1. Summary Information
|
|
|
Country |
|
|
Company Name |
TORRENT POWER LIMITED |
Principal Name 1 |
Mr. Sudhir Mehta |
|
Status |
Good |
Principal Name 2 |
Mr. S K Barua |
|
|
|
Registration # |
04-044068 |
|
Street Address |
Torrent House, Off |
||
|
Established Date |
29.04.2004 |
SIC Code |
-- |
|
Telephone# |
91-79-26583060/ 5090/ 2658 |
Business Style 1 |
generator |
|
Fax # |
91-79-26582326 |
Business Style 2 |
distributor |
|
Homepage |
Product Name 1 |
electricity |
|
|
# of employees |
6258 [Approximately] |
Product Name 2 |
-- |
|
Paid up capital |
Rs.4,724,483,000/- |
Product Name 3 |
-- |
|
Shareholders |
|
Banking |
Not Available |
|
Public Limited Corp. |
YES |
Business Period |
7 Years |
|
IPO |
YES |
International Ins. |
- |
|
Public |
YES |
Rating |
A [65] |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Holding
Company |
-- |
Torrent Private Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
24,497,500,000 |
Current Liabilities |
8,769,800,000 |
|
Inventories |
1,440,500,000 |
Long-term Liabilities |
31,912,900,000 |
|
Fixed Assets |
65,318,100,000 |
Other Liabilities |
16,257,600,000 |
|
Deferred Assets |
0 |
Total Liabilities |
56,940,300,000 |
|
Invest& other Assets |
5,285,700,000 |
Retained Earnings |
34,877,000,000 |
|
|
|
Net Worth |
39,601,500,000 |
|
Total Assets |
96,541,800,000 |
Total Liab. & Equity |
96,541,800,000 |
|
Total Assets (Previous Year) |
84,128,400,000 |
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
58,232,100,000 |
Net Profit |
8,365,500,000 |
|
Sales(Previous yr) |
43,157,600,000 |
Net Profit(Prev.yr) |
4,078,900,000 |
MIRA INFORM
REPORT
|
Report Date : |
22.06.2011 |
IDENTIFICATION DETAILS
|
Name : |
TORRENT POWER LIMITED |
|
|
|
|
Registered Office : |
Torrent House, Off |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
29.04.2004 |
|
|
|
|
Com. Reg. No.: |
04-044068 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs.4724.483 millions
|
|
|
|
|
CIN No.: [Company
Identification No.] |
L31200GJ2004PLC044068 |
|
|
|
|
TAN No.: [Tax
Deduction & Collection Account No.] |
AHMT02435G |
|
|
|
|
PAN No.: [Permanent
Account No.] |
AACCT0294J |
|
|
|
|
Legal Form : |
Public Limited Liability company. The company’s shares are listed on
the Stock Exchanges. |
|
|
|
|
Line of Business : |
Subject is engaged in the generation and distribution of
electricity. |
|
|
|
|
No. of Employees
: |
6258 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
|
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 158000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having fine track
records. Trade relations are reported
as fair. 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/ Corproate Office : |
Torrent House, Off |
|
Tel. No.: |
91-79-26583060/ 5090/ 2658 |
|
Fax No.: |
91-79-26582326 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Plants : |
|
|
|
|
|
Unit : |
13 A-B, Samhita Warehousing Complex, 2nd Floor, Sakinaka Telephone, Exchange Lane,
Off Andheri-Kurla Road, Sakinaka, Andheri (East), Mumbai-400072 |
|
Tel. No.: |
91-22-6772 0300 / 6772 0347 |
|
Fax No.: |
91-22-2859 1568 / 2850 8927 |
|
|
|
|
Zonal Office : |
Located at:
|
|
|
|
|
Distribution Divisions : |
|
DIRECTORS
As On 31.07.2010
|
Name : |
Mr. Sudhir Mehta |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. S K Barua |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Samir Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pankaj Patel |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Markand Bhatt |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Mr. Murli Ranganathan |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Mr. Kiran Karnik |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. K. Sridhar |
|
Designation : |
Additional Director |
|
|
|
|
Name : |
Mr. Keki Mistry |
|
Designation : |
Additional Director |
|
|
|
|
Audit Committee : |
Mr. Keki M. Mistry Mr. S K Barua Mr. Kiran Karnik Mr. Pankaj Patel |
|
|
|
|
Shareholders’/ Investors’ Grievance Committee : |
Mr. Pankaj Patel (Chairman) Mr. Markand Bhatt Mr. Samir Mehta |
|
|
|
|
Committee of Directors : |
Mr. Samir Mehta (Chairman) Mr. Markand Bhatt Mr. Murli Ranganathan |
KEY EXECUTIVES
|
Name : |
Mr. Rajiv Shah |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 31.03.2011
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
13,007 |
- |
|
|
249,322,865 |
52.77 |
|
|
249,335,872 |
52.78 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
249,335,872 |
52.78 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
28,708,835 |
6.08 |
|
|
4,492,077 |
0.95 |
|
|
7,057,896 |
1.49 |
|
|
76,357,576 |
16.16 |
|
|
8,499,067 |
1.80 |
|
|
125,115,451 |
26.48 |
|
|
|
|
|
|
49,021,822 |
10.38 |
|
|
|
|
|
|
29,999,097 |
6.35 |
|
|
13,720,982 |
2.90 |
|
|
5,255,084 |
1.11 |
|
|
3,860,000 |
0.82 |
|
|
1,245,872 |
0.26 |
|
|
149,112 |
0.03 |
|
|
97,996,985 |
20.74 |
|
Total Public shareholding (B) |
223,112,436 |
47.22 |
|
Total (A)+(B) |
472,448,308 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
- |
- |
|
Total (A)+(B)+(C) |
472,448,308 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the generation and distribution of
electricity. |
|
|
|
GENERAL INFORMATION
|
No. of Employees : |
6258 [Approximately] |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Bankers : |
Not Available |
|||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||
|
Facilities : |
Note:
Note: Of the above amount of Rs. 29.700 millions (previous year Rs. 16.400
millions) is repayable within one year. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
C.C. Chokshi and Company Chartered Accountants |
|
|
|
|
Holding Company : |
Torrent Private Limited |
|
|
|
|
Enterprises controlled by the Holding Company : |
|
|
|
|
|
Associates : |
|
|
|
|
|
Subsidiaries : |
|
|
|
|
|
Enterprises controlled by the Company : |
|
CAPITAL STRUCTURE
As On 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,000,000,000 |
Equity Shares |
Rs.10/- each |
Rs.20,000.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
472,448,308 |
Equity Shares |
Rs.10/- each |
Rs.4724.483
millions |
|
|
|
|
|
- 249,335,872 equity shares (249322865 equity shares as at 31.03.2009)
of Rs.10/- each fully paid up are held by holding company – Torrent
Private Limited.
- 472,435,808 equity shares (472435808 equity shares as at 31.03.2009)
of Rs.10/- each fully paid up were issued pursuant to the Scheme of
Amalgamation between the erstwhile Torrent Power AEC Limited, Torrent
Power SEC Limited and Torrent Power Generation Limited.
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 |
4724.500 |
4724.500 |
4724.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
34877.000 |
27609.500 |
24173.100 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
39601.500 |
32334.000 |
28897.600 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
31333.100 |
31926.900 |
24760.000 |
|
|
2] Unsecured Loans |
579.800 |
596.100 |
612.500 |
|
|
TOTAL BORROWING |
31912.900 |
32523.000 |
25372.500 |
|
|
Other Fund |
|
|
|
|
|
Service Line and Security Deposits from Consumers |
4240.500 |
3546.700 |
3346.800 |
|
|
|
|
|
|
|
|
DEFERRED TAX LIABILITIES |
2589.400 |
1165.400 |
927.300 |
|
|
|
|
|
|
|
|
TOTAL |
78344.300 |
69569.100 |
58544.200 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
65318.100 |
36382.100 |
31718.600 |
|
|
Capital work-in-progress |
1706.700 |
28671.000 |
28148.800 |
|
|
|
|
|
|
|
|
INVESTMENT |
3579.000 |
1577.900 |
618.800 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1440.500
|
1679.600
|
1658.000 |
|
|
Sundry Debtors |
5429.400
|
4875.900
|
4128.000 |
|
|
Cash & Bank Balances |
11714.300
|
6404.900
|
1858.800 |
|
|
Other Current Assets |
2.700
|
2.700
|
2.700 |
|
|
Loans & Advances |
7351.100
|
4534.300
|
4802.700 |
|
Total
Current Assets |
25938.000
|
17497.400
|
12450.200 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
7986.600
|
7644.500
|
8342.300 |
|
|
Other Current Liabilities |
783.200
|
848.300
|
0.000 |
|
|
Provisions |
9427.700
|
6066.500
|
6049.900 |
|
Total
Current Liabilities |
18197.500
|
14559.300
|
14392.200 |
|
|
Net Current Assets |
7740.500
|
2938.100
|
(1942.000) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
78344.300 |
69569.100 |
58544.200 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
58232.100 |
43157.600 |
36183.200 |
|
|
|
Other Income |
1332.600 |
1496.400 |
1037.700 |
|
|
|
TOTAL (A) |
59564.700 |
44654.000 |
37220.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Electrical Energy Purchased |
13950.400 |
22604.400 |
19324.700 |
|
|
|
Generation, Distribution, Administrative
& Other Expenses |
27252.600 |
13816.200 |
12053.300 |
|
|
|
TOTAL (B) |
41203.000 |
36420.600 |
31378.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
18361.700 |
8233.400 |
5842.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
3143.700 |
1554.800 |
597.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
15218.000 |
6678.600 |
5245.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3353.500 |
1830.500 |
1479.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
11864.500 |
4848.100 |
3765.700 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
3499.000 |
769.200 |
1653.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
8365.500 |
4078.900 |
2112.400 |
|
|
|
|
|
|
|
|
|
Less |
CONTINGENCY
RESERVE |
10.000 |
10.000 |
|
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2291.200 |
1327.800 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
General Reserve |
4000.000 |
2000.000 |
-- |
|
|
|
Proposed Dividend |
1417.300 |
944.900 |
-- |
|
|
|
Corporate Dividend Tax |
235.400 |
160.600 |
-- |
|
|
BALANCE CARRIED
TO THE B/S |
4994.000 |
2291.200 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Components, stores, fuel & spare parts |
16.600 |
7.700 |
1.300 |
|
|
|
Capital Goods |
1869.300 |
319.400 |
2033.900 |
|
|
TOTAL IMPORTS |
1885.900 |
327.100 |
2035.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
17.71 |
8.63 |
4.47 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2010 |
30.09.2010 |
31.12.2010 |
31.03.2011 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
4th
Quarter |
|
Sales Turnover |
18245.900 |
17281.800 |
15596.700 |
17221.200 |
|
Total Expenditure |
12304.400 |
12303.400 |
11328.600 |
11727.600 |
|
PBIDT (Excl
OI) |
5941.500 |
4978.400 |
4268.100 |
5493.600 |
|
Other Income |
192.700 |
212.100 |
198.100 |
321.700 |
|
Operating
Profit |
6134.200 |
5190.500 |
4466.200 |
5815.300 |
|
Interest |
842.200 |
825.800 |
812.100 |
911.100 |
|
Exceptional
Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
PBDT |
5292.000 |
4364.700 |
3654.100 |
4904.200 |
|
Depreciation |
963.200 |
982.000 |
991.000 |
990.600 |
|
Profit
Before Tax |
4328.800 |
3382.700 |
2663.100 |
3913.600 |
|
Tax |
1284.700 |
1156.600 |
671.900 |
517.600 |
|
Reported PAT |
3044.100 |
2226.100 |
1991.200 |
3396.000 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
0.000 |
|
Net Profit |
3044.100 |
2226.100 |
1991.200 |
3396.000 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
14.04
|
9.13
|
5.68 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
20.37
|
11.23
|
10.41 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
13.00
|
9.00
|
8.53 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.30
|
0.15
|
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.27
|
1.46
|
1.38 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.43
|
1.20
|
0.87 |
LOCAL AGENCY FURTHER INFORMATION
HISTORY:
Subject is an integrated power
company engaged in the generation and distribution of electricity in the cities
of Ahmedabad, Gandhinagar and
Highlights:
The key highlights for the financial year 2009-10 are:
All round improvement in the financial performance of the Company
- Increase in Revenue by 34.93% to Rs. 58232.100 Millions
- Increase in PBDIT by 123.01% to Rs. 18361.700 Millions
- Increase in PAT by 105.09% to Rs. 8365.500 Millions
* 1147.5 MW SUGEN Mega Power
Project has been fully commissioned
and was dedicated to the Nation
on 30.09.2009.
* Central Electricity Regulatory Commission (CERC) issued tariff
order for SUGEN for 5 years, ending
31.03.2014.
* T and D losses in Ahmedabad,
Gandhinagar and
* Gujarat Electricity Regulatory Commission (GERC) issued order for Annual Revenue Requirement
(ARR) of FY
2010-11 for Ahmedabad
and Surat Distribution allowing
moderate tariff hike of approximately 2.30%.
* Commenced Distribution Franchisee operations in
* Mega generation projects at Dahej SEZ (DGEN Mega Power Project) and
Unit-40 at SUGEN launched.
* Signed Shareholders' Agreement with Gujarat Power Corporation Limited
for implementation of the 1000+ MW
Coal-Based Power Project at Pipavav,
Dist. Amreli,
* Torrent Energy Limited (TEL)
became the Distribution Licensee for
Dahej SEZ and distribution of power commenced on 04.04.2010.
* Second phase of power transmission line (80 km.
double circuit 400 kV transmission lines) i.e. Gandhar-Dehgam Loop in Loop out (LILO) at
SUGEN commissioned by Torrent Power Grid Limited to facilitate power
supply from SUGEN to Ahmedabad.
ECONOMY AND POWER
SECTOR SCENARIO Economy:
The Indian economy showed modest signs of recovery from Q2 of FY 2009-10
after the worst global financial and economic crisis in 60 years had marred the
world economy in FY 2008-09. The driving force for the economic revival was the
industrial sector comprising mining and manufacturing, which grew at around 10%
in Q2 and Q3 of the FY 2009-10.
The Electricity sector also recovered from the lower growth in FY
2008-09. The year wise growth of electricity sector as compared to growth of
GDP is depicted in the following graph,
which shows a high co-relation between them.
Power Sector Scenario:
Though the availability of power has increased in 11th Five Year
Plan, the power sector
continues to be afflicted by supply shortages. The
country faced energy deficit of
10.10% (Previous Year 11.00%) and peak deficit
of 13.30% (Previous Year 12.00%) in FY 2009-10. Not all of
The FY 2009-10 would also be remembered for many years as the year in
which the power sector
was re-rated handsomely. This was the
result of many initiatives starting from the enactment of the Electricity
Act, 2003 with
forward looking provisions, introduction of open access, setting
up of Regulatory Commissions
at the Centre and States,
modification of the provisions of Mega Power Policy,
formulation of guidelines for
Competitive Bidding of tariff,
facilitation of trading of surplus/
merchant capacity and setting up
of power exchanges. This has attracted many new players into the power sector. The Power Sector is at the cusp
of very large growth in the years to
come provided policies conducive to growth are continued.
(a) Generation:
The total generation capacity
increased to 1,59,398 MW as on
31.03.2010 as compared to 1,47,965 MW on 31st March, 2009, an increase
of merely 7.72%. The total energy available increased by 8.34%
from 6,89,021 MUs in 2008-09 to 7,46,493
MUs in 2009-10. The most notable positive feature of FY 2009-10 has been the
improved supply of gas to power plants for part of the year resulting in
generation of 97 billion units as compared to 73 billion units last year (i.e.
an increase of about 33%). Hydro projects suffered a decline of 8% in 2009-10, mainly due to
monsoon failure.
As against the targeted capacity addition of 78,700 MW
in the 11th Five Year
Plan, the generation capacity
added was 22,301 MW (28.33%) in the
first three years of the plan at an average addition of 7,434 MW per year. Though this capacity addition is low,
it is better than the annual capacity addition of 4,236 MW in the 10th Five
Year Plan period. The Private Sector
participation which was
less than 13% in the 10th
Five Year Plan has increased to about 25% in the first
three years of the 11th Five Year Plan
period. To meet
the increasing requirement,
further private sector participation is
being encouraged. In the Financial
Budget 2010, the Government has accorded the highest priority to capacity
addition in the power
sector. The adoption of super critical technology in large capacity power plants, modified Mega Power
Policy and more Ultra Mega Power Projects (UMPPs) will help in capacity
addition. Power Finance Corporation (PFC) has been designated
as the nodal agency by the Government of
India for the development of
UMPPs, each with a capacity of
about 4,000 MW with
the objective of adding large capacity power projects in India. Till
date, four UMPPs have been awarded. PFC
has issued a request for qualification
(RFQ) for developing another 4,000 MW Sarguja UMPP in Chhattisgarh.
Plans to bid out the proposed UMPPs in Tamil Nadu, Orissa and
Andhra Pradesh are also underway.
Availability of fuel
is important both for the higher
utilization of existing plants
and for speedy setting up of new capacities. Domestic coal availability continues
to be an area of concern.
Though linkages are granted
for 80% to 85% of the capacity, supply is normally around 90% of
such linkage. Though
import of coal is allowed, improper
planning at existing plants has resulted in 14,500 MUs of lost
generation in FY 2009-10. The coal blocks
which have been hitherto allocated have not effectively materialized. The
Government of
the look out
for the same. The doubling
of capacity at
Petronet LNG Limited, Dahej and the flow of the KG basin gas has
not entirely met the gas requirement of power sector as the
demand is large and also as imported RLNG is costlier.
(b) Transmission:
During the year, Power Grid
Corporation of India Limited (PGCIL)
enhanced the capacity of the National Grid for inter-regional
transmission of power by 2,300 MW. They added 4,866 ckt Kilometers of
transmission lines during the year
2009-10 for regional transmission systems along with 5,240 MVA of transformation capacity.
Commensurate development of transmission systems is a must not only
for evacuation of power from generation sources but also for
smooth supply through sub-transmission and
distribution infrastructure. Transmission constraints, though
experienced, have been decreasing, and
will further reduce when
the transmission systems
under development are
completed. Consequent to the
successful competitive bidding for UMPPs, high
capacity transmission lines are also being bidded out. Plans are afoot
for creation of high
capacity 'Transmission Highways' to address the
constraints in Right of Way.
Other encouraging initiatives in FY 2009-10 include:
* Bestowing the
responsibility for planning
the power evacuation infrastructure for
projects of 500 MW and above in
Central Transmission Utility.
* Medium term Open Access Facility for a period of 1
to 3 years in the
existing scenario of LTOA for 25 years and STOA of less than a year.
* Transmission tariff will be based on distance and direction instead of
on postal basis as per recent draft regulation of CERC.
* Exemption of transmission charges from the levy of Service Tax.
* Constant review
and revision of UI charges
taking into account
the changing conditions in the power demand scenario.
(c) Distribution:
The Power Distribution sector
remains plagued by high distribution
losses and low cost
recovery thus needing
significant reforms. The
Gol has reformulated the
Accelerated Power Development and Reforms Program (APDRP) with
an aim to improve the distribution network and reduce AT and C
losses to 15% by end of 11 t' Five Year
Plan.
'Power saved is power generated'.
To meet this adage, there is an need
for several measures viz. allocation
of more and more distribution circles to private players through franchisee model,
prevention of theft,
increasing consumer awareness, introduction of energy efficient
equipments, demand side management and time of use charges.
The franchisee initiative, a
public private partnership model has
enabled private sector participation
in this segment
while continuing with government ownership. The success at
Bhiwandi will motivate more states to
adopt this model as this will reduce the AT and C losses as well as improve the
efficiency in distribution. However,
there should be a model Distribution
Franchisee Agreement like model PPA in case of competitive bidding process,
to make the bidding simple, uniform and
faster. In this regard, Planning Commission and the Central Electricity Authority have
initiated steps to develop
the model Distribution Franchisee
Agreement, which is a welcome step.
Another important development is that the developer of SEZ has been
made a deemed licensee
for power distribution
in SEZ, which
will enable expeditious creation of high quality power distribution
infrastructure in SEZs.
(d) Renewable
Energy:
encouraging the development of renewable energy sources by providing
fiscal and other benefits.
The year gone-by has witnessed great fillip in terms of policy measures:
* National Action Plan on Climate
Change (NAPCC) stipulated that minimum renewable purchase standards may be
set at 5% of the total power purchased
in the year 2010 and thereafter be increased by 1% each year for 10 years. The new regulations are expected to
promote new investments in this sector.
* During FY
2009-10, CERC determined generic tariff
for the Renewable Energy sources such as wind, solar,
small hydro, biomass and bagasse based
cogeneration projects, considering PreTax Return on Equity at 19% per annum for
the first 10 years and 24% per annum from the 11th year onwards.
* Gol has conceived and put into effect the
National Solar Mission
for establishment of 20,000 MW of solar power facilities by 2022.
* Gol has
introduced a generation
based incentive for
wind power generation.
* NLDC has notified regulation for issuance and trading of Renewable
Energy Certificates.
(e) Power Trading:
Trading of power is recognized as a distinct license
activity under the Electricity Act,
2003. Of the total quantum
of power
traded in
IEX and PXI, which were hitherto offering day ahead voluntary
participation contracts, launched term ahead contracts like weekly, daily,
day ahead contingency and
Intra-day contracts starting from 15.09.2009.
Additionally, CERC has revised
the trading margin to 7 paise per
unit in case the
sale price of electricity exceeds Rs. 3 per unit as
against 4 paise per unit earlier.
RISKS AND
CONCERNS:
With expected growth
rate exceeding 8% over the next
10 years, it is
estimated that the power demand would soar from 159 GW to more than 300 GW by that time. The key factors driving this
demand will be the manufacturing sector,
residential consumption, Power to All by 2012 and realization
of suppressed demand. However, the following issues scourge
the progress, which need to be
appropriately addressed to match the growing demands:
(a) Gestation
period of a generation Plant:
Generally it takes 5 to 6 years
to conceive and complete a power plant
in the country as compared to 2
to 3 years in
(b) Equipment
Manufacturing Bottleneck:
BHEL the only indigenous supplier
is overbooked and is unable to cope up with
the increased requirements, which
delay the implementation of the
generation projects. However,
new manufacturing facilities
viz. collaboration of L and T
with MHI, Bharat Forge with
Alstom and JSW
with Toshiba and further
capacity addition at BHEL is expected
to improve significantly the
timely supply of critical and long gestation equipments.
(c) Availability
of fuel:
Inadequate domestic supply of quality fuel viz. coal and gas results
in higher electricity price
due to volatility
in fuel prices
in the international market.
(d) Shortage of
Technicians:
This shortage will affect the implementation and operation of the
projects. More technicians are required and hence relevant institutions
including ITI with adequate infrastructure and trainers need to be set up and
upgraded on public-private partnership basis.
(e) The growing
losses of State T and D utilities:
As per the report of 13th Finance
Commission, the loss (net of subsidies)
which was Rs. 183750.000 Millions in FY
2005-06 is expected to increase to Rs. 1160890.000 Millions in FY 2014-15. The
key reason for such increase as per this report
are mainly the inability of state
utilities to enhance operating efficiencies, high cost of short term power and absence of timely
tariff increase. The report
goes on to state that
regulatory institutions in general, lack sufficient capabilities
(which is evident from the fact that
even routine tariff increase have not
taken place in the recent past) and need to be strengthened. The future of Power
Sector is highly dependent on the effective functioning of State Regulators and
such capacity building would be desirable.
(f) Open Access:
The granting of open access based on merit and without discrimination
and the independence of State Load Despatch Centres if ensured would
provide for orderly and fast growth of power sector.
OUTLOOK AND
OPPORTUNITIES:
With forward looking policies and regulations from the Government and
CERC, an encouraging environment has been created for investments in all parts
of electricity supply chain i.e.
generation, transmission and distribution.
The continuing demand-supply gap, which is expected to continue
for at least next
ten years due to increased growth rates,
provides attractive investment
opportunities in all the areas of power sector.
There are significant opportunities in generation
sector for coal based plants
at pithead or at coastal locations and for gas based CCPPs at load centers
or near gas
transportation infrastructure. However,
land acquisition,
environmental clearances and fuel
linkages are not
easily available, leading to longer gestation period for the projects.
Power generation from alternate
sources like hydel, nuclear and
renewable sources remain untapped
to a large extent. Hydel
power potential of 1,50,000
MW is untapped as assessed by the Government of
India. These sources need
to be exploited fully so as to reduce dependence on
fossil fuels and combat the effects of global warming.
Opportunities are also available
in transmission and distribution sectors
once privatization of distribution gathers further momentum. The Government has
already invited competitive bids from private participants for certain EHV
lines for commensurate
development of transmission sector
in tandem with generation.
REVIEW OF
COMPANY'S BUSINESS:
The Company is an integrated utility having interests in power generation, transmission and distribution.
Generation:
SUGEN Mega Power
Project near
The Company fully commissioned
its ambitious SUGEN Mega Power
Project on 15.08.2009, the 63rd
Independence day of
Sabarmati and
Vatva Power Projects at Ahmedabad:
During the year
from its 500 MW capacity, the Company
achieved PAF of 95.81%
and PLF of 93.44% and dispatched 3,785 MUs. The 100 MW Vatva plant signed
gas purchase agreement with
Reliance Industries Limited for
its entire fuel requirement.
Distribution:
Ahmedabad and
The sales were higher at 8,045 MUs as against 7,665 MUs during the previous
year, registering a reasonable growth of 4.96%. The T and D loss was marginally
higher at 7.62% as against 7.51% during
the previous year. However, this T and D
loss is one of the lowest in the country. The growth in demand shows an overall
improvement in the economy of these regions. The consumer base for both
the areas as on 31.03.2010 was
20.14 lacs. The overall
peak system demand for these distribution areas during FY 2009-10 was
1,503 MW, which increased by 4.74% as
against 1,435 MW in the previous year.
The Company filed
a petition seeking Tariff
Fixation for Ahmedabad, Gandhinagar and
Bhiwandi:-
The sales were higher at 2,449 MUs as against 2,241 MUs during the
previous year, registering an
impressive growth of
9.28%. The T and D
loss was marginally lower at
19.33% as against 19.46% during the previous year. The growth
in demand is on account of an
overall improvement in the textile market of the area. The consumer base
as on 31.03.2010 was 1.94 lacs. The
peak system demand for this
distribution area was 525 MW during
FY 2009-10, which is marginally lower as against 540 MW in the previous
year.
The Company has been awarded the distribution franchise for
Overall Sales:
The overall sales in FY 2009-10 were at 12,895 MUs as
against 9,907 MUs during
the previous year, registering a growth of 30.16% during the year. Sales
to various categories of consumers during FY 2009-10 as compared to the previous year are as under:
|
Category of consumers |
2009-2010 |
2008-2009 |
||
|
|
MU’s |
% |
MU’s |
% |
|
Residential |
2214 |
17.16 |
2066 |
20.85 |
|
Commercial |
1349 |
10.46 |
1243 |
12.55 |
|
LTP/LTMD |
4555 |
35.32 |
4246 |
42.86 |
|
HT |
2263 |
17.55 |
2227 |
22.48 |
|
Others |
2514 |
19.51 |
125 |
1.26 |
|
Total |
12895 |
100.00 |
9907 |
100.00 |
The highest growth of 8.53% was registered in commercial category, followed
by 7.28%
in LTP/LTMD category and
7.16% in residential
category of consumers. However,
in the HT category marginal
growth of 1.61 %
was witnessed. Other sales include sales to external parties through bilateral contracts, Power Exchange,
Unscheduled Interchange (UI), etc.
The overall financial performance has improved substantially
mainly on account of
inclusion of financials of
SUGEN operations effective
from second quarter of the
year. However, regulated
distribution business
comprising Ahmedabad and Surat
distribution showed decline in profits
due to nominal tariff rise of
1.40% vis-a-vis cost increase mainly on
account of inflation, increasing
yardsticks in normative
parameters despite significant efficiency
improvements including in T and D loss percentage, non-grossing
up of tax
in tariff determination
and other factors.
The depreciation and interest costs have also increased due to inclusion
of
financials of SUGEN
operations, CAPEX at
both Ahmedabad and
Surat Distributions and change in the accounting method of
depreciation. As a result the overall;
* PBDIT increased from Rs. 8233.400 Millions to Rs.18361.700 Millions
* Depreciation increased from Rs. 1830.500 Millions to Rs. 3353.500
Millions
* Interest increased from Rs. 1554.800 Millions to Rs. 3143.700 Millions
* PBT increased from Rs. 4848.100 Millions to Rs. 11864.500 Millions
* PAT increased from Rs. 4078.900 Millions to Rs. 8365.500 Millions
INTERNAL CONTROL
SYSTEMS:
The Company has in place Internal Control Systems
commensurate with its size
and scale of operations. The Company has appointed a reputed firm of Chartered Accountants to carry out Assurance
Audit. It ensures adherence to the policies and systems and mitigation of the
operational risks perceived in respect of major and important risk areas.
Besides the Company has an internal
audit function, which conducts routine audit of activities.
The audit process also includes
review and evaluation of effectiveness of
the existing processes, controls and
compliances. Significant observations including recommendations for improvement of the business processes
are reported to the Audit
Committee. The same are being reviewed by the
Audit Committee along with the status of implementation of the
agreed action plans.
AUDITEED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED ON
31.03.2011
(Rs. in Millions)
|
Particulars |
For the quarter ended on 31.03.2011 |
For the Year Ended on 31.03.2011 |
|
Income |
|
|
|
Net Sales/Income from Operations |
15656.200 |
65356.400 |
|
Other Operating Income |
1565.000 |
2989.200 |
|
Total Income |
17221.200 |
68345.600 |
|
Expenditure |
|
|
|
(a) Power Purchase |
4349.600 |
14758.600 |
|
(b) Fuel Cost |
5367.000 |
23475.000 |
|
(c) Staff Cost |
715.700 |
2731.200 |
|
(d) Depreciation |
990.600 |
3926.800 |
|
(e) Other Expenditure |
1295.300 |
6701.400 |
|
Total
Expenditure |
12718.200 |
51593.000 |
|
Profit from
Operations before Other Income, Interest & Exceptional Items |
4503.000 |
16752.600 |
|
Other Income |
321.700 |
924.600 |
|
Profit before
Interest & Exceptional Items |
4824.700 |
17677.200 |
|
Interest |
911.100 |
3389.000 |
|
Profit after
Interest but before Exceptional Items |
3913.600 |
14288.200 |
|
Exceptional Items |
-- |
-- |
|
Profit from
Ordinary Activities Before Tax |
3913.600 |
14288.200 |
|
Provision for Taxation |
844.900 |
2852.200 |
|
- Current Tax |
[112.600] |
993.500 |
|
- Deferred Tax Liability / (-) Assets |
[214.700] |
[214.700] |
|
Net Profit from
Ordinary Activities After Tax |
3396.000 |
10657.200 |
|
Extraordinary Items |
-- |
-- |
|
Net Profit for
the period |
3396.000 |
10657.200 |
|
Paid up Equity Share Capital (F.V. Rs.10/-
per share) |
4724.500 |
4724.500 |
|
Reserves excluding Revaluation Reserves as
per Balance Sheet of Previous Accounting Year |
0.000 |
43146.800 |
|
Earnings Per Share (EPS) a. Basic & Diluted EPS before Extra
ordinary items for the period, for the year to date and for the previous year
(in Rs.) (Non-annualised) |
7.19 |
22.56 |
|
b. Basic & Diluted EPS after Extra ordinary
items for the period, for the year to date and for the previous year (in Rs.)
(Nonannualised) |
7.19 |
22.56 |
|
Aggregate of
Public Shareholding |
|
|
|
Number of Shares (in Lacs) |
2231.12 |
2231.12 |
|
Percentage of Shareholding |
47.22% |
47.22% |
|
Promoters and
Promoter Group |
|
|
|
Shareholding |
|
|
|
a. Pledged / Encumbered |
|
|
|
- Number of shares (in Lacs) |
73.16 |
73.16 |
|
- Percentage of shares (as a % of the
total shareholding of promoter and promoter group) |
2.93% |
2.93% |
|
- Percentage of shares (as a % of the
total share capital of the company) |
1.55% |
1.55% |
|
b. Non – encumbered |
|
|
|
- Number of shares (in Lacs) |
2420.200 |
2420.200 |
|
- Percentage of shares (as a % of the total
shareholding of promoter and promoter group |
97.07% |
97.07% |
|
- Percentage of shares (as a % of the
total share capital of the company) |
51.23% |
51.23% |
Notes:
1. The figures for the corresponding
periods have been regrouped, wherever necessary, to make them comparable with
the figures for the current periods.
2. The Company operates
only in one business segment viz. Generation, Transmission and Distribution of
Electricity.
3. the company Made an
investment of Rs.2300.000 millions in equity shares of its subsidiary, torrent
energy limited during the quarter.
4. The Audit Committee has
reviewed the above results and the same have been approved by the Board of
Directors in their respective meetings held on 4th May 2011.
5. On 4th May, 2011, the
Board of Directors has recommended normal annual dividend of Rs.3.00 per equity
share of Rs.10/- each fully paid up for the year 2010-11 and special dividend
of Rs.2.50 per equity share of Rs.10/- each fully paid up for the year 2010-11.
The aggregate amount of dividend to be distributed is Rs.3020.000 millions
including Rs.421.500 millions as tax on profit to be distributed.
6. Details of the investor
complaints for the quarter ended on 31st March, 2011: Unresolved at the
beginning of the quarter -Nil , Received during the quarter –15, Disposed off
during the quarter – 15, Unresolved at the end of the quarter – Nil.
|
Statement of Assets and Liabilities [Standalone] [Rs. in millions] |
|
|
Particulars |
31.03.2011 |
|
|
Audited |
|
Share Holders Funds |
|
|
(a) Share Capital |
4724.500 |
|
(b) Reserves and Surplus |
43146.800 |
|
Loan Funds |
|
|
Secured Loan |
28185.100 |
|
Unsecured Loan |
2409.900 |
|
Service line and security
deposit from customers |
4659.200 |
|
Deferred Tax Liability |
3582.900 |
|
Total |
86708.400 |
|
Fixed Assets (Net) |
71519.400 |
|
Investments |
9641.600 |
|
Current Assets Loans
& Advances |
|
|
(a) Inventories |
2634.500 |
|
(b) Sundry Debtors |
6093.000 |
|
(c) Cash and Bank
Balances |
9262.700 |
|
(d) Loans and Advances |
1638.000 |
|
(e) Interest accrued on
investment |
2.100 |
|
Less: Current Liabilities
& Provisions |
|
|
(a) Current Liabilities |
9743.200 |
|
(b) Provisions |
4339.700 |
|
|
|
|
Net Current Assets |
5547.400 |
|
Total |
86708.400 |
FIXED ASSETS:
- Land –
Freehold
- Land -
Leasehold
- Buildings
- Railway
Siding
- Plant and
Machinery
- Transmission
and Distribution Systems
- Electrical
Fittings and Apparatus
- Furniture,
Fixture and Office Equipments
- Vehicles
- Software
WEBSITE DETAILS:
PROFILE:
Torrent Power is one of the leading brands in the Indian power sector, promoted by the Rs. 82000.000 millions Torrent Group – a group committed to its mission of transforming life by serving two of the most critical needs - Healthcare and Power. Torrent Pharmaceuticals Limited, the flagship company of the Torrent Group, is a major player in the Indian pharmaceuticals industry with a vision of becoming a global entity in the arena.
With an all-round experience in generation, transmission and
distribution of power, and a proven track record of implementing large power
projects, Torrent Power is the most experienced private sector player in
Torrent Power foresaw the prospects in the power sector much before the liberalization, when it took-over an ailing power cable company in 1989 (now known as Torrent Cables Limited) and successfully turned it around.
The high points of Torrent’s foray into power however were
the acquisitions of two of the
Torrent has a generation capacity of 1647.5 MW and
distributes over 3 million customer annually in Ahmedabad, Gandhinagar and
The company is currently implementing a 1200 MW gas based
power project at Dahej in
Distribution Franchise business is one area which Torrent Power has been
aggressively pursuing as part of its expansion plans. Torrent Power created
history by entering into the country’s first distribution franchisee agreement
with Maharashtra State Electricity Distribution Company Limited for
FUTURE PROSPECTS:
The Electricity Act 03 has ushered in a new era of long
overdue reforms in the Indian power sector. The enactment of this Act can be
said to be a step towards initiation of various measures to change
The provisions of the Act present new opportunities for growth for the group
such as
- Possibility of taking up new distribution areas
- Undertaking franchisee from existing SEB’s/ New Discom’s
- The group may also venture as second licensee in urban areas
- Explore alternative source of procuring reliable and cheap power from other generating companies
MILESTONES:
A Non-Stop Journey of Excellence
:: 2010-11 ::
- Torrent
Power commences distribution operations in
- Torrent Power and its subsidiary, Torrent Energy Limited, awards EPC contract to Siemens for implementing UNOSUGEN (stand alone 382.5 MW generation plant at its existing SUGEN plant location) and DGEN (1200 MW generation plant at Dahej SEZ) projects
- Torrent Energy Limited, subsidiary of Subject, commenced distribution operations in Dahej SEZ effective from 04.04.2010
:: 2009-10 ::
- All three units of SUGEN Power Plant commissioned; commences commercial production
- Phase II of Torrent Power Grid Limited transmission system commissioned i.e LILO of Dehgam-Jhanor
- Torrent
Power signs distribution franchise agreement with UPPCL for
- Torrent Power signs SHA with GPCL for setting up 1000+ MW coal based plant at Pipavav, district Amreli, Gujarat
:: 2008-09 ::
- Phase I of Torrent Power Grid Limited transmission system commissioned i.e LILO of Vapi-Jhanor
:: 2007-08 ::
- Torrent Power Grid Limited obtains license from CERC to setup the 400kV transmission line
- Torrent
Power signs MOU with GPCL for setting up the 1000+ MW coal based power
project at Pipavav in
:: 2006-07 ::
- Torrent Power bags MoP’s Gold Shield award for two years for outstanding performance in power distribution
- Torrent Power commences distribution operations in
Bhiwandi,
:: 2005-06 ::
- Torrent Power Generation Limited awards EPC contract
for its upcoming SUGEN 1147.5 MW CCPP
to a consortium of Siemens AG and Siemens Limited India; commences construction of its first power block - Torrent Power Generation Limited and Siemens creats a
50:50 JV to provide O and M services to
its SUGEN 1147.5 MW CCPP
:: 2004-05 ::
- Torrent brings together three of its group companies Torrent Power AEC Limited, Torrent Power SEC Limited and Torrent Power Generation Limited under a single, unified brand – Torrent Power
- Torrent Power Generation Limited achieves financial closure
:: 2002-03 ::
- Work
on 1147.5 MW combined cycle mega power project near
:: 2001-02 ::
- The Ahmedabad Electricity Company's turnover crosses the Rs.10 billion mark
:: 1999-00 ::
- The Ahmedabad Electricity Company’s customer base crosses 1 million mark
:: 1998-99 ::
- Torrent acquires management control of The Ahmedabad Electricity Company
- Combined Cycle operations of GTEC commissioned in mid-December 1998
:: 1996-97 ::
· Foundation stone for GTEC laid and Zero date announced
· Torrent acquires management control of Surat Electricity Company
:: 1989-90 ::
· Mahendra Electricals taken over and renamed as ‘Torrent Cables Limited' – Torrent’s initial foray into power
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.44.91 |
|
|
1 |
Rs.72.89 |
|
Euro |
1 |
Rs.64.48 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
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.