BUSINESS INFORMATION REPORT
1. Summary Information
|
|
|
Country |
|
|
Company Name |
Power Grid Corporation of India Limited |
Principal Name 1 |
Mr. R. P. Singh |
|
Status |
Good |
Principal Name 2 |
Mr. S. K. Chaturvedi |
|
|
|
Registration # |
55-38121 |
|
Street Address |
B-9, Qutab Industrial Area, Katwaria Sarai, |
||
|
Established Date |
23.10.1989 |
SIC Code |
-- |
|
Telephone# |
91-11-26560112/ 26560115 / 26560193/26564892 |
Business Style 1 |
Construction |
|
Fax # |
91-11-26560054/ 26601081 |
Business Style 2 |
-- |
|
Homepage |
Product Name 1 |
HVDC Transmission Lines |
|
|
# of employees |
1200 (Approximately) |
Product Name 2 |
EHV AC |
|
Paid up capital |
Rs.
4,208,841,230/- |
Product Name 3 |
Substations |
|
Shareholders |
Promoter and Promoter Group-86.36% Public Shareholding-13.64% |
Banking |
Indian Overseas Bank |
|
Public Limited Corp. |
Yes |
Business Period |
21 years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
A (68) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
|
|
Joint
Venture |
-- |
PTC India Limited (PTC) |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
92,824,200,000 |
Current Liabilities |
76,346,000,000 |
|
Inventories |
3,449,000,000 |
Long-term Liabilities |
344,167,900,000 |
|
Fixed Assets |
320,612,600,000 |
Other Liabilities |
55,742,500,000 |
|
Deferred Assets |
0,000 |
Total Liabilities |
476,256,400,000 |
|
Invest& other Assets |
218789,600,000 |
Retained Earnings |
0,000 |
|
|
|
Net Worth |
159,419,000,000 |
|
Total Assets |
635,675,400,000 |
Total Liab. & Equity |
635,675,400,000 |
|
Total Assets (Previous Year) |
543,256,900,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
71,274,500,000 |
Net Profit |
20,409,400 |
|
Sales(Previous yr) |
70,285,400,000 |
Net Profit(Prev.yr) |
16,906,100,000 |
MIRA
INFORM REPORT
|
Report Date : |
06.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
POWER GRID CORPORATION OF INDIA LIMITED |
|
|
|
|
Registered Office : |
B-9, Qutab Institutional Area, Katwaria Sarai, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
23.10.1989 |
|
|
|
|
Com. Reg. No.: |
55-38121 |
|
|
|
|
CIN No.: [Company Identification
No.] |
L40101DL1989GOI038121 |
|
|
|
|
TAN No.: [Tax Deduction & Collection
Account No.] |
DELP06685A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACP0252G |
|
|
|
|
Legal Form : |
Public Limited Liability Company. Company’s Shares are
Listed on the Stock Exchange. |
|
|
|
|
Line of Business : |
Construction of EHV AC and HVDC Transmission Lines,
Substations, |
RATING & COMMENTS
|
MIRA’s Rating : |
A (66) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 630000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a Government of India company. It is a well established and a reputed company having fine track. Business is active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
B-9, Qutab Institutional Area, Katwaria Sarai, New Delhi –
110016, Delhi, India |
|
Tel. No.: |
91-11-26560112 / 26560115 / 26560193 / 26564892 |
|
Fax No.: |
91-11-26560054 / 26601081 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office 1 : |
89, |
|
Tel. No.: |
91-11-2642 8808 |
|
Fax No.: |
91-11-2642 8357 / 2647 6133 |
|
E-Mail : |
|
|
Telex |
31-66138 / 65949 |
|
|
|
|
Corporate Office 2 : |
Saudamini, Plot No.2, Sector 29, Gurgaon – 122001, |
|
|
|
|
Factory / Regional Office : |
Located at :-
Regional Head Quarter, SCO 84-85, Sector-16 (near Sagar
Cinema), Contact Person: Mr. U. C. Mishra, General Manager
Regional Head Quarter, Vikas Bhawan, Rail Head
Commercial Complex, Contact Person: Mr. S. K. Dobe, General Manager Tel. No. 91-191-2430723 / 2430995 Fax No. 91-191-2435293 Telegram: NATGRID
Regional Head Quarter, 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, 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, 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, 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 |
|
|
|
|
Branches : |
Located at:-
Tel. No. 91-22-23739188 |
DIRECTORS
As on 31.03.2010
|
Name : |
Mr. S. K. Chaturvedi |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. J. Sridharan |
|
Designation : |
Director (Finance) |
|
Address : |
Bunglow No. GG – 3, |
|
Date of Birth/Age : |
28.04.1951 |
|
Date of Appointment : |
21.12.2005 |
|
|
|
|
Name : |
Mr. Anil K Agarwal |
|
Designation : |
Director |
|
Date of Appointment : |
10.07.2007 |
|
|
|
|
Name : |
Mr. F A Vandrevala |
|
Designation : |
Director |
|
Date of Appointment : |
10.07.2007 |
|
|
|
|
Name : |
Dr. A |
|
Designation : |
Director |
|
Date of Appointment : |
10.07.2007 |
|
|
|
|
Name : |
Dr. P K Shetty |
|
Designation : |
Director |
|
Date of Appointment : |
10.07.2007 |
|
|
|
|
Name : |
Mr. V. M. Kaul |
|
Designation : |
Director (Personnel) |
|
|
|
|
Name : |
Mr. R. N. Nayak |
|
Designation : |
Director (Operations) (w.e.f 16.05.2009) |
|
|
|
|
Name : |
Mr. S. C. Tripathi |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Sarita Prasad |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Sudhir Kumar |
|
Designation : |
Director (W.e.f 22.05.2009 to 10.12.2009) |
|
|
|
|
Name : |
Mr. Ashok Khanna |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. I.S.Jha |
|
Designation : |
Director (Projects) (w.e.f. 1st September, 2009) |
|
|
|
|
Name : |
Mr. Rakesh Jain |
|
Designation : |
Director (w.e.f. 09th June, 2009) |
|
|
|
|
Name : |
Mr. I.C.P Keshari |
|
Designation : |
Director (from 6th March,2009 to 21st May,2009) |
|
|
|
|
Name : |
Mr. M. |
|
Designation : |
Director (w.e.f. 11th December,2009) |
|
|
|
|
Name : |
Mr. S. Majumdar |
|
Designation : |
(Projects) (Superannuated on 31st August, 2009) |
KEY EXECUTIVES
|
Name : |
Ms. Divya Tandon |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.12.2010
|
Names of Shareholders |
Total No. of
Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
3,214,024,212 |
69.42 |
|
|
3,214,024,212 |
69.42 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
3,214,024,212 |
69.42 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
66,213,013 |
1.43 |
|
|
86,744,639 |
1.87 |
|
|
179,948,102 |
3.89 |
|
|
558,038,508 |
12.05 |
|
|
890,944,262 |
19.24 |
|
|
|
|
|
|
184,742,591 |
3.99 |
|
|
|
|
|
|
265,660,922 |
5.74 |
|
|
28,854,129 |
0.62 |
|
|
45,499,237 |
0.98 |
|
|
1,036,044 |
0.02 |
|
|
7,453,390 |
0.16 |
|
|
3,218 |
- |
|
|
16,490,036 |
0.36 |
|
|
12,863,046 |
0.28 |
|
|
7,653,503 |
0.17 |
|
|
524,756,879 |
11.33 |
|
Total Public shareholding (B) |
1,415,701,141 |
30.58 |
|
Total (A)+(B) |
4,629,725,353 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
- |
- |
|
|
- |
- |
|
|
- |
- |
|
|
- |
- |
|
Total (A)+(B)+(C) |
4,629,725,353 |
100.00 |
(1) Indian
Central Government / State Government(s)
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionsBUSINESS DETAILS
|
Line of Business : |
Construction of EHV AC and HVDC Transmission Lines,
Substations, |
|
|
|
|
Products : |
|
GENERAL INFORMATION
|
No. of Employees : |
1200 (Approximately) |
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Bankers : |
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Facilities : |
|
|
|
|
|
Banking
Relations : |
- |
|
|
|
|
Statutory Auditors : |
|
|
Name : |
A. R. and Company Chartered Accountants |
|
Address : |
A-403, Gayatri Apartment,
Airlines Group Housing Society, Plot No. 27, Sector 10, Dwarka, New Delhi –
110075, Delhi, India |
|
|
|
|
Name : |
Umamaheswara Rao and Co. Chartered Accountants |
|
Address : |
Flat No. 5-H, ‘D’ Block,
8-3-324, Krishna Apartments, |
|
|
|
|
Name : |
S R I Associates Chartered Accountants |
|
Address : |
3-B, |
|
|
|
|
Joint Ventures: |
|
|
|
|
|
Associates/Subsidiaries : |
|
CAPITAL STRUCTURE
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10,00,00,00,000 |
Equity Share |
Rs.10/- Each |
Rs.100000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4,20,88,41,230 |
Equity Share |
Rs.10/- Each |
Rs.42088.400
millions |
Note:
Of the above 1,81,25,29,500 (Previous Year 1,81,25,29,500 ) equity Shares have been allotted as fully paid up pursuant to Government of India notification without payment being received in cash.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
42088.400 |
42088.400 |
42088.400 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
117330.600 |
104147.500 |
92985.300 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
159419.000 |
146235.900 |
135073.700 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
313457.800 |
252882.500 |
175521.300 |
|
|
2] Unsecured Loans |
30710.100 |
31771.800 |
47113.500 |
|
|
TOTAL BORROWING |
344167.900 |
284654.300 |
222634.800 |
|
|
DEFERRED TAX LIABILITIES |
7035.100 |
5385.400 |
4937.800 |
|
|
DEFERRED REVENUE |
24124.500 |
23849.400 |
19438.700 |
|
|
|
|
|
|
|
|
TOTAL |
534746.500 |
460125.000 |
382085.000 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
320612.600 |
311284.400 |
273552.000 |
|
|
Capital work-in-progress |
102423.700 |
65334.300 |
53054.100 |
|
|
Construction Stores and Advance |
101798.100 |
67525.700 |
34526.800 |
|
|
|
|
|
|
|
|
INVESTMENT |
14532.200 |
15928.300 |
17362.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
3449.000
|
2975.700
|
2482.200
|
|
|
Sundry Debtors |
22148.600
|
13735.600
|
11005.000
|
|
|
Cash & Bank Balances |
32776.400
|
24288.800
|
18655.900
|
|
|
Other Current Assets |
4875.200
|
14462.800
|
3951.700
|
|
|
Loans & Advances |
33024.000
|
27666.300
|
17673.000
|
|
Total
Current Assets |
96273.200
|
83129.200
|
53767.800 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
10606.200
|
10728.800
|
0.000
|
|
|
Other Current Liabilities |
65739.800
|
50504.900
|
36723.900
|
|
|
Provisions |
24582.900
|
21898.200
|
13525.900
|
|
Total
Current Liabilities |
100928.900
|
83131.900
|
50249.800 |
|
|
Net Current Assets |
(4655.700)
|
(2.700)
|
3518.000
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
35.600 |
55.000 |
71.900 |
|
|
|
|
|
|
|
|
TOTAL |
534746.500 |
460125.000 |
382085.000 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Operations |
71274.500 |
65798.100 |
46148.200 |
|
|
|
Provision Written Back |
2.100 |
0.400 |
83.900 |
|
|
|
Other Income |
3759.200 |
4486.900 |
4583.200 |
|
|
|
TOTAL (A) |
75035.800 |
70285.400 |
50815.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Remuneration and Benefit |
7267.000 |
6438.800 |
5190.600 |
|
|
|
Transmission Administrative and Other Expenses |
5074.300 |
4116.100 |
3414.200 |
|
|
|
Provisions |
221.500 |
462.300 |
38.300 |
|
|
|
Deferred Revenue Expenditure written off |
17.800 |
18.300 |
54.300 |
|
|
|
Prior Period Adjustment |
962.700 |
703.600 |
1820.600 |
|
|
|
TOTAL (B) |
13543.300 |
11739.100 |
10518.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
61492.500 |
58546.300 |
40297.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
15432.400 |
25320.900 |
13395.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
46060.100 |
33225.400 |
26901.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
19796.900 |
10939.700 |
9596.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
26263.200 |
22285.700 |
17305.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
5853.800 |
5379.600 |
2820.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
20409.400 |
16906.100 |
14484.700 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
469.200 |
339.700 |
NA |
|
|
|
|
|
|
|
|
|
Add |
Bond Redemption Reserve Written Back |
1661.900 |
1394.200 |
NA |
|
|
|
|
|
|
|
|
|
Add |
Withdrawal from STOA Reserve |
819.700 |
226.500 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Interim Dividend Paid |
2104.600 |
2104.600 |
2104.600 |
|
|
|
Corporate Dividend Tax Paid |
357.700 |
357.700 |
357.700 |
|
|
|
Proposed Final Dividend |
4208.800 |
2946.200 |
2946.200 |
|
|
|
Provision for Corporate Dividend Tax |
699.000 |
500.700 |
500.700 |
|
|
|
Transfer to Self Insurance Reserve |
377.500 |
349.300 |
303.200 |
|
|
|
Transfer to Bonds Redemption Reserve |
6301.300 |
4912.300 |
4001.800 |
|
|
|
Transfer to STOA Reserve |
819.700 |
226.500 |
0.000 |
|
|
|
Transfer to LDC Development Reserve |
164.400 |
0.000 |
0.000 |
|
|
|
Transfer to CSR Activities Reserve |
83.900 |
0.000 |
0.000 |
|
|
|
Transfer to General Reserve |
8000.000 |
7000.000 |
5500.000 |
|
|
BALANCE CARRIED
TO THE B/S |
243.300 |
469.200 |
339.700 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Interest |
0.000 |
2.900 |
3.800 |
|
|
|
Consultancy Fee |
23.700 |
7.200 |
22.800 |
|
|
TOTAL EARNINGS |
23.700 |
10.100 |
26.600 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
17.600 |
10.200 |
0.000 |
|
|
|
Capital Goods |
4705.000 |
11261.600 |
2434.000 |
|
|
TOTAL IMPORTS |
4722.6 |
11271.800 |
2434.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
4.85 |
4.01 |
3.60 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
19991.200 |
21266.300 |
20521.200 |
|
Total Expenditure |
3299.100 |
3408.700 |
3449.500 |
|
PBIDT (Excl OI) |
16692.100 |
17857.600 |
17071.700 |
|
Other Income |
1505.700 |
1093.300 |
931.100 |
|
Operating Profit |
18197.800 |
18950.900 |
18002.800 |
|
Interest |
3918.300 |
4146.500 |
3848.300 |
|
Exceptional Items |
0.000 |
0.000 |
(46.700) |
|
PBDT |
14279.500 |
14804.400 |
14107.800 |
|
Depreciation |
5023.900 |
5456.000 |
5709.200 |
|
Profit Before Tax |
9255.600 |
9348.400 |
8398.600 |
|
Tax |
2223.800 |
2799.400 |
2486.700 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
7031.800 |
6549.000 |
5911.900 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
(35.000) |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net Profit |
7031.80 |
6514.000 |
5911.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
27.20
|
24.05
|
28.50 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
36.85
|
33.87
|
37.50 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
6.30
|
5.65
|
5.29 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.15
|
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
2.76
|
2.52
|
2.02 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.95
|
1.00
|
1.07 |
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 Power Grid was assigned the role of operator of five Regional Load Despatch Centres (RLDCs) which were transferred to Power Grid progressively by 1996.
Subject was incorporated on October 23, 1989 with a mission of “Established and
Operation of regional and national power grid 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 power grid 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
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
Subject, who is accredited with ISO-9001 Quality Systems Certificate,
by NQA-Quality System Register
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.
OPERATIONAL
EXCELLENCE
Over a decade and half
of excellent business operations, the Company has developed strong in-house
expertise in all specialised areas of power transmission business and has
carved a niche for itself amongst the largest transmission utilities in the
world. As on 31st March, 2010, the company owns and operates a transmission
network of about 75,290 ckt kms of inter-State transmission lines, 124 nos. of
EHV and HVDC substations with transformation capacity of about 83,100 MVA and
about 50% of total power generated in the country is wheeled over it. For the
year, availability of 99.77% was achieved for the transmission system,
highest ever in the history of the company, and number of tripping per line was
contained at 2.07 against MoU target (Excellent) of 2.60.
To enhance the efficiency
of its operations, State-of-the-art O and M measures like Hotline Maintenance,
Emergency Restoration System and the cleaning of insulators through helicopters
was adopted. Equipment health is being assessed periodically using “Condition
Assessment Techniques” with sophisticated tools. All shut down and non shut
down maintenance activities are planned in advance and an “Annual Maintenance
Plan” is worked out for each and every asset. There are well defined levels for
approval of test results depending on their importance and criticality. As a
result, the company has been able to display its capability in consistently
maintaining the high transmission system availability, comparable with the best
international standards. In addition, State-of-the-art “Emergency Restoration
System” were also deployed for restoration of collapsed transmission lines in
minimum possible time. Further, appropriate initiatives have been taken up to
replace ageing transmission assets as per prevalent CERC tariff regulations.
O and M activities
of the company are ISO certified and systems and procedures are being modified
periodically to keep abreast with the latest technology. Documents of
maintenance schedule, procedures and formats have been standardized for all
assets. All substations and line offices can access these documents through
Company’s website portal. Periodical reviews are conducted at Substations and
Line offices to evaluate implementation of the systems and procedures.
As on date about
16 sub-stations are operated remotely. Keeping in view the successful
experience of remote operation and international trend of unmanned
sub-stations, actions are being initiated to establish “National Transmission
Management Centre” to control and operate most of the sub-stations remotely and
“maintenance hub” to cater to the maintenance requirements of nearby group of
sub-stations rather than placing staff in each sub-station for optimal
utilisation of manpower and also to reduce the response time in case of fault.
Transformer
On-Line Condition Monitoring system (TOLCM) was installed at Mandola and Rihand
substations to assess the condition of transformers. This system measures
bushing Capacitance and Tan delta, DGA, moisture, OLTC monitoring, loading
profile, oil temperature, winding temperature and residual life assessment and
is helpful in taking advance action in case of any abnormality to avoid
catastrophic failures.
The company has
also entered into a contract with M/s UMS Group,
Benchmarking of
its OandM practices through International Transmission Operations and
Maintenance Study (ITOMS) based on cost, productivity, service levels,
equipment maintenance, Asset Management, safety etc. This exercise will
pinpoint areas requiring improvements with respect to similar utilities in the
world and will help in identifying opportunities for improvement and
discovering best practices in Operations, Maintenance and Technology.
A conference on
‘International Best Practices in O and M of EHV Transmission System’ was
organized by POWERGRID on 5th and 6th March, 2010 at Gurgaon. International
experts from various renowned utilities and institutions such as Doble- USA;
Hydro-Quebec, Canada; BC Hydro, Canada; TEPCO, Japan; NGC, UK; Furnas, Brazil;
ASU, USA had participated in the conference and delivered lectures on the best
practices being followed in their system. The conference was also attended by
executives from all the Regions and Corporate Centre. The conference provided a
platform for the employees to learn various emerging techniques in the field of
OandM in EHV Transmission System and also to interact with various experts from
different utilities across the globe. Further, the company is exploring options
to carry out aerial patrolling of transmission lines through helicopter on
trial basis and on its successful completion, it is planned to be deployed
country wide to optimise manpower and for better efficiency in maintaining the
transmission lines.
QUALITY MANAGEMENT
The Company, in
all its endeavours, is committed to provide cost effective and quality services
to its valued customers thereby deriving high customer satisfaction. To achieve
this, quality improvement measures/ techniques are being adopted at every stage
from conceptualisation of project till commissioning and subsequently during
operation phase to identify the areas of improvement and develop action plans
for achieving the desired level of quality in all of its activities.
During the year,
Quality Management System (QMS) of the Company was reviewed and based on
evaluation of
implementation of
the latest systems and procedures the revised certification with validity upto
June, 2013 was obtained. Today, the company stands certified with Integrated
Management System (IMS) as per Publicly Available Specification, PAS
99:2006 integrating requirement of ISO 9001:2008 (Quality), ISO 14001:2004
(Environment) and OHSAS 18001:2007 (Occupational Health and Safety Management
System). POWERGRID also stands audited for Social Accountability System, SA
8000:2008 for all its establishments. With the accreditation of ISO
9001:2000 for all Regional Load Dispatch Centres (RLDCs) during the last
year, QMS certification for all establishments of POWERGRID has been completed.
GRID MANAGEMENT
AND OPEN ACCESS
Optimum
utilization of generation resources requires development of a strong
transmission network and its implementation has been taken up by the Company in
a phased manner. Planned rapid expansion of regional grids and their
integration to form National Grid poses great challenges in Grid Operation and
Management. Toward this, various inter-regional links have been implemented
matching with generation capacity addition programme and growing power demand
in the country. Central Sector Generating Stations have not faced any
generation evacuation problem on account of transmission constraints during the
year, as the strong and robust transmission network set up by the Company is
there to take care of evacuation related issues.
Reliable and
stable operation of regional power grids has always been a matter of high
priority for the company. The facilities at all the five Regional Load Despatch
Centers (RLDCs) and National Load Despatch Centre (NLDC) are being upgraded
continuously considering the increased complexity of grid operation in the
country. Their initiatives towards effective grid management are paying rich
dividends leading to minimal grid disturbances along with improvement in vital
grid parameters such as voltage and frequency. Indian Power Grids have not
experienced any major grid disturbance during the last seven years. Even minor
grid disturbances in regional grids have come down significantly. Further, grid
frequency was maintained in the prescribed band as per IEGC, i.e. 49.2 Hz to
50.3 Hz for large percentage of time in all the five regions during the year.
Development of
various inter-regional transmission links, strong transmission network and modernised
Regional Load Despatch Centers (RLDCs) have also facilitated manifold growth in
inter-regional power exchanges on real-time basis. During FY 2009-10, about
52,000 MUs of inter-regional energy transfer was facilitated across the country
as compared to about 46,000 MUs during FY 2008-09. The increased inter-regional
power exchanges have helped in meeting more demand in energy deficit regions
besides achieving overall economy.
On behalf of
various State Power utilities and other players in the regional pool, the
company, through RLDCs, facilitated settlement of UI charges to the tune of
Rs.122900 millions in FY 2009-10 (as compared to Rs.140000 millions in FY
2008-09).
Further, in line
with GoI directive, the Company has established M/s Power System Operation
Corporation Limited (POSOCO), a 100% subsidiary of POWERGRID, in March,
2009 to look after Grid Management function. However, pending determination and
transfer of assets, Grid management function continued to be operated by the
Company.
Inter-State power
exchange in an Open Access environment:
Non-discriminatory
Open Access is the key for development of a successful Competitive Electricity
Market. Short-Term Open Access is applicable for utilization of surplus
capacity available on the inter-State transmission System by virtue of inherent
design margins, margins available due to variations in the power flows and
margins available due to in-built spare transmission capacity created to cater
to the future load growth or generation addition.
Short-Term Open
Access in inter-State transmission has been successfully implemented and
facilitated for development of a vibrant short-term electricity market. Around
hundred captive power plants across the country have also exploited the benefit
of short-term open access. Under open access, more than 18,244 transactions
were approved during the year involving about 39,500 MUs of energy. Thus, the
Company facilitated flow of power across the country effectively utilising the
available transmission capacities, thus bringing much needed open access to
reality. Since introduction of Short-term open access in inter-State
transmission in May, 2004, more than 40,000 bilateral transactions has taken
place and more than 152,500 MUs have been exchanged.
Open access environment
encourages exchange of power as per the market conditions. For this purpose,
two Power Exchanges have been established in the country, which facilitates
collective transactions discovered through a transparent, anonymous double
sided based bidding mechanism. In a short-span of less than 2 years, around
10,000 MUs have been exchanged through power exchanges. In this financial year
itself, around 7,000 MUs have been exchanged.
PROJECT
IMPLEMENTATION
The Company gives
utmost priority for implementation of its projects with economy and within
stipulated time frame to be eligible for additional return on equity of 0.5% as
per the prevailing CERC tariff norms and to derive maximum economic benefits.
The company’s advanced and cost effective Integrated Project Management and
Control System (IPMCS) for total project review and monitoring has been
contributing significantly. Project implementation activities involves total
project review and monitoring including Standardisation of Designs, Project
Review Meetings (PRMs) at regular intervals through video conferencing,
pre-emptive measures and advance actions on various project linked activities
such as land acquisition, survey and soil investigations, tender activities,
funding tie-up, etc. in parallel withproject investment approval process.
During FY 2009-10,
transmission projects worth about Rs.36100 millions were commissioned. These
additions to the Company’s network have helped in improving power supply
situation in various regional grids, facilitating enhanced inter-regional power
transfer and improved reliability of the system. Further, Board of Directors of
the company have accorded investment approval for 14 new transmission
projects with an estimated cost of about Rs. 134500.000 Millions comprising of 6,500 ckm of
transmission lines, 20 no. sub-stations and transformation capacity of
about 27,825 MVA. Major projects
includes Transmission System associated with generation Projects like Pallatana
GBPP (726 MW), Bongaigaon TPS (750 MW), Mauda (2x500), Kalpakkam PFBR (500 MW),
Nabinagar TPS (1000 MW), Simhadri-II (2x500MW), Vindhyachal–IV (1000MW),
Rihand–III (1000MW), System Strengthening in Northern Region for Sasan and
Mundra Ultra Mega Power Projects, 765 KV System for Central Part of Northern Grid
(Part-IIandIII), Northern Regional Transmission Strengthening Scheme, etc..
Implementation activities of these projects have already commenced.
At the end of
March, 2010, transmission projects at a cost of over Rs.810000 millions involving about 42,000 ckm of transmission
lines, 58 new substations and transformation capacity of 88,675 MVA are
under various stages of implementation.
The Company has
also been entrusted by Govt. of India to develop associated transmission
systems for evacuation of power from four Ultra Mega Power Projects (UMPPs)
viz. Mundra, Sasan, Krishnapatnam and Tilaiyya UMPP. Necessary actions are
being taken by the Company for implementation of these projects matching with
the generation projects. In this, Associated Transmission Systems for Mundra
and Sasan UMPPs have been approved and implementation has commenced while
transmission system for Krishnapatnam UMPP is under investment approval and
that for Tillaiyya UMPP is under finalisation.
FINANCIAL
MANAGEMENT
The year 2009-10
has been another year of impressive financial performance for the Company, with
a Turnover
of Rs.75040 millions and Net Profit of
Rs.20410 Millions as compared to
Rs. 61390 Millions and Rs. 1,6910 Millions respectively during FY 2008-09, an
increase of 22.2% and 20.7% respectively. The Gross Asset Base of the Company has been enhanced to Rs. 432020 Millions in 2009-10 from Rs.
403190 Millions in 2008-09.
Plan Investment
programme
Government of India’s
mission of ‘Power for All by 2012’ envisages sufficient, reliable and quality
power to all at optimum cost, and, inter-alia achieving GDP growth rate of
8-9%. The gigantic task can only be accomplished with matching investments in
the power sector. For development of inter-State transmission system, an
investment of about Rs.550000 Millions
is planned by the Company during XI Plan for further developing
National Grid including inter-regional transmission systems, system
strengthening schemes, transmission system for evacuation of power from
generation projects under central sector and Ultra Mega Power Projects (UMPPs).
In fact, during first 3 years of XI plan, investment of Rs. 254400 Millions (46% of
planned investment) has already been made. For the FY 2010-11, an outlay of Rs.
129000 Millions has been kept. Balance expenditure of about Rs. 167000 Millions
is envisaged to be made in FY 2011-12 based on the generation capacity
addition.
The Company is
placed in a comfortable position in terms of resource mobilisation, as it
enjoys an excellent credit rating with financial institutions at national and
international level. Their ongoing transmission projects, which are at various
stages of implementation, are progressing as per schedule. The company does not
envisage any problem in mobilizing the resources for meeting the planned
investment during XI plan period. Loan requirement shall be met through
borrowings from multilateral funding agencies (such as The World Bank and Asian
Development Bank)/ supplier’s credit and balance from domestic sources on
yearly basis as per requirement. Presently, about 80% of fund requirement has
already been tied-up/ identified and balance shall be mobilized as per
requirement. Being a AAA rated, the Company is not foreseeing any problem in
mobilizing the resources from domestic market at competitive rates. Equity
requirement of about Rs.165000 millions shall be met through internal
resources, sale of bonds, follow-on public issue etc. as per requirement/
approval from Govt. of India.
COMMERCIAL
PERFORMANCE
The company’s
performance has been highly satisfactory on commercial front, in terms of
realisation of transmission charges. Current realisation of about Rs. 65700 Millions stood at about 100% of
billed amount during the year 2009-10 against Rs. 58770 Millions realised last
year. POWERGRID is continuously realising 100% of its current dues for the last
six years. Post-securitisation, outstanding dues (beyond 90 days of billing)
stands at nil as on March 31, 2010. The present LC coverage of about Rs.5030 Millions is equivalent to more
than 100% of average monthly billing.
PERFORMANCE IN
TELECOM
The Company is one
of the few telecom players with marked presence in remote areas and has
acquired Infrastructure Provider Category-I (IP-I), Internet Service Provider
(ISP) Category ‘A’ and National Long Distance (NLD) licenses to provide a
variety of services. Their major customers include prestigious Government
organizations such as ERNET, STPI, NIC and various Government Ministries along
with other prime telecom companies. It is their constant endeavour to provide a
robust highway of telecommunication at affordable cost with ultra modern and
eco-friendly implementation techniques. In the coming years, Company is also
planning to attract customers from entertainment and broadcasting industry.
At the end of FY
2009-10, the Company has established around
20,600 Kms of telecom network connecting all metros, major cities and
towns. Availability of the Telecom Network has been consistently maintained at 99.9% during 2009- 10.
Despite a general
slowdown experienced by Telecom industry wherein intense price war is resulting
into declining
average revenue
per user, the Company has achieved a growth and earned revenue of about Rs.1580 Millions in telecom business during FY 2009-10, compared to
Rs. 1500 Millions in FY 2008-09.
POWERGRID is a
consortium member for implementing the prestigious telecom infrastructure
project of national
importance, namely
National Knowledge Network (NKN) project, which envisages a gigantic 3 layer
Telecom network of all knowledge centres across the country such as IITs, IISc,
etc. on high speed connectivity at an estimated total project cost of about Rs.
60000 Millions. Based on the work likely to be allocated to the company, their
investment in the NKN project is expected to be of the order of about Rs. 5600
Core. A revenue of about Rs. 10000 Millions over a period of 10 years is
envisaged by the company from this project.
The Company has
lined up major expansion plans for its telecom network, which include further
diversification into value added services such as MPLS-VPN, NLD Switched Voice,
Data Centres and the Tower Infra business. With the focus now shifting from
urban to rural connectivity, the Company’s role in telecom becomes even more
significant as it has presence in rural and remote areas of the country by way
of its Power Transmission network which
can be leveraged to provide telecom services in such areas by co-locating
Wireless Antennas on
During the year,
they have added some new customers (viz. HSBC Bank, Videocon, Sistema Shyam
Teleservices Limited, Loop Telecom, Unitech Wireless Limited (Uninor), etc.
from the Private Sector and National Disaster Management Authority (NDMA),
India International Centre, Prasar Bharti from Govt. Sector, etc.) to their
already impressive list of customers.
BUSINESS
DEVELOPMENT and CONSULTANCY
Backed by its
strong in-house expertise in various facets of Transmission, Sub-transmission,
Distribution and Telecom sectors, POWERGRID is executing various consultancy
assignments in the areas of Planning, Engineering, Load Despatch and
Communication, Telecommunication, Contracting, Financial and Project Management
at national and international level.
In the
international arena, the Company has emerged as a strong player in transmission
sector in South Asia and is providing consultancy services in United Arab
Emirates (UAE),
The Company has
been keenly participating in tenders floated by ADB, The World Bank, and other
foreign organizations and has also collaborated with internationally reputed
companies like KEMA, Netherlands and is submitting Expressions of Interest and
Prequalification documents to clients in various countries like Vietnam, China,
Kenya, Ethiopia, Uzbekistan, Afghanistan and Bangladesh for participating in
International Competitive Bidding.
During the year
2009-10, business development opportunities continued to receive focussed
attention and thrust across the entire value chain of the power sector. The
Company has realised revenue of about Rs.2690 Millions during FY 2009-10 as
consultancy fee from its various ongoing assignments as compared to Rs. 2160
Millions realised last year. Further, during the year, 24 nos. repeat orders
have been received from customers who placed orders for consultancy jobs in the
previous financial year. This is the highest so far achieved and shows high
level of customer satisfaction.
Financial
Discussion and Analysis
Comparison of
Fiscal 2010 to Fiscal 2009
The company’s
total income in Fiscal 2010 was Rs.75035.800Millions , which represented an
increase of 22.23% over the total income of Rs.61387.200 millions in Fiscal
2009. In Fiscal 2010, transmission and transmission-related activities
constituted 89.3% of their total income, with the balance coming from their
consultancy, telecommunication businesses and other incomes.
Income
The revenue was
higher in Fiscal 2010 as compared to Fiscal 2009 mainly on account of revenue
recognition as per new norms notified for the block period 2009-14, full year
impact of transmission assets worth Rs.37337.400 millions commissioned during
fiscal 2009 and the commissioning of new transmission assets worth Rs.
36098.200 millions during fiscal 2010 including the major projects Sipat-II
Supplementary; NLC-II;North- West Transmission Corridor; Northern Region System
Strengthening –V. The projects commissioned in Fiscal 2010 have generated
revenue from the date of commercial operation during the year.
FACTORS AFFECTING
THEIR RESULTS OF OPERATIONS
Tariff norms
Their charges for
transmission customers are governed by tariff norms determined by the Central
Electricity Regulatory Commission (CERC) pursuant to central government tariff
policy and legislation. As per the Tariff Policy issued by Government of India
(GoI) on 6th January, 2006, CERC shall be guided by the Tariff Policy while
specifying the terms and conditions for the determination of tariff. The tariff
policy inter-alia states that the rates of depreciation notified by CERC would
be applicable for the purpose of tariff as well as accounting.
CERC has vide its
notification dated 19th January, 2009 notified the tariff regulations for the
tariff Block 2009-14. Under the tariff regulations applicable for the tariff
Block 2009-14, they are permitted to charge their customers transmission
charges for recovery of annual fixed cost (“AFC”) consisting of components -
return on equity, interest on outstanding debt, depreciation, operation and
maintenance expenditure, interest on working capital.
Earlier, tariff
norms allowed them to recover income tax and this was in addition to the return
on equity. From the tariff Block 2009-2014, the Return on equity shall be
computed on pre-tax basis, at the base rate of 15.5% by grossing up the base
rate for the tax factor. In case of projects commissioned on or after 1st
April, 2009, an additional return on Equity of 0.5% will be allowed if such
projects are completed within the timeline specified under the CERC tariff
regulations for the tariff Block 2009-14.
As regards
interest on debt, under the CERC tariff regulations for the tariff Block
2009-14, the normative loan outstanding as on 1.4.2009 shall be worked out by
deducting the cumulative repayment as admitted by the Commission up to
31.3.2009 from the gross normative loan.
The repayment of
loan capital for the year of the tariff period 2009-14 is deemed to be equal to
the depreciation allowed for that year. The Advance against depreciation which
was being allowed in the previous years to cover hortfall in their repayment of debts has
been done away with, in the tariff block 2009-2014 and depreciation rates have
been reworked. Despite any moratorium period availed by the company, the repayment
of loan is considered for tariff from the first year of commercial operation of
the project and shall be equal to the annual depreciation allowed.
For interest on
working capital, the working capital amount is calculated as - (i) consisting of
receivables equivalent to two months of fixed cost; (ii) maintenance spares @
15% of operation and maintenance expenses; and (iii) operation and maintenance
expenses for one month. Rate of interest on working capital for the year is on
normative basis and is equal to the short-term Prime Lending Rate of State Bank
of
The transmission
charge (inclusive of incentive) payable for a calendar month for a transmission
system or part thereof is as per the following:
AFC x ( NDM / NDY
) x ( TAFM / NATAF )
Where,
AFC = Annual fixed
cost specified for the year, in Rupees
NATAF = Normative
annual transmission availability factor, in per cent
NDM = Number of
days in the month
NDY = Number of
days in the year
TAFM =
Transmission system availability factor for the month, in Percent.
Recovery of
transmission charge and incentive is permitted to the company on the
achievement of the operational norms as under.
Under the tariff
norms prescribed by CERC for the tariff Block 2009-2014 they are also provided
with an incentive if the availability of their transmission network is above
98% in respect of alternating current systems, above 95% in respect of HVDC
back-to-back Stations systems and above 92% in respect of HVDC bi-pole links
and penalized if the availability of their network is below 98%, 95% or 92%,
respectively. The Availability Incentives are now linked with monthly transmission
charges as against being linked to equity in the tariff block of 2004-09.
The tariff norms
prescribed by CERC for the tariff Block 2009-2014 prescribe that the
Transmission charges corresponding to any plant capacity for which a
beneficiary has not been identified and contracted shall be paid by the
concerned generating company.
The tariff
regulations for the Block 2009-14 allow them to share the proceeds of carbon
credit from approved CDM projects in the manner that 100% of the gross proceeds
on account of CDM to be retained by the company in the first year after the
date of commercial operation of the transmission system; and in the second
year, the share of the beneficiaries shall be 10% which shall be progressively
increased by 10% every year till it reaches 50%, whereafter the proceeds shall
be shared in equal proportion, by the company, and the beneficiaries.
Foreign Exchange Rate Variation:
The company under
the tariff regulations for the tariff block 2009-14 has an option to hedge foreign
exchange exposure in respect of the interest on foreign currency loan and
repayment of foreign loan acquired for the transmission system, in part or full
and recover the cost of hedging of foreign exchange rate variation
corresponding to the normative foreign debt, in the relevant year.
If hedging of the
foreign exchange exposure is not undertaken, the extra rupee liability towards
interest payment and loan repayment corresponding to the normative foreign
currency loan in the relevant year is permissible provided it is not
attributable to POWRGRID or its suppliers or contractors. During the financial
year 2009-10, no hedging for foreign exchange exposure has been taken by the
company.
BUSINESS AND
FINANCIAL REVIEW OF JOINT VENTURE COMPANIES AND SUBSIDIARIES:
Powerlinks Transmission Limited (POWERLINKS):
Main
Objective and Capital Structure
The Company was
incorporated to undertake the implementation of Transmission Lines associated with
Tala HEP, East-North interconnector and Northern Region Transmission System.
This was POWERGRID’s first public - private partnership in Power Transmission.
POWERGRID and TATA POWER are the Joint Venture Partners in this Joint Venture
Company and hold 49% and 51% equity, respectively. As on 31.03.2010, POWERLINKS
has Authorized share capital of Rs.4836.000 millions and paid-up capital of
Rs.4,68,00,00,000/- out of which POWERGRID holds Shares of Rs.2293.200 millions
and TATA POWER hold shares of Rs.2386.800 millions. POWERLINKS successfully
commissioned the project in August, 2006. POWERLINKS has given a dividend of 18
% for Fiscal 2010.
JAYPEE POWERGRID
Limited (JPL):
Main
Objective and Capital Structure
The main objective
of the Company is to implement a transmission system to evacuate power to be
generated by 1000 MW Karcham Wangtoo Hydro Electric Power Project in Kinnaur
District in Himachal Pradesh. The power under the system is to be evacuated
from Wangtoo to Abdullapur. During the year, Jaiprakash Hydro Power Limited,
the main JV partner got merged with Jaiprakash Power Ventures Limited. As on
31.03.2010, JPL has Authorized share capital of Rs. 300 millions and paid-up
capital of Rs.1750 millions divided into 17,50,00,000 equity shares of Rs.10
each. Jaiprakash Power Ventures Limited and POWERGRID individually holds 74%
and 26%, respectively as on 31.03.2010. The Company has got the Transmission
Licence in Oct. 2007. Since the project is under implementation, there is no
operating profit.
Torrent Powergrid
Limited (TPL):
Main
Objective and Capital Structure
The main objective
of the Company is to establish transmission system associated with 1100MW Gas
Based project being implemented by Torrent Power Generation Limited (TPGL) at
Akhakhol in Surat District of Gujarat. POWERGRID and Torrent Power Transmission
Private Limited are the Joint Venture Partners in this Company and hold 26% and
74% equity, respectively. As on 31.03.2010, TPL has Authorized share capital of
Rs.1250 millions and paid-up capital of Rs.900 millionss. The Company has got
the Transmission License in May, 2007. Since the project is under
implementation, there is no operating profit.
Parbati Koldam
Transmission Company Limited
POWERGRID entered
into a Joint Venture Agreement on 23rd November, 2007 with Reliance Energy
Limited (REL) now Reliance Infra, for implementation of transmission lines
associated with Parbati-II (800 MW) HEP and Koldam (800 MW) HEP. The Company
named ‘Parbati Koldam Transmission Company Limited’ existing with POWERGRID to
take up implementation of Parbati and Koldam Transmission systems through Joint
venture route was converted to JVC. As on 31.03.2010, PKTL has Authorized share
capital of Rs.1980 millions and paid-up capital of Rs.130.500 millionss.
The Company has
got the Transmission License in September, 2008 and financial closure process
for the project is underway. Accordingly, there is no operating profit.
Teestavalley Power
Transmission Limited
POWERGRID entered
into a Joint Venture Agreement with Teesta Urja Limited on 23rd November, 2007
on 26%
equity -POWERGRID
and 74% equity Teesta Urja Limited (TUL) for implementation of transmission
lines (i) Teesta- III to Mangan pooling station 400kV D/C line; and (ii) Mangan
pooling station to New pooling station at Kishanganj 400k/V D/C line associated
with 1200 MW Teesta-III Hydro Electric Power Project. The Company has got the
Transmission Licence in Fiscal 2009.
North East
Transmission Company Limited(NETC):
POWERGRID entered
into a Joint Venture Agreement in February, 2009 with ONGC Tripura Power
Project Company Limited (OPTC) and Government of Tripura for establishment of
Transmission Line of 400kV D/C Palatana Bongaigoan Transmission Project
associated with 726 MW Palatana Gas base Power Project in the state of Tripura.
The Joint Venture Company is named ‘North East Transmission Company Limited’.
OTPC, the generating Company is a joint venture of ONGC Limited, Government of
Tripura and Infrastructure Leasing and Finance Services Limited, (ILandFS
Limited). The Company has got the Transmission Licence in Fiscal 2009. As on
31.03.2010, NETC has Authorized capital of Rs.6000.000 Millions and paid-up share capital of Rs.747.200
millions.
National High
Power Test Laboratory Private Limited:
POWERGRID entered
into a Joint Venture Agreement in April, 2009 with equal participation with
NTPC Limited, NHPC Limited and Damodar Valley Corporation for setting up an
On-line High Power Test Laboratory for short circuit test facility in the
country. The Joint Venture Company is named ‘National High Power Test
Laboratory Private Limited’. As on 31.03.2010, the company has Authorized share
capital of Rs.100 millions and paid-up capital of Rs.35.000 millions. Since the
project is under implementation, the income statement is not prepared.
Energy Efficiency
Services Limited:
POWERGRID entered
into a Joint Venture Agreement in November, 2009 with equal participation with
NTPC Limited, Power Finance Corporation Limited and Rural Electrification
Corporation Limited The JV Company will promote measures of Energy efficiency,
Energy Conservation and Climate Change. The Joint Venture Company is named
‘Energy Efficiency Services Limited’. As on 31.03.2010, the company has
Authorized share capital of Rs.1900 millions and capital of Rs.25 millions and
share application money of Rs. 243.750 millions.
Power System
Operation Corporation Limited
Power System
Operation Corporation Limited (POSOCO) was incorporated as a wholly owned
subsidiary of POWERGRID on 20.03.2009. POSOCO, will be responsible for
Independent System Operation. The certificate of commencement of business of
the company has been obtained on 23rd March, 2010. POWERGRID has obtained the
consent of Shareholders under Section 293 (1) (a) of the Companies Act, 1956,
for transfer of the ownership, physical possession and control of movable
assets relating to Regional Load Despatch Centers and National Load Despatch
Center to POSOCO. The book value of the movable assets is approx. Rs.1847.800
millions as on 31.03.2009 and the said transfer will be made on updated book
value of the assets to be transferred as on the date of transfer. Presently,
the finalization of agreements for transfer are in process. The transfer
agreements would be executed on receipt of notification u/s 27(2) of the
Electricity Act, 2003. As on 31.03.2009, POSOCO has Authorized share capital of
Rs.2000 millions and paid-up capital of Rs.5,00,000/-. Pending transfer of
Assets / Liabilities to POSOCO, the revenue, expenses, assets and liabilities
have been depicted as a separate segment. The CERC has through notification
dated 18.09.2009 issued separate regulations for Fees and charges of RLDC and
related matters and revenue of Power System Operation assets has been
recognized based on these norms.
POWERGRID entered
into a Joint Venture Agreement in January, 2008 with IL and FS for development
of Intra-state Transmission/ Sub-transmission projects in different States of
the Country and outside
Byrnihat
Transmission Company Limited
The subsidiary
viz. Byrnihat Transmission Company Limited (“BTCL”) was incorporated on
23.03.2006 to take up
implementation of
Misa Byrnihat Transmission line on JV route. The said Transmission line was
taken up for execution by POWERGRID as a consultancy work. Byrnihat
Transmission Company Limited was not doing any business and has been approved
by the POWERGRID Board to be wound up. The process of dissolution of the same
has been taken up.
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.44.45 |
|
|
1 |
Rs.71.58 |
|
Euro |
1 |
Rs.63.01 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
66 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.