MIRA
INFORM REPORT
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Report Date : |
21.05.2007 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE ENERGY
LIMITED |
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Formerly Known
As : |
BSES LIMITED |
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Registered
Office : |
Reliance Energy
Centre, Santacruz (East), Mumbai- 400 055, |
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Country : |
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Financials (as
on) : |
31.03.2006 |
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Date of
Incorporation : |
01.10.1929 |
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Com. Reg. No.: |
11-1530 |
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CIN No.: [Company
Identification No.] |
U99999MH1929PLC001530 |
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TAN No.: [Tax Deduction
& Collection Account No.] |
MUMR16295G |
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PAN No.: [Permanent
Account No.] |
AAACB2273R |
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Legal Form : |
It is a public
limited liability company. The company's share are listed on the Stock
Exchanges. |
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Line of
Business : |
Distribution of Power,
Generation of Power, Contracting and Computer Services. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 300000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company, now a part of Reliance Group, country's
premier industrial house. Available information indicates high financial responsibility
of the company. Trade relations are reported as fair. Payments are usually
correct and as per commitments. The company can
be considered good for normal business dealings at usual trade terms and
conditions. |
LOCATIONS
|
Registered
Office : |
Reliance Energy
Centre, Santacruz (East), Mumbai- 400 055, |
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Tel. No.: |
91-22-26639999 |
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Fax No.: |
91-22-26639741 |
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E-Mail : |
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Website : |
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Corporate
Office : |
BSES House,
Santacruz (East), Mumbai - 400 055, |
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Tel. No.: |
91-22-26154284 |
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Fax No.: |
91-22-26154291 |
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E-Mail : |
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Website : |
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Power Stations
: |
Dahanu Power
Station BSES Nagar, Opp. Sancoale
Industrial Estate, Zuarinagar- 403 726, Sancoale, Mormugao, Samalkot Power
Station Industrial
Development Area, Peddapuram Mandal, Samalkot- 533 440, Wind Farm Near Almangala-
577 558, Chitradurga District, |
DIRECTORS
|
Name : |
Mr. Anil D.
Ambani |
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Designation : |
Chairman and
Managing Director |
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|
Name : |
Mr. Satish Seth |
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Designation : |
Executive Vice
Chairman |
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Name : |
Mr. J P Chalasani |
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Designation : |
Director
(Business Development) |
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Name : |
Mr. S C Gupta |
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Designation : |
Director
(Operations) |
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Name : |
Mr. K H Mankad |
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Designation : |
Director
(Finance) |
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Name : |
Mr. Gautam Doshi |
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Designation : |
Chairman |
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|
Name : |
Mr. V R Galkar |
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Designation : |
Director |
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Name : |
Mr. V P Malik
PVSM, AVSM (Retired) |
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Designation : |
Director |
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Name : |
Mr. S L Rao |
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Designation : |
Director |
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Name : |
Dr. Leena
Srivastava |
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Designation : |
Director |
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Name : |
Mr. Amitabh
Jhunjhunwala |
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Designation : |
Director |
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Name : |
Prof. J.
Ramachandran |
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Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ramesh Shenoy |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS
|
Names
of Shareholders |
No. of Shares |
Percentage of Holding |
|
Holdings of the Promoter Group |
|
|
|
AAA Project
Ventures Private Limited |
1,04,16,000 |
4.91 |
|
Reliance Energy Ventures
Limited |
9,09,24,724 |
42.82 |
|
Reliance Capital
Limited |
1,19,95,139 |
5.65 |
|
Non-Promoters
Holdings |
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Institutional
Investors |
|
|
|
Mutual Funds and
Unit Trust of |
57,93,553 |
2.73 |
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Banks, Financial
Institutions, Insurance Companies, Gpvernments |
3,96,27,245 |
18.66 |
|
Foreign
Institutional Investors |
3,43,14,437 |
16.16 |
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Others |
|
|
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Private Corporate
Bodies |
15,47,613 |
0.73 |
|
Indian
Public/Others |
1,25,96,802 |
5.94 |
|
Non Resident Indians/Overseas
Corporate Bodies |
4,32,132 |
0.20 |
|
The Bank of |
46,72,606 |
2.20 |
|
Grand Total |
21,23,20,251 |
100.00 |
BUSINESS DETAILS
|
Line of
Business : |
Distribution of power,
generation of power, Contracting and computer services. |
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Products : |
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PRODUCTION STATUS
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Particulars |
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Licensed Capacity |
Installed Capacity |
Actual Production |
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Stress Cones |
|
25000 |
12000 |
-- |
|
Modules |
|
80000 |
36000 |
-- |
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Cable head
termination |
|
500 |
500 |
81 |
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Terminations and
Joints |
|
10000 |
10000 |
49 |
GENERAL INFORMATION
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No. of
Employees : |
Around 5539 |
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Bankers : |
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Facilities : |
[figures are in Rupees Millions]
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Banking Relations : |
Good |
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Auditors : |
Haribhakti &
Company Chartered
Accountants Chaturvedi and
Shah Chartered
Accountants |
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Associates : |
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CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
250000000 |
Equity Shares |
Rs. 10/- |
Rs. 2500.000 million |
|
8000000 |
Equity Shares |
Rs. 10/- |
Rs. 80.000 million |
|
1550000000 |
Cumulative
Redeemable Preference Shares
|
Rs. 10/- |
Rs. 15500.000 million |
|
42000000 |
Unclassified
Shares |
Rs. 10/- |
Rs. 420.000 million |
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Total |
|
Rs. 18500.000 million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
214722316 |
Equity Shares |
Rs. 10/- |
Rs. 2147.200 million |
|
Add: |
Forfeited Shares |
|
Rs. 0.400 |
|
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Total |
|
Rs. 2123.600 million |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES
OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
|
SHAREHOLDERS
FUNDS |
|
|
|
|
|
1] Share Capital |
2123.600 |
1856.100 |
1752.600 |
|
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2)Equity
Warrances Issued |
882.400 |
0.000 |
0.000 |
|
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3] Reserves &
Surplus |
75726.800 |
55862.700 |
49357.100 |
|
NETWORTH
|
78732.800 |
57718.800 |
51109.700 |
|
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LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
19198.100 |
7850.000 |
6850.200 |
|
|
2] Unsecured
Loans |
23471.200 |
29536.700 |
13458.100 |
|
|
3] Service Line
& Security Deposits from Customers |
235.400 |
221.100 |
177.400 |
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TOTAL
BORROWING
|
42904.700 |
37607.800 |
20485.700 |
|
Deferred Tax Liability
|
2040.700 |
0.000 |
0.000 |
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|
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|
|
|
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TOTAL
|
123678.200 |
95326.600 |
71595.400 |
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APPLICATION OF FUNDS
|
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|
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|
|
|
|
|
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FIXED ASSETS [Net Block]
|
26560.600 |
27201.200 |
30094.200 |
|
Capital work-in-progress
|
2176.500 |
1921.900 |
837.900 |
|
|
|
|
|
|
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INVESTMENT
|
11927.400 |
6962.200 |
28750.400 |
|
|
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CURRENT ASSETS, LOANS & ADVANCES
|
|
|
|
|
|
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Inventories
|
2950.500
|
3530.900
|
1041.700 |
|
|
Sundry Debtors
|
10927.900
|
9309.600
|
4661.000 |
|
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Cash & Bank Balances
|
56529.000
|
60453.700
|
8601.600 |
|
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Other Current Assets
|
3129.000
|
0.000
|
0.000 |
|
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Loans & Advances
|
31616.900
|
13387.600
|
14607.200 |
Total Current Assets
|
105153.300
|
86681.800
|
28911.500 |
|
Less : CURRENT LIABILITIES & PROVISIONS
|
|
|
|
|
|
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Current Liabilities
|
15708.200
|
23344.400
|
12945.500 |
|
|
Provisions
|
6431.400
|
4096.100
|
4053.100 |
Total Current Liabilities
|
22139.600
|
27440.500
|
16998.600 |
|
Net Current
Assets
|
83013.700
|
59241.300
|
11912.900 |
|
|
|
|
|
|
|
TOTAL
|
123678.200 |
95326.600 |
71595.400 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
Sales Turnover [including other income]
|
46078.900 |
46031.600 |
35931.600 |
|
|
|
|
|
Profit/(Loss) Before Tax
|
7814.700 |
5696.200 |
4173.200 |
Provision for Taxation
|
|
494.800 |
502.400 |
Profit/(Loss) After Tax
|
6503.400 |
5201.400 |
3670.800 |
|
|
|
|
|
Export Value
|
3.400 |
11.300 |
6.400 |
|
|
|
|
|
Import Value
|
2211.700 |
1634.400 |
561.500 |
|
|
|
|
|
Total Expenditure
|
38264.200 |
40969.100 |
32320.500 |
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2006 (1st Quarter) |
|
Sales Turnover |
|
|
11548.500 |
|
Other Income |
|
|
1711.200 |
|
Total Income |
|
|
13259.700 |
|
Total Expenditure |
|
|
10214.400 |
|
Operating Profit |
|
|
3045.300 |
|
Interest |
|
|
459.300 |
|
Gross Profit |
|
|
2586.000 |
|
Depreciation |
|
|
618.900 |
|
Tax |
|
|
262.500 |
|
Reported PAT |
|
|
1766.100 |
200606 Quarter 1
- EPS is Basic Status of Investor Complaints for the quarter ended June 30,
2006 Complaints Pending at the beginning of the quarter Nil Complaints Received
during the quarter 02 Complaints disposed off during the quarter 02 Complaints
unresolved at the end of the quarter Nil 1. a. In the matter of standby
charges, Maharashtra Electricity Regulatory Commission (MERC) had passed an
order dated
SUMMARISED RESULTS
|
PARTICULARS |
|
|
30.06.2006 (1st Quarter) |
|
Sales
Turnover |
|
|
5,6929.500 |
|
Other
Income |
|
|
8823.000 |
|
Total
Income |
|
|
6,5752..500 |
|
Total
Expenditure |
|
|
5,2125.000 |
|
Operating
Profit |
|
|
1,3627.500 |
|
Interest |
|
|
2503.200 |
|
Gross
Profit |
|
|
1,1124.300 |
|
Depreciation |
|
|
2400.600 |
|
Tax |
|
|
437.700 |
|
Reported
PAT |
|
|
8014.500 |
|
Dividend
(%) |
|
|
530.000 |
|
|
|
|
|
KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
0.67 |
0.62 |
0.39 |
|
Long Term Debt Equity Ratio |
0.50 |
0.54 |
0.39 |
|
Current Ratio |
2.64 |
2.23 |
1.47 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
0.87 |
0.96 |
0.93 |
|
Inventory |
12.27 |
18.19 |
38.82 |
|
Debtors |
3.93 |
5.95 |
6.75 |
|
Interest Cover Ratio |
5.07 |
4.80 |
6.97 |
|
Operating Profit Margin (%) |
33.24 |
23.89 |
22.96 |
|
Profit Before Interest and Tax Margin (%) |
24.47 |
15.56 |
13.88 |
|
Cash Profit Margin (%) |
25.12 |
19.58 |
19.54 |
|
Adjusted Net Profit Margin (%) |
16.35 |
11.25 |
10.46 |
|
Return on Capital Employed (%) |
9.68 |
8.52 |
10.13 |
|
Return on Net Worth (%) |
10.79 |
9.97 |
10.61 |
STOCK PRICES
|
Face Value |
Rs.10/- |
|
High |
Rs.449.00/- |
|
Low |
Rs.438.00/- |
LOCAL AGENCY FURTHER INFORMATION
History
Reliance Energy
Ltd(formerly BSES Ltd) was incorporated in 1929 as 'Bombay Suburban Electric
Supply Limited'. In 1992 the name was changed to 'BSES Limited' as the company
entered into various activities besides supply of electricity.
From a modest licensee supplying power to the suburbs of
During the year 2004-2005 , the company has modernized and upgraded its two
The Company has sponsored Reliance Energy Genereation Ltd (REGL) to
develop,construct and operate a 3740 MW gas based power generation project at
The Company is
about to implement 500 MW of wind based power projects across various states in
The Company has been selected as preferred bidder and the finalised transaction
documents have been initialled on 17th January 2005 by Power Grid Corporation
of India Ltd for selection of a joint partner for setting up of the
transmission line for Parbati and Koldam hydro-electric projects in Himachal
Pradesh, on build-own-operate-transfer basis.
BSES, with its corporate lineage going back to 1929, is
BSES and its subsidiaries provide electricity service to more than 2.70 million
consumers in area covering about 1,23,000 sq. km. and with an estimated
population of about 34 million.BSES operates a state-of-the-art 500 MW Thermal
Power Station at Dahanu near Mumbai and supplies the power to the Company's own
distribution grid. The Generation Division undertakes engineering and
construction of power plants. The Transmission Division designs and installs
transmission lines and sub-stations. Contracts, EPC and International Divisions
render comprehensive value added services in construction, erection and
commissioning through a nationwide network of regional office including a
representative office in the
The liberalization of the Indian economy has opened up newer opportunities for
the power sector and as the leading private sector player, BSES is poised to
take advantage of these reforms.
Strategies upto 2000 A.D. - Power generation, transmission and distribution are
areas of core competencies. - 90% of investment to be made in core activities
and the balance in other related activities. - Other related activities cover
those synergetic to the core activities. - The resources for these projects
would be met by BSES and raised through joint ventures.
Corporate Plan - First Five Years:Core Areas: Power Generation capacity around
2000 MW Dahanu expansion / Palghar Project: Capacity - 500 MW Projects at
different locations - Capacity - 1500 MW Three to four distribution networks of
similar size as BSES Mumbai.Through Joint venturesBSES Kerala Power Limited
TICAPCO-Srimushnam Project BSES Andhra Power Limited Maithon Power
Limited
During 2001-02 the BSES Kerala Power Ltd had commission the power station in
the Combined Cycle mode but due to various reasons the BKPL has suspended its
operations from October,2001. OFGW of 220 kV transmission line between
Ghodbunder,Versova and Dahanu was successfully completed.
Distribution: Orissa Distribution Companies Part of Rajasthan Distribution
System. Consultancy of
Related Areas: ST BSES Coal Washeries Limited Utility Powertech Limited BSES
Telecom Limited BSES Infrastructure Finance Limited
Electric Supply and Transmission Division:
BSES has a
consumer base of 2 million. Importantly, there is no agriculture load as the
company caters to the urban areas only. It has a good recovery of 99.4%, which
helps it to provide efficient and effective consumer services.
Dahanu Power Station:
Dahanu Power
Station achieved a plant load factor (PLF) of 82.68% during 2000-01. The plant
availability was to the tune of 92.33%. The plant of the company meets 55% of
its needs. The demand has been increasing at around 5% per annum. However, BSES
depends on Tata Power for additional power requirements. It has to purchase
this extra power at much higher costs. The company is taking measures to reduce
overhaul period per unit. It also plans to improve plant availability besides increasing
the dispatches during off peak hours besides reducing coal transit
losses.
Wind Energy:
BSES has
invested Rs 410.000 million in 7.59 mw wind farm at Chitradurga, Karnataka.
This farm has 33 windmills. It has already started commercial operations and
has one of the highest PLF in the country in the wind farm segment.
Contracts and EPC Division:
This division
was instrumental in construction and erection works of 5,000 mw in Indian and
other industrial and infrastructure projects. The cumulative value of works
executed by this division since inception is to the tune of Rs 3,5000 million.
To keep up the growth in this business, the company plans to target turnkey
jobs with higher margins. It also needs to diversify into larger civil jobs and
other infrastructure sectors. The company also plans to provide modern tools
for faster project implementation and to provide training inputs for better
project management.
BSES has several group companies - ST-BSES Coal Washery, BSES Infrastructure
Finance, Utility Powertech, Ticapco, BSES Telecom, BSES Kerala Power, BSES
Andhra Power and three new companies of Orissa. The company has a strategy of
adding value by strategic alliances within the group.
Coal Washery - JV Company:
This JV is a
backward integration project for the Dahanu Power plant. It supplies washed
coal to the plant as well as to others. The total cost of this project is
around Rs 600 million out of which Rs 90 million is by a
BSES Infrastructure Finance (BIFL):
This company is
in the business of providing advisory services on new businesses and financial
engineering. It also provides bridge finance and leasing services to group
companies. It has tied up funds for various projects to the tune of over Rs
1,5000 million.
Utility Powertech:
This is a JV
with National Thermal Power Corporation (NTPC). Utility Powertech has taken up
maintenance contracts for NTPC power stations. It has 250 operational sites
with Rs 25 crore orders on hand.The company is focussing on non-conventional
project development including mini and micro hydel projects.
BSES Telecom:
This company has
been operational since March 2000. It is an Internet service provider (ISP) in
Mumbai and has a fibre optic network to support its last mile services. Its
utility software division has a customer care product, which caters to over 6
million consumers of BSES. It is also exploring alliances for providing utility
solutions.
BSES Kerala Power:
This is a 165 mw
naptha-based combined cycle power plant at
BSES Andhra
Power:
This is a 220 mw
duel fuel combined cycle power plant at Samalkot. The construction work on
civil works is presently in progress and the expected date of completion is
October 2001 for open cycle and February 2002 for combined cycle. BSES EPC
group is doing the EPC work.
Orissa Power distribution companies:
BSES had bid for
distribution companies in Orissa in 1999 when the distribution part was opened
up for privatization. On
The consumer base is around 8,14,000 with the consumption at around 6,000
million units. The tariff is one of the lowest for bulk supply. Importantly,
agricultural load is less than 6% of the total load. BSES is targeting a
turnaround for these distribution companies in the next 2-3 years.
During the year 2002-2003, the Company has successfully commissioned 210 MW Gas
Based Combined Cycle power plants for BSES Andhra Power and 24 MW Bagasse fired
Power Plant for Godavari Sugar Mills Ltd and 20 MW for Suryachakra Power
Corporation Ltd.
The Company has increased its installed capacity of Power Transformers by 70
MVA and Distribution Transformer by 32 MVA. With the expansion the total
installed capacity of Power Transformers increased upto 1752 MVA and
Distribution Transformer increased upto 2432 MVA.
In the year 2003-2004, The Company was renamed as Reliance Energy Ltd.BSES
Andhra Power Ltd and Reliance Salgocar Power Company Ltd were amalgamated with
the company with effective from
FINANCIAL
REVIEW
Reliance
Energy's total income for the year ended 31st March, 2005 increased to Rs 4,5930.000
million (US$ 1.05 billion), compared to Rs 3,5830.000 million in the
corresponding previous year, registering a growth of 28 per cent.
The total income includes earnings from sale of electrical energy at Rs 2,8960
million (US$ 662 million) as compared to Rs 2,8210.000 million recorded last
year. The sale of electrical energy includes income of Rs 2660.000 million (US$
61 million) and Rs 1670.000 million (US$ 38 million) from Samalkot Power
Station and Goa Power Station respectively.
Turnover of the EPC, Contracts and Elastimold division increased to Rs 1,2440
million (US$ 284 million), against Rs 5860.000 million in the previous year, a
growth of 112 per cent.
Other income for the year stood at Rs 4530.000 million (US$ 104 million),
mainly representing interest income. Operating profit (PBDIT) increased 30 per
cent to Rs 1,0510.000 million (US$ 240 million) during the year, up from Rs
8060.000 million in the previous year.
The cost of electrical energy purchased decreased by 3 per cent from Rs
1,0340.000 million in the previous year to Rs 1,0040.000 million (US$ 229
million) during the current year, owing to lower per unit cost.
During the year, interest expenditure increased to Rs 1350.000 million (US$ 31
million) as compared to Rs 700.000 million in the previous year, owing to
higher level of debt for the period.
Since Notification under the Electricity Act, 2003 has not been issued, the
financial statements are prepared under historical cost convention, on accrual
basis of accounting, and in accordance with the Sixth Schedule to the Repealed
Electricity (Supply) Act, 1948, wherever applicable, as well as those of the
Companies Act, 1956 to the extent not inconsistent with the Sixth Schedule to
the Repealed Electricity (Supply) Act, 1948 and comply with the Accounting
Standards issued by the Institute of Chartered Accountants of India to the
extent applicable. To reflect true value of its prime assets, the Company has
revalued assets of its Dahanu Generating Station by Rs 7520.000 million (US$
172 million). In view of this, the depreciation on such revalued asset is
higher by Rs 1330.000 million (US$ 30 million), and the same has been adjusted
by withdrawing equivalent amount from general reserve, which is credited to
Profit & Loss account. The generation undertakings - Dahanu Thermal Power
Station, Samalkot Power Station and Goa Power Station are eligible for the tax
holiday under Section 80IA of the Income-tax Act, 1961 for a total period of 10
consecutive years out of 15 years and hence the effective tax rate for the
Company as a whole is governed by Section 115 JB of the Income-tax Act,
1961.
The corporate tax liability for the year was Rs 260.000 million (US$ 6
million), compared to Rs 290.000 million in the previous year. There was a
deferred tax liability of Rs 240.000 million (US$ 5 million) for the year.
Cash profits increased 41 per cent to Rs 9700.000 million (US$ 222 million)
from Rs. 6860.000 million (US$119 million) in the previous year.
Net profit for
the year recorded an increase of 42 per cent to Rs 5200 million (US$ 119
million), against Rs 3670.000 million in the previous financial year.
The net profit of Rs 5200 million (US$ 119 million) has been arrived at after
taking into consideration the following higher expenses aggregating Rs 1800
million (US$ 41 million) for the year:
* Rs 700.000 million (US$ 16 million), towards diminution in the value of
investments
* Rs 480.000 million (US$ 11 million), towards increased liability for standby
charges payable to The Tata Power Company Limited at Rs 75.000 million per
month pursuant to MERC order, against the earlier Rs 35.000 million per
month
* Rs 280.000 million (US$ 6 million), towards increased staff costs, primarily
on account of wage revision agreement signed last year, and provision for
gratuity
* Rs 340.000 million (US$ 8 million), towards provision for irrecoverable dues
from consumers Excluding the above, the net profit would have been higher at Rs
7000.000 million (US$ 160 million), an increase of 91 per cent.
During the period under review, the equity capital of the Company increased by
Rs 104.000 million to Rs 1856.000 million (US$ 42 million), consequent, inter
alia, upon preferential allotment of equity shares to the Reliance Group, and
part conversion of outstanding foreign currency convertible bonds.
The total dividend payout for the year at 47 per cent dividend rate is Rs
990.000 million (US$ 23 million) including dividend tax.
Capital expenditure during the year was Rs 2700.000 million (US$ 62 million),
primarily on account of expenditure incurred on modernizing and strengthening
of the distribution network.
Total gross assets increased during the year to Rs 5,1730 million (US$ 1.2
billion).
The Company ranks third among Indian private sector companies in terms of net
worth. As on
Projects
Wind Farm
The wind farm project
consisting of 33 wind mills with aggregate capacity of 7.59 MW at Dogmatic in
Karnataka, generated 19.30 million units during the year. The wind farm
achieved PLF of 29.03% during the year. For the work of additional machines,
forest land clearance is awaited from the Government of Karnataka.
Saphale Projects
The company's
proposal for setting up a 495 MMW combined cycle power plant at Saphale in
Palghar Taluka has been approved by the Government of Maharashtra. The Union
Ministry of Petroleum has allocated gas for the first phase of 330 MW through
the capped wells of Oil & Natural Gas Corporatin (ONGC) which are about 120
kms. north of Saphal site. The company also continues pursue the
techno-economic clearance for the project from Central Electricity Authority.
Electricity Distribution Companies of Orissa
The three
electricity distribution companies of Orissa viz. Western Electricity Supply
Company of Orissa Limited, North Eastern Electricity Supply Company of Orissa
Limited and Southern Electricity Supply Company of Orissa Limited joint
ventures with Grid Corporation of Orissa Limited a Government of Orissa
Undertaking are engaged in distribution of electricity in the State of Orissa.
Dividend:
During the year, the Company paid Quarterly interim Dividend of Re.1.20
(12 per cent) per Equity Shares for the quarter ended
OVERALL
REVIEW:
Reliance Energ y is India' s leading private sector utility company, with
aggregate estimated group revenues of Rs. 10,2200.000 Millions (US$ 2.290
billion), and gross fixed assets of Rs. 10,7800.000 Millions (US$ 2.416
billion).
Reliance Energy is ranked amongst
Reliance Energy is India's most valuable private sector power utility
company with market capitalisation of over Rs. 13,1000.000 Millions (US$ 2.936
billion).
The highlights of performance of the Company for the year 2005-06
are:
* Total Income of Rs. 4,6080.000 Millions (US$ 1.03
billion), against Rs. 4,5930.000 Millions
(US$ 1.03 billion) in the corresponding previous financial year.
* Cash Profit of Rs. 9990.000 Millions (US$ 224 million), against Rs.
8660.000 Millions (US$ 194 million) in the
corresponding previous financial year.
* Net Profit of Rs. 6500.000 Millions (US$ 146 million), against Rs.
5200.000 Millions (US$ 117 million) in the corresponding previous financial year,
an increase of 25 per cent.
* Cash Earnings Per Share for the year of Rs. 50 (US$ 1.1).
* Earnings Per Share (EPS) for the year of Rs. 32.70
(US$ 0.7), an increase of 17 per cent.
On the operational front, the Dahanu Thermal Power Station (DTPS)
achieved a Plant Load Factor (PLF) of 98.70 per cent, compared to 101.35 per
cent last year.
DTPS maintained top performance in the country with
respect to PLF and Heat Rate and other parameters despite loss of demand due to
the Mumbai deluge during July-August 2005. The plant was awarded the
prestigious 'National Award for Excellence in Energy Management' as well as
'National Award for Excellence in Water Management' by Confederation of Indian
Industry. Eight of its employees received the coveted 'Vishwakarma Rashtriya
Puraskar' conferred by Ministry of Labour and Employment of the Government of
India.
The management has decided to focus on the considerable in-house
opportunities, and selective large projects for its (Engineering, Procurement,
Commissioning) EPC and Contracts division, in order to optimise shareholder
value. The EPC division has an order book position of Rs. 3,3580.000 Millions
(US$ 758 million) as on
The
The enactment of the Electricity Act, 2003 has opened up new
opportunities in the Indian power sector. Reliance Energy has undertaken
various initiatives during the year as part of its 'Well Head to Wall Socket'
growth strategy, with high levels of integration.
Reliance Energy is committed to expanding the customer base in its
distribution business through new licenses, through open access on existing
networks, and/or through participation in the privatisation process of state
owned distribution assets. The Company plans to set up gas, wind, hydro and
coal based power generation projects. The Company is also exploring growth
opportunities in transmission of power.
Reliance Energy through Reliance Energy Generation Limited (REGL) is setting up
a 5,600 MW gas based mega power project at
Maharashtra Energy Generation Limited (MEGL) has signed a Memorandum of
Understanding on 4th April, 2005 with the Government of Maharashtra to examine
the feasibility of setting up a Gas based Combined Cycle Power Plant of up to
4,000 MW capacity at a suitable location in the state of Maharashtra.
The Electricity Act, 2003, has provided opportunities for private sector
participation in the power transmission business. The Company proposes to
leverage its capabilities and invest in transmission business through its
special purpose company viz. Reliance Energy Transmission Limited (RETL), which
would undertake the business of establishing, commissioning, setting up, and
operating and maintaining electric power transmission systems/ networks.
RETL would undertake development of transmission systems broadly in the
following areas: (i) Associated with the Company's own generation facilities to
mitigate any risk in evacuation of power from the Company's own plants, (ii)
Participate in transmission projects associated with development of the
national grid and state grids (iii) Participate in the projects associated with
system strengthening of the Western and Northern Region grids, (iv) Participate
in joint ventures including those with Powergrid Corporation of India Limited
and (v) Associated with other generation facilities.
Reliance Energy is committed to creating world-class power infrastructure
in the country in pace with regulatory changes and reforms in the domestic
power sector. The proven management skills and established project execution
capabilities of Reliance Energy will create value for millions of consumers by
providing reliable and good quality power at competitive prices and achieving
best-practice international standards of service, quality, safety and customer
service.
FINANCIAL REVIEW:
Reliance Energy's total income for the year ended 31st
March, 2006 increased to Rs. 4,6080 Millions (US$ 1.033 billion), compared to
Rs. 4,5930.000 Millions in the corresponding previous year.
The total income includes earnings from sale of electrical energy at
Rs.3,1790.000 Millions (US$ 712 million)
as compared to Rs. 2,8900.000 Millions recorded last year. The sale of
electrical energy includes income of Rs. 2350.000 Millions (US$ 53 million) and
Rs. 2230.000 Millions (US$ 50 million) from the Samalkot Power Station (SPS)
and the Goa Power Station (GPS) respectively.
Turnover of the EPC, Contracts and Elastimold division decreased to Rs.
8540.000 Millions (US$ 191million),
against Rs. 1,2440.000 Millions in the previous year.
Other income for the year stood at Rs. 5740.000 Millions (US$ 129 million),
mainly representing interest income.
Operating profit (PBDIT) increased 26 per cent to Rs. 1,3220.000 Millions (US$ 296 million) during the year, up from
Rs. 1,0510.000 Millions in the previous year.
The cost of electrical energy purchased increased by 8 per cent from Rs.
1,0040.000 Millions in the previous year to Rs. 1,0880.000 Millions (US$ 244
million) during the current year.
During the year, interest expenditure increased to Rs. 1920.000 Millions (US$
43 million) as compared to Rs. 1350.000 Millions in the previous year, owing to
higher level of debt for the period.
The financial statements are prepared under historical cost convention, on
accrual basis of accounting, and in accordance with the provisions of Companies
Act, 1956 and comply with the Accounting Standards issued by the Institute of
Chartered Accountants of India. Assets and Liabilities created under applicable
electricity laws continue to be depicted under appropriate heads. To reflect
true value of its prime assets, the Company has revalued assets of its Dahanu
Generating Station by Rs. 7520.000 Millions (US$ 169 million). In view of this,
the depreciation on such revalued asset is higher by Rs.640.000 Millions (US$ 14 million), and the same has been
adjusted by withdrawing equivalent amount from general reserve, which is
credited to Profit and Loss account.
The generation undertakings - DTPS, SPS and GPS are eligible for the tax
holiday under Section 80IA of the Income-tax Act, 1961 for a total period of 10
consecutive years out of 15 years and hence the effective tax rate for the
Company as a whole is governed by Section 115 JB of the Income-tax Act,
1961.
The corporate tax liability for the year was Rs. 860.000 Millions (US$ 19 million), compared to Rs. 260.000
Millions in the previous year. There was a deferred tax asset of Rs. 390.000
Millions (US$ 9 million) for the year.
Cash profit was Rs. 9990.000 Millions
(US$ 224 million) compared to Rs. 8660.000 Millions (US$ 194 million) in
the previous year.
Net profit for the year recorded an increase of 25 per cent to
Rs.6500.000 Millions (US$146 million), against Rs. 5200.000 Millions in the
previous financial year.
The net profit of Rs. 6500.000 Millions
(US$ 146 million) has been arrived at after taking into consideration
the following higher expenses aggregating Rs. 1790.000 Millions (US$ 40 million) for the year:
* Rs. 90.000 Millions (US$ 2
million) towards Bad Debts
* Rs. 600.000 Millions (US$ 13 million) towards
increase in Provision for Income tax
* Rs. 810.000 Millions
(US$18 million) towards Tax adjustments for earlier years
* Rs.290.000 Millions (US$ 7 million) towards loss on
Foreign Exchange Fluctuations
* Excluding the above, the net profit would have been
higher at Rs. 8290.000 Millions (US$ 186 million), an
increase of 59 per cent.
During the period under review, the equity capital of the Company
increased by Rs. 267.000 Millions to Rs.
2120.000 Millions (US$ 48 million), consequent, inter alia, upon and conversion
of outstanding 0.5% foreign currency convertible bonds, preferential issue of
equity shares and on conversion of warrants.
The total dividend payout for the year at 50 per cent dividend rate is
Rs.1190.000 Millions (US$ 27 million)
including dividend tax.
Capital expenditure during the year was Rs. 3570.000 Millions (US$ 80
million), primarily on account of expenditure incurred on modernizing and
strengthening of the distribution network.
Total gross assets increased during the year to Rs. 5,4710.000 Millions
(US$ 1.2 billion).
The Company ranks third among Indian private sector companies in terms of
net worth. As on
INDUSTRY
STRUCTURE AND DEVELOPMENTS:
Electricity plays a critical role in supporting a sustained growth in
almost all facets of economical development of any country. Availability of
reliable and quality power with appropriate blend of superior customer care is
the key requirement of an ideal electricity sector.
The Indian domestic power sector is adversely affected by huge capacity
shortages, high level of transmission, distribution and commercial losses, lack
of grid discipline, excessive workforce, ageing networks, and lack of
commercial orientation. As per Census - 2001, 45% of Indian households do not
have access to electricity whereas 56% of rural households do not have access
to electricity.
Against such backdrop, the Government of
a. Access to electricity - to be made available for all households in the
next 5 years
b. Availability of power by demand to be fully met by year 2012
c. Energy shortage and the peak requirement to be overcome with higher
power generation capacity and
development of adequate spinning reserve
d. Per capita consumption of electricity to rise to
over 1,000 Kwh in the next 10 years (from the existing level of
about 600 Kwh)
e. The sector to achieve financial and commercial turn
around
f. Consumers' interest to be accorded top
priority.
In a bold and comprehensive initiative, the Central
Government has enacted the Electricity Act, 2003 ('the Electricity Act') that
provides a path forward for changing the paradigm of the electricity sector.
The Act seeks to create liberal framework of development for the power sector
by distancing Government from regulation. It has replaced the thr ee existing
legislations, namely, Indian Electricity Act, 1910, the Electricity (Supply)
Act, 1948 and the Electricity Regulatory Commissions Act, 1998.
The enactment of the Electricity Act was a right step forward by the
Central Government. During the last two financial years, the Central
Government, Central Electricity Regulatory Commission ('CERC') and various
State Regulatory Commissions ('SERC') have come out with various rules and
regulations for effective implementation of the provisions of the Electricity
Act.
These rules/regulations are meant for creating a vibrant and
progressive legislative framework to facilitate a targeted 8% to 10% economic
growth of
The said Act permits free entry into generation thereby delicensing
generation with captive generation being freely permitted. This would expedite
the project cycle from the project planning to completion stage and would offer
much relief to Independent Power Producers. It is not just the simplified
procedures for setting up generation facilities, that the Act offers to
generating companies, by allowing open access to transmission lines and thir d
par ty sales, it w ould also allow generating companies to bypass State
Electricity Boards ('SEBs') and sell power directly to industrial houses. This
will make the valuation of generating companies more attractive because they
will have a better cash-flow position. The generating companies will now not
face the problem of timely recovery of dues from bankrupt distribution
utilities and the sector can hope to see more investments. The Act introduces
the possibility of third party sale by generators, instead of only to SEBs and
thereby moving away from the single buyer model, which would bring in
competition in power supply to both bulk and retail consumers. Also, the Act
permits open access to transmission lines which would in turn unlock the
bottled capacities of the captive power plants.
The Central Government in the last fiscal year has notified a
comprehensive policy namely 'National Electricity Policy'. The policy aims at
laying guidelines for accelerated development of the power sector, providing
supply of electricity to all areas and protecting interests of consumers and
other stakeholders keeping in view availability of energ y resources,
technology available to exploit these resources, economics of generation using
different resources, and energy security issues.
The National Electricity Policy has been evolved in consultation with and
taking into account views of the State Governments, Central Electricity
Authority ('CEA'), Central Electricity Regulatory Commission ('CERC') and other
stakeholders.
The National Electricity Policy has set the goal of adding new generation
capacity of more than 1,00,000 MW during the 10th and 11th Plan periods so as
to achieve per capita availability of over 1,000 units of electricity per year
and to not only eliminate energy and peaking shortages but to also have a
spinning reserve of 5% in the system. Development of the power sector has also
to meet the challenge of providing access for electricity to all households in
the next five years.
The Central Government has followed the enactment of the Electricity Act
with other major reform initiatives during the period under review, which
include:
* Formation of Appellate Tribunal for Electricity
* National Tariff Policy
* Ultra Mega Projects
* Integrated Power Policy
* Launch of nation-wide Rural Electricity
Infrastructure and Household Electrification Programme - Rajiv Gandhi
Gramin Vidyutikaran Yojana
Opportunities & Threats:
The enactment of the Electricity Act, 2003 has brought about reforms in
the generation, transmission and distribution of power in the country including
provision to harness captive power generation and renewable energy generation.
The Maharashtra Electricity Regulatory Commission (Terms and Conditions of
Tariff) Regulation, 2005 directs that the tariff proposals hereafter be
submitted in segregated businesses of Generation, Transmission and Distribution
of power, both, for wheeling and in retail.
The Maharashtra Electricity Regulatory Commission (Distribution Open
Access) Regulations, 2005 enables eligible consumers to have open access to the
distribution system of such Distribution licensee for obtaining supply of
electricity from a Generating company or from a licensee other than such
Distribution licensee or from Trading company. The regulation has provided for
phase wise eligibility criteria according to which consumers with a contract
demand of more than 2 MVA but less than 5 MVA are eligible for open access from
The company's fixed
assets of important value includes land, building and roads, plant and
machinery, distribution systems overhead, underground, vehicles, furniture and
fixtures, electrical fitting and apparatus, refrigerators and domestic
appliances.
It is in trade
terms with:
·
Adrash
Cement Products Pvt Ltd
·
Anandji
Cables
·
Ashoka
Udyog
·
·
Chadha
Industries
·
Comet
Industries
·
Conin
Prakriti Instrumentation
·
Dharam
Industries
·
Electrilite
Power Pvt. Ltd.
·
Equip
Tech Pvt. Ltd
·
Colt
Cable
·
Power
& Production
·
Shakti
Cables
·
Saroj
Dhatu Udyog
·
Accucel
Polytech P. Ltd
·
Shri
Ram Industries
·
Ultima
Switchgears and Projects Pvt Ltd
·
Farm
Fresh Foods Pvt. Ltd.
·
G.J.Metal
Industries
·
Calvano
India Pvt. Ltd.
·
Kapco
Electric Pvt. Ltd
·
Kotsons
Private Ltd
·
·
Mohindra
Bedi Electrical
·
Mukund
Industrial Fasteners
·
Paras
Power Engineering Pvt Ltd
·
Polaris
Cables& Wires P. Ltd
·
Polycab
Wires Pvt. Ltd
·
R.M.
Industries
·
Kse
Electricals Pvt. Ltd Rajindra Concrete Products
·
M.K.
Engineers & Controls Pvt. Ltd. Rajindra Prestress Concrete
·
Mass Tech
Conrols Pvt. Ltd Reliable Electricals
·
Mohindra
Bedi & Sons
·
Electromech
& Transtech
·
Hindustan
Vidyut Products Limited
·
Sfiree
Sainath Fibres Pvt Ltd
·
Usha
Spun Pipes
·
Me
Machine
·
Press-N.Tech
Electrjcals
·
Pagoda
Cables Pvt.Ltd.
·
Alliance
Engg Pvt Ltd
·
Sargir Plastics
Pvt Ltd
·
Tilak
Raj & Co
·
Vinal
Trade Links
·
Anilux
Coated Prod.
·
Voltamp
Transformer Pvt Ltd
Profile
Reliance Energy Ltd
is
With the ushering
in of the power sector reforms and in the new environment of opportunity for
the power sector, REL is a key player in this transformation process.
Reliance's gas finds in KG-D6 block in Krishna Godavari basin which constitutes
60% of
REL and its
affiliate power companies rank among the top 25 listed private sector companies
on major financial parameters. REL is part of the Reliance industries-India's
private sector company ranked among the world's 175 largest companies in terms
of net profit and the 500 largest companies in terms of sales.
REL is committed to
creating superior value for all its stakeholders and be amongst the most
admired and trusted utility companies in the world by setting new benchmarks in
standards of corporate governance, operational and financial excellence,
responsible corporate citizenship and profitable growth.
Press Releases
Media Release:
Reliance
Energy - Mumbai Police to Host Free Medical Camp at Kurla
Mumbai,
Besides general
check up, the camp will also provide free ophthalmic, orthopedic, pediatric and
ENT check up facility. Medicine prescribed by attending doctors will be
provided free too. Those requiring further treatment will be given free
treatment at the company’s BSES – MG Hospital at Andheri (West).
This is the second
camp that the power utility has organized in the aftermath of the calamity that
hit the city on July 26. The first one at Kalina on Aug. 7 had elicited
tremendous response with 3,300 people receiving treatment from fifteen specialist
doctors. The Kurla camp will have 20 specialist doctors from reputed city
hospitals.
As part of its
humanitarian gesture, the company has already distributed 10,000 food packets
and 5,000 bed sheets and blankets.
Reliance Energy Ltd
Reliance Energy
Ltd., a member of the Anil Dhirubhai Ambani Enterprises Group, is India’s
leading private sector utility company, with aggregate estimated revenues of Rs
9,500 crore (US $ 2.2 billion) and total assets of Rs.10, 700 crore (US $ 2.4
billion).
It generates 941 MW
of power through its power plants located in
Andhra Pradesh,
Kerala, Karnataka and
of power to over 5
million consumers in Mumbai,
area spanning 1,24,300
square kilometers.
It is among
parameters
including assets, sales, profits and market capitalization.
Medical Relief
by Reliance Energy -
Company Hosts
Free Medical Check Up Camp for People in the Flood Hit Areas of Mumbai Suburbs.
Mumbai, August 7,
2005: Reliance Energy had hosted a free medical check up camp for people in
flood hit areas of Kurla and Kalina at the Community Centre Hall, Old Air India
Colony, Kalina, Santa Cruz (East), Mumbai – 400 055 today on Sunday, the 7th August 2005 from 9.00 a.m. onwards. The Camp
was hosted in association with the Mumbai Police.
Around 3298
patients from the surrounding localities visited the camp and availed the
benefit.
Apart from the free
general medical check up, free check up facilities for Ophthalmic, Orthopedic,
Pediatric and E. N. T. problems were also provided for the people with the help
of 15 specialist doctors from the various hospitals of repute all over the
city.
As prescribed by
the specialists, Company provided free medicines to the people, who visited the
camp. In addition, Company also recommended some of the patients for the
further medical treatment at its own medical facility, i.e., BSES – MG
Hospital, Andheri (West).
REL had hosted this
camp as a part of its continuous process to help the needy people in the worst
hit areas of Kurla and Kalina. The Company had already distributed around 10000
Food Packets and 5000 Bed sheets and Blankets sets in the surrounding areas of
Kurla and Kalina earlier in this week.
Reliance
Energy Ltd
Reliance Energy
Ltd., a member of the Anil Dhirubhai Ambani Enterprises Group, is India’s
leading private sector utility group, with aggregate estimated group revenues of
Rs 9,500 crore (US $ 2.2 billion) and total assets of Rs.10, 700 crore (US $
2.4 billion).
The group
distributes more than 21 billion units of power to over 5 million consumers in
Mumbai, Delhi, Orissa and Goa, across an area covering 1,24,300 sq. kms.
REL restores power in all flood-hit homes
Reliance Energy Limited has
announced that in a massive operation under the most trying conditions, the
Company that supplies power to
The Company
deployed its men and machinery on a war footing to restart all its
transformers. Areas like Saki, Kurla and Kalina had been badly affected due to
last week's heavy flooding and remained inaccessible for any repairs to be
carried out.
The Company,
however, managed to switch on a maximum number of transformers in these areas
in the shortest possible time by working relentlessly. All the flood-hit areas
that suffered power cuts due to the natural calamity now have normal supply.
The Company was
compelled to switch off power supply in the waterlogged areas as a safety precaution
and to avoid electrocution. In fact, several alert users made appeals to the
Company Call Centre and officials to switch off power as water levels began to
rise. It may be noted that not a single case of electrocution has been reported
due to above factors.
The Company's
Operation Restoration has been severely hampered by non-stop heavy downpour,
water-logging and slush accumulation, which made the areas inaccessible and
even dangerous for the entire week. The transformers took a very long time to
dry due to the continuous rains and absence of sunshine for over five days.
Continuous ambient humidity on all electric supply equipment posed compounded
risk to the company's engineers and workers.
Even though the
water may have appeared to recede in some areas, unexpected cable faults of
underground cabling was another factor which severely hampered repair work. Any
attempt to switch on power under such circumstances would have resulted in
human disaster.
It was also humanly
impossible to reach out to and then work for several hours and days together in
affected areas that had collected mounds of garbage and animal carcasses
spreading intolerable stench.
Moreover, many
Company's teams, which managed to reach the waterlogged areas to carry out
repairs despite all these challenges, were subjected to physical intimidation
and violence. The speed of operation restoration' was further disrupted as
elements from different places 'hijacked' the Company's teams under threat, to
attend to their problem areas first.
Despite all these
impediments and challenges, the Company's teams have demonstrated immense
courage and commitment, fulfilling the gigantic task of restoring power with a
missionary zeal.
The Company wishes to thank all authorities and valued customers for
their support during these very trying times for the city.
REL continues to redress power supply
related complaints
amidst continued attacks on its employees
Mumbai,
Techno
savvy REL goes high-tech further.
The
State Minister for Energy, Shri Dilip Valse Patil inaugurates
REL’s advanced, state of the art SCADA system.
Mumbai
suburban consumers to get power supply at higher reliability and quality.
“New
SCADA system is aimed at faster response time to locate,isolate cable fault and
restore power supply”, Says REL.
Mumbai, June 15, 2006: In line with its
new corporate brand identity and the theme, think bigger … think faster and
moving upward towards new heights of excellence and success in all its
operations and affairs, Reliance Energy, the energy giant and lead power
supplier in Mumbai suburbs, has now gone high-tech further. Shri Dilip Valse –
Patil, State Minister for Energy, today inaugurated REL’s state of the art,
most advanced Supervisory Control And Data Acquisition (SCADA) System at
Company’s 220kV Receiving Station in Aarey Colony. With this, the Company has
added one more feather in the crown of achievements and moved a step ahead in
its mission of serving its customers better. The SCADA system installed by REL
at its Master Control Room at Aarey is the state of art, advanced SCADA system
comparable with the best in the world. The commissioning of this advanced
system will now enable REL to serve its 2.5 million consumers in its
distribution are of 384 sq. kms. in Mumbai suburbs with more reliability level
even than the present level of around 99%. Reliable and quality power supply to
Mumbai metropolis, being financial capital of the nation, is a key component in
its development and growth. Mumbai Suburbs are growing faster with residential
and commercial developments, which include huge residential complexes, IT and Software
parks, malls, large multiplex theatres etc. REL, being a lead power supplier
for over seven decades, has to play a role of immense importance in these
developments. To ensure reliable power supply, during normal and abnormal
conditions, it is pertinent to adopt advanced technology to facilitate transfer
of power right from the
sources of generation through transmission to end users. One of the tools to be
used in this process is the advanced state of the art SCADA system. New
advanced state of the art SCADA (Supervisory Control And Data Acquisition)
System installed by REL is the most important tool that monitors the operations
of entire distribution network from a central location and takes appropriate
action to maintain supply under normal conditions and facilitates quick
restoration of power supply in case of breakdowns. The newly installed SCADA
system consists of cluster of computers that receive data from distribution
network over dedicated communication channel. The operators in SCADA control room
can monitor every aspect of the state of power network and take appropriate
action so that in case of emergencies, the continuity and reliability of supply
to Mumbai is maintained. Shri Dilip Valse Patil, State Minister for Energy and
Chief Guest for the function, while speaking on the occasion, complemented REL
for making available the world class state of the art new SCADA system for
Mumbai suburban consumers and expressed his wishes that REL will endeavour to
bring such kinds of advanced technologies for serving consumers much better in
future. Shri Bhagwan Sahay, Energy Secretary of GoM, who presided over the
function also praised REL for efforts taken in making available such a world
class SCADA system for Mumbai suburban consumers.
Various dignitaries
from MSEB and its unbundled companies; officials from PWD’s electrical wing;
ABB Ltd., who supplied the SCADA system to REL and officers and employees of
REL at large graced the occasion with their presence. REL Spokesperson, on the
occasion said, “They are techno savvy entity and therefore in
future too will continue to endeavour to introduce various world class
technologies in their operations to serve their consumers better.” He further
added, “The new SCADA system is aimed at ensuring faster response time to
locate, isolate cable fault and restore power supply.” Benefits of REL’s New
state of the art integrated SCADA System: Single Integrated SCADA system for
generation, transmission and distribution network with centralised control
& monitoring. Visibility of entire
220 kV network at central location.
Islanding scheme based on real time data during contingencies.
Operational
flexibility for load shedding requirements at Central location for existing and
proposed 220 kV stations Monitoring of equipment overloading. Faster response time to locate, isolate
fault and restore supply. Implementation of Distribution Management
System application for secondary network feasible to integrate with other
business processes.
Quality &
reliable power supply for consumers. On
line control. Archived data helps in
improvement and planning the system.
Most flexible system Reduction in losses and trouble call management
helps in serving the consumers more efficiently Customer satisfaction.
Reliance Energy
Limited:
Reliance Energy
Limited, incorporated in 1929, is a fully integrated utility engaged in the
Generation, Transmission and Distribution of electricity. It ranks among
A constituent of
the Reliance – Anil Dhirubhai Ambani Group, Reliance Energy is India’s foremost
private sector utility with aggregate estimated revenues of Rs 9,500 crore (US$
2.1 billion) and total assets of Rs 10,700 crore (US$ 2.4 billion). Reliance
Energy distributes more than 21 billion units of electricity to over 25 million
consumers in Mumbai, Delhi, Orissa and Goa, across an area that spans 1,24,300
sq. kms. It generates 941 MW of electricity, through its power stations located
in
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.40.60 |
|
|
1 |
Rs.80.13 |
|
Euro |
1 |
Rs.54.87 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--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 |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
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 |
|