1. Summary Information

 

 

Country

India

Company Name

Bangalore Electricity Supply Company Limited

Principal Name 1

Ms. Shamim Banu Mehboojan

Status

Satisfactory

Principal Name 2

Mr. Gogineni Latha Krishna Rao

 

 

Registration #

08-30438

Street Address

K.R. Circle, Bangalore-560001, Karnataka, India

Established Date

30.04.2002

SIC Code

--

Telephone#

91-80-22354929

Business Style 1

Distributors

Fax #

91-80-22354928

Business Style 2

--

Homepage

www.bescom.org

Product Name 1

Electricity

# of employees

--

Product Name 2

--

Paid up capital

Rs. 2,059,500,000/-

Product Name 3

--

Shareholders

Government [Central and State] – 100%

Banking

Vijaya Bank

Public Limited Corp.

No

Business Period

8 Years

IPO

No

International Ins.

-

Public Enterprise

No

Rating

Ba (47)

Related Company

Relation

Country

Company Name

CEO

Note

-

 

2. Summary Financial Statement

Balance Sheet as of

31.03.2010

(Unit: Indian Rs.)

Assets

Liabilities

Current Assets

24,726,656,000

Current Liabilities

17,008,710,000

Inventories

1,050,100,000

Long-term Liabilities

9,776,203,000

Fixed Assets

28,208,004,000

Other Liabilities

18,325,072,000

Deferred Assets

0

Total Liabilities

45,109,985,000

Invest& other Assets

1,634,868,000

Retained Earnings

9,858,871,000

 

 

Net Worth

10,509,643,000

Total Assets

55,619,628,000

Total Liab. & Equity

55,619,628,000

 Total Assets

(Previous Year)

50,453,343,000

 

 

P/L Statement as of

31.03.2010

(Unit: Indian Rs.)

Sales

67,915,850,000

Net Profit

115,897,000

Sales(Previous yr)

61,903,219,000

Net Profit(Prev.yr)

(5,882,432,000)

 

 

 

MIRA INFORM REPORT

 

 

Report Date :

25.01.2011

 

IDENTIFICATION DETAILS

 

Name :

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

 

 

Registered Office :

K.R. Circle, Bangalore-560001, Karnataka

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

30.04.2002

 

 

Com. Reg. No.:

08-30438

 

 

CIN No.:

[Company Identification No.]

U04010KA2002SGC030438

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

BLRB04524C

BLRB05396G

BLRB03804D

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Distributors of Electricity

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba (47)

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

USD 42000000

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well established company having satisfactory track. The company is wholly owned by Government of Karnataka. There appears some accumulated losses recorded by the company. However, trade relations are reported as fair. Payments are reported to be usually correct.

 

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)

India

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 :

K.R. Circle, Bangalore-560001, Karnataka, India

Tel. No.:

91-80-22354929

Fax No.:

91-80-22354928

E-Mail :

Rsridhara48@rediffmail.com

cs_kptcl@yahoo.com

Website :

www.bescom.org

 

 

DIRECTORS

 

As On 28.09.2010

 

Name :

Ms. Shamim Banu Mehboojan

Designation :

Chairman BESCOM and Principal Secretary to GOK, Energy Department

Address :

#81, 5th Cross, 16th Main IAS Officers Colony, MCHS Layout, BTM II Stage, Bangalore – 560076, Karnataka, India

Date of Birth/Age :

23.01.1952

Date of Appointment :

29.07.2010

DIN No. :

01900021

 

 

Name :

Mr. P. Manivannan

Designation :

Managing Director, BESCOM

 

 

Name :

Mr. Gogineni Latha Krishna Rao

Designation :

Director BESCOM and Managing Director, KPTCL

Address :

# 319, 15th Cross, 5th Main, Dollars Colony, Bangalore – 560094, Karnataka, India

Date of Birth/Age :

01.05.1958

Date of Appointment :

18.11.2008

DIN No. :

02391324

 

 

Name :

Mr. P.K. Garg

Designation :

Director BESCOM and IGP, (V and E) KPTCL and All ESCOM

 

 

Name :

Mr. Rajkumar Khatria

Designation :

Commissioner for industries department and director of industries and commerce

Address :

B121, Century Park Apartments 48/26, Richmond Road, Bangalore – 560025, Karnataka, India

Date of Birth/Age :

10.10.1961

Date of Appointment :

02.08.2010

DIN No. :

01787188

 

 

Name :

Mr. Munivenkatappa Govindappa

Designation :

Director , BESCOM and Managing Director, GESCOM

Address :

#313, KHB Colony, 5th Block, 3rd Cross, Koramangala, Bangalore – 560095, Karnataka, India

Date of Birth/Age :

10.08.1954

Date of Appointment :

23.10.2008

DIN No. :

02121178

 

 

Name :

Ms. Parvathy Keshavacher

Designation :

Director BESCOM and Deputy Secretary, Energy Department, GOK

Address :

# 9, 4th Cross, A Block, Dinnur, RT Nagar, Bangalore – 560032, Karnataka, India

Date of Birth/Age :

08.02.1951

Date of Appointment :

11.06.2007

DIN No. :

01891918

 

 

Name :

Mr. Shivamallu Shivamallu

Designation :

Director

Address :

No. 15, 1st Cross, 3rd Main, Srinivasa Garden, Konakunte, Bangalore – 560062, Karnataka, India

Date of Birth/Age :

24.06.1947

Date of Appointment :

15.12.2009

DIN No. :

02926029

 

 

Name :

Mr. Hanumappa Nagesh

Designation :

Whole Time Director

Address :

# 001, No. 15 Cornwell Road, Langford Town, Bangalore – 560025, Karnataka, India

Date of Birth/Age :

20.07.1958

Date of Appointment :

22.07.2008

DIN No. :

02309417

 

 

Name :

Mr. Lepakshi Ravi

Designation :

Director, President, KEB Engineers Association

Address :

68, Lepakashi Sarasawathi Nilaya, 1st Cross, 4th Main, Domlur, 2nd Stage, Bangalore – 560071, Karnataka, India

Date of Birth/Age :

20.02.1955

Date of Appointment :

24.09.2008

DIN No. :

02376999

 

 

Name :

Mr. Munivenkatappa Nagaraj

Designation :

Director

Address :

29/1, 2nd Cross, Kanakanapalya, 4th Block, Jaya Nagar, Bangalore BBMP, Bangalore – 580011, Karnataka, India

Date of Birth/Age :

08.10.1956

Date of Appointment :

17.12.2008

DIN No. :

02893520

 

 

Name :

Mr. Pradeep Sadanand Rajinal

Designation :

Director

Address :

H No. B 104, Jeevanbhima Nagar, Bangalore – 560075, Karnataka, India

Date of Birth/Age :

30.09.1955

Date of Appointment :

08.04.2010

DIN No. :

03043908

 

 

Name :

Mr. Tushar Giri Nath

Designation :

Managing Director

Address :

#20, 8th Main Road, 1st Cross Vasnth Nagar, Bangalore – 560052, Karnataka, India

Date of Birth/Age :

15.12.1968

Date of Appointment :

08.01.2008

DIN No. :

01880265

 

 

Name :

Mr. Alok Mohan

Designation :

Director

Address :

Ulsoor Bg, 1A Tounne House, 6 Haudin Road, Bangalore – 560042, Karnataka, India

Date of Birth/Age :

18.04.1965

Date of Appointment :

24.09.2008

DIN No. :

02377025

 

 

Name :

Mr. Kalaikuruchi Jairaj

Designation :

Chairman

Address :

# 32, 5ht Cross, 16th Main, BTM Layout, 2nd Stage, Bangalore – 560076, Karnataka, India

Date of Birth/Age :

25.05.1952

Date of Appointment :

27.06.2008

Date of Cessation :

29.07.2010

DIN No. :

01875126

 

 

Name :

Sumanth Shankar Rao

Designation :

Director

Address :

#234, 6th Main, Jayanagar, 4th Block, Bangalore – 560011, Karnataka, India

Date of Birth/Age :

01.12.1956

Date of Appointment :

24.09.2008

Date of Cessation :

02.08.2010

DIN No. :

00349212

 

 

Name :

Mr. Prabhakar Kundar Siddachar

Designation :

Director

Address :

116-117, Suhashree IC Cross, 5th Block, BSK 3rd Stage, Bangalore – 560085, Karnataka, India

Date of Birth/Age :

22.06.1953

Date of Appointment :

15.09.2009

Date of Cessation :

08.04.2010

DIN No. :

02440600

 

 

Name :

Mr. Vishal Ravi

Designation :

Director

Address :

No. 14, Jituri Plots Manjunath Nagar Cross, Gokul Road, Hubli – 580030, Karnataka, India

Date of Birth/Age :

28.05.1977

Date of Appointment :

07.03.2009

Date of Cessation :

15.12.2009

DIN No. :

01819320

 

 

Name :

Mr. V.M. Chandre Gowda

Designation :

Director

Address :

#415, 5th Cross, 4th main, 3rd Phase, J.P Nagar, Bangalore – 560078, Karnataka, India

Date of Appointment :

14.09.2005

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

As On 28.09.2010

 

Names of Shareholders

 

No. of Shares

Shamim Banu Mehboojan

 

205949994

Aditi Raja

 

1

Tushar Giri Nath

 

1

Sreekantaiah Pratap Kumar

 

1

Hanumappa Nagesh

 

1

Parvathy Keshavachar

 

1

Gogineni Latha Koduri Venkata Rama Rao

 

1

Total

 

205950000

 

As On 28.09.2010

 

Category

Percentage

Government [Central and State]

100.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Distributors of Electricity

 

 

GENERAL INFORMATION

 

Bankers :

·         Vijaya Bank, K G Road Branch, Bangalore – 560009, Karnataka, India

·         South Indian Bank

·         Bank of India

·         Bank of Baroda

·         Canara Bank

·         Syndicate Bank

 

 

Facilities :

Secured Loans

31.03.2010 (Rs. In Millions)

31.03.2009 (Rs. In Millions)

Loans from Rural Electrification Corporation Limited, New Delhi.

21.992

91.246

Loans from Rural Electrification Corporation Limited, New Delhi. -

APDRP Counter part funding

(Secured by Hypothecation of all existing unencumbered moveable properties including machinery, equipments, machinery spares, tools, implements, and accessories installed / created / erected and all future moveable including machinery, equipments, machinery spares, tools, implements, and accessories installed / created / erected in future and its stock of materials equipments bought or to

be bought out of the loan amount at 9.5% and 11.25% interest rates. )

1398.860

1587.988

Term Loans from Commercial Banks

 

 

UCO Bank loan

(Exclusive first Charge by way of hypothecation of plant, equipments and Machinery. The terms of repayment are 10 half yearly installments with two years moratorium and repayable over 7 years from the date of first disbursal of the loan availment @ 9.10% interest. Interest servicing is to be carried out on monthly basis)

-

53.639

State Bank of India loan

 

Secured by way of hypothecation of all existing and unencumbered present and future goods, book debts and all other movable assets of the Borrower including documents of the title to the goods, outstanding money, receivables including receivables by way of cash assistance and / or cash incentive under the Cash Incentive

Scheme or any other Scheme claims including claims by way of refund of customs/excise duties under the duty drawback credit scheme or any other scheme, bills invoices, documents , contracts , insurance policies, guarantees , engagements , securities,

investments and rights and the present machinery listed in the

schedule hereunto and all future machinery belonging to or in the

possession or under the control of the borrower wherever lying stored (including all such goods, other movable assets as may be in course of shipment transit or delivery) by way of first charge (subject, however to any charge in favour of any third party which may have been notified by the borrower and accepted by the Bank as having priority over its own charge) as security. At vario (The terms of Repayment are 24 Quarterly equal installments with one year moratorium repayable over 7 years from the date of first drawal of the loan availment. Interest servicing is to be carried out on monthly basis at the rate of 8.9%, 9% & 9.70% per annum)

728.058

1121.058

Oriental Bank of Commerce:

 

Secured by way of hypothecation of all existing and unencumbered present and future goods , book debts and all other movable assets of the Borrower including documents of the title to the goods, outstanding moneys , receivables including receivables by way of cash assistance and / or cash incentive under the Cash Incentive

Scheme or any other Scheme claims including claims by way of

refund of customs/excise duties under the duty drawback credit scheme or any other scheme, bills invoices, documents , contracts , insurance policies, guarantees , engagements , securities,

investments and rights and the present machinery listed in the

schedule hereunto and all future machinery belonging to or in the possession or under the control of the borrower whrerever lying stored (including all such goods, other movable assets as may be in course of shipment transit or delivery) by way of first charge (subject, however to any charge in favour of any third party which may have been notified by the borrower and accepted by the Bank as having priority over its own charge) as security. Interest @ 7% per annum.

(The terms of Repayment are 24 Quarterly equal instalments with one year moratorium repayable over 7 years from the date of first drawal of the loan availment. Interest servicing is to be carried out on monthly basis)

145.404

228.823

Corporation Bank

 

Secured by way of hypothecation of all existing and unencumbered present and future goods, book debts and all other movable assets of the Borrower including documents of the title to the goods, outstanding money, receivables including receivables by way of cash assistance and / or cash incentive under the Cash Incentive

Scheme or any other Scheme claims including claims by way of refund of customs/excise duties under the duty drawback credit scheme or any other scheme, bills invoices, documents , contracts , insurance policies, guarantees , engagements , securities,

investments and rights and the present machinery listed in the

schedule hereunto and all future machinery belonging to or in the possession or under the control of the borrower wherever lying stored (including all such goods, other movable assets as may be in course of shipment transit or delivery) by way of first charge (subject, however to any charge in favour of any third party which may have been notified by the borrower and accepted by the Bank as having priority over its own charge) as security. Interest @ 9% per annum.

(The terms of Repayment are 24 Quarterly equal installments with one year moratorium repayable over 7 years from the date of first drawal of the loan availment. Interest servicing is to be carried out on monthly basis)

228.685

312.085

Overdraft from Canara Bank

 

Canara Bank has sanctioned Rs.1000.000 millions as overdraft for one year upto 26.02.2011 @ 10%p.a. vide their letter No.CR:NEW / BESCOM / 08-09/KMK dated 5:03:2009.OD is secured by extension of security offered to term loans by way of hypothecation of Fixed assets of the company vlued at Rs..4576.200 millions.

-

-

Overdraft from Syndicate Bank

 

Syndicate Bank has sanctioned Rs.1000.000 millions as overdraft for one year upto 28:02:2011 @ 10%p.a. vide their letter No.LT291/GNR/ADV/2009 dated 21:02:2009. The OD is secured by exclusive charge on the Companies receivables pertaining to allocated Zones/divisions.

-

-

PFC - RAPDRP

The tenure of loan will be 10 years from the date of disbursement including morotorium period of 3 years for both Principal and interest. Interest to be paid as notified by Ministery of Finance from time to time.

781.711

-

Total

3304.710

3394.839

 

Unsecured Loans

31.03.2010 (Rs. In Millions)

31.03.2009 (Rs. In Millions)

Loans from Government - PMGY

(The repayments to be made in 20 annual equal installments together with interest at the rate 12% on the outstanding balance commencing from 2002-2003 pertaining to Rs.4.533 millions and commencing from 2005-06 pertaining to Rs.8.750 millions. However, 50% of loans will enjoy 5 year initial grace period after which repayment of these loans will be effected in 15 annual equal installments.)

13.230

15.435

Loans from Government - APDRP

(The repayments to be made in 20 annual equal installments together with interest at the rate 11.50% on the outstanding balance commencing from 2003-2004. However, 50% of loans will enjoy 5 year initial grace period after which

repayment of these loans will be effected in 15 annual equal installments.)

542.212

583.921

GOK Interest free Loan

 

Government of Karnataka has released interest free loan to BESCOM towards payment to power suppliers for supply of power to State Grid during 2008-09

9.410

1101.345

South Indian Bank - STL

 

(Bullet payment of Rs.1000.000 millions as per terms of sanction from time to time and monthly interest to be serviced regularly at BPLR-6.5% presently 9% per annum.)

999.995

1000.000

Bank of India

(Bullet payment of Rs.2000.000 millions within 90 days from 3:03:2010and monthly interest to be serviced regularly @ 5.25% per annum.)

2000.000

-

Term Loan from PFC

 

(The loan amount is accounted as per the advise of KPTCL and it comprising of various loans with varied terms and conditions. Interest varies from 10.75% - 11%)

40.517

40.517

Loan from Government (through REC) - RGGVY

(The Total repayment period will be 15 years inclusive of 5years moratorium period together with interest @ 5% - 10.4% with quarterly interest)

165.401

165.401

Loan from GoK for Power Sector Automation

14.700

14.700

Loan from GoK Ganga Kalyana.

Loan to be repaid in 10 annual installments commencing from FY 2007-08 carrying interest rate of 11% per annum.

32.460

37.870

Interest accrued and due on APDRP loan from GOK

-

0.593

Overdraft from Bank of Baroda

BOB has sanctioned Rs.1000.000 millions as overdraft for one year upto 24/08/2010 @ 9%p.a., vide

their Ltr.No.CM:BGL:ADV:56/336 dated 18.07.2009

986.701

-

Overdraft from Vijaya Bank

 

Vijaya Bank has sanctioned Rs.1000.000 millions as overdraft for one year upto 8/04/2010 @ 9%p.a., vide their Ltr.No.CD/MC(SAC.12):A:46/2008-09 dated 24:03:2009

1013.346

-

Overdraft from Canara Bank

Rs.1000.000 millions as overdraft for one year upto 26.02.2010 @ 10%p.a. vide their letter No.CR:NEW / BESCOM / 08-09/KMK dated 05.03.2009 and further renewed.

638.799

896.851

Overdraft from Syndicate Bank

Rs.1000.000 millions as overdraft for one year upto 28.02.2010 @ 10%p.a. vide their letter No.LT291/GNR/ADV/2009 dated 21:02:2009 and further renewed.

14.722

801.572

Total

6471.493

4658.205

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

R Subramanian and Company

Chartered Accountant

Address :

S-616, Manipal Centre, # 47, Dickenson Road, Bangalore-560042, Karnataka, India

Tel. No.:

91-80-25585443

Fax No.:

91-80-25597494

E-mail :

partner@pchandrasekar.com

Pan No.:

AAAFR0602F

 

 

CAPITAL STRUCTURE

 

As on 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

250000000

Equity Shares

Rs. 10/- each

Rs. 2500.000 Millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

205950000

Equity Shares

Rs. 10/- each

Rs. 2059.500 Millions

 

 

 

 

 

 

 

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

2059.500

2059.500

2059.500

2] Share Deposit

2100.151

0.151

0.151

3] Reserves & Surplus

9858.871

9063.868

9319.636

4] (Accumulated Losses)

(3508.879)

(3624.776)

0.000

NETWORTH

10509.643

7498.743

11379.287

LOAN FUNDS

 

 

 

1] Secured Loans

3304.710

3394.839

4246.550

2] Unsecured Loans

6471.493

4658.205

920.669

TOTAL BORROWING

9776.203

8053.044

5167.219

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

Services line and security Deposit and Share deposits

18325.072

17401.356

15701.370

 

 

 

 

TOTAL

38610.918

32953.143

32247.876

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

28208.004

25598.561

19334.871

Capital work-in-progress

1634.768

1378.941

1755.278

 

 

 

 

INVESTMENT

0.100

0.100

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
1050.100

1479.899
1127.215

 

Sundry Debtors
17919.759

14803.915
14849.925

 

Cash & Bank Balances
1108.146

595.440
4067.501

 

Other Current Assets
3982.739

4877.653
3489.654

 

Loans & Advances
1716.012

1718.834
2791.067

Total Current Assets
25776.756

23475.741

26325.362

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors
12347.563

11331.634

8897.542

 

Other Current Liabilities
4062.798
5721.517
5930.675

 

Provisions
598.349
447.049
339.418

Total Current Liabilities
17008.710

17500.200
15167.635

Net Current Assets
8768.046

5975.541
1157.727

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

38610.918

32953.143

32247.876

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

67915.850

61903.219

58066.884

 

 

Other Income

1566.186

1463.944

1097.873

 

 

TOTAL                                     (A)

69482.036

63367.163

59164.757

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Purchase of power

60320.261

60870.536

49399.924

 

 

Repairs and maintenance

321.095

370.681

434.521

 

 

Employee cost

4309.099

3399.131

3470.205

 

 

Administrative and other expenses

651.531

608.954

678.089

 

 

Other charges (Debits)

1549.528

2814.012

2304.414

 

 

Prior period credits

(818.453)

(696.731)

526.817

 

 

Reserve for contingencies

0.000

0.000

0.000

 

 

TOTAL                                     (B)

66333.061

67366.583

56813.970

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

3148.975

(3999.420)

2350.787

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

1809.125

1231.703

1720.767

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

1339.850

(5231.123)

630.020

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1219.875

642.509

480.676

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

119.975

(5873.632)

149.344

 

 

 

 

 

Less

TAX                                                                  (I)

4.078

8.800

23.640

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

115.897

(5882.432)

125.704

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(3624.776)

2257.656

2131.952

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(3508.879)

(3624.776)

2257.656

 

 

 

 

 

 

Earnings Per Share (Rs.)

0.56

(28.52)

0.61

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
0.17

(9.28)
0.21

 

 
 

 
 

Net Profit Margin

(PBT/Sales)

(%)
0.18

(9.49)
0.26

 

 
 

 
 

Return on Total Assets

(PBT/Total Assets}

(%)
0.22

(11.97)
0.33

 

 
 

 
 

Return on Investment (ROI)

(PBT/Networth)

 
0.01

(0.78)
0.01

 

 
 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 
2.55

3.41
1.79

 

 
 

 
 

Current Ratio

(Current Asset/Current Liability)

 
1.52

1.34
1.74

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

PERSPECTIVE:

 

BESCOM covers a contiguous area of 41,092 Sq.Kms with a population of 16.800 Millions and serves more than 7.320 millions customers. The total asset is worth Rs.42119.800 millions as on 31.03.2010

 

CONSUMER POPULATION:

 

Consumer population served by BESCOM is steadily increasing and recorded an increase of 4.49% in FY-10 over previous year. The number of consumers existing as on 31.03.2010 stands at 7319869.

 

Category

AS on 31.03.2010

 

Bhagya Jyothi

6,87,512

Domestic Lighting And AEH

49,98,250

Commercial Lighting

6,60,593

LT Power

1,39,276

HT Power

7273

Irrigation Pump Sets

6,50,049

Street Light and Others

82,158

Temporary Power

94,758

Total

73,19,869

 

 

Bankers Charges Report as per Registry

 

 

Name of the company

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Presented By

B.R Vasanth Kumar, Director (Technical), BESCOM

1) Date and description of instrument creating the change

21.12.2005

Common deed of Hypothecation of movable/Assets/ including book debts

Agreement for the term loan – towards capital investment with default escrow agreement

2) Amount secured by the charge/amount owing on the securities of charge

Rs. 500.000 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

Assets purchased or created by the company. All book debts of the company.

Agreement for the term loan- towards capital investments with default escrow agreement

4) Gist of the terms and conditions and extent and operation of the charge.

Term loan rate of Interest at 7% p.a being 3.50% below corporation bank Bench Mark Advance Rate (COBAR) which is 10.50% p.a. present (Floating rate)

 

Repayable in 7 years in 24 quarterly installed with 1 year moratorium period Monthly interest to be paid separately as and when the due debited

5) Name and Address and description of the person entitled to the charge.

Corporation Bank, N.T. Road Branch, Bangalore

6) Date  and brief description of instrument modifying the charge

NA

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.

NA

 

 

Corporate identity number of the company

U04010KA2002SGC030438

Name of the company

BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED

Address of the registered office or of the principal place of  business in India of the company

K.R. Circle, Bangalore-560001, Karnataka, India

This form is for

Creation of charge

Type of charge

Book Debts 

Particular of charge holder

Vijaya Bank, K G Road Branch, Bangalore – 560009, Karnataka, India

E-mail: ban.kgroad1118@vijayabank.co.in

Nature of description of the instrument creating or modifying the charge

Agreement for Demand Cash Credit against Hypothecation of Book Debts

Date of instrument Creating the charge

26.11.2010

Amount secured by the charge

Rs.3000.000 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

Bank Base Rate +0.50% (floating) presently 9.00 % p.a.

 

Terms of Repayment

OD(secured) facility of Rs. 3000.000 millions - facility for a period of 1 year

 

Margin

100%

 

Extent and Operation of the charge

First Charge

Short particulars of the property charged

All of the Borrower's present and future book debts outstanding monies, receivables claims, bills

 

Fixed Assets:

 

·         Land and Rights

·         Building

·         Civil Works (Pipelines, Sewage, Drainage, Water Supply)

·         Other Civil Works

·         Plant and Machinery

·         Lines Cable Networks

·         Vehicles

·         Furniture and Fixtures

·         Office Equipments

 

AS PER WEBSITE

 

History:

 

The erstwhile Mysore State had the enviable and glorious position of establishing the first major hydroelectric generating station for commercial operations at Shivasamudram as early as 1902. The art at that time was still in its infancy, even in the advanced countries. The longest transmission line, at the highest voltage in the world, was constructed to meet the power needs of mining operations at Kolar Gold Fields.

 
The generating capacity of the Shivasamudram Power House gradually increased to 42 MW in stages. To meet the increasing demand for power, the Shimsha Generating Station, with an installed capacity of 17.2 MW, was commissioned in the year 1940. The power demand was ever on the increase, for industries and rural electrification, and additions to generating capacity became imperative. The 1st Stage of 48 MW and 2nd stage of 72 MW of the Mahatma Gandhi Hydroelectric Station were commissioned during 1948 and 1965, respectively.

The State of Karnataka, with availability of cheap electric power, and other infrastructure facilities, was conducive for increased tempo of industrial activity. It became necessary to augment the power-generating capacity by harnessing the entire potential of the Sharavathi Valley. The first unit of 89.1 MW was commissioned in 1964 and completed in 1977.

 
The demand for power saw a phenomenal increase in the mid sixties and onwards with the setting up of many public sector and private industries in the State. As power generation in the state was entirely dependent on monsoon and was subject to its vagaries, the state government set up a coal based power plant at Raichur. The present installed capacity of the power plant at Raichur is 1260 MW. To augment the energy resources of the State, the Kalinadi Project with an installed capacity of 810 MW at Nagahari Power House and 100MW at Supa Dam Power House, with an energy potential of 4,112 Mkwh, were set up.

 
The transmission and distribution system in the state was under the control of the Government of Karnataka (then Mysore) till year 1957. In the year 1957, MSEB was formed and the private distribution companies were amalgamated with Karnataka Electricity Board

 
Till the year 1986, KEB was a profit-making organisation. However, in the subsequent years, like other State Electricity Boards in the country, KEB also started incurring losses, mainly due to the increase in agricultural consumption and due to the implementation of the socio-economic policies of the government.

To improve the performance of the power sector and in tune with the reforms initiated by Government of India, the Government of Karnataka came out with a general policy proposing fundamental and radical reforms in the power sector. Accordingly an Act, namely the Karnataka Electricity Reforms Act was passed by the Karnataka Legislature. The Reform has mandated major restructuring of the Karnataka Electricity Board and its Corporatisation. As part of corporatisation, Karnataka Electricity Board ceased to exit and Karnataka Power Transmission Corporation Limited was constituted from 1st August 1999.

 
As a part of the reforms, the distribution sector was further divided into 4 companies viz. Bangalore Electricity Supply Company Limited – BESCOM; Hubli Electricity Supply Company Limited - HESCOM; Mangalore Electricity Supply Company Limited – MESCOM; Gulbarga Electricity Supply Company Limited - GESCOM. These companies came into existence from 01.06.2002.

 

Profile:

 

In the year 1999, Karnataka embarked on a major reform of the power sector. As a first step, Karnataka Electricity Board (KEB) was dissolved and in its place, the Karnataka Power Transmission Corporation Limited (KPTCL) was incorporated. This was followed by the constitution of Karnataka Electricity Regulatory Commission (KERC) in November 1999.


In the next phase of the reform process, the transmission and distribution business managed by KPTCL were unbundled in June 2002. Four new distribution companies were formed to distribute power in Karnataka.


Subject has taken over the responsibility from KPTCL for the distribution of electricity in 8 districts and commenced its operations from 1st June 2002.


Districts, which are serviced by BESCOM:

 

·         Bangalore Urban

·         Bangalore Rural

·         Kolar

·         Tumkur

·         Chitradurga

·         Davangere

·         Ramnagaram

·         Chikballapura

 

BESCOM covers an area of 41,092 Sq. Kms. with a population of over 139 lacs. The company has three operating zones - Bangalore Metropolitan Area Zone, Bangalore Rural Area Zone and Chitradurga Zone.

 

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 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.45.58

UK Pound

1

Rs.72.79

Euro

1

Rs.62.01

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

6

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

47

 

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

-

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.