MIRA
INFORM REPORT
|
Report Date : |
22.11.2006 |
IDENTIFICATION
DETAILS
|
Name : |
GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED |
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Registered Office : |
Main
Road, Opposite Hotel Pariwar, Gulbarga 585 102, Karnataka, India |
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Country : |
India |
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Financials (as on) : |
31.03.2005 |
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Date of Incorporation : |
30.04.2002 |
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Com. Reg. No.: |
08-30436 |
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CIN No.: [Company
Identification No.] |
U04010KA2002PLC030436 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRG02962B |
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Legal Form : |
A
Closely Held, Public Limited Liability Company owned by Government of Kerala |
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Line of Business : |
Sale
of Electricity Power, LT & HT |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD
7000000 |
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Status : |
Good |
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Payment Behaviour : |
Slow
but Correct |
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Litigation : |
Clear |
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Comments : |
Subject
is an established power distribution company, owned by Karnataka State
Government. Trade
relations are fair. Payments are usually correct and as per commitments. As
the subject is owned by Karnataka State Government, lenders and creditors can
feel confident of its exposure to company The
company can be considered good for normal business dealings at usual trade
terms and conditions. |
LOCATIONS
|
Registered Office : |
Main
Road, Opposite Hotel Pariwar, Gulbarga 585 102, Karnataka, India |
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Tel. No.: |
91-8472-256581 |
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Fax No.: |
91-8472-256842 |
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E-Mail : |
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Website: |
http://www.gescom.org |
DIRECTORS
|
Name : |
Mr. K
C Naikwadi |
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Designation : |
Managing
Director |
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Address : |
33/1,
1st Floor, Palm Grove Road, Austin Town, Bangalore 560 047,
Karnataka |
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Date of Birth/Age : |
01.06.1948 |
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Date of Appointment : |
02.07.2003 |
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Name : |
Mr.
Barat Lal Meena IAS |
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Designation : |
Managing
Director & Chairman/Escoms |
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Address : |
501,
Shimsha Block, National Games Housing Complex, Koramangala, Bangalore 560
076, Karnataka |
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Date of Birth/Age : |
05.02.1957 |
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Date of Appointment : |
25.08.2005 |
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Name : |
Mr. M
B Mannoddar |
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Designation : |
Director
(Technical) |
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Address : |
Nirmal
Nivas, P&T Society, II Stage, Hanuman Nagar, Belgaum-1, Karnataka |
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Date of Birth/Age : |
01.12.1949 |
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Date of Appointment : |
28.04.2005 |
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Name : |
Mr. V
M Chandre Gowda |
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Designation : |
Director(Transmission)
KPTCL |
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Address : |
No.
415, 5th Cross, 34d Phase, J P Nagar, Bangalore 560 078, Karnataka |
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Date of Birth/Age : |
04.09.1954 |
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Date of Appointment : |
05.07.2005 |
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|
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Name : |
Mr. M
Lokaraj |
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Designation : |
Joint
Secretary, Energy Department, Govt. of Karnataka |
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Address : |
20/118
E Block, BDA MIG Flat, Dolnur II Stage, Bangalore 560 071, Karnataka |
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Date of Birth/Age : |
09.01.1949 |
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Date of Appointment : |
03.08.2004 |
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Name
: |
Mr. B
N Sathyaprema kumar |
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Designation
: |
President,
KEB Engineers’ Association |
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Address
: |
No.
604, 4th ‘A’ Main, OMBR Layout, Bhuvanagiri, Bangalore 560 043,
Karnataka |
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Date
of Birth/Age : |
31.07.1954 |
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Date
of Appointment : |
03.08.2004 |
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Name
: |
Mr. M
V Murthy |
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Designation
: |
Director |
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Address
: |
No.
83, 16th Cross, 14th Main, HSR Layout, 4th
Sector, Bangalore 560 034, Karnataka |
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Date
of Birth/Age : |
24.02.1949 |
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Date
of Appointment : |
20.08.2005 |
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Name
: |
Mr. S
Pratap Kumar |
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Designation
: |
Director(Procurement),
SPPCC, Govt. of Karnataka |
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Address
: |
NO.
400, 2nd Across, 3rd Block, Koramangala, Bangalore 560
034, Karnataka |
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Date
of Birth/Age : |
20.07.1953 |
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Date
of Appointment : |
13/07/2005 |
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Name
: |
Mr. M
Veeran Gowda |
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Designation
: |
Chief
Engineer(Rtd.), KPTCL , Raichur |
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Address
: |
H. No.
1-11-240 Nijalingappa Colony, Raichur 584 101 |
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Date
of Birth/Age : |
21.03.1941 |
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Date
of Appointment : |
20.10.2004 |
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Name
: |
Mr. S
Jayaraju |
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Designation
: |
President,
KEB Employees Union |
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Address
: |
No.
43/1, Rangarao Road, Shankarapuram, Bangalore 560 004 |
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Date
of Birth/Age : |
08.01.1948 |
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Date
of Appointment : |
17.09.2005 |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
|
Mr.
Baratlal Meena |
1 |
|
Mr.
Anjumparwez |
1 |
|
Mr. R
K Begar |
1 |
|
Mr.
Dilip Rau |
49,991 |
|
Mr. K
C Naikwadi |
1 |
|
Mr. N
Gokulram |
1 |
|
Mr. P
Jayaram |
1 |
|
Mr. M
B Mannodar |
1 |
|
Mr. V
M Chandregowda |
1 |
|
Mr. M
Lokraj |
1 |
|
Total |
50,000 |
BUSINESS DETAILS
|
Line of Business : |
Sale
of Electricity Power, LT & HT |
|
|
|
|
Products : |
v
Metered
Sales v
Unmetered
Sales |
GENERAL
INFORMATION
|
Customers : |
v
Bhagya
Jyoti Scheme v
Domestic
Combined Lighting, Heating & Motive Power v
Private,
Professional & Unaided Educational Institutions v
Commercial
& Non Industrial Lights & Fans v
Irrigation
Pump Sets v
Water
Supply & Street Light Installations (LT) v
Private
Horticultural Nurseries, Coffee, Tea, Coconut & Areca Nut Plantations v
Tempower
Power Supply – Non Commercial Lights & Fans v
Public
Water Supply & Sewerage Pumping v
Irrigation
& Agricultural Farms v
Lift
Irrigation Societies v
Government v
Horticultural
Farms v
Residential
Apartments & Colonies v
KPS
Installations |
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|
|
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No. of Employees : |
4161
(Category ‘A’: 135 ; Category ‘B’: 178 Category ‘C’: 2159 Category
‘D’: 1649 On Deputation: 40) |
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|
|
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Bankers : |
v
State
Bank of Hyderabad v
State
Bank of Mysore v
State
Bank of India v
Bank
of India v
Canara
Bank v
Syndicate
Bank v
Vijaya
Bank v
Rural
Electrification Corporation Limited, Core 4, SCOPE Complex, 7 Lodi Road, New
Delhi v
Bank
of India, Gulbarga Branch, 63 Super Market Complex, Gulbarga 585 101,
Karnataka |
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|
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Facilities : |
Term
Loan: Rs.68.303 Millions from Rural Electrification Corporation Limited as
per Hypothecation agreement dated 06.04.2006. Hypothecation
of 100% future assets through exclusive First Charge by Hypothecation of all
future movable properties created, installed and procured out of project cost
under the scheme code Nos. 770049-51 adequate to cover the loan amount,
interest, penal interest and other charges payable under the Loan agreement
not less than 110% of the loan amount
sanctioned by REC including Tripartite Default ESCROW Agreement Charge
Amount: Rs.500.000 Millions from Bank of India, Gulbarga Branch as per
Hypothecation Agreement dated 23.06.2006.
It is secured against Hypothecation of Book Debts. |
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Banking Relations : |
Satisfactory
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Auditors : |
M/s. M
N S & Company ((K S Madhava Murthy)) Chartered
Accountants |
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Address: |
163, 2nd
Floor, R.V.Road, Minerva Circle, Bangalore 560 004 |
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Tel. No.: |
91-80-2657
2290, 2657 3319, 2656 6868 |
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E-Mail : |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised
Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
150,000,000 |
Equity
Shares |
Rs. 10/- Each |
Rs. 1500.000 Millions |
Issued,
Subscribed & Paid-up Capital :
|
No.
of Shares |
Type |
Value |
Amount |
|
50000 |
Equity
Shares |
Rs. 10/- Each |
Rs. 0.500 Millions |
FINANCIAL DATA
[all figures are in Rupees
Millions]
ABRIDGED
BALANCE SHEET
|
SOURCES OF FUNDS |
|
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
0.500 |
0.500 |
|
|
2] Share Application Money |
|
1300.861 |
1343.436 |
|
|
3] Reserves & Surplus |
|
478.164 |
210.025 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
1779.525 |
1553.961 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
397.204 |
150.000 |
|
|
2] Unsecured Loans |
|
792.554 |
1163.124 |
|
|
TOTAL BORROWING |
|
1189.758 |
1313.124 |
|
|
DEFERRED TAX LIABILITIES |
|
1764.003 |
1649.618 |
|
|
|
|
|
|
|
|
TOTAL |
|
4733.286 |
4516.703 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
3135.752 |
2842.551 |
|
|
Capital work-in-progress |
|
217.650 |
57.525 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
|
256.245 |
266.499 |
|
|
Sundry Debtors |
|
4921.125 |
3786.395 |
|
|
Cash & Bank Balances |
|
444.600 |
109.249 |
|
|
Other Current Assets |
|
1585.272 |
31.580 |
|
|
Loans & Advances |
|
23.237 |
1219.943 |
|
Total Current Assets |
|
7230.479 |
5413.666 |
|
|
Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
5850.785 |
3797.138 |
|
|
Provisions |
|
0.000 |
0.000 |
|
Total Current Liabilities |
|
5850.785 |
3797.138 |
|
|
Net Current Assets |
|
1379.694 |
1616.528 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.190 |
0.099 |
|
|
|
|
|
|
|
|
TOTAL |
|
4733.286 |
4516.703 |
|
PROFIT
& LOSS ACCOUNT
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
Sales Turnover [including other income] |
|
11622.363 |
10817.760 |
|
|
|
|
|
|
Profit/(Loss)
Before Tax |
|
40.851 |
66.748 |
|
Provision
for Taxation |
|
(78.897) |
(209.815) |
|
Profit/(Loss)
After Tax |
|
(38.046) |
(143.067) |
|
|
|
|
|
|
Total
Expenditure |
|
11043.085 |
10267.244 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2005 |
31.03.2004 |
|
PAT / Total Income |
|
(0.33) |
(1.32) |
|
Net Profit Margin |
|
0.59 |
1.02 |
|
Return on Total Assets |
|
(0.36) |
(1.72) |
|
Return on Investment (ROI) |
|
(2.14) |
(9.21) |
|
Current Ratio |
|
1.24 |
1.43 |
|
Quick Ratio |
|
1.19 |
1.36 |
|
Debt Equity Ratio |
|
0.67 |
0.85 |
|
Current Liabilities/Networth |
|
3.29 |
2.44 |
|
Fixed Asset / Networth |
|
1.76 |
1.83 |
|
Average Collection Days |
|
261.32 |
210.25 |
|
Account Receivables Turnover |
|
1.40 |
1.74 |
|
Inventory Turnover |
|
26.82 |
24.66 |
|
Asset Turnover |
|
2.19 |
2.31 |
LOCAL AGENCY
FURTHER INFORMATION
Trade Reference
v
KPTCL
v
HESCOM
v
VVNL
The
number of consumers as on March 31, 2005 was as follows
|
Tariff
Category |
No. of Consumers As on Mar 31, 2005 |
|
Bhagya
Jyothi / Kutir Jyothi |
405,467 |
|
Irrigation
Pumpsets |
206,167 |
|
Water
Supply & Street Lights |
16,052 |
|
Domestic
Lighting & AEH |
1,035,570 |
|
Commercial
Lighting |
133,269 |
|
Industrial
(LT) |
31,738 |
|
Temporary
Supply |
5,321 |
|
Water
Supply (HT) |
50 |
|
Lift
Irrigation Schemes (HT) |
116 |
|
Industrial
(HT) |
336 |
|
Commercial
(HT) |
127 |
|
Residential
HT |
23 |
Sale of Power
The total sales under metered and un-metered categories are as on 31.03.
2005 was as follows
|
Particulars |
Units |
31-Mar-2005 |
|
Metered
Sales |
In
Million Units |
1266.59 |
|
Unmetered
Sales |
In
Million Units |
1665.45 |
|
Total
Sales |
In
Million Units |
2932.04 |
During
the year 2004-2005, the subject company purchased 4656.580 million units
(4210.54 MU in 2003-2004) from KPTCL & MSEB, for which the cost of purchase
was Rs.9772.400 Millions (Rs.9125.200 Millions in FY 2004). This is after accounting the adjustment
(credig against power purchase cost or FY 2005) of Rs.846.500 Millions as per
KPTCL letter dated 24/09/2005 to the Energy Department. The power purchase cost per unit as approved
in the Tariff order 2003 was Rs.2.2802 (Bulk Supply Tariff of Rs.2.0935 and
Transmission Charge of Rs.0.1867).
Revenue
from Subsidies: RE subsidy is accounted
as per Purchaser provider Model introduced by the Government of Karnataka
during the Financial Year 2003-2004 vide GO No. DE 35 PSR 2003 dated 25/04/2003
and subsequent guidelines issued from time to time. However, no specific guidelines have been notified for
calculation of subsidy for the financial year 2004-2005. In the absence of specific guidelines, the
methodology adopted for calculation of subsidy during the financial year
2003-2004 has been continued to be followed for the financial year 2004-2005
also.
Capital Structure
The
Government has vide order dated 07/10/2004 after auditing of the accounts of
KPTCL for the year 2002-2003 notified the final capital structure of the
Company indicating Rs.1310.000 Millions as the equity share deposit.
Borrowings
The
subject company has initiated independent borrowings for its capital works
programmes. During the year the company
has entered into agreement with M/s Power Finance Corporation Limited for
financing establishment of nine 33/11 KV substations to the tune of Rs.170.000
Millions.
Events
|
18/05/2004 |
Signing of MoU with XIMB for implementation of GVP
in the remaining 25 Talukas |
|
01/06/2004 |
Commencement of Field Operations by GVPs in 25
Talukas |
|
03/08/2004 |
Reconstitution of the Board of Directors by the
Government |
|
31/08/2004 |
Inauguration of Computer Training Centre in the
Corporate Office by Mr V Madhu, Chairman, GESCOM |
|
19/01/2005 |
Workshop for Officers of the Company on the
Regulations issued by the KERC under the Electricity Act 2003 |
|
05/03/2005 |
Workshop on Aggregate Technical & Commercial
Losses & Financial Management for Bellary Zone employees at Bellary |
|
16/03/2005 |
Inauguration of Consumer Grievance Redressal Forum
office by then Managing Director, Mr AK Monnappa |
|
01/04/2005 |
Inauguration and commencement of working of
O&M Division-II, Gulbarga |
|
07/06/2005 |
Workshop on Aggregate Technical & Commercial
Losses & Financial Management for Gulbarga Zone Employees at Gulbarga |
|
24/08/2005 |
Inauguration of “Any Time Payment” machine at
Gulbarga by Hon’ble Minister for Energy & PWD |
In the year 1999, Karnataka embarked on a major reform of the power sector. As a first step, Karnataka Electricity Board (KEB) was dissolved and in its place, the Karnataka Power Transmission Corporation Limited (KPTCL) was incorporated. This was followed by the constitution of Karnataka Electricity Regulatory Commission (KERC) in November 1999.
In the next phase of the reform process, the transmission and distribution
business managed by KPTCL was unbundled in June 2002. Four new distribution
companies were formed to distribute power in Karnataka.
Gulbarga Electricity Supply Company Limited (GESCOM) has taken over the
responsibility from KPTCL for the distribution of electricity in 5 districts
and commenced its operations from 01.06. 2002.
The erstwhile Mysore State had the enviable
and glorious position of establishing the first major hydroelectric generating
station for commercial operations at Shivasamudram as early as 1902. The art at
that time was still in its infancy, even in the advanced countries. The longest
transmission line, at the highest voltage in the world, was constructed to meet
the power needs of mining operations at Kolar Gold Fields.
The generating capacity of the Shivasamudram Power House gradually increased to
42 MW in stages. To meet the increasing demand for power, the Shimsha
Generating Station, with an installed capacity of 17.2 MW, was commissioned in
the year 1940. The power demand was ever on the increase, for industries and
rural electrification, and additions to generating capacity became imperative.
The 1st Stage of 48 MW and 2nd stage of 72 MW of the Mahatma Gandhi
Hydroelectric Station were commissioned during 1948 and 1965, respectively.
The State of Karnataka, with availability of cheap electric power, and other
infrastructure facilities, was conducive for increased tempo of industrial
activity. It became necessary to augment the power-generating capacity by
harnessing the entire potential of the Sharavathi Valley. The first unit of
89.1 MW was commissioned in 1964 and completed in 1977.
The demand for power saw a phenomenal increase in the mid sixties and onwards
with the setting up of many public sector and private industries in the State.
As power generation in the state was entirely dependent on monsoon and was
subject to its vagaries, the state government set up a coal based power plant
at Raichur. The present installed capacity of the power plant at Raichur is
1260 MW. To augment the energy resources of the State, the Kalinadi Project
with an installed capacity of 810 MW at Nagahari Power House and 100MW at Supa
Dam Power House, with an energy potential of 4,112 Mkwh, were set up.
The transmission and distribution system in the state was under the control of
the Government of Karnataka (then Mysore) till year 1957. In the year 1957,
MSEB was formed and the private distribution companies were amalgamated with
Karnataka Electricity Board.
Till the year 1986, KEB was a profit-making organisation. However, in the
subsequent years, like other State Electricity Boards in the country, KEB also
started incurring losses, mainly due to the increase in agricultural
consumption and due to the implementation of the socio-economic policies of the
government.
To improve the performance of the power sector and in tune with the reforms
initiated by Government of India, the Government of Karnataka came out with a
general policy proposing fundamental and radical reforms in the power sector.
Accordingly an Act, namely the Karnataka Electricity Reforms Act was passed by
the Karnataka Legislature. The Reform has mandated major restructuring of the
Karnataka Electricity Board and its Corporatisation. As part of
corporatisation, Karnataka Electricity Board ceased to exit and Karnataka Power
Transmission Corporation Limited was constituted from 01.08.1999.
As a part of the reforms, the distribution sector was further divided into 4
companies viz. Gulbarga Electricity Supply Company Limited – GESCOM; Bangalore
Electricity Supply Company Limited – BESCOM; Hubli Electricity Supply Company
Limited - HESCOM; Mangalore Electricity Supply Company Limited – MESCOM. These
companies came into existence from 01.06.2002.
Maintenance of Service Station for immediate attending Fuse of Call/
Breakdowns.
Providing Mobile Phones to all Field Officers (AEE’s & Above) for
speedy communication under emergency or breakdowns.
Operating ‘Soujanya Kendra’ at all divisional level to solve consumer
grievances.
Community involvement in rural areas.
Computerization of Billing System.
Engaging GVP’s ( Gram Vidyut Pratinidhi ) in Rural Areas for Billing,
Collection and to act as mediator between consumer and company in solving the
problems.
Creating awareness of Anti Theft Law (ATL) in consumer by conducting
Street Plays, Advertisements and Mass Raids.
Creation of High Value Consumer Management Cell (HVCMC) to solve the
problems of High Value Consumer like HT Consumers.
Centralized, Computerized billing systems for HT consumers at the
corporate level to analyze the HT consumers Consumptions and billing problems.
Computing Energy Audit of 11 KV feeders to analyze System Losses.
Introduction of 24 hr continuous power supply for villages (Jewargi Tq.
As a pilot Program).
In the year 1999, Karnataka embarked on a major reform of the power sector. As a first step, Karnataka Electricity Board (KEB) was dissolved and in its place, the Karnataka Power Transmission Corporation Limited (KPTCL) was incorporated. This was followed by the constitution of Karnataka Electricity Regulatory Commission (KERC) in November 1999.
In the next phase of the reform process, the transmission and distribution
business managed by KPTCL was unbundled in June 2002. Four new distribution
companies were formed to distribute power in Karnataka.
Gulbarga Electricity Supply Company Limited (GESCOM) has taken over the
responsibility from KPTCL for the distribution of electricity in 5 districts
and commenced its operations from 01.06.2002.
REPORT ON THE CONSUMERS MEET(Jana Samaprka Sabhas) ORGANISED DURIN THE YEARS 2003-2004 & 2004-2005 (Upto 31.03.2005) IN GESCOM AREA:
With a view to directly interact with consumers and effectively redress their grievances besides explaining the role and challenges before the Company in the changed scenario, GESCOM has started organizing Consumer Meets from September 2003.
Senior officers of the Company attend the Meets and try to solve the grievances
of consumers at their door step.
The Consumer Meets have been held at the following places in the GESCOM area:
ALAGODU IN BASAVAKALYANA TALUK:
A Consumer Meet was organized at Alagodu on 06.09.2003. Besides the Basavakalyana MLA Shri Maruthi Mule, the Zilla Panchayat, taluk panchayat and also grama panchayat members attended it. About 500 people from the area attended.
The issues discussed mainly at the Meet included: improvement of voltage in the
area which is bordering Maharashtra, speedy replacement of TCs, appointing one
lineman to every grama panchayat, waiving of electricity arrears of farmers who
lost crops due to breach of tank in the village during 1983 etc.
ALUR IN JEWARGI TALUK :
A Consumer Meet was held here on here on 19.09.2003.
The meeting was chaired by the Zilla Panchayat member of the area. Besides
grama panchayat president and members, about one thousand consumers attended
it. The Company was represented by the Director Technical and also the Chief
Minister of O & M Zone.
The issues that came up at the Meet included:providing an additional
transformer to Hangarga B village, waiving of electricity dues of farmers due to
failure in rain, laying of lines and providing connection to new extensions in
Kakhandaki village, supply of eight hour three phase power continuously during
day time etc.
RAMASAMUDRA IN YADGIR TALUK:
A Consumer Meet was held here on 13.09.2003. Besides the area MLA and the then Health Minister Dr. Maalakareddy, many elected representatives participated in it.
The Company was represented by the then Managing Director Ms Manjula.
The issues that came up at the Meet included;providing power to Ramasamudra and
Ashnal villages from Balichakra sub-station, bringing down the transformer
failure rate and speedy replacement of failed transformers, disconnecting power
supply to unauthorized IP sets, laying a separate feeder from Wadagera to
Naikal etc.
KINNAL VILLAGE IN KOPPAL TALUK:
A Consumer Meet was held here on 24.12.2003. Zilla Panchayat, taluk panchayat and grama panchayat members and also about 500 farmers attended it.
The Company was represented by the Chief Engineer of Bellary O & M Zone.
The major issues that came at the Meet included speedy replacement of
transformers, improvement of voltage, supplying three phase power for eight
hours during day time etc.
MUKKUNDA VILLAGE IN SINDHANUR TALUK:
A Consumer Meet was held here on 29.12.2003.
The grama panchayat members and also villagers attended the Meet.
The issues that came up at the Meet included: low voltage problem as power is
supplied from Dhadesugur, replacement of dilapidated poles and wires,
appointment of a lineman, supply of material for those who have already paid
deposits under Akrama-sakrama.
MOKA VILLAGE IN BELLARY TALUK:
A Consumer Meet was held here on 03.01. 2004.
The Grama Panchayat President presided over the meet. The Company was
represented by the Chief Engineer of O & M Zone.
The issues cropped up at the Meet included: voltage problem in Moka village,
setting up an accounting station at Moka village, providing electricity
connection to extension areas in the village.
CMT REPORT [Corruption, Money
laundering & Terrorism]
The
Public Notice information has been collected from various sources including but
not limited to: The Courts, India Prisons Service, Interpol, etc.
1] INFORMATION
ON DESIGNATED PARTY
No exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court
Declaration :
No records exist to suggest that subject is or was the subject of any
formal or informal allegations, prosecutions or other official proceeding for
making any prohibited payments or other improper payments to government
officials for engaging in prohibited transactions or with designated parties.
3] Asset
Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record
on Financial Crime :
Charges or conviction registered
against subject: None
5] Records
on Violation of Anti-Corruption Laws :
Charges or investigation registered
against subject: None
6] Records
on Int’l Anti-Money Laundering Laws/Standards :
Charges or investigation registered
against subject: None
7] Criminal
Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation
with Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation
Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA
INFORM as part of its Due Diligence do provide comments on Corporate Governance
to identify management and governance. These factors often have been predictive
and in some cases have created vulnerabilities to credit deterioration.
Our
Governance Assessment focuses principally on the interactions between a
company’s management, its Board of Directors, Shareholders and other financial
stakeholders.
CONTRAVENTION
Subject
is not known to have contravened any existing local laws, regulations or
policies that prohibit, restrict or otherwise affect the terms and conditions
that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US
Dollar |
1 |
Rs.44.75 |
|
UK
Pound |
1 |
Rs.85.14 |
|
Euro |
1 |
Rs.57.55 |
SCORE &
RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
5 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
5 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
46 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit
history (10%) Market
trend (10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome financial
difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |
|
NR |
In view of the lack of information, we
have no basis upon which to recommend credit dealings |
No Rating |
|