs levers of financial management go, none bears more weight than working capital. The
viability of every business activity rests on daily changes in receivables, inventory, and payables. It¶s the
lifeblood of the business, and every financial manager¶s primary task is to keep it moving and put capital
to work efficiently and effectively. Working Capital is the money used to pay for the everyday trading
activities carried out by the business - stationery needs, staff salaries and wages, rent, energy bills,
payments for supplies and so on.

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ïc Gross Working Capital = Total of Current Asset

 ïc Net Working Capital = Excess of Current Asset over Current iability

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Cash in hand/ at bank Bills Payable
Bills Receivable Sundry Creditors
Sundry Debtors Outstanding expenses
Short term loans Accrued expenses
Investors/ stock Bank Over draft
Temporary investment
Prepaid expenses
Accrued incomes

One must be alert to changes in working capital and their implications; otherwise, one may miss
some warning signs that can lead to business failure. The most important component of working capital is
cash. So it is of paramount importance for you as the business owner to control all cash transactions.

Decisions relating to working capital and short term financing are referred to as *c( !c
++. These involve managing the relationship between a firm's short-term assets and its short-
term liabilities. The goal of Working capital management is to ensure that the firm is able to continue its
operations and that it has sufficient money flow to satisfy both maturing short-term debt and upcoming
operational expenses.c

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A business firm must maintain an adequate level of working capital in order to run its business
smoothly. It is worthy to note that both excessive and inadequate working capital positions are harmful.
Working capital is just like the heart of business. If it becomes weak, the business can hardly prosper and
survive. No business can run successfully without an adequate amount of working capital.cc

c Inadequacy of working capital is dangerous for a firm. It results in interruption of production.

This will lead to inefficiencies, increase in costs and reduction in profits.

The following are the few advantages of adequate working capital in the business:
 ïc $.c$(#cAdequate working capital enables a firm to avail cash discount facilitates offered
to it by the suppliers. The amount of cash discount reduces the cost of purchase.
ïc )*!! Adequate working capital enables a firm to make prompt payment. Making prompt
payment is a base to create and maintain goodwill.
ïc &!'cc(c($$ The provision of adequate working capital facilities to meet situations of
crisis and emergencies. It enables a business to with stand periods of depression smoothly.
ïc )*.$$ It enables a firm to operate its business more efficiently because there is not
delay in getting loans from banks and others on easy and favorable terms.
ïc #!c $# !'c c *c +!$ It permits the carrying of inventories at a level that would
enable a business to serve satisfactory the needs of its customers. That is it ensures regular supply
of raw materials and continuous production.
ïc / $cc+$ A firm which has adequate working capital can create favorable market
condition i.e. purchasing its requirements in bulk when prices are lower and holding its
inventories for higher. Thus profits are increased.

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At the same time maintaining excess of cash or liquid asset as working capital has following
disadvantage

ïc A firm may be tempted to over trade and lose heavily.

ïc pnable to extract benefits of customer¶s credit.
ïc The situation may lead to unnecessary purchases and accumulation of inventories. This cause
more chances of theft, waste, losses etc.
ïc There arises an imbalance between liquidity and profitability.
ïc Excessive working capital means funds are idle.
ïc The situation leads to greater production, which may not be having matching demand.
ïc The excess of working capital leads to carelessness about cost of production.
ïc The excess of stored inventory may become obsolete before reaching market.
c
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ïc Manage accounts payable to match receivables
ïc everage suppliers¶ and customers¶ operations to improve your cash management
ïc Tie compensation to working capital improvement
 ïc ook for alternative financing to get receivables off the books (factoring)
ïc Develop a culture that strives for continuous improvement

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The !((!c *c )#$' provides the production and delivery of !((!c *, often
known as *, or !((', in sufficient quantities to areas that need electricity through a grid. Many
households and businesses need access to electricity, especially in developed nations, the demand being
scarcer in developing nations. Demand for electricity is derived from the requirement for electricity in
order to operate domestic appliances, office equipment, industrial machinery and provide sufficient
energy for both domestic and commercial lighting, heating, cooking and industrial processes. Because of
this aspect of the industry, it is viewed as a public utility as infrastructure.

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The !(('c$(cc ) is predominantly controlled by the Government of India's public

sector undertakings (PSps). Major PSps involved in the generation of electricity include National
Thermal Power Corporation (NTPC), National Hydroelectric Power Corporation(NHPC) and Nuclear
Power Corporation of India (NPCI). Besides PSps, several state-level corporations, such as Maharashtra
State Electricity Board (MSEB), are also involved in the generation and intra-state distribution of
electricity. The PowerGrid Corporation of India is responsible for the inter-state transmission of
electricity and the development of national grid.

India produces nearly 90 percent of its energy requirements, 52% percent of which are met by
coal. Rural electrification in India made great progress in the V980s; more than 200,000 villages received
electricity for the first time. Although commercial energy production has expanded substantially since
independence, an inadequate supply of energy remains a constraint on industrial growth. Overall growth
in the demand for energy in India was rapid in the early V990s, but commercial energy consumption was
among the lowest in the world. Most commercial energy production and distribution in India are in the
public sector, but in the mid-V990s, the Indian government was moving slowly to encourage the entry of
private capital. The country has a large economically exploitable hydroelectric potential, especially in the
foothills of the Himalayas. Actually, although lines have been run to most villages, electricity is provided
only sporadically (for example, only nine to twelve hours per day), and villagers feel they cannot depend
on electricity to operate pumps and other equipment. Electricity to cities also is sporadic; blackouts occur
every day in most cities.

The total installed electricity capacity in public utilities in V992 was 69,V00 megawatts, of which
70 percent was thermal, 27 percent hydropower, and 3 percent nuclear. The total installed capacity was
programmed to reach around V00,000 megawatts by FY V996 through a package of government-
supported incentives to the private sector.

Because they cannot always depend on public utilities, many larger industrial enterprises have
developed their own power generation systems. In V992 there was a capacity of 9,000 megawatts outside
the public utility system. Overall, the generation and transmission of power in India--with an average 57
percent plant load factor in FY V992 in thermal plants and transmission losses of 22 percent--were
inefficient. About 322 billion kilowatt- hours of power were generated by utilities in FY V992,
approximately 8.5 percent shy of demand. The resulting deficit led to acute shortages in some states. This
trend continued the next year when 3V5 billion kilowatt-hours were produced. Many factors contributed
to the shortfall of electric power in India, including slow completion of new installations, low use of
installed capacity because of insufficient maintenance and coal, and poor management.

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Being a highly regulated sector, not surprisingly policies and regulations are playing a pivotal
role in the development of this sector. Over the years, the government has realized the importance of the
private sector participation. The Electricity Act, 2003 was a turning point in the reforms process which
removed the need for license for generation projects, encouraged competition through international
competitive bidding, identified transmission as a separate activity and invited a wider public and private
sector participation among other things.
Some of the other major reforms that have been implemented over the years include: unbundling
of SEBs, tax benefits, Accelerated Power Development and Reform Program (APDRP) for distribution,
permission for trading of power, etc7.
Furthermore, the National Tariff Policy of 2006 encouraged private investment in the
transmission sector through competitive bidding. In addition, the allocation of captive coal blocks to
private companies was one of the many noteworthy reforms, increasing the fuel security for the end use
project.
. Along with generation this has opened up opportunities in the transmission sector as well.In
order to encourage private sectors in transmission line business, Government of India issued guidelines
for private sector participation. These developments have given rise to new opportunities for the private
sector especially in the power generation space.

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In 2006, the Indian Ministry of Power launched the pltra Mega Power Projects (pMPP) initiative
to design a large scale coal based power plant with a capacity of 4,000 MW. The overall objective of the
initiative is to build V3 of these power plants across India through open and competitive bidding. The
Government of India has already allocated four such projects, three of which have been awarded to
Reliance Power Industries td. in Madhya Pradesh, Jharkhand and Andhra Pradesh, and the latest project
awarded to Tata Power in Gujarat. c
The Indo-pS civilian nuclear deal was signed in October 2008, allowing India to obtain uranium
supplies whilst protecting the country against fuel supply disruptions. In case of any disruptions, the pS
and India will jointly convene a group of friendly supplier countries to pursue the quick restoration of
supply. This will help India increase its installed generation capacity from nuclear energy, thus moving
closer to achieving the capacity addition targets of the coming Five Year Plans.

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c
India has the fifth largest power generation capacity in the world with an installed capacity of V52
GW as on 30 September 2009, which is about 4 percent of global power generation.cIt is also world's 6th
largest energy consumer, accounting for 3.4% of global energy consumption. Due to India's economic
rise, the demand for energy has grown at an average of 3.6% per annum over the past 30 years. In March
2009, the installed power generation capacity of India stood at V47,000 MW while the per capita power
consumption stood at 6V2 kWH. The country's annual power production increased from about V90 billion
kWH in V986 to more than 680 billion kWH in 2006. More than 50% of India's commercial energy
demand is met through the country's vast coal reserves. The country has also invested heavily in recent
years on renewable sources of energy such as wind energy. As of 2008, India's installed wind power
generation capacity stood at 9,655 MW.
Additionally, India has committed massive amount of funds for the construction of various
nuclear reactors which would generate at least 30,000 MW. The average per capital consumption of
electricity in India is estimated to be 704 kWh during 2008-09. However, this is fairly low when
compared to that of some of the developed and emerging nations such pS (~V5,000 kWh) and China
(~V,800 kWh).The world average stands at 2,300 kWhz. This gives an indication of the huge potential for
growth in the Indian power and utility sector. c

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Increasing pressure of population and increasing use of energy in different sectors of the economy
is an area of concern for India. Driven by the rising population, expanding economy, and a quest for
improved quality of life, the total primary energy consumption is expected to about 4V2 MTOE (million
tonnes oil equivalent) and 554 MTOE in the terminal years of the Tenth and Eleventh Plans, respectively
(Planning Commission V999). The total demand for electricity in India is expected to cross 950,000 MW
by 2030.

Aided by the ambitious plan to add around 78.7 GW of additional generation capacity in the VVth plan by
the year 20V2, according to CRISI Research estimates, about INR 7,50,000 crore is likely to be invested
in the power sector over the next five years by 20V3-V4. Of this, INR 4,80,000 crore is expected to be
invested in the power generation space. Nearly half of the investments in the power generation space is
likely to be made by the private sector8
&!c ,c ('c ))$cc.c.cc1c4c!c63
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Type Central State Private Total
Thermal 24,840 23,30V VV,552 59,693
Hydro 8,650 3,482 3,49V V5,623
Nuclear `3,380 0 0 3,380
Total 36,870 26,783 V5,043 78,696

Source: CEA

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The Government of India has an ambitious mission of POWER FOR A BY 20V2. This mission would
require that the installed generation capacity should be at least 200,000 MW by 20V2 from the present
level of V44,564.97 MW. Power requirement will double by 2020 to 400,000MW.[25]

$c
lc Power Generation Strategy with focus on low cost generation, optimization of capacity utilization,
controlling the input cost, optimisation of fuel mix, Technology upgradation and utilization of Non
Conventional energy sources

lc Transmission Strategy with focus on development of National Grid including Interstate connections,
Technology upgradation & optimization of transmission cost.

lc Distribution strategy to achieve Distribution Reforms with focus on System upgradation, loss
reduction, theft control, consumer service orientation, quality power supply commercialization,
Decentralized distributed generation and supply for rural areas.

lc Regulation Strategy aimed at protecting Consumer interests and making the sector commercially
viable.

lc Financing Strategy to generate resources for required growth of the power sector.

lc Conservation Strategy to optimise the utilization of electricity with focus on Demand Side
management, oad management and Technology upgradation to provide energy efficient equipment /
gadgets.

lc Communication Strategy for political consensus with media support to enhance the general public
awareness.

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A large number of capital intensive industries are setting up their own captive power plants to meet their
increased power requirements and to reduce expenditure on power procured from outside vendors.
Companies in the cement, metals and chemical industries, in particular, are increasingly setting up captive
power plants, creating considerable potential for new EPC and BOP contracts for this type of plant.
Captive power plants in India account for approximately 20% of the total installed generation capacity in
India.
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The need for engineering and construction services within the oil & gas sector is directly correlated with
the exploration, production, refining, transportation and storage activities going on in the industry at the
time. In the current scenario, there has been a decline in demand for oil & gas given the global economic
slowdown. However, we expect demand will revive in FY 20V0, creating renewed demand for
engineering and construction services in the oil & gas industry from then on. The Government of India
launched the New Exploration icensing Policy (NEP) in V999 to encourage exploration and
procurement activities in the hydrocarbon sector. NEP will help to attract investment to the exploration
sector, thus widening the scope for EPC services outside of power plants. Through NEP, there is
additional scope to build pipe lines and storage tanks for the transportation of natural gas and oil, creating
opportunities for oil & gas EPC providers.
c
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ccccccccccccccThe power capacity targets of the Government of India will inevitably lead to an increase in
transmission and distribution investment going forward. According to the CEA, the current
transmission capacity of India stands at V7 GW and the Government of India is aiming to increase the
transmission capacity to 37 GW under the VVth Five Year Plan. To achieve the capacity increase, the
Power Grid Corporation of India is expected to spend approximately pS$VV.32 bn during the V2th Five
Year Plan. Additions in the power sector will create tremendous opportunities for BOP and EPC industry
Scope for oil and gas industry to widen with the increasing demand for pipe lines and storage tanks

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BGR Energy is one of the most diversified Indian company in the ptility Industry offering end to
end solutions ranging from product manufacturing to turnkey project execution. It is in the industry for
more than twenty years and has a strong orderbook of Rs. V20bn. The company is focused on the large, >
pSD 57bn EPC / BoP opportunity, over FYVV-V7E, within the power sector and is considered to be one
among the top five industry players. The company also has a small presence in the Oil & gas space (4%
of orderbook). The company¶s robust orderbook, credible project execution track record and the strong
near term opportunities within the power sector ,the company is at the cusp of rapid growth (>37%
revenue and PAT CAGR) over the next 3- 4 years
The Company was originally incorporated in V985, as a joint venture between GEA
Energietechnik GmbH, Germany and the Promoter, Mr. B.G. Raghupathy, to manufacture and sell On-
line Condenser Tube Cleaning Systems, Debris Filters and Rubber Cleaning Balls used in Thermal and
Nuclear Power Plants.
 In V993 Mr. B. G. Raghupathy and members of his family became the sole shareholders of the
Company and began to expand the range of product and services range in the Power and Oil & Gas
industries.

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3 c =(.c .+> 73 is an independent Director on the Board. . Prior to joining the Board, he
established EVp GmbH an engineering company and retired as the Managing Director of Taprogge-
MWD GmbH. He has been associated with the Company as a Director between V987 and V993 and has
rejoined the Board on July V8, 2007.

3 c 3 c !$.> 7V is an independent Director on the Board. He holds a Bachelor¶s degree in

Science and a Bachelor¶s degree in aw from Osmania pniversity, Hyderabad. At present, he is also
director-in-charge of the Andhra Pradesh Gas Power Corporation imited. He has joined the Board on
July V8, 2007.

3c c.>c65 is an independent Director on the Board. He holds a Bachelor¶s degree in Mechanical
Engineering from Jodhpur pniversity. He is currently an Advisor to the Tata (Nuclear) Power Company
imited. He joined the Board on July V8, 2007.

3 c  c  c > 54 is an independent Director. He holds a Bachelor¶s degree in Commerce and is a

qualified Chartered Accountant. He is currently a partner in a firm of chartered accountants. He joined the
Board on July V8, 2007

3$ c$!c.# .'>c53 is a Director on the Board. She has been associated with the Company as a
Director since it was founded.

3 c c*+.>c53 years, is Director (Sales & Marketing). He holds a leadership position and is
responsible for Sales and Marketing functions of the company. He holds a Bachelor¶s degree in
Technology in Mechanical Engineering from the Indian Institute of Technology, Bombay. He has been
inducted into the Board as a Whole Time Director (Sales & Marketing) on February 5, 20V0

3 c? c c3.)1>c50 is the Director ± Technologies, HR & Infrastructure. He is responsible for the

overall management and supervision of the operations of the technology, human resources and
infrastructure divisions. He holds a Bachelor¶s degree in Electrical Engineering from Annamalai
pniversity, Tamil Nadu.
3 c  c .+> 59 is the Director ± Finance. He is responsible for the overall management and
supervision of the finance and audit functions. He holds a Bachelor¶s degree in Chemistry from the
pniversity of Madras and is a qualified chartered accountant.

3 c c!+>c6V, is the Managing Director. He is in-charge of the operations of the Company,

including execution of projects. He holds a bachelor¶s degree in Electrical Engineering from REC,
Trichy. He has joined the Board on September 7, 2009.

3 c  c  c .# .'> 57 is the Chairman and Managing Director. He is responsible for the overall
management and supervision of the activities of the Company and for the development of strategies for
the future growth. He holds a Bachelor¶s degree in Chemistry from the pniversity of Madras. He founded
the Company in V985

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ïc GEA BGR Energy System India imited

ïc Progen Systems & Technologies imited

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ïc GEA Cooling Tower Technologies (India) Pvt td

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It is a subsidiary of BGR energy systems td , incorporated in V994 as a public limited company.
It design and manufacture process equipments like Heat Exchangers, Pressure vessels, Reactors,
Columns, Surface condensers, HP/P Heaters and Boiler components. It has its own ISO 900V:2000
certified manufacturing facilities located in India, which are also certified by the American Society of
Mechanical Engineers (³ASME´). The facility also has State of the art welding facility for manufacturing
of High Frequency Resistance Welded Finned Tubes used in HRSG's, WHRp's and Fired Heaters.

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BGR's operations are focused on two broad business sectors: Capital Goods and Turnkey Engineering
Projects.
.c#'cc A(c((c&#$$$, in which the company engineer, manufacture,
procure, construct and commission projects in the Power and Oil & Gas sector, wherein it take Turnkey
responsibility to supply of a range of equipment and services, including the civil works required for a
project and other work as may be required under the contract for such project.

 !c )$c $+>c c *.(. the company executes Turnkey Contracts to supply the Balance of
Plant ("BOP") Equipment, Services and Civil works for Power Generation projects, in which it supply,
from a single source, the Balance of the plant, i.e. items other than the Boiler, Turbine and Generator.
Having successfully executed BOP contracts, it has begun to focus on Engineering, Procurement and
Construction ("EPC") contracts, in which it Design, Engineer and Supply all of the equipment required
for a Power Plant including the Boiler, Turbine and Generator and Civil works. The Company is currently
executing BOP and EPC contracts tailored to customer demands. It also has an infrastructure business
intended to provide construction services and technology oriented projects to the infrastructure sector.

 0 9c#$$$c$( c

Within its two broad business sectors, BGR carries out its operations through seven business divisions

ïc *cA($c&#$$$> which provides turnkey EPC and BOP services for coal-based Thermal
Power Plants and Gas-based Combined Cycle Power Plants typically over V00 megawatts
("MW"), and which completed its first contract in 2002.
ïc  1c *c A($c &#$$$> which provides Turnkey EPC and BOP services for power
plants typically under V00 MW which began operating in 2006
ïc !c )c $c -# +$c &#$$$> which designs and manufactures gas conditioning &
metering skids, storage tanks, pipeline pig launching & receiving systems, gas processing
complexes and gas compressor packages related to the oil and gas industry for companies in India
and abroad, and which began operating in 200V
ïc cc!$c&#$$$> which designs and manufactures Air Fin Coolers which cool process
fluids and gases used in the refining, petrochemical, and oil and gas industries, and which began
operating in V994
ïc 1+!c c &#$$$> which designs manufactures and provides Deaerators,
Desalination plants, Water treatment plants and Effluent treatment plants, which have application
in Power and Process plants and other Industrial plants, and which began operating in V996
ïc !((!c A($c&#$$$> which designs supplies Electrical systems and equipment such as
Gas Insulated Switchgear (GIS) substations, Optical Fiber Power Ground Wires (OPGW), Extra
 High Voltage substations and Transmission ines to Power Stations, Refineries and
Petrochemical plants, and which began operating in 2003
ïc $#(#c&#$$$> which is capable of building roads and industrial buildings, and which
began operating in 2004

 0 :c3AcA($c+ !)cc
ïc 23 MW CPP of Aditya cements, Grasim industries limited at chittorgarh, Rajasthan
ïc 95 MW CCPP (phase V) of TNEB at Valuthur, Tamil Nadu
ïc 92.2 MW CCPP(phase 2) of TNEB at Valuthur, Tamil Nadu
ïc V20 MW CCPP of Aban Power company limited at Karuppur, Tamil Nadu
ïc 330 MW CCPP of Rajasthan Rajya Vidyut ptpadan Nigam td at Dholpur Rajasthan
ïc 500 MW TPS of Andhra Pradesh Power Generation Corporation td at Vijayawada,
Andhra Pradesh
 0 <cA($c#)c/(#c
ïc 500 MW coal based Thermal Power Plant of APGENCO at vijayawada, Andra Pradesh.
ïc 500 MW coal based Thermal Power Plant of APGENCO at Kakatiya, Andra Pradesh
ïc 500 MW coal based Thermal Power Plant of MAHAGENCO at Khaperkeda,
Maharashtra.
ïc 500 MW coal based Thermal Power Plant of APGENCO at Kothagudam, Andra Pradesh
ïc 600 MW coal based Thermal Power Plant of TNEB at Mettur, Tamil Nadu.
ïc 2*600 MW coal based Thermal Power Plant of RRVpN at Kalisindh, Jhalawar district,
Rajasthan.
ïc
 0 Bc !c)$c
!c)c$c-# +c)1$c

ïc Process Equipment Package and Systems

˜c 2/3 Phase Separator System / Skids
˜c Indirect Water Bath Heater
˜c Gas Conditioning, Regulating & Metering Systems
˜c Knockout Drums / Scrubbers
˜c Filter Separators / Dry Gas Filters
ïc Pipeline Equipment - Pig aunchers/Receivers
ïc Compressor Packaging
 ïc Storage Tanks

cc(!$c)1)$c

ïc Process Coolers
ïc Finned Tubes
ïc Radiator & Compressors Coolers
ïc Tube Bundles

1+!cc)1$c

ïc Deaerators
ïc Membrane Based Water Treatment Plant
ïc Demineralization Plant
ïc Effluent/Sewage Treatment & Recycling Plants
ïc Condensate Polishing pnit

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They have clients located in Asia, the Middle East, Africa and Europe. To date, they have
executed V3V contracts in 42 countries. The air fin coolers, environmental engineering and oil and gas
businesses provide products and services both in India and abroad. Whereas power projects, captive
power, infrastructure and electrical projects businesses currently operate only in India.

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BGR operates in a highly competitive market and faces stiff competition from large players like
BHE, Reliance Infrastructure td., &T, Punj loyd td. (Punj loyd) and Thermax td (Thermax).
BGR was an early adopter of BOP in India and has established a proven track record in the field.

&!c 0c+ 1c(c

+c + c
Power projects BHE, &T, reliance Energy, Punj loyd, Tata Projects, Alstom
Projects india
Captive power projects Thermax, &T, Tata Projects, BHE, Conduit Ventures td
Electrical Projects ABB imited, &T, Crompton Greaves imited, Areva T&D,
 Siemens
Oil & Equipment Gastech Process Engineering India Pvt td, Multitex Filtration
Engineering td, Punj loyd
Air Fin coolers and cooling Paharpur Cooling Towers and GEI Industrial Systems td
towers
Environmental Engineering BHE, &T, Thermax and Allied Energy India imited

Source: Company datac

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ïc Dedicated to Power and Oil & Gas sector

ïc pndertakes turnkey EPC projects for large ptility Power Plants upto600 MW
1$c$c;cc( &!$
ïc Ability to Design & Manufacture customised products

ïc In-house Design & Engineering gives control over costs, design, time and competitive edge
1$ccc )#($c)c$1($
ïc Significant synergies through complementary operations

ïc Ability to service both large and small scale projects

ïc Project management system and policy enable execution of large, multifaceted, complex projects

ïc Manufacturing capability is an added advantage in EPC projects

$c+ 1$$
ïc Control costs by optimising product features and design

ïc Global sourcing
(.!'c# $
ïc Successfully tied up with several international companies to obtain technology and know-how
ïc They currently hold technical know- how for products including deaerators, desalination plants,
water/waste treatment, condensate polishing units, air fin coolers, reverse osmosis based effluent
treatment plant.
 0 0c'c3!$$c

ïc cA#'cBB2, the company entered into a license and technical collaboration with GEA Btt,
France. On april the same year its subsidiary firm, progen entered into a license and technical
service agreement with GEA spirogills limited, pK.
ïc cBB9, the Company entered into a collaboration agreement with GEA Germany to set up GEA
Cooling Tower Technologies (India) Private imited
ïc c,888, the company got its first contract for balance of plant from BHE and it also entered a
technical collaboration agreement with crane environmental Inc, pSA.
ïc c,880, the Company secured its first engineering, procurement and constriction contract for a
V20 MW gas based combined cycle power plant in Karuppur, Tamil Nadu.
ïc c ,889, the electrical projects division of the company obtained category µF¶ power trading
license from the Central Electricity Regulatory Commission. The memorandum of understanding
signed with Ariel Corporation Inc. the same year enabled the company to become an Ariel,
qualified packager.
ïc c@#c,<>c,88: the Company name was changed from GEA Energy System (India) imited,
to c'c'$+$c+)c)c
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ïc c ,88<>c (+ 'c c !$)c c c )c
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ïc c,88B, the company signed Technical collaboration agreement with TME, Italy for CPP.

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ïc Study the working capital management at BGR Energy Solutions.
ïc Calculate cash conversion cycle and find whether there is any relation between profitability and
cash conversion
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ïc To study the trend of working capital over a period 6 years
ïc To analyze the working capital management by calculating working capital ratios and find out
whether it is efficient
ïc To study the components of working capital management and analyze the trend over years
ïc To study the way and means of working capital estimation and finance
ïc To calculate cash cycle and analyse the trend over years
 ïc To compare the cash conversion cycle with return on capital employed
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For the growth and development of any company long term financial decisions play a vital role.
But for running the firm successfully iquidity management, which refers to management of current
assets and liabilities, plays an important role. If a firm does not manage its liquidity position well, its
current assets may not meet its current liabilities, then it may run into trouble paying back creditors in the
short term. The worst-case scenario is bankruptcy. A declining working capital ratio over a longer time
period could also be a red flag that warrants further analysis. At the same time if the current assets are
more than required then it means a considerable amount of money is blocked as idle cash, which is not
profitable for the company. Hence a proper management of working capital, which is the difference
between current assets and liabilities, is important. Working capital also gives investors an idea of the
company's underlying operational efficiency. Therefore a proper analysis and management of working
capital is important not only for maintaining a better liquidity position but also for increasing the value of
the firm and reducing the risk for investors.
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This study is based on the data published by the BGR Energy Solutions in their annula reports.
The analysis has been done by taking the balance sheet and profit and loss statement published in the
annual report of the past six years. The study is confined to a particular company. Similar studies can be
conducted in other competitors companies and a peer comparison can be made. The study also can be
continued by talking all the industries in power sector and the working capital management practices
followed by each of the company can be studied. By doing this one can know what are all the practices
which these companies of same sector have in common and thereby can do a industry analysis .

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ïc +)c)cThis project has completed with annual reports; it just constitutes one part of data
collection i.e. secondary. There were limitations for primary data collection because of
confidentiality.c
ïc c+)c )cThis project is based on six year annual reports. Conclusions and
recommendations are based on such limited data. The trend of last six years may or may not
reflect the real working capital position of the companyc