MIRA
INFORM REPORT
|
Report Date : |
26.09.2007 |
IDENTIFICATION DETAILS
|
Name : |
NTPC ELECTRIC SUPPLY COMPANY LIMITED |
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Registered Office : |
NTPC
Bhawan, SCOPE Complex 7, Institutional Area, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Com. Reg. No.: |
55-116635 |
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CIN No.: [Company
Identification No.] |
U40108DL2002GOI116635 |
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Legal Form : |
A
Public limited liability company. The company’s shares are listed on the
Stock Exchange. |
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Line of Business : |
Electricity
Generating Company with the Objectives of Construction, Operation and
Maintenance of Super Thermal Power Stations and their Associated Transmission
Lines. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 having satisfactory
track records. Directors are reported as experience and respectable
businessmen. Trade relations are reported as fair. Business is active. Payments
are usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
|
Registered Office : |
NTPC
Bhawan, SCOPE Complex 7, Institutional Area, |
|
Tel.
No.: |
91-11-24361557/24361012/24360100
(10 Lines) |
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Fax
No.: |
91-11-24368417/24361018 |
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E-Mail
: |
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Website
: |
DIRECTORS
|
Name
: |
Shri Chandan Roy |
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Designation
: |
Director
|
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Date
of Birth/Age : |
16.07.1950 |
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Qualification
: |
Graduate in Mechanical Engineering |
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Expertise
in specific functional
area: |
Shri
Chandan Roy is Power Engineer with rich and varied experience of about 33
years. He has worked for ACC Vickers Babcock Limited and Babcock &
Wilcox, |
|
Directorship
held in
other companies: |
Chairman •
Ratnagiri Gas and Power Private Limited Part-time
Director •
NTPC Vidyut Vyapar Nigam Limited •
Nuclear Power Corporation of India Limited •
Northern Coalfields Limited •
Damodar Valley Corporation |
|
Date
of Appointment : |
01.01.2004 |
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|
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Name
: |
Mr. G. P. Gupta |
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Designation
: |
Director |
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Date
of Birth/Age : |
11.01.1941 |
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Qualification
: |
Post Graduate in Commerce |
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Expertise
in specific functional
area: |
Shri G.P. Gupta had been the Chairman and Managing Director
of IDBI and Chairman of UTI. He has 40 years of experience in various
financial institutions and held Directorships in various organizations like
LIC, GIC, EXIM Bank, IFCI and BHEL in the past. |
|
Directorship
held in
other companies: |
Part-time Chairman 1 Emkay Share and Stock Brokers Limited Part-time Director 1 2 SIDBI Venture Capital Limited 3 The Jammu & Kashmir Bank Limited 4 PTC India Limited 5 Swaraj Engines Limited 6 M.P. Power Generation Company Limited 7 Birla Sun Life Insurance Company Limited 8 Aditya Birla Nuvo Limited 9 Su-Raj Diamonds & Jewellery Limited 10 Shree Digvijay Cement Company Limited 11 Power Finance Corporation Limited 12 Idea Cellular Limited 13 S-lnfra Limited |
|
Memberships/Chairmanship of
Committees across all
Public Companies |
NTPC Limited Chairman- Audit Committee Hindustan Aeronautics Limited Chairman- Audit Committee Power Finance Corporation Limited Chairman- Audit Committee Swaraj Engines Limited Chairman- Audit Committee Idea Cellular Limited Chairman- Audit Committee The Jammu & Kashmir Bank Limited Member - Audit Committee Birla Sun Life Insurance Company
Limited Member - Audit Committee Aditya Birla Nuvo Limited Member - Audit Committee PTC India Limited Member - Audit Committee Shree Disvijay Cement Limited Member - Audit Committee |
|
Date
of Appointment : |
30.01.2006 |
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Name
: |
Mr. M. I. Beg |
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Designation
: |
Director |
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Date
of Birth/Age : |
30.06.1939 |
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Qualification
: |
Masters Degree in Economics and Bachelor of Science in
Electrical Engineering |
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Expertise
in specific functional
area: |
Shri Mirza Ishtiaq Beg is former Chairman of Central
Electricity Authority & Ex-officio Secretary to the Government of India. Shri
M.I. Beg was with Central Electricity Authority for 34 years and has been
earlier on the Board of Power Finance Corporation Limited and Nuclear Power
Corporation of India Limited. |
|
Directorship
held in
other companies: |
NTPC Limited Member - Audit Committee |
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Date
of Appointment : |
30.01.2006 |
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Name
: |
Mr. K. B. Dubey |
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Designation
: |
Director |
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Date
of Birth/Age : |
25.07.1949 |
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Qualification
: |
Graduate in Mechanical Engineering |
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Expertise
in specific functional
area: |
Shri Kailash Bihari Dubey has worked in NTPC in different
capacities and in variegated areas. He has headed various projects, Region and Corporate Groups in
NTPC such as Faridabad Gas Power Project, Koldam Hydro Power Project, Hydro
Region and Corporate Monitoring Group and has earned laurels in both
Professional and Administrative Capacities. |
|
Directorship
held in
other companies: |
Part-time Director 1. NTPC Hydro Limited |
|
Date
of Appointment : |
12.01.2007 |
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|
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Name
: |
Mr. Rajesh Verma |
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Designation
: |
Director |
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Date
of Birth/Age : |
01.09.1964 |
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Qualification
: |
Graduate in Electrical Engineering |
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Expertise
in specific functional
area: |
Shri Rajesh Verma is an officer of Indian Administrative Service,
Orissa cadre. He has held various posts in both the State Governments of
Orissa and Rajasthan. Prior to his joining as a Joint Secretary &
Financial Adviser, Ministry of Power, Government of India with effect from
02.07.2007, he has held the post of Director (Hydro), Ministry of Power. |
|
Directorship
held in
other companies: |
Part-time Director 1 . Rural Electrification Corporation Limited 2. Tehri Hydro Development Corporation Limited 3. Satluj Jal Vidyut Nigam Limited |
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Memberships/Chairmanship of
Committees across all
Public Companies |
NTPC Limited Chairman - Shareholders' / Investors' Grievance Committee Member - Audit Committee |
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Date
of Appointment : |
23.07.2007 |
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Name : |
Mr. T. Sankaralingam |
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Designation : |
Director |
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Name : |
Shri R.K. Jain |
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Designation : |
Director |
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Date of Birth/Age : |
15.12.49 - 55 yrs |
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Qualification : |
Graduate in Mechanical Engineering |
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Expertise in specific functional area: |
Shri R.K. Jain has experience of over 33 years in thermal
power projects. He has worked with Central Electricity Authority also. He is
also spearheading NTPC's globalization initiatives in the areas of
O&M,R&M and Engineering Services for Power Plants in various parts of
the world. |
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Directorship held in other companies: |
Part-time Director • NTPC-Electric Supply Company Limited • NTPC Tamil Nadu Energy Company Limited |
|
Memberships/Chairmanship of Committees across all Public Companies |
NTPC Member Committee for Contracts Project Committee Shareholders/ Investors Grievance Committee |
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Date of Appointment : |
05.05.2005 |
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|
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Name
: |
Shri R.S. Sharma |
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Designation
: |
Director
|
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Date
of Birth/Age : |
10.08.50 - 55 yrs |
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Qualification
: |
Graduate
in Mechanical Engineering |
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Expertise
in specific functional
area: |
Shri
R.S. Sharma has vast and rich experience of around 34 years in Thermal Power
Stations. Prior to joining NTPC, he has Worked
in |
|
Directorship
held in
other companies: |
•
NTPC - SAIL Power Company Private Limited • Bhilai Electric Supply
Company Private Limited Part-time Director • NTPC-Electric Supply Company
Limited • NTPC Vidyut Vyapar Nigam Limited
PTC ( Power
Private Limited |
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Memberships/Chairmanship of
Committees across all
Public Companies |
NTPC
Member Project Committee 1 nvestment/Contri bution Committee
NTPC Vidyut Vyapar Nigam Limited (NWN) Member Audit
Committee |
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Date
of Appointment : |
08.10.2004 |
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Name
: |
Shri A.K. Singhal |
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Designation
: |
Director
|
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Date
of Birth/Age : |
10.01.54 - 51 yrs. |
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Qualification
: |
Chartered Accountant |
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Expertise
in specific functional
area: |
Shri
A.K. Singhal has with him vast and rich professional experience
of over 28 years of handling all the facets in Corporate Finance and Accounts.
Prior to joining NTPC as Executive
Director (Fin.) in 2001, he has worked as Executive Director (Finance) in
National .fertilizers Limited as head of Finance
& Accounts department, and has also worked in Krishak
Bharati Cooperative Limited (KRIBHCO) and Engineering Projects of India
Limited (EPIL). |
|
Directorship
held in
other companies: |
Part-time
Director • NTPC-Electric Supply Company Limited •
NTPC Hydro Limited • NTPC Vidyut Vyapar Nigam Limited • NTPC
Tamil Nadu Energy Company Limited • Utility Powertech Limited • NTPC –SAIL
Power Company Private Limited •Bhilai
Electric Supply Company Private Limited • NTPC Alstom Power Services Private
Limited • Ratnagiri Gas and Power Private Limited |
|
Memberships/Chairmanship of
Committees across all
Public Companies |
Chairmanship
of Committees across all Public Companies 1
Member Project Committee 1 nvestment/Contri butionCommittee NTPC Vidyut
Vyapar Nigam Limited (NWN) Member
Audit Committee Member Committee for Contracts Project
Committee Shareholders/ Investors Grievance Committee
Member Audit Committee Committee
for Contracts Project Committee j. NTPC Member Committee
for Contracts Project Committee Committee on Management
Controls Securities Allotment/ Transfer Committee Shareholders/Investors
Grievance Committee Investment/Contribution
Committee NWN Member Audit Committee Utility Powertech Limited Member Finance
Committee Investment
Committee Personnel Management Committee Contracts Committee |
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Date
of Appointment : |
01.08.2005 |
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Name
: |
Mr. R. K. Pachauri |
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Designation
: |
Director |
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Name
: |
Mr. Gian Prakash
Gupta |
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Designation
: |
Director |
BUSINESS DETAILS
|
Line of Business : |
Electricity
Generating Company with the Objectives of Construction, Operation and
Maintenance of Super Thermal Power Stations and their Associated Transmission
Lines. |
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Products : |
Ř
Consultancy Services |
GENERAL INFORMATION
|
Bankers : |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Ř
Kalani & Company Chartered Accountants Ř
Amit Ray& Company Chartered Accountants Ř
Umamaheshwara Rao & Company Chartered Accountants Ř
S.N. Nanda & Company Chartered Accountants Ř
T. R. Chadha & Company Chartered
Accountants |
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Associates/Subsidiaries : |
Ř
Pipavav Power Development Company Limited Ř
Gujarat Power Corporation Limited Ř
NTPC Hydro Limited Ř
NTPC Vidyut Vyapar Nisam Limited Ř
Vaishali Power generating Company Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,000,000 |
Equity
Shares |
Rs.10/- each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
80,910 |
Equity
Shares |
Rs.10/- each |
Rs. 0.809
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
|
0.809 |
0.809 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
|
12.161 |
3.311 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
12.970 |
4.120 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
|
0.000 |
0.000 |
|
|
2] Unsecured Loans |
|
0.000 |
0.000 |
|
|
TOTAL BORROWING |
|
0.000 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
|
0.433 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
13.403 |
4.120 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
|
1.468 |
0.537 |
|
|
Capital work-in-progress |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.006 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Sundry Debtors |
|
216.812 |
149.950 |
|
|
Cash & Bank Balances |
|
1239.306 |
171.525 |
|
|
Other Current Assets |
|
0.981 |
1.870 |
|
|
Loans & Advances |
|
4.581 |
0.840 |
|
Total
Current Assets |
|
1461.680 |
324.185 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
1446.646 |
319.095 |
|
|
Provisions |
|
3.099 |
1.513 |
|
Total
Current Liabilities |
|
1449.745 |
320.608 |
|
|
Net Current Assets |
|
11.935 |
3.577 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
|
13.403 |
4.120 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
|
|
Sales Turnover |
|
179.544 |
74.612 |
|
|
Other Income |
|
27.295 |
17.527 |
|
|
Total Income |
|
206.839 |
92.139 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
|
47.291 |
10.328 |
|
|
Provision for Taxation |
|
17.961 |
5.808 |
|
|
Profit/(Loss) After Tax |
|
29.330 |
4.520 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Employees'
remuneration and benefits |
|
110.486 |
65.454 |
|
|
Administration
and other expenses |
|
48.591 |
16.144 |
|
|
Depreciation |
|
0.463 |
0.196 |
|
|
Finance charges |
|
0.007 |
0.017 |
|
Total Expenditure |
|
159.547 |
81.811 |
|
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2007 |
31.03.2006 |
|
PAT / Total Income |
(%) |
|
14.18 |
4.91 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
|
26.34 |
13.84 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
|
3.23 |
3.18 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
|
3.65 |
2.51 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
111.78 |
77.82 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
|
1.01 |
1.01 |
LOCAL AGENCY FURTHER INFORMATION
FINANCIAL RESULTS
During the current
year, the Company has recorded gross revenue of Rs. 206.84 million, as compared
to Rs. 92.14 million in the previous year and a profit before tax of Rs. 47.29 million,
as compared to the profit before tax of Rs. 10.33 million in the previous year.
The profit after tax is Rs. 29.33 million, as compared to Rs. 4.52 million
in the previous year and a sum of Rs. 2.93 million was transferred to
General Reserve during the current financial
year.
OPERATIONAL REVIEW
The activities as
Advisor cum Consultant (AcC) under the Accelerated Power Development &
Reforms Programmed (APDRP), an initiative taken by the Ministry of Power (MoP)
for power development reforms have continued to be undertaken by the Company.
Rajeev Gandhi
Grameen Vidyutikaran Yojana (RGGVY), a Government of India Programmer was
started in X Plan and is likely to continue in XI Plan too. The company had
been assigned the implementation of rural electrification work on turnkey basis
in 5 States i.e. Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa and West
Bengal and one Union Territory (UT) i.e. Lakshdweep, covering approximately
40,000 villages in 31 Districts. In this regard, a Memorandum of Understanding
had been signed with Rural Electrification Corporation Limited (REC), the nodal
agency for the programme, followed by a quadripartite agreement with the State
Government and the state utility being the other parties. All Detailed Project
Reports (DPRs) in respect of 31 Districts had been submitted till August 2006.
However, work could be taken up only in 8 districts due to non availability of
the sanction from the nodal agency. In
In the districts
of AshokNagar&Guna of Madhya Pradesh and Champa of Chhattisgarh, contract was
awarded in the second quarter of 2006-07; work is in progress covering 72
unelectrified and 2876 partly electrified villages.
In the districts of Angul & Nayagarh of Orissa and Jamtara of
Jharkhand, contract could be awarded in March, 07 only after delayed release of
first installment of funds by Nodal agency; site mobilization has been taken
up.
These three districts cover 1882 unelectrified and 2185 partly
electrified villages. In Deogarh district of Jharkhand,
the award of
contract is in progress. During this financial year, Kerala Government also
entrusted rural electrification work on turnkey basis under RGGVY covering six
districts. In addition, Consultancy services for Post award project monitoring
and supervision of quality of work for the projects executed by the state
utilities are being provided in the states of Uttarakhand and Madhya Pradesh as
per quadripartite agreements signed with respective states under RGGW. During
this financial year quadripartite agreement has been signed with Kamataka
fortaking up similar assignment.
The company is
also assist!ng the DISCOMsand Utilities in the Sectoral Reform process and has
been participates in the distribution infrastructure! development under
consultancy assignments. During the year, 66 KV line and Substation assignment
in
The Company has
already given approval to the agreement to be signed for the formation of a
Joint Venture Company (JVC) with Kerala Industrial Infrastructure Development Corporation
(KINFRA) for acquiring the business of the Retai I Distribution of electricity
in various industrial parks being developed by KINFRA in state of Kerala.
Fixed assets
- Furniture and Fixture
- Office Equipments
- EDP & WP Machines
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 records 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. |
|
|
1 |
Rs. |
|
Euro |
1 |
Rs. |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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. |
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 |
|