MIRA
INFORM REPORT
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Report Date : |
26-09-2007 |
IDENTIFICATION DETAILS
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Name : |
NTPC HYDRO 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.: |
55-118013 |
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CIN No.: [Company
Identification No.] |
U40101DL2002GOI118013 |
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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
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track
records. Company’s profitability is under severe pressure. It has some accumulated
losses. Payments are reported as slow but correct. The company can be considered normal for small business dealings at
usual trade terms and conditions, with slight caution initially. |
LOCATIONS
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Registered Office : |
NTPC Bhawan,
SCOPE Complex 7, Institutional Area, |
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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
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DIRECTORS
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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, |
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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 |
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Date
of Appointment : |
01.01.2004 |
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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. |
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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 |
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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 |
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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. |
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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. |
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Directorship
held in
other companies: |
Part-time Director 1. NTPC Hydro Limited |
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Date
of Appointment : |
12.01.2007 |
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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. |
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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 |
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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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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 |
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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). |
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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 |
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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
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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. |
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Products : |
Ř
Generation of Electricity |
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GENERAL INFORMATION
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Bankers : |
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Banking
Relations : |
Satisfactory |
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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 Electric Supply Company Limited Ř
NTPC Vidyut Vyapar Nisam Limited Ř
Vaishali Power generating Company Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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500,000,000 |
Equity
Shares |
Rs.10/- each |
Rs. 5000.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
38161290 |
Equity
Shares |
Rs.10/- each |
Rs. 381.613 Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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381.613 |
100.000 |
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2] Share Application Money |
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6.000 |
0.000 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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[81.316] |
[81.140] |
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NETWORTH |
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306.296 |
18.860 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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306.296 |
18.860 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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5.513 |
4.507 |
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Capital work-in-progress |
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142.245 |
35.705 |
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Construction Stores and Advances |
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175.961 |
1.195 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.000 |
0.000 |
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Sundry Debtors |
|
0.000 |
0.000 |
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Cash & Bank Balances |
|
3.298 |
2.880 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
0.067 |
0.330 |
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Total
Current Assets |
|
3.365 |
3.210 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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20.788 |
25.708 |
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Provisions |
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0.000 |
0.049 |
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Total
Current Liabilities |
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20.788 |
25.757 |
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Net Current Assets |
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[17.423] |
[22.547] |
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MISCELLANEOUS EXPENSES |
|
0.000 |
0.000 |
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TOTAL |
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306.296 |
18.860 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
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Profit/(Loss) Before Tax |
|
0.169 |
33.255 |
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Provision for Taxation |
|
[0.007] |
[0.172] |
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Profit/(Loss) After Tax |
|
0.176 |
33.427 |
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Expenditures : |
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Employees'
remuneration and benefits |
|
0.000 |
10.685 |
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Administration
& other expenses |
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0.169 |
22.475 |
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Depreciation |
|
0.000 |
0.091 |
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Finance charges |
|
0.000 |
0.004 |
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Total Expenditure |
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0.169 |
33.255 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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1.90 |
430.93 |
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Return on Investment (ROI) (PBT/Networth) |
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|
0.00 |
1.76 |
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Debt Equity Ratio (Total Liability/Networth) |
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|
0.07 |
1.37 |
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Current Ratio (Current Asset/Current Liability) |
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|
0.16 |
0.12 |
LOCAL AGENCY FURTHER INFORMATION
Fixed assets
Plant & Machinery
Furniture, fixtures & other office equipment
EDP Equipment
Communication Equipments
Capital expenditure on asset
OPERATIONAL REVIEW
NTPC Limited, in furtherance
of its efforts to take forward the hydro capacity addition and to give
exclusive thrust to small and medium sized Hydro Power Projects i.e. upto 250MW
capacity, has set up a wholly owned subsidiary company named "NTPC Hydro
Limited", in December, 2002.
The Company's
maiden venture, namely Lata-Tapovan Hydro Electric Power Project (171 MW
capacity) is located in Chamoli district of
have also been
initiated.
DIRECTORS
Shri G.K.Agarwal
ceased to be the Director of the Company and in his place the holding Company
i.e. NTPC Limited has appointed Shri R.C.Shrivastav, Director(HR), NTPC on the
Board of the Company. The Board places on record their deep appreciation for
the valuable services rendered by Shri G.K.Agarwal during his tenure. Further,
in terms of power conferred under the Articles of Association of the Company,
holding Company has appointed Shri K.B.Dubey as the Director of the Company
w.e.f. 25th February 2007. As per provisions of the Companies Act, 1956 Shri
A.K.Singhal, Director shall retire by rotation at the ensuing Annual General
Meeting of the Company, and being eligible, offers himself for reappointment.
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 |
3 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
4 |
|
--LEVERAGE |
1~10 |
4 |
|
--RESERVES |
1~10 |
3 |
|
--CREDIT LINES |
1~10 |
3 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
30 |
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 |
|