34TH Annual General Meeting
Alfa Transformers Ltd
Chairman’s Communication

Dear Shareholders, Ladies & Gentleman,

Very good morning!

It gives me immense pleasure to welcome all of you to the 34TH Annual General Meeting of the shareholders of Alfa Transformers Limited. The Annual Report for the year ended 31st March, 2016 containing Annual General Meeting notice, Directors Report and the Audited Annual Accounts of the Company have been circulated to you. With your kind permission, I take them as read.

I would now like to briefly present the performance of the company during the year 2015-16.

  Present Year (lacs)(Rs) Previous Year(lacs)(Rs) Change (Rs) (lacs)
Total income 2715.63 2662.04 53.59
Profit/(loss) before interest, depreciation and tax 244.61 217.28 27.33
Interest and finance charges 165.21 164.17 1.04
Depreciation 135.29 152.81 (17.52)
Profit/ (loss) after exceptional items (55.89) (99.70) Reduction of loss of 43.81 lacs in comparison to previous year.

During the Financial Year 2015-16, the operation of the company has been improved by reducing loss as compared to previous tear. The sales in term of volume have increased to 5488 numbers as compared to 4234 numbers in previous year. The company has accelerated the timely collection of receivables which will reduce the bad debts in coming year.

Future Prospects

During the Financial year 2016-17, Our Company is expecting to achieve Sales Turnover of Rs. 45 Cores and has already bagged orders worth of Rs. 24 crores.
During the year under review, Vadodara unit has produced impressive financial performance in all parameters, namely revenue growth, operating margins and resource utilization with all round improvement in production, sales and profitability. Unit IV has clocked a turnover of Rs 1854.47 lacs with a net profit of Rs. 53.53 lacs and gross profit (before Interest & Finance Charges & Depreciation) of Rs 133.07 lacs. The Vadodara Unit has also bagged hefty orders from DGVCL, PGVCL & UGVCL during the current financial year 2016-17.
Bhubaneswar Unit still continues to struggle with insufficient orders and Performance of Unit I this year was not satisfactory and its turnover this year is 838.61lacs with net loss of Rs 107.89 lacs and gross profit (before Interest & Finance Charges & Depreciation) of Rs 111.54lacs.
Government of India has enacted Electrical Act by which transformer units having only BIS rating can be sold. I have the pleasure to inform you that your company has got BIS certificate for Level 2 upto 200KVA for our plant at Bhubaneswar unit and upto 100 KVA Level 2 for our Vadodara unit. Your company is also investing in prototype and type testing of other ratings of transformers for inclusion in BIS. Your company has already got 3, 4, 5 star ratings for distribution transformers upto 200 KVA from Bureau of Energy Efficiency, Govt. of India.
This year as your company is planning for some major expansion and meeting the day-to day funds flow requirements, it is going for private placement of equity shares and warrants to promoter category and non-promoter category of whose details is provided to you in notice.
In non – promoter category Mr Gopal Krishan Gupta will be investing in shares and warrants of our company. He is an eminent personality having wide range of experience of 38 years of experience in Power sector in all field such as strategy, techno-commercial assessments, marketing, manufacturing, EPC and company turn around. He is instrumental in achieving leadership position in transformers market in India.
He was a part of Management committee for ALSTOM at Country level and was responsible for business of more than 200 MUSD as P& L. Mr. Gupta held major position in companies like ALSTOM T&D Ltd as Regional Managing Director and TBEA Energy India Pvt. Ltd as CEO. Presently he works as a freelance Consultant in the Power Sector in Baroda Engineering Co. (BEC) w.e.f May 2015. Alfa Transformers Ltd. welcomes him & hope that his positive guidance as an investor will help the company immensely


The unprecedented variation in the prices of raw materials is a major area of concern for executing transformer orders in uncertain market condition. The unutilized capacity in the transformer industry and intense competition adversely impact product prices and margins. But we are hoping for some positive outcome in transformer industry in near future.

With these few words, I would conclude my address with thanks to our Customers, Bankers, Creditors, and Government Authorities and last but not the least to all our Shareholders for your confidence reposed on the Company.

Thank You,
Chairman of the Meeting
Dated 28th September 2016.