MIRA
INFORM REPORT
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Report Date : |
28.07.2008 |
IDENTIFICATION
DETAILS
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Name : |
POWER GRID CORPORATION OF INDIA LIMITED |
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Registered Office : |
B-9, Qutab Industrial Area, Katwaria Sarai, New Delhi – 110016 |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
23.10.1989 |
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Com. Reg. No.: |
55-38121 |
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CIN No.: [Company
Identification No.] |
U40101DL1989G01038121 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
DELP06685A |
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PAN No.: [Permanent
Account No.] |
AAACP0252G |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Construction of EHV AC and HVDC Transmission Lines, Substations, Load Despatch Centres and Communication Facilities in a coordinated and efficient manner, to move large blocks of power from Central Generating Stations and surplus from SEB's (State Electricity Board's) if any, to load centres within and across the Regions with reliability, security and economy. |
RATING &
COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 548244000 |
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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 Government of India company. Available information indicates high financial responsibility of the company. Financial position of the company is satisfactory. Payments are usually correct and as per commitments. As the company is owned by Government of India, lenders and creditors can feel confident of its exposure. The company can be considered good for business dealings at usual trade terms and conditions. It can be regarded as a promising business partner in a long run |
LOCATIONS
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Registered Office : |
B-9, Qutab Industrial Area, Katwaria Sarai, New Delhi – 110016, India |
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Tel. No.: |
91-11-26560112 |
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Fax No.: |
91-11-26560054 |
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E-Mail : |
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Website : |
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Corporate Office 1 : |
89, Nehru Place, Hemkunt Chambers, New Delhi – 110 019, India |
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Tel. No.: |
91-11-2642 8808 |
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Fax No.: |
91-11-2642 8357 / 2647 6133 |
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E-Mail : |
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Telex |
31-66138 / 65949 |
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Telegram |
NATGRID |
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Corporate Office 2 : |
“Saudamini” Plot No.2, Sector 29, Gurgaon – 122 001, Haryana, India |
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Factory / Regional Office : |
Located at :-
Regional Head Quarter, SCO 84-85, Sector-16 (near Sagar Cinema), Faridabad – 121 002, Haryana Contact Person: Mr. U. C. Mishra, General Manager
Regional Head Quarter, Vikas Bhawan, Rail Head Commercial Complex, Railway Road, Jammu – 180 004, Jammu and Kashmir Contact Person: Mr. S. K. Dobe, General Manager Tel. No. 91-191-2430723 / 2430995 Fax No. 91-191-2435293 Telegram: NATGRID
Regional Head Quarter, Alankar Place (5th & 6th floor), Boring Road, Patna – 800 001, Bihar Contact Person: Mr. Mr. B. K. Banerjee, Executive Director Tel. No. 91-612-2230440 (Office) Fax No. 91-612-2228984 Telegram: NATGRID
Regional Head Quarter, Old A. P. Secretariate Building, G. S. Road, Shillong – 793 001, Meghalaya Contact Person: Mr. Mr. A. R. Agarwal, Executive Director Tel. No. 91-364-2228621 / 2220149 Fax No. 91-2364-223985 Telegram: NATGRID
Regional Head Quarter, M. C. H. Commercial Complex, R. P. Road, Secunderabad – 500 003, Andhra Pradesh Contact Person: Mr. S. G. Bire, General Manager Tel. No. 91-40-2780 1522 (Office) / 2775 1715 (Res.) Fax No. 91-40-2780 8481 Telegram: NATGRID
Regional Head Quarter, Sampriti Nagar, P. O. Uppalwadi, Nagpur – 440 026, Maharashtra Contact Person: Mr. D. K. Nandi, Executive Director Tel. No. 91-712-2641470 (Office) / 2641471(Res.) Fax No. 91-712-2641366 Telex: 0715-7356 Telegram: NATGRID |
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Branches : |
Located at:-
Tel. No. 91-22-23739188 |
DIRECTORS
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Name : |
Mr. R. P. Singh |
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Designation : |
Chairman and
Managing Director |
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Address : |
Bunglow No. FF –
1, Powergrid Residential Complex, Sector – 43, Gurgaon – 122002, Haryana |
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Date of
Birth/Age : |
04.07.1948 |
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Date of
Appointment : |
23.08.1997 |
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Name : |
Dr. V. K. Garg |
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Designation : |
Director
(Finance) |
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Name : |
Mr. S. C. Misra |
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Designation : |
Director
(Project) |
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Name : |
Mr. U. S. Misra |
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Designation : |
Director
(Personnel) |
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Name : |
Mr. J. Haque |
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Designation : |
Director
(Operation) |
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Date of Appointments : |
31.01.2007 |
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Name : |
Mr. Umesh Chandra
Misra |
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Designation : |
Director
(Personnel) |
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Address : |
House No. GG – 2,
Powergrid Resident, Sector – 43, Gurgaon – 122002, Haryana |
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Date of Birth/Age
: |
31.07.1949 |
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Date of
Appointment : |
25.01.2007 |
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Name : |
Mr. Jainul Haque |
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Designation : |
Director |
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Address : |
B – 2/702, PWO
Housing Society, Sector – 43, Gurgaon – 122002, Haryana |
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Date of
Birth/Age : |
03.01.1947 |
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Date of
Appointment : |
1609.2004 |
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Name : |
Mr. Shreekumar Majumdar |
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Designation : |
Director |
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Address : |
2071, Sector – D, Pocket – 2, Vasant Kunj, New Delhi – 110170 |
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Date of
Birth/Age : |
13.08.1949 |
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Date of
Appointment : |
27.09.2005 |
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Name : |
Mr. J. Sridharan |
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Designation : |
Director |
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Address : |
Bunglow No. GG – 3, Powergride esidential Township, Sector – 43, Gurgaon – 122002, Haryana |
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Date of
Birth/Age : |
28.04.1951 |
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Date of
Appointment : |
21.12.2005 |
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Name : |
Mr. Gireesh Pradhan Bhaskar |
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Designation : |
Director |
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Address : |
DL/01/002/156138, D – 1/9, Vinay Marg, New Delhi – 110021 |
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Date of
Birth/Age : |
20.12.1952 |
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Date of
Appointment : |
27.11.2003 |
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Name : |
Mr. Mrutunjay Sahoo |
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Designation : |
Director |
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Address : |
F – 43, Nivedita Kunj, Sector – 10, R K Puram, New Delhi – 110023 |
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Date of
Birth/Age : |
16.03.1954 |
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Date of
Appointment : |
29.06.2007 |
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Name : |
Mr. Vinod Kumar Garg |
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Designation : |
Director |
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Address : |
A – 24 E, DDA Flats, Munirka, New Delhi – 110067 |
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Date of
Birth/Age : |
04.07.1948 |
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Date of
Appointment : |
17.09.1997 |
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Name : |
Ms. Divya Tandon |
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Designation : |
Director |
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Address : |
E – 1118, Greater Kailash, New Delhi – 110048 |
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Date of
Birth/Age : |
03.06.1960 |
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Date of
Appointment : |
18.11.1997 |
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Name : |
Mr. Rajesh Varma |
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Designation : |
Director |
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Date of
Appointment : |
02.08.2007 |
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Name : |
Mr. Anil K Agarwal |
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Designation : |
Director |
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Date of
Appointment : |
10.07.2007 |
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Name : |
Mr. F A Vandrevala |
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Designation : |
Director |
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Date of
Appointment : |
10.07.2007 |
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Name : |
Mr. Dr. A S Narag |
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Designation : |
Director |
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Date of
Appointment : |
10.07.2007 |
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Name : |
Mr. Dr. P K Shetty |
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Designation : |
Director |
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Date of
Appointment : |
10.07.2007 |
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Name : |
Mr. M S Kapur |
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Designation : |
Director |
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Date of
Appointment : |
05.10.2007 |
KEY EXECUTIVES
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Name : |
Ms. Divya Tandon |
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Designation : |
Company Secretary |
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Name : |
Mr. G. B. Pradhan |
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Designation : |
Joint Secretary |
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Name : |
Mr. S. Sahoo |
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Designation : |
Joint Secretary |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
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M/s. The
President of India |
36391369 |
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M/s. The
President of India |
1012698 |
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Mr. Hriday Narain
Singh |
1 |
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Mr. Umesh Chandra
Misra |
1 |
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Mr. Jainul Haque |
1 |
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Mr. Sahoo
Murtunjay |
1 |
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Mr. Pradhan
Bhaskar Giresh |
1 |
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Mr. Sreekumar
Majumdar |
1 |
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Mr. Vinod Kumar
Garg |
5 |
BUSINESS DETAILS
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Line of Business : |
Construction of EHV AC and HVDC Transmission Lines, Substations, Load Despatch Centres and Communication Facilities in a coordinated and efficient manner, to move large blocks of power from Central Generating Stations and surplus from SEB's (State Electricity Board's) if any, to load centres within and across the Regions with reliability, security and economy. |
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Products : |
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GENERAL
INFORMATION
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No. of Employees : |
7000 |
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Bankers : |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Chartered Accountants
Chartered Accountants |
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Associates/Subsidiaries : |
All Government of India Undertaking companies |
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Joint Ventures |
Powerlinks Transmission Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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10000000000 |
Equity Share |
Rs.10/- each |
Rs.100000.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3787407300 |
Equity Share |
Rs.10/- each |
Rs.37874.100
Millions |
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Share Capital Deposit |
- |
Rs.388.100 |
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Total |
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Rs.38262.200 Millions |
Equity Shares have been allotted as fully paid up for consideration
other than cash.
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
38262.200 |
36234.400 |
32040.600 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
71386.600 |
63785.500 |
58268.700 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
109648.800 |
100019.900 |
90309.300 |
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LOAN FUNDS |
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1] Secured Loans |
130533.000 |
104066.200 |
89536.300 |
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2] Unsecured Loans |
62722.000 |
46195.100 |
44344.100 |
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TOTAL BORROWING |
193255.000 |
150261.300 |
133880.400 |
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DEFERRED TAX LIABILITIES |
4193.300 |
3095.100 |
6103.300 |
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Advance Against Depreciation |
12011.700 |
8222.300 |
2403.500 |
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TOTAL |
319108.800 |
261598.600 |
232696.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
218160.700 |
185162.400 |
162955.200 |
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Capital work-in-progress |
60688.500 |
36356.800 |
35616.200 |
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Construction Stores and Advance |
33715.400 |
27651.800 |
14631.700 |
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INVESTMENT |
19670.000 |
21394.100 |
18824.200 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
1841.300
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1802.400 |
1842.700 |
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Sundry Debtors |
4904.800
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3256.000 |
4507.000 |
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Cash & Bank Balances |
11968.200
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5890.500 |
6039.700 |
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Other Current Assets |
1470.300
|
1554.400 |
1348.500 |
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Loans & Advances |
14912.600
|
14737.500 |
12374.800 |
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Total
Current Assets |
35097.200
|
27240.800 |
26112.700 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
40017.900
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29630.600 |
22294.300 |
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Provisions |
8333.700
|
6784.000 |
3446.100 |
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Total
Current Liabilities |
48351.600
|
36414.600 |
25740.400 |
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Net Current Assets |
(13254.400)
|
(9173.800) |
372.300 |
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MISCELLANEOUS EXPENSES |
128.600 |
207.300 |
296.900 |
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TOTAL |
319108.800 |
261598.600 |
232696.500 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
37232.800 |
32132.700 |
28312.800 |
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Other Income |
3590.300 |
3410.400 |
0.000 |
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Total Income |
40823.100 |
35543.100 |
28312.800 |
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Profit/(Loss) Before Tax |
14820.000 |
11689.900 |
9063.700 |
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Provision for Taxation |
2526.300 |
1600.600 |
1208.500 |
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Profit/(Loss) After Tax |
12293.700 |
10089.300 |
7855.200 |
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Export Value |
4.500 |
2.600 |
1.100 |
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Import Value |
3404.700 |
1543.100 |
2373.100 |
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Expenditures : |
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Employee’s Remuneration and Benefits |
3388.800 |
2568.100 |
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Transmission, Administrative Expenses |
2917.800 |
2223.600 |
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Depreciation |
8275.800 |
7443.300 |
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Provisions |
27.400 |
1327.700 |
19249.100 |
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Interest and Finance Charge |
11311.400 |
9474.500 |
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Deferred Revenue Expenditure Written Off |
81.900 |
88.600 |
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Other Expenditure |
0.000 |
727.400 |
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Total Expenditure |
26003.100 |
23853.200 |
19249.100 |
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QUARTERLY RESULTS
|
PARTICULARS |
30.06.2007 1st
Quarter |
30.09.2007 2nd
Quarter |
31.12.2007 3rd
Quarter |
31.03.2008 4th Quarter |
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Sales Turnover |
9754.700 |
10343.600 |
10857.700 |
15192.200 |
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Other Income |
754.700 |
737.400 |
1098.400 |
2092.700 |
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Total Income |
10509.400 |
11081.000 |
11956.100 |
17284.900 |
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Total Expenditure |
1702.600 |
1765.700 |
1994.800 |
5071.000 |
|
Operating Profit |
8806.800 |
9315.300 |
9961.300 |
12213.900 |
|
Interests |
1127.700 |
2613.500 |
2785.500 |
6868.800 |
|
Gross Profit |
7679.100 |
6701.800 |
7175.800 |
5345.100 |
|
Depreciation |
2254.100 |
2296.500 |
2495.100 |
2550.800 |
|
Tax |
611.500 |
447.000 |
521.900 |
470.500 |
|
Reported PAT |
4521.800 |
3712.200 |
3842.800 |
2407.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.206 |
31.03.2005 |
|
PAT / Total Income |
(%) |
30.11
|
28.39
|
27.74 |
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Net Profit Margin (PBT/Sales) |
(%) |
39.80
|
36.38
|
32.01 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
2.85
|
5.50
|
4.79 |
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Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.11
|
0.10 |
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|
Debt Equity Ratio (Total Liability/Networth) |
|
2.20
|
1.86
|
1.76 |
|
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|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.73
|
0.74
|
1.01 |
LOCAL AGENCY
FURTHER INFORMATION
History
Subject was incorporated on 23rd October, 1989 at New Delhi having Company Registration Number 38121 under the name and style of “National Power Transmission Corporation Limited” and subsequently, changed its’ name to present.
Subject is authorised to build, operate and maintain EHV AC and HVDC Transmission System including load dispatch facilities under Central Sector. As CTU PowerGrid was assigned the role of operator of five Regional Load Despatch Centres (RLDCs) which were transferred to PowerGrid progressively by 1996.
Subject was incorporated on October 23, 1989 with a mission of “Established and
Operation of regional and national power grid s to facilitate transfer of power
within and across the regions with reliability, security and economy in sound
commercial principles.” Subsequently, the transmission assets and manpower from
constituent central public sector undertakings and joint sector undertaking
namely NTPC, NHPC, NEEPCO, NLC, NPC, THDC, NJPC and CEA were transferred to
Power grid. The company started its commercial production in 1992-93 and as on
date, the company operates over 40,289 ckt Kms of transmission lines along with
68 sub-stations with transformation capacity of over 34288 MVA, spread over
length and breadth of the country. About 40% of the total power generated in
the country is being transferred over powergrid transmission network. Subject
has been recognized as a Mini-Ratna company in October, 1998. Its persistent
efforts to accord the deserved priority to vital transmission sector was duly
recognized by the Government of India by statutory notifying power grid as
Central Transmission Utility of the country after amendment in the Indian
Electricity Act in 1998.
Subject is the Central Transmission utility of India, which possesses one of the largest transmission networks in the world. Incorporated in October 1989, it is authorised to build, operate and maintain EHC AC and HVDC Transmission System including load dispatch facilities under Central Sector. Today it owns and operates over 40,000 circuit kms of EHV transmission lines along with 66 sub-stations having over 33,230.
In accordance with the Electricity Laws Amendment Act 1998 wherein “Transmission” became separate activity, it was recognised as CTU to undertake transmission of energy. Through inter-state transmission, discharge all functions of planning and co-ordination related to inter-state transmission, exercise supervision and control for inter-state transmission system and operate RLDCs.
About one third (30,000 MW) of the total MVA generating capacity in India is transmitted through its system. The company takes pride in maintaining high transmission system availability and is ranked amongst top six transmission utilities in the world.
Subject, who is accredited with ISO-9001 Quality Systems Certificate, by NQA-Quality System Register U.K., is executing many a turnkey consulting contracts. Its clients include Merz Mcllelan U.K., Price Waterhouse, U.K. and various State Electricity Boards in India.
The
company is working on establishing a National Power Grid having inter-regional
power transmission capacity of 30,000 MW by the year 2012 (depending on
commissioning of 1lakh MW planned generation). Considerable progress also
achieved in implementation of the second phase of National Power Grid with the
commissioning of 2000 MW, 1400 Kms long Talcher-Kolar HVDC bi-pole link between
Eastern and Southern Regions and Raipur-Rourkela 400 kv double circuit AC
interconnection between Eastern and Western Region.
Subject is engaged in construction of EHV AC and HVDC Transmission Lines, Substations, Load Despatch Centres and Communication Facilities in a coordinated and efficient manner, to move large blocks of power from Central Generating Stations and surplus from SEB's (State Electricity Board's) if any, to load centres within and across the Regions with reliability, security and economy.
The country has been demarcated into 5 power regions for the purpose of formation of Regional Power Grid Systems, which will be integrated into the National Grid at the National level. Accordingly, company has established six Regional Head Quarters stationed at six power regions, based on the size and spread of its transmission networks. These regions are Northern Region-I (NR-I) and Northern Region-II (NR-II) in the Northern power region of the country, Eastern Region (ER), Western Region (WR), Southern Region (SR) and North-Eastern Regions (NER). Under these Regional Head Quarter's (RHQs) there are Divisional Head Quarter's (DHQs) and Group Head Quarter's (GHQs) for effective Administration, Operation and Maintenance of the transmission system, which is spread across the length and breadth of the entire country.
AWARDS
Company has been awarded the prestigious "MOU
Excellence Award" for two consecutive years, i.e. 2004-05 and 2005-06 for
being amongst the top ten Public Sector Enterprises by the Department of Public
Enterprises, Ministry of Heavy Industries and Public Enterprises. These Awards
were presented to POWERGRID by Hon'ble Prime Minister of India during the
Conference of Chief Executives of Public Sector Enterprises held in New Delhi
on March 08, 2007. In fact, POWERGRID has received this prestigious award in
the past also. POWERGRID has also been conferred with five (5) National Awards
(four gold and one silver shields) for meritorious performance in Transmission
Sector for system availability and project completion. The awards were
presented by the Hon'ble Prime Minister of India.
OPERATIONAL EXCELLENCE
Over a decade of excellent business operations, Subject has
developed strong in-house expertise in various facets of power transmission
business. By the year end, the company has developed a huge transmission
network of 59,461 ckt km of 765 kV, 400 kV, 220 kV and 132 kV AC systems, ±500
kV HVDC systems along with 104 sub-stations and transformation capacity of
59,417 MVA. In spite of many difficulties, the availability of such a gigantic
transmission network, spread across the country, was maintained at more than
99.20% during the year 2006-07, which is comparable to the best international standards.
Subject’s network carries 40-45% of total power generated in the country.
This excellent operational efficiency was achieved through deployment of state-of-the-art operation and maintenance techniques at par with the best international practices such as Hot Line Maintenance, Hotline Washing of Insulators, Emergency Restoration Systems, Software based interpretation techniques, Reliability Centered Maintenance, Equipment Condition Monitoring techniques such as Dynamic testing of relays, Dynamic Contact Resistance Measurement of circuit breakers, Third Harmonic Leakage current measurement on lightning arresters, Thermo-vision scanning of switchyard with new generation thermo-vision cameras, Frequency Response Analysis (FRA) for transformers and reactors etc.
QUALITY
MANAGEMENT
They were the first power utility in India to be certified
with Integrated Management System comprising ISO: 9001 for Quality Management,
150:14001 for Environment Management and ISO: 18001 for Occupational Health and
Safety. They achieved the distinction of being the first power utility and
second company in the world to get certified with PAS 99:2006 integrating the
requirements of ISO 9001:2000, ISO 14001:2004 and OHSAS 18001:1999. This
certification was accredited by BSI after extensive audit of subvject’s
Integrated Management System.
GRID
MANAGEMENT
The state-of-the-art Unified Load Despatch and Communication
(ULDC) schemes implemented by subject are operational in all the five regions
and are greatly contributing to bring quality and economy in operation of power
system besides improving data availability, visibility and transparency. These
ULDC schemes are amongst the largest and highly complex in nature.
Regional Load Despatch Centres (RLDCs) have become an
epitome of technological excellence in grid operation through three tier
hierarchical system, a unique feature in grid operation in the world. For
overall co-ordination, National Load Despatch Centre (NLDC) at Delhi with back
up at Kolkata is under implementation and is expected to be completed by
2008-09.
With modernisation of RLDCs and implementation of various
interregional links by subject, inter-regional power exchange has grown
manifold. FY 2006-07, about 38,000 MUs of interregional energy transfer was
facilitated, an increase of about 10% compared to previous year (about 34,800
MU). Growth of interregional power exchange has helped in meeting more demand
in energy deficit regions besides achieving overall economy. Such an
inter-regional transfer of power has helped the constituents of exporting
regions by way of reduction in fixed generation charges and benefited
constituents of importing regions by mitigating their power shortages.
Due to various initiatives taken by subject, number of grid
disturbances has consistently come down and there was no grid disturbance
(major or minor) in any part of the country during last 4V2 years. Further,
tripping of lines and minor grid disturbances in regional grids have also come
down significantly. I may mention here that each grid disturbance leads to a
considerable economic loss to the nation.
The Indian Electricity Grid Code (IEGC) mandates that the
frequency be maintained in the band of 49.0 - 50.5 Hz at all times. The
frequency remained within the prescribed IEGC band for most of the period in
2006-07, signifying improvement in vital grid parameters and quality of power
supply.
OPEN
ACCESS
Present inter-regional power transmission capacity
established by subject is facilitating flow of power across the country on
real-time basis. This, together with open access in transmission, facilitates
increased real-time transfer and trading of electricity thus, providing power
at reduced price to the distribution utilities and ultimately benefiting the
consumer.
Subject as grid operator and the Central Transmission
Utility, issued revised procedures and guidelines including e-bidding for
short-term customers to facilitate non-discriminatory open access. The year
2006-07, about 5787 transactions were approved in which about 23297.0000
Millions of energy was transacted under short term open access as compared to
3938 number of transactions involving 22526.000 Millions of energy in the
previous year, signifying remarkable increase.
In addition, energy worth about Rs. 67660.000 Millions has
been transacted (both inter and intra regional) through un-scheduled
interchanges (Ul) during 2006-07 as compared to Rs. 51700.000 Millions during
2005-06, registering an increase of over 30%. It is a matter of pride that
subject, with its rich experience, is assisting various State Power Utilities
in introducing Availability Based Tariff in their States; which according to
National Electricity Policy is to be introduced at State level also.
Consultancy for Implementation of Intra-State ABT was awarded to subject by
Gujarat Electricity Board (GEB) and Punjab State Electricity Board (PSEB).
Intra-State ABT Consultancy assignment in Gujarat is nearing completion. In
addition, discussions for such consultancy assignments were held also with
Uttar Pradesh, Chattisgarh, and Delhi etc.
PROJECT
IMPLEMENTATION
Integrated Project Management and Control Systems (IPMCS)
adopted by subject continue to play significant role in expeditious
implementation of projects with economy and well within required time frame.
Project Review Meetings (PRM) at regular intervals also through video
conferencing, pre-emptive measures and advance actions for various project
linked activities like survey and soil investigations, procurement, etc. have
contributed significantly towards timely implementation of projects.
The year, they have added about 4,343 Ckt. Km. of transmission lines, 11 new sub-stations and
transformation capacity of 5,040 MVA. These
additions to subject network have helped in improving power supply situation in
various regional grids, facilitating enhanced inter-regional power transfer
capacity and reliability of the system.
The year, 19 new
projects worth about Rs.
8,9000.000 Millions involving 10,250
Ckt Kms of transmission lines, 8 new sub-stations and transformation capacity of about 5,850 MVA, were approved and taken up
for implementation. As on the year end, a total of 54 transmission projects, costing about Rs. 30,0000.000 Millions are under implementation and most of the
projects are progressing either ahead of or on schedule. Major projects commissioned during the year are:
- 400 kV S/C Jallandhar-Amritsar line
- 800 kV S/C Tehri-Meerut Transmission line-ll (initial operation at
400 kV)
- 400 kV Dulhasti Transmission system
- 400 kV D/C Gorakhpur (UPPCL) - Gorakhpur line
- 400 kV D/C Lucknow-Unnao line
- 400 kV D/C Agra-Jaipur line
- 400 kV D/C Tala-Siliguri Line -II
- 400 kV D/C Biharshariff-Muzaffarpur line and 11LO of Farakka-
Jeerat at Subhashgram (new sub-station)
- 765 kV S/C Agra-Gwalior (initial operation at 400 kV level)
inter-regional link
- 765 kV S/C Bina-Gwalior line (initial operation at 400 kV level)
along with associated bays at Gwalior and Bina
- 400 kV D/C Vindhyachal-Satna line and LILO of 400 kV D/C Satna-Bina
(MPSEB) line at Bina
- 400 kV D/C Kahalgaon-Patna line (one circuit) along with associated
bays at Patna
- 400 kV D/C Patna-Balia inter-regional link (one circuit) along with
new Substation at Balia
- 400 kV D/C Balia-Mau line(one circuit)
- 400 kV D/C Neelamangala-Mysore line
- 400 kV D/C Neelamangala-Somanahally line, etc.
Form 8:
|
Name of the company |
POWER GRID CORPORATION OF INDIA LIMITED |
|
1) Date and description of instrument creating the change |
Deed of hypothecation dated 06.09.1993 between Power Grid and State Bank of Tranvencore Bhikajee Cama place, for Rs. 100.000 Millions |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 100.000 millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
Hypothecation of movable assets raw materials, stock in progress, finished goods, consumable spares, book debts, receivable, claims bills etc |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Charge created on pari passu basis interest @ 17% |
|
5) Name and Address and description of the person entitled to the charge. |
State Bank of Travencore, Bhikajee Cama Place, New Delhi |
|
6) Date and brief description of instrument modifying the charge |
Joint deed of hypothecation dated 31.03.1995 entered into between Power gride ‘A Bank constium’ of 11 Banks to lead Bank as the lead Bank |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
‘A’ Bank Consortium’ Bank Sanctioned working capital facilities upto Rs. 3000.000 Millions out of which the construction Rs. 100.000 Millions |
|
Name of the company |
POWER GRID CORPORATION OF INDIA LIMITED |
|
1) Date and description of instrument creating the change |
Term Loan Agreement and Letter of Hypothecation dated 30.09.1999 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 2000.000 millions |
|
3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given |
The term loan is secured by floating charge on fixed assets of the borrowers |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
Rate of Interest – Interest will be payable at prevailing PTLR to be calculated on daily basis with quarterly rests. This is floating charge on the fixed assets of the borrower and is subject to prior maintained on the assets Loan is repayable in ten annual installment of Rs. 200.000 Millions commencing from 30.03.2004 to 30.03.2013 |
|
5) Name and Address and description of the person entitled to the charge. |
Punjab Nationale Bank, Head Office at 7, Bhikaji Cma Place, New Delhi and Inter – Alia a branch office at ECE House Connaught Place, New Delhi |
|
6) Date and brief description of instrument modifying the charge |
Term loan agreement and hypothecation agreement executed by Power Grid ‘E’ Block |
|
7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification. |
The charge is created to secure the term loan of Rs. 2500.000 Millions only. This is a floating charge by way of hypothecation of fixed assets of the borrower. Interest will be payable at 2.40% below the prevailing PTLR with quarterly rests. The bank has no objection for the borrower to borrower in future either by way of bonds to meet future needs |
Fixed Assets:
- Freehold Land
- Leasehold Land
- Unclassified Land
- Buildings
- Road and Bridge
- Plant and Machinery
- Constrn and workshop
- Equipments
- Electrical installments
- Vehicles
- Furniture, Fixture and Office Equipments
Contingent
Liability:
|
Description |
31.03.2007 Rs. In Millions |
|
Claims against the Company not acknowledged as debt in
respect of Arbitration / Court Cases Land / CropAree Compensation cases Others |
2051.800 4534.900 255.400 |
|
Disputed Tax Demands-Income Tax |
402.500 |
|
Disputed Tax Demands-Others |
1691.200 |
|
Continuity Bonds with Custom Authorities |
9815.400 |
|
Others |
752.600 |
|
|
|
|
Total |
19503.800 |
Contingent Liabilities as stated in as above are dependent
upon the outcome of court/appellate authorities/ out of court settlement, the
amount being called up, terms of contractual obligations, devolvement and
raising of demand by concerned parties, disposal of appeals respectively.
Reimbursement of outflow in respect of 'Claim against the Company not
acknowledged as debt' and 'Disputed tax demands-Income Tax' (limited to
Income Tax on core activity only) as stated in Schedule 18 of Contingent
Liability, is dependent on the admittance of petition by CERC and in remaining
cases no reimbursement is expected.
Information in respect of cost plus Consultancy contracts,
considering the same as consultancy business in view of AS-7 on
"Construction Contracts"
|
Particular |
31.03.2007 Rs.
In Millions |
|
|
|
|
The amount of revenue recognised
on cost plus Consultancy contract work in 2006-07 |
2114.200 |
|
The methods used to determine the contract revenue
recognised in the period: 15°/o of total consultancy fees upto award stage to executing
agencies (Out of which 10% upto issue of notices inviting tenders), 85% with progress of
work including supplies. |
- |
|
Cumulative amount of costs incurred on construction
contracts |
30247.200 |
|
Cumulative Amount of advance received from customers |
41374.000 |
|
Amount of retention money with customers |
71.100 |
|
Gross amount due from customers for contract work as an
asset |
252.300 |
|
Gross amount due to customers for contract work as a liability |
636.540 |
Revenue from Operations:
|
|
31.03.2007 Rs.
In Millions |
|
Revenue from Transmission Charges (Refer Note No. 14 of
Schedule 28) Less: Advance Against Depreciation Add: Revenue Recognised out of AAD |
36269.400 3804.300 --------------- 35465.100 14.900 --------------- 32480.000 |
|
Income from Short Term Open Access |
387.500 |
|
Consultancy, Project Management and Supervision Fees |
2260.000 |
|
Revenue from Telecom Less: Inter divisional Transfer |
782.200 11.200 |
------------
|
771.000 |
|
|
Reimbursement of RLDC Expenses |
- |
|
|
|
|
Total |
35898.500 |
Website Details:
PGRD Details
Subject operates as a principal electric power transmission company in India. As of March 31, 2007 it owned and operated interstate and inter-regional electric power transmission system with 59,461 circuit kilometers of electrical transmission lines and 104 electrical substations. The company also provides transmission-related consultancy services, including system engineering and feasibility studies, the review of load dispatch and communications systems, contract and procurement services, turnkey execution of transmission and sub-transmission projects, supervision of rural electrification projects, the implementation of intrastate availability-based tariffs,...
POWERGRID CORPORATION OF INDIA (PGCIL) - Research report
Subject was incorporated in October, 1989 with the mission of “Establishment
and Operation of Regional and National Power Grids to facilitate transfer of
electric power within and across the regions with Reliability, Security and
Economy, on sound commercial principles”. Transmission assets and manpower from
the constituent central sector undertakings namely NTPC, NHPC, NEEPCO, NLC, etc
were progressively transferred to subject. Subject is engaged in Construction
and Operation and Maintenance of inter-State transmission system and operation
of Regional Subjects and has been notified as the Central Transmission Utility
of the country.
Subject has plans to invest INR 550 bn in transmission projects for the
Eleventh Plan(FY08-12). This will include increasing the inter-regional power
transfer capacity to more than 37,000 MW by 2012 from 17,000 MW currently.
During the nine months ending December FY08, projects of INR 52.6 bn were
commissioned, including INR 19 bn in Q3FY08. The company is expected to
commission projects of INR 30 bn in Q4FY08. In FY09, it is expected to spend
~INR 85 bn for investment in various transmission projects. Subject is expected
to invest ~INR 350 bn during FY10-12E.
This year, the company has increased its inter-regional power transfer capacity
from 13,700 MW to 17,000 MW. It has added about 4,800 ckt kms, 8 new
sub-stations, and around 7,200 MVA of transformation capacity.
The company is expected to have net profit of INR 20,343 mn in FY09E and INR
26,022 in FY10E, after inclusion of profits from telecom and Consultancy. From
the telecom business, subject is expected to have profits of INR 1,297 mn and
INR 2,847 mn in FY09 and FY10, respectively, including profits from leasing of
fibre optic bandwidth and usage of transmission towers as mobile towers.
Subject currently has an overhead optic fibre network of 20,000 km, spanning
100 cities in the country. The company has order of over INR 3,000 mn from
various telecom players for leasing the optic fibre bandwidth. It also holds license
for national long distance dialing (NLD) and offering services as internet
service provider (ISP); the company has been generating revenues from both
these segments over the past two quarters.
Subject is in talks with telecom players for leasing its transmission towers as
mobile towers, it is expected to lease close to 23,000 transmission towers to
mobile operators in the next three years.
Subject said its revenue increased to a whopping 62 per cent to Rs 1250.000
millions during FY08. This is the first time the Company's foray into telecom
business garnered such a sizeable amount in revenues. 'The company is serving
major telecom players in mobile and National Long Distance Operator (NLDO)
segment and is also planning to tap customers in the entertainment and
broadcasting industry.
It is planning to spread its business overseas, reports Business Line. The
company is eyeing opportunities in West Asia and the African markets, with
consultancy forays in Nigeria and Dubai on the anvil. The company is in talks
with Dubai Electricity and Water Supply (DEWA) to operate consultancy business.
Subject has already received a contract for laying three transmission lines in
Myanmar, while the firm has completed a pre-feasibility report on a proposed
under-sea transmission between India and Sri Lanka.
According to the Budget of 2008, subject can take loan from any bank around the
world on a low interest rate. As observed, 26% of expenditure of subject is
that of paying bank loan interest. Subject is in process of obtaining loans for
its further expansion at a low interest rate from banks around the world.
Subject has bagged a $600 million loan from the World Bank to strengthen its
electricity transmission system. Announcing the loan, which is backed by a
Government of India guarantee, the Bank said in a statement that the Fourth
Power System Development Project (PSDP IV) would aim to reduce transmission
losses and cut the cost of energy through further investments in the utility’s
systems.
Subject is entering Nifty. According to shareholding pattern, only 8.4% is held
by public. So within 3 months, 3% will enter in Nifty basket because of which
there will be shortage of liquidity in this stock.
Subject has paid an interim dividend of Rs.1766.800 millions, for the financial
year 2007-08.
Three projects of subject have bagged the prestigious National Awards for
Meritorious Performance instituted by the Government of India for the year
2006-07. Subject’s 132 kV Transmission System in North-Eastern region received
the Gold award while Silver awards were conferred on the 220 kV and 400 kV
Transmission System in Western Region and the 400 kV D/C Kahalgaon-Patna-Ballia
Transmission Line.
Subject has
obtained permission to generate power from coal and gas along with transmission.
It can extract gas and generate power from it by own gas block.
Share Holding Pattern (%):
Promoters: 86.4
MFs, FIs and
Banks: 1.3
FIIs: 4.0
Others: 8.4
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.42.23 |
|
UK Pound |
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.66.41 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--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 |
|
56 |
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 |
|