MIRA
INFORM REPORT
|
Report Date : |
21.11.2011 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE INFRASTRUCTURE LIMITED |
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Registered
Office : |
H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi
Mumbai 400710, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2011 |
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Date of
Incorporation : |
01.10.1929 |
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Com. Reg. No.: |
11-001530 |
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Capital
Investment / Paid-up Capital : |
Rs.2674.203 Millions |
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|
CIN No.: [Company Identification
No.] |
L99999MH1929PLC001530 |
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|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR16295G |
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PAN No.: [Permanent Account No.] |
AAACB2273R |
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Legal Form : |
A Public Limited Liability company. The companys Shares are Listed on
the Stock Exchange. |
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Line of Business
: |
Distribution of Power Generation of Power Contracting and Computer
Services. |
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|
No. of Employees
: |
8988 (Approximately) |
RATING & COMMENTS
|
MIRAs Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 706700000 |
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Status : |
Good |
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Payment Behaviour : |
Usually correct |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Reliance Anil Dhirubhai Ambani Group. It is a well
established and reputed company having good track records. General financial
position is good. Trade relations are reported as fair. Business is active.
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 September 30, 2011
|
Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
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High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi
Mumbai 400710, Maharashtra, India |
|
Tel. No.: |
Not Available |
|
Fax No.: |
Not Available |
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E-Mail : |
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Website : |
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Corporate Office : |
Reliance Energy
Center, Santacruz (East) Mumbai - 400 055 Maharashtra India |
|
Tel. No.: |
91-22-30099999 |
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Fax No.: |
91-22-30099763 |
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|
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|
Power Stations
: |
Dahanu
Power Station BSES Nagar Dahanu
Road - 401602 Thane, Maharashtra, India Opposite Sancoale
Industrial Estate, Zuarinagar- 403 726, Sancoale Mormugao Goa, Maharashtra,
India Samalkot Power Station Industrial
Development Area, Peddapuram Mandal, Samalkot- 533 440 Andhra Pradesh, India Wind Farm Near Almangala-
577 558, Chitradurga, District Karnataka, India |
DIRECTORS
As on 31.03.2011
|
Name : |
Mr. Anil D.
Ambani |
|
Designation : |
Chairman |
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|
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|
Name : |
Mr. Satish Seth |
|
Designation : |
Vice Chairman |
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Name : |
Mr. S C Gupta |
|
Designation : |
Director (Operations) |
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|
Name : |
Mr. Lalit Jalan |
|
Designation : |
Whole time
Director |
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|
Name : |
Mr. V P Malik |
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Designation : |
Director |
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|
Name : |
Mr. S L Rao |
|
Designation : |
Director |
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|
Name : |
Dr. Leena
Srivastava |
|
Designation : |
Director |
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|
Name : |
Mr. R. R. Rai |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ramesh Shenoy |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2011
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
|
|
|
|
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
663378 |
0.25 |
|
|
126963612 |
48.44 |
|
|
127626990 |
48.70 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
127626990 |
48.70 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
7531775 |
2.87 |
|
|
1474148 |
0.56 |
|
Central Government / State
Governments |
76938 |
0.03 |
|
|
46363615 |
17.69 |
|
|
39634398 |
15.12 |
|
|
95080874 |
36.28 |
|
|
|
|
|
|
7606995 |
2.90 |
|
|
|
|
|
|
28583726 |
10.91 |
|
|
1466541 |
0.56 |
|
|
1729363 |
0.66 |
|
|
1729363 |
0.66 |
|
|
39386625 |
15.03 |
|
Total Public shareholding (B) |
134467499 |
51.30 |
|
Total (A)+(B) |
262094489 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
|
|
|
Public |
1575773 |
-- |
|
Total (A)+(B)+(C) |
263670262 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal
share capital up toBUSINESS DETAILS
|
Line of Business : |
Distribution of Power Generation of Power Contracting and Computer
Services. |
|
|
|
|
Products : |
Distribution of Power
Generation of Power
Contracting |
GENERAL INFORMATION
|
No. of Employees : |
8988 (Approximately) |
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Bankers : |
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Facilities : |
Security: (a) Non Convertible
Debentures are secured by way of a first charge, ranking pari passu with the
charges created in favour of the Companys existing and proposed Lenders on Companys
fixed assets, both present and future, located at its plants at Dahanu,
Samalkot and Goa and specific premises at Hyderabad and Mumbai (b) Working capital loans
are secured by way of first charge on hypothecated stock, book debts and
other current assets of the Company and Buyers Credit is secured by way of pari-passu charge over
stock and book-debts. * Repayable within next 12 months Rs.17164.500 Millions
(Rs.3500.000 Millions)
|
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Banking
Relations : |
-- |
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Auditors 1 : |
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|
Name : |
Haribhakti and Company Chartered Accountants |
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Auditors 2 : |
Pathak H D and Associates |
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Subsidiaries (including step down subsidiaries) : |
Reliance Power Transmission Limited (RPTL)
Western Region Transmission (Gujarat) Private Limited
(WRTG)
Western Region Transmission (Maharashtra) Private Limited
(WRTM)
Talcher II Transmission Company Limited (TTCL) w.e.f.
April 27, 2010
North Karanpura Transmission Company Limited (NKTCL)
w.e.f. May 20, 2010
Reliance Infraventures Limited (RInvL)
BSES Kerala Power Limited (BKPL)
Noida Global SEZ Private Limited (NGSPL)
Reliance Energy Trading Limited (RETL)
Mumbai Metro One Private Limited (MMOPL)
Parbati Koldam Transmission Company Limited (PKTCL)
Delhi Airport Metro Express Private Limited (DAMEPL)
CBD Tower Private Limited (CBDTPL)
Tulip Realtech Private Limited (TRPL)
Reliance Energy Generation Limited (REGL)
Reliance Energy Limited (REL)
Reliance Property Developers Limited (RPDL)
Reliance Goa and Samalkot Power Limited (RGSPL)
DS Toll Road Limited (DSTL)
NK Toll Road Limited (NKTL)
SU Toll Road Private Limited (SUTL)
TD Toll Road Private Limited (TDTL)
TK Toll Road Private Limited (TKTL)
GF Toll Road Private Limited (GFTL)
KM Toll Road Private Limited (KMTL)
PS Toll Road Private Limited (PSTL)
HK Toll Road Private Limited ( HKTL) w.e.f. May 19, 2010
DA Toll Road Private Limited (DATL) w.e.f. May 26, 2010
Reliance Cementation Private Limited (RCPL)
Reliance Cement and Infra Private Limited (RCIPL)
Reliance Cement Corporation Private Limited (RCCPL)
Reliance Cement Works Private Limited (RCWPL)
Utility Infrastructure and Works Private Limited (UIWPL)
w.e.f. December 28, 2010
Reliance Concrete Private Limited ( RCoPL) (erstwhile
Reliance Cement Private Limited) w.e.f. March 18, 2011
Reliance Airport Developers Private Limited (RADPL)
Latur Airport Private Limited (LAPL)
Baramati Airport Private Limited (BAPL)
Nanded Airport Private Limited (NAPL)
Yavatmal Airport Private Limited (YAPL)
Osmanabad Airport Private Limited (OAPL)
Reliance Infrastructure Engineers Private Limited (RIEPL)
w.e.f. March 25, 2011
Reliance Sealink One Private Limited ( RSOPL) w.e.f. May
26, 2010 |
|
|
|
|
Associates (including subsidiaries of associates) : |
Reliance Infrastructure Engineers Private Limited (RIEPL)
upto March 24, 2011
Reliance Infrastructure and Consultants Limited (RICL)
Reliance Power Limited (RePL)
Urthing Sobla Hydro Power Private Limited (USHPPL)
Rosa Power Supply Company Limited (ROSA)
Sasan Power Limited (SPL)
Vidarbha Industries Power Limited (VIPL)
Chitrangi Power Private Limited (CPPL)
Tato Hydro Power Private Limited (THPPL)
Siyom Hydro Power Private Limited (SHPPL)
Jharkhand Integrated Power Limited (JIPL)
Coastal Andhra Power Limited (CAPL)
Reliance Coal Resources Private Limited (RCRPL)
Samalkot Power Limited (SaPoL) w.e.f. July 29, 2010
JR Toll Road Private Limited ( JRTL)
Mumbai Metro Transport Private Limited (MMTPL)
Metro One Operation Private Limited(MOOPL) |
|
|
|
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Joint Ventures : |
BSES Rajdhani Power Limited (BRPL)
BSES Yamuna Power Limited (BYPL)
Tamilnadu Industries Captive Power Company Limited
(TICAPCO)
Utility Powertech Limited (UPL) |
|
|
|
|
Investing Party : |
AAA Project Ventures Private Limited (AAAPVPL |
|
|
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Enterprises over which person has significant influence : |
Reliance Natural Resources Limited (RNRL) upto October 14,
2010
Reliance Communications Limited (RComm)
Reliance Innoventures Private Limited(REIL)
Reliance Webstores Limited (RWeb)
Reliance General Insurance Company Limited (RGI)
Reliance Capital Limited (RCap)
Reliance Infratel Limited (RInfTL)
Reliance Infocomm Infrastructure Private Limited (RIIPL)
Reliance Big Entertainment Private Limited (RBig) |
CAPITAL STRUCTURE
As on 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
350000000 |
Equity Shares |
Rs.10/- each |
Rs.3500.000 Millions |
|
8000000 |
Equity Shares with differential rights |
Rs.10/- each |
Rs.80.000 Millions |
|
1550000000 |
Redeemable Preference Shares |
Rs.10/- each |
Rs.15500.000 Millions |
|
42000000 |
Unclassified Shares |
Rs.10/- each |
Rs.420.000 Millions |
|
|
Total |
|
Rs.19500.000
Millions |
Issued :
|
No. of Shares |
Type |
Value |
Amount |
|
247272327 |
Equity Shares |
Rs.10/- each |
Rs.2472.800
Millions |
|
22550000 |
Add : Equity Shares on conversion of warrants |
|
Rs.225.500
Millions |
|
|
Total |
|
Rs.2698.300 Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
244870262 |
Equity Shares |
Rs.10/- each |
Rs.2448.800
Millions |
|
22550000 |
Add : Equity Shares on conversion of warrants |
|
Rs.225.500
Millions |
|
|
Add : Forfeited Shares |
|
Rs.0.400
Million |
|
|
Total |
|
Rs.2674.700 Millions |
Of the above Equity Shares
(i) 138400 Shares were allotted as fully paid up
pursuant to a contract without payment being received in cash
(ii) 80,96,070 Shares were allotted as fully paid up Bonus
Shares by capitalisation of Rs.0.200 Million from Securities Premium Account
and ` 8.08 Crore from General Reserve
(iii) 836790 Shares were allotted on conversion of 7% `B
Class Convertible Debentures
(iv 56100 Shares were allotted on conversion of 8.5% `F
Class Convertible Debentures
(v) 45992760 Shares were allotted on conversion of 12.5%
Fully Convertible Debentures
(vi) 53987736 Shares were allotted on conversion of 15%
Fully Convertible Debentures
(vii) 26041650 Shares were issued by way of Global
Depository Receipts (GDR) through an international offering in U.S.Dollars.
[Out of which outstanding GDRs as at March 31, 2011 - 329323 (323359)]
(viii) 31681580 Shares were issued by way of GDRs on
conversion of Foreign Currency Convertible Bonds(FCCB)
(ix) 108436,850 (85886850) Shares were issued on
Preferential allotment of equity / warrants.
(x) 810057 Shares were issued on Merger with Reliance Energy
Ventures Limited
(xi) 11260000 Shares were bought back
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
2674.700 |
2449.200 |
2260.700 |
|
|
2]Equity Warrants
Issued |
0.000 |
5410.800 |
7834.900 |
|
|
3] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
4] Reserves & Surplus |
174000.400 |
143661.900 |
108978.800 |
|
|
5] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
176675.100 |
151521.900 |
119074.400 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
15839.200 |
14750.000 |
18483.300 |
|
|
2] Unsecured Loans |
23853.700 |
26399.000 |
54838.500 |
|
|
TOTAL BORROWING |
39692.900 |
41149.000 |
73321.800 |
|
|
DEFERRED TAX LIABILITIES |
990.300 |
1577.100 |
1939.500 |
|
|
|
|
|
|
|
|
TOTAL |
217358.300 |
194248.000 |
194335.700 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
62059.700 |
34771.400 |
33401.700 |
|
|
Capital work-in-progress |
6492.500 |
5548.700 |
5644.200 |
|
|
|
|
|
|
|
|
INVESTMENT |
125840.800 |
100195.700 |
121471.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
2903.400
|
2691.500
|
4406.800
|
|
|
Sundry Debtors |
48578.800
|
33457.100
|
15233.300
|
|
|
Cash & Bank Balances |
3710.500
|
3018.200
|
2510.100
|
|
|
Other Current Assets |
17681.200
|
14212.600
|
10120.500
|
|
|
Loans & Advances |
88066.300
|
66639.900
|
55765.600
|
|
Total
Current Assets |
160940.200
|
120019.300
|
88036.300 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
43695.200
|
19229.100
|
16186.400 |
|
|
Other Current Liabilities |
81419.000
|
37238.100
|
30368.600
|
|
|
Provisions |
12860.700
|
9819.900
|
7662.500
|
|
Total
Current Liabilities |
137974.900
|
66287.100
|
54217.500 |
|
|
Net Current Assets |
22965.300
|
53732.200
|
33818.800
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
217358.300 |
194248.000 |
164335.700 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
58062.100 |
63677.600 |
71831.000 |
|
|
|
Income of EPC and Contract Business |
36085.800 |
35219.200 |
25134.300 |
|
|
|
Other Income |
8516.500 |
10183.800 |
12622.600 |
|
|
|
TOTAL (A) |
102664.400 |
109080.600 |
109587.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Electrical Energy Purchased |
27243.100 |
33219.400 |
42539.900 |
|
|
|
Cost of Fuel |
13011.400 |
12198.300 |
11667.800 |
|
|
|
Tax on |
1343.500 |
1541.300 |
1529.600 |
|
|
|
Generation, Distribution, Administration and
Other Expenses |
12100.000 |
10406.800 |
12770.200 |
|
|
|
Expenditure of EPC and Contract Business |
32057.300 |
32624.900 |
23392.300 |
|
|
|
TOTAL (B) |
85755.300 |
89990.700 |
91899.800 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST TAX DEPRECIATION AND AMORTISATION (A-B) (C) |
169091 |
19089.900 |
17688.100 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
2424.500 |
2922.100 |
3305.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX DEPRECIATION AND AMORTISATION (C-D) (E) |
14484.600 |
16167.800 |
14383.100 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
3134.100 |
3198.400 |
2448.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
11350.500 |
12969.400 |
11934.300 |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
541.400 |
1452.500 |
545.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
10809.100 |
11516.900 |
11388.800 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS BALANCE BROUGHT FORWARD |
5984.600 |
6832.000 |
7037.600 |
|
|
|
|
|
|
|
|
|
|
Balance of Profit Transferred on Amalgamation |
0.000 |
0.000 |
711.000 |
|
|
|
|
|
|
|
|
|
Less |
Statutory Reserve and Other Appropriation |
190.600 |
169.600 |
145.500 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
10000.000 |
10000.000 |
10000.000 |
|
|
|
Proposed / Interim Dividend |
1912.500 |
1738.600 |
1576.900 |
|
|
|
Dividend On Equity Shares |
0.000 |
0.000 |
(18.500) |
|
|
|
Corporate Tax on Dividend |
310.300 |
97.800 |
268.000 |
|
|
|
Transfer to Debenture Redemption Reserve |
378.900 |
358.300 |
333.500 |
|
|
BALANCE CARRIED
TO THE B/S |
4001.400 |
5984.600 |
6832.000 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Premium on Redeemable Preference Shares |
1155.000 |
361.900 |
933.500 |
|
|
|
Other Income |
6.800 |
65.000 |
|
|
|
TOTAL EARNINGS |
1161.800 |
426.900 |
933.500 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Fuel Coal |
2419.300 |
2824.400 |
2047.900 |
|
|
|
Components & Spares Parts |
12.100 |
97.600 |
74.000 |
|
|
|
Capital Goods |
331.000 |
124.700 |
263.500 |
|
|
|
Other Materials (including EPC contract materials) |
2573.200 |
15262.800 |
9623.800 |
|
|
TOTAL IMPORTS |
5335.600 |
18309.500 |
12009.200 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share |
|
|
49.45 |
|
|
|
Basic |
43.23 |
51.11 |
|
|
|
|
Diluted |
40.51 |
50.32 |
|
|
QUARTERLY RESULTS
(
Rs. In Millions)
|
PARTICULARS |
|
|
30.06.2011 |
30.09.2010 |
|
|
|
|
1st
Quarter |
2nd
Quarter |
|
|
|
|
UnAudited |
UnAudited |
|
Net Sales |
|
|
36607.100 |
39505.400 |
|
Total Expenditure |
|
|
29645.800 |
32408.900 |
|
PBIDT (Excl OI) |
|
|
6961.300 |
7096.500 |
|
Other Income |
|
|
1092.600 |
1126.300 |
|
Operating Profit |
|
|
8053.900 |
8222.800 |
|
Interest |
|
|
569.700 |
832.600 |
|
Exceptional Items |
|
|
0.000 |
0.000 |
|
PBDT |
|
|
7484.200 |
7390.200 |
|
Depreciation |
|
|
689.300 |
638.400 |
|
Profit Before Tax |
|
|
6794.900 |
6751.800 |
|
Tax |
|
|
2490.000 |
1794.400 |
|
Provisions and contingencies |
|
|
0.000 |
0.000 |
|
Profit After Tax |
|
|
4304.900 |
4957.400 |
|
Extraordinary Items |
|
|
0.000 |
0.000 |
|
Prior Period Expenses |
|
|
0.000 |
0.000 |
|
Other Adjustments |
|
|
0.000 |
0.000 |
|
Net Profit |
|
|
4304.900 |
4957.400 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
10.53
|
10.56
|
10.39
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
19.55
|
20.37
|
16.61
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.09
|
8.40
|
13.06
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.06
|
8.56
|
0.02
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.01
|
0.72
|
1.07
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.17
|
1.81
|
1.62
|
LOCAL AGENCY FURTHER INFORMATION
Financial
Performance
During the year, the Company earned an income of
Rs.102660.000 Millions, against Rs.109080.000 Millions in the previous year.
The Company earned Profit after tax of Rs.10810.000 Millions as compared to
Rs.11520.000 Millions in the previous year. Shareholders equity (Net worth)
increased to Rs.176680.000 Millions from Rs.151520.000 Millions in the previous
year. The factors contributing to the financial performance are discussed more
elaborately in the Management Discussion and Analysis Report which is included
as part of the Annual Report.
MANAGEMENT
DISCUSSION AND ANALYSIS
Subsidiary
Companies
During the year, Utility Infrastructure and Works Private
Limited, Reliance Cement Private Limited and Reliance Infrastructure Engineers
Private Limited, became subsidiaries of the Company.
As per approval granted by the Ministry of Corporate Affairs
vide circular No.02/2011 dated February 8, 2011, copies of the Balance Sheet,
Profit and Loss Account, Report of the Board of Directors and Auditors of the
subsidiary companies are not being attached to the Balance Sheet of the
Company. The financial information of the subsidiary companies as required by
the above circular is disclosed under Financial Information of Subsidiary
Companies, which forms part of the Annual Report.
The Company will make available hard copies of Annual
Accounts of the subsidiary companies and related detailed information to the
shareholders of the Company seeking the same.
The annual accounts of the subsidiary companies will also be
kept for inspection by any shareholders at the Registered Office of the Company
and that of respective subsidiary companies.
Further, pursuant to Accounting Standard (AS) -21 prescribed
under the Companies (Accounting Standards) Rules, 2006 and Listing Agreement as
prescribed by the Securities and Exchange Board of India, Consolidated
Financial Statements presented by the Company include financial information of
subsidiary companies, which forms part of the Annual Report.
Outlook
The Indias GDP is expected to consolidate at 8 per cent in
the financial year 2011-2012 compared to 8.5 per cent in the financial year
2010-11 on account of continuing tightening by the Reserve Bank of India to
manage the inflation. The medium term prospects remain positive due to healthy
expansion in private services, strong consumption in both rural and urban
sectors, acceleration in export demand and strong investment pipeline with
emphasis on infrastructure.
Overall
Review
Reliance Infrastructure is Indias leading private sector
Infrastructure Company, with aggregate group revenues of about Rs.282700.000
Millions (US$ 6.34 billion) and gross fixed assets of Rs.260500.000 Millions
(US$ 5.84 billion). Reliance Infrastructure is ranked amongst Indias leading
private companies on all major financial parameter, including assets, sales,
profits and market capitalisation.
Total Income of Rs.102660.000 Millions
(US$ 2.3 billion), as against Rs.109080.000 Millions in the previous financial
year.
Cash Profit of Rs.13360.000 Millions
(US$ 300 million) against Rs.14350.000 Millions in the previous financial year.
Net Profit of Rs.10810.000 Millions
(US$ 242 million) against Rs.11520.000 Millions in the previous financial year
Cash Earnings per Share for the year of
Rs.50 (US$ 1.1) against Rs.59 in the previous financial year.
Earnings per Share (EPS) of Rs.43 (US$
1) against Rs.51 in the previous financial year.
In order to optimise shareholder value, the Company
continues to focus on in-house opportunities as well as selective large external
projects for its Engineering, Procurement and Construction (EPC) Division. The
EPC Division had an order book position of Rs.296350.000 Millions (US$ 6.6
billion) as on March 31, 2011.
Financial
Review
Reliance Infrastructures total income for the year ended
March 31, 2011 was Rs.102660.000 Millions (US$ 2.3 billion), compared to
Rs.109080.000 Millions (US$ 2.4 billion) in the previous year.
The total income includes earnings from sale of electrical
energy of Rs.58060.000 Millions (US$ 1.3 billion) as compared to Rs.63680.000
Millions (US$ 1.4 billion) recorded last year. The sale of electrical energy
includes income of Rs.3980.000 Millions (US$ 89 million) and Rs.3080.000
Millions (US$ 69 million) from the Samalkot Power Station (SPS) and the Goa
Power Station (GPS) respectively.
The income of the EPC business was Rs.36090.000 Millions
(US$ 809 million), against Rs.35220.000 Millions (US$ 790 million) in the
previous year.
During the year, interest expenditure declined to
Rs.2420.000 Millions (US$ 54 million) as compared to Rs.2920.000 Millions (US$
65 million) in the previous year, The Company had, in order to reflect the true
value of its prime assets, revalued the assets of its Dahanu Power Station as
at April 1, 2003 by Rs.7250.000 Millions (US$ 163 million). In view of this,
the depreciation on such revalued assets is higher by Rs.540.000 Millions (US$
12 million), and the same has been adjusted by withdrawing equivalent amount
from the general reserve, which is credited to the profit and loss account.
The generation plants Samalkot power station, Goa power
station and the wind farm in Karnataka are all eligible for tax holiday under
Section 80IA of the Income-tax Act, 1961 for a total of 10 consecutive years
out of 15 years. Hence, the effective tax rate for the Company as a whole is
governed by Section 115JB of the Income-tax Act, 1961.
The corporate tax liability for the year was Rs.540.000
Millions (US$ 12 million), compared to Rs.1450.000 Millions (US$ 33 million) in
the previous year.
Cash profit for the year was Rs.13360.000 Millions (US$ 300
million) compared to Rs.14350.000 Millions (US$ 322 million) in the previous
year.
Operating profit i.e. profit before depreciation, interest
and tax (PBDIT) was Rs.16910.000 Millions (US$ 379 million) against
Rs.19090.000 Millions (US$ 430 million) in the previous year.
Net profit for the year was Rs.10810.000 Millions (US$ 242
million), against Rs.11520.000 Millions (US$ 258 million) in the previous
financial year.
At its meeting held on May 27, 2011, the Board recommended
payment of dividend of Rs.7.20 per share, aggregating to a pay-out of
Rs.1910.000 Millions (US$ 43 million) (excluding dividend tax) for the year
ended March 31, 2011.
The capital expenditure during the year was Rs.17490.000
Millions (US$ 392 million), primarily on account of expenditure incurred on
acquisition of Toll Road Business Rights and modernizing and strengthening of
the transmission and distribution network.
Total gross assets increased during the year to Rs.105140.000
Millions (US$ 2.4 billion).
One of the promoters, AAA Project Ventures Private Limited,
subscribed to 22.500 Millions equity shares, upon conversion of equivalent
number of share warrants into shares leading to further capital infusion of
approximately Rs.15710.000 Millions (US$ 352 million) into the Company.
The Company ranks among leading Indian private sector
companies in terms of net worth. As on March 31, 2011, the net worth of the
Company stood at Rs.176680.000 Millions (US$ 4.0 billion).
Pursuant to the sanction of the Honble High Court of Bombay
of the scheme of amalgamation between Reliance Infraprojects Limited (RInfL), a
wholly owned subsidiary and the Company, RInfL has been amalgamated with the
Company with appointed date as April 1, 2010. On account of the above
amalgamation, Profit before tax for the year ended March 31, 2011 is higher by
` 45.04 crore
INFRASTRUCTURE
The 11th Plan laid emphasis on development of physical
infrastructure including transport to support the accelerated growth of the
countrys economy. The thrust in the sector has been on augmenting capacity
through technology upgradation and modernisation. In this regard, improving
accessibility to remote and rural areas and enhancing mobility through various
programmes with enlarged participation of private sector have been the
objectives of the 11th Plan.
Roads
India has the second largest road network in the world
totaling 3.3 mn kms. Yet, Indias road network continues to be inadequate with
road densities of 2.83 km/1000 people and 770 kms/1000 square km of road length
versus global average of 6.7 km/1000 people and 840 kms/1000 square kms of road
length. National Highways account for 2.1 per cent of total road network and
carries 40 per cent of road traffic.
In this backdrop, the Government has laid down ambitious
plans for development and upgradation of the domestic road network which
involves 20 km/day of constructing roads and therefore has planned huge
investment for the sector i.e. Rs.6764000.000 Millions (17 per cent of total
infrastructure spending) in the 12th Plan from Rs.2787000.000 Millions in the
11th Plan. Private sector participation through Public-Private-Partnership is
also being actively encouraged to achieve greater efficiencies in development,
operation and maintenance of road networks which is expected to contribute 16
per cent (i.e. Rs.460 billion) of the total road infrastructure spending in the
11th Plan.
Railways
Indian Railways is the worlds second largest rail network
under single management i.e. 95 per cent of the total investment by Central and
State Governments. To scale up capabilities to meet the increasing flow of
traffic, the Government has allocated Rs.2000000.000 Millions in the 11th Plan
which is expected to double i.e Rs.4000000.000 Millions in the 12th Plan in
railways including metro railways. There is growing demand from many states for
setting up metro projects. The allocation for metro railways for the 11th Plan
is Rs.330000.000 Millions whereas the metro projects sanctioned so far alone
would need Rs.700000.000 Millions which is much higher than allocation.
Railways are highly capital intensive projects and the government alone would
not be able to fund the requirement which creates an obvious opportunity for
private players to bid for metro projects and other opportunities in the
sector. A few projects in Mumbai, Delhi and Hyderabad have already been awarded
under Public-Private-Partnership (PPP) route and going forward, there will be
tremendous shift in the investment pattern.
Aviation
Civil Aviation forms a very important infrastructure in
boosting trade and commerce as well as in enhancing overall international
competitiveness. In value terms, nearly 30 per cent of Indias foreign trade is
handled by the airports. India is a very attractive market for airport and
avionics equipment manufacturers, airport developers, service providers,
airline companies, aviation schools, investors and job seekers. The projections
for both passenger and cargo traffic growth, coupled with the deficient and
lagging airport and allied Infrastructure, calls for an need to build and
augment Indias aviation infrastructure.
In India, currently there are 127 airports including 16
international airports, 8 customs declared airports, 79 domestic airports, and
24 civil enclaves at the defense airfields, all of which are being managed by
the Airports Authority of India (AAI). The Government has further identified 35
non-metro airports for development, involving the setting up of terminal buildings,
car parks, and cargo and other airside facilities. From being a near monopoly
service with few operators a decade ago, the sector has now graduated to being
a fiercely competitive industry with the presence of a number of private and
public airlines catering to the different segments of air travelers such as low
cost, business class and charter aircrafts. The private sector is expected to
contribute 64 per cent i.e Rs.230000.000 Millions of the total investment in
airport infrastructure.
Real
Estate
The Indian real estate sector plays a significant role in
the countrys economy which contributes to almost 6 per cent of the countrys
GDP .The government has introduced many reforms such as 100 per cent Foreign
Direct Investment (FDI) allowed in realty projects through automatic approval
route and in case of integrated townships, the minimum area to be developed has
been brought down to 25 acres from 100 acres so as to unlock the potential of
the sector and also meet increasing demand levels.
Power Sector
Indian power sector has witnessed a significant demand
supply gap due to sustained growth of power demand, historical shortfalls in
generation capacity addition (53 per cent shortfall in the 11th Plan) and high
transmission and distribution losses. Consequently, peak load deficit in India
has been in the range of 11-17 per cent in financial years 2000-10 which has
constrained the economic growth of the country. Driven by the need to alleviate
the significant power deficits faced by the country, the Government has
targeted massive investments in entire power sector chain of Rs.8380000.000
Millions in the 11th Plan and Rs.11350000.000 Millions in the 12th Plan.
Generation
India has the fifth largest generation capacity in the
world. The Government of India has set ambitious target that includes Power
for all by 2012 and annual per capita consumption of electricity to rise to
1,000 units by the year 2012. At the beginning of the 11th Plan Indias
installed capacity was about 132 GW which has increased to 175 GW as on March
31, 2011. The Government has planned capacity addition of more than 63 GW and
100 GW during the 11th Plan and 12Ith Plan respectively entailing investment of
Rs.4110000.000 Millions in the 11th Plan and Rs.4950000.000 Millions in the 12th
Plan. The Ministry of Power has undertaken several policy initiatives such as
National Electricity Policy, Ultra Mega Power Project policy, Ultra Mega
Transmission Project policy, etc. to boost private sector participation and the
private sector has responded very positively to these initiatives. Private
sector contribution is expected to be much higher in the 11th Plan i.e. 32 per
cent of expected capacity addition as compared to only 13 per cent in the 10th
Plan.
Transmission
In order to develop the transmission system in the country,
the 11th Plan focuses on formation of National Power Grid which has been
recognized as flagship endeavour towards planned growth of the power sector.
One of the primary reasons for high Transmission and Distribution losses in
India has been the historical neglect of the transmission and distribution
sector in the previous five year plans. This necessitates the fund requirement
of Rs.1400000.000 Millions in the 11th Plan and Rs.2400000.000 Millions in the
12th Plan for developing the transmission system. To meet such a huge resource
requirement and to achieve economy in cost of operation of assets, private
participation is imperative.
Reliance
Energy Energy Distribution Division of Reliance Infrastructure
MUMBAI
DISTRIBUTION BUSINESS
Reliance Energy, the Distribution business division of the
Company, has been in the field of power distribution for over eight decades and
has achieved the distinction of consistently operating its distribution network
at 99.98 per cent reliability.
Revenue
The billing revenue of Reliance Energy for the year was
Rs.50910.000 Millions (previous year Rs.56930.000 Millions) and wheeling
revenue, from migrated customers, was Rs.1230.000 Millions (previous year
Rs.150.000 Millions) based on the tariff determined by Maharashtra Electricity
Regulatory Commission (MERC). The reduction in revenue, as also corresponding
reduction in cost of power purchase, is due to migration of consumers to the
other licensee which supplies electricity using the RInfra network.
System
Demand
The coincident peak demand registered during the year was
1,671 MW as against 1,516 MW during the previous year, growing at 10 per cent.
Network
Augmentation
In order to meet the rising demand, network augmentation is
a continuous process. During the year, High Tension (HT) cable network
increased from 3,651 kms to 3,814 kms with addition of 163 kms and total Low
Tension (LT) cable network increased from 4,713 kms to 4,871 kms with addition
of 158 kms.
During the year under review, the installed capacity of
Power Transformers increased by 80 MVA to 2,832 MVA. The installed capacity of
Distribution Transformers increased by 218 MVA to 4,373 MVA. The Company added
212 new substations, and has 5,596 sub-stations at the end of the year.
Reliance Energy continues to focus on system loss control
through a variety of technical and physical means, some of which are as
follows:
Maintenance of network loading at
optimum loading level.
Refurbishment and replacement of old cables
and distribution transformers.
Installation of capacitors to
reduce inductive loads in the system.
Implementation of Distribution
Management System (DMS)
Monthly meter readings at
various levels in the system and analysis thereof through the process of energy
audit to identify potential areas of improvement.
Vigilance drives in the areas with
higher levels of losses contributed due to power thefts.
Delhi
Distribution Business
The Delhi distribution companies (Discoms), viz., BSES
Rajdhani Power Limited (BRPL) in South and West, and BSES Yamuna Power Limited
(BYPL) in East and Central Delhi are implementing a series of measures aimed at
improving customer service, fulfilling thier corporate social responsibility
and reducing aggregate technical and commercial (ATandC) losses so as to
benefit the consumers from all perspectives. Year 2010-11 witnessed one of the
strongest operating performances by the Delhi Discoms with significant
improvement across major operating parameters.
The ATandC losses have declined steeply from 19.03 per cent
in BRPL and 23.11 per cent in BYPL in 2009-10 to 16.83 per cent and 19.89 per
cent respectively during the year against the MYT target level of 17 per cent
and 22 per cent with reduction of 0.17 per cent and 2.11 per cent for BRPL and
BYPL respectively. The corresponding Transmission and Distribution losses came
down by 1 per cent in BRPL and 2.5 per cent in BYPL. Average overall collection
efficiency was maintained at 101 per cent in BRPL and 102 per cent in BYPL during
the year. This over-achievement entitles BSES to performance incentive
(cumulative up to financial year 2011) of Rs.2940.000 Millions (BRPL-Rs.910.000
Millions, BYPL- Rs.2030.000 Millions).
The Delhi distribution companies registered an aggregate total
income of RS.60580.000 Millions during the year (excluding income from sale of
power aggregating to Rs.14190.000 Millions) against Rs.58650.000 Millions in
the previous year, an increase of nearly 3.3 per cent. The income for the
current year is net of rebate allowed to the domestic consumers pursuant to the
roll back of the tariff hike announced by the Government of National Capital
Territory of Delhi.
The aggregate power purchase cost increased from
Rs.53770.000 Millions (15368 million units at Rs.3.50 per unit) to Rs.71100.000
Millions (16,468 million units at Rs.4.32 per unit), an increase of
Rs.17330.000 Millions (32 per cent) due to higher Bulk Supply Tariff (BST). The
current year purchase cost is net of income from sale of bulk power and related
units. The other operating expenses have either declined, remained constant or
have increased marginally. This was achieved through tighter control and
monitoring of all operating expenses and processes.
The aggregate capital expenditure incurred during the year
amounted to Rs.4710.000 Millions (BRPL- Rs.2940.000 Millions, BYPL- Rs.1770.000
Millions) for the upgradation, strengthening and modernization of the
distribution system. The aggregate net block including current work in progress
stood at Rs.45870.000 Millions. The additional loans sanctioned by various
banks during the year 2010-11 for financing the capital expenditure of the
Discoms aggregated to Rs.5500.000 Millions and disbursement availed was
Rs.7050.000 Millions. The aggregate fund based limits sanctioned by a
consortium of banks for working capital was Rs.5250.000 Millions against which
the utilization was Rs.3150.000 Millions, net of cash and bank balances.
The aggregate consumer base has grown by 0.97 lakh customers
for BRPL and 0.63 lakh for BYPL, bringing combined customers for Discoms to
almost 26 lakh customers.
All the meters are now electronic and all 1711 feeders and
10500 distribution transformers are metered with strong analytics in place. On
reliability front, Average System Availability Index has gone up from 99.85 to
99.87 in BRPL and from 99.84 to 99.88 in BYPL.
Key
functional initiatives of BRPL and BYPL
External Interface
Increased frequency and transparency of
interactions with external stakeholders such as resident welfare associations,
government officials, the regulator and the media.
Knowledge sharing with delegates from
Afghanistan, Bangladesh, Pakistan and many more with the Ministry of Power.
Many new initiatives aimed at Customer
satisfaction:
Vishisht Sahyogi BSES Brand
Ambassadors
BSES
Aap Ke Dwar RWA interactions
Project Arpan- Clothes distribution to
the poor
Vivad Samadhan Schemes and Lok Adalats
and Amnesty Schemes
Orissa
Distribution Business
The operations of 3 distribution companies of Orissa viz.
Western Electricity Supply Company of Orissa Limited (WESCO), North Eastern
Electricity Supply Company of Orissa Limited (NESCO) and Southern Electricity
Supply Company of Orissa Limited
(SOUTHCO) were constrained by the unremunerative tariffs and
high level of ATandC Loss.
There was no tariff revision for initial 10 years of
privatisation. With an intention to off shoot the rise in the Bulk supply
Price, OERC has increased Retail Supply Tariff (RST) and Bulk Supply Tariff
consecutively for the financial year 2010-11 and financial year 2011-12. With
the recent increase in Bulk Supply Price including Transmission charges, the
average Bulk Supply Tariff of WESCO from Rs.2.18 to Rs.2.88 and that of NESCO
from Rs.2.19 to Rs.2.90 and in the case of SOUTHCO from Rs.1.14 to Rs.1.60
witnessing an all Odissa average increase of 30 per cent, not corresponding to
increase in RST. This has squeezed the margin and further aggravated the
financials of the Discoms.
However, on a Writ filed by some of the consumers
associations, this new revised tariff for the financial year 2011-12 has been
stayed by Honble High Court Orissa. Further to this, there is also an adverse
impact of southward shift in industry consumptions in recent years coupled with
massive village electrification.
The major drawback in Orissa Distribution Tariff and Annual
Revenue Determinations are unrealistic and unachievable loss targets i.e.
difference between actual prevailed loss level vis--vis target loss envisaged
by the Regulatory Commission. The revenue loss on account of not attaining
target loss given by OERC loss reduction trajectory takes out the approved
OandM expenses, leaving the Return on Equity scarcely to meet its Bulk supply
Price and urgent need based OandM expenses.
The Discoms have been seeking support from Regulators and
the State Government to make operations financially viable including amicable
settlement, complete restructuring and rescheduling. The Government of Odissa
has appointed a high level inter- Ministerial Committee to resolve various
chronic issues between Discoms and Grid Corporation of Orissa Limited, the
three Discoms have made a comprehensive presentation and are awaiting the
outcome.
Generation Business
Reliance Infrastructure generates over 941 MW of power
through its power stations located in Maharashtra, Andhra Pradesh, Kerala,
Karnataka and Goa. The Companys power generation units continue to demonstrate
significant improvements across major operational, environmental and safety
performance parameters.
Dahanu Thermal Power Station (DTPS),
flaghship plant of the Company generates 500 MW thermal power in Maharashtra
and has emerged as Indias best thermal power plant with respect to various
operational parameters, The plant has been consistently operating with an
average PLF of more than 100 per cent for the past eight years.
The plant continues to surge ahead on six sigma quality initiatives
for all round improvement in business processes. The station has the
distinction of continuing Integrated Management System (IMS) for Quality ISO
9001:2008, Environment 14001:2004 and OHSAS 18001:2007 certifications. The
station is also certified for ISO-27001 (Information Security Management
System) and SA 8000:2008 Social Accountability certification. This year DTPS
implemented and certified for Energy Management system, BS EN 16001:2009.
Samalkot Power Station operates 220 MW combined cycle
power plant at Samalkot in Andhra Pradesh. The station is certified with
Integrated Management Systems (IMS) covering ISO 9001, ISO 14001, OHSAS 18001,
ISO 27001 and SA 8000 standards.
Goa Power Station operates 48 MW combined cycle
power plant in Goa. The station is certified by DNV for ISO 14001:2004, ISO
9001:2008, ISO 27001:2005 and OHSAS 18001:2007 under the Integrated Management
System.
Kochi Power Station of BSES Kerala Power Limited
(BKPL), the wholly owned subsidiary of the Company, owns and operates the 165
MW naphtha based combined cycle power plant at Kochi in the state of Kerala.
The plant is operated based on the dispatch instructions from its customer,
Kerala State Electricity Board (KSEB).
Wind Farm Project operates 36 windmills with an aggregate generation capacity
of 9.39 MW at Chitradurga in Karnataka. Wind Farm Performance is being
constantly monitored through the SCADA system at the wind farm.
Transmission Business
The Company is developing five transmission projects
worth about Rs.66000.000 Millions making it the largest private player in the
transmission sector. Moreover, the Ministry of Power has notified the
applicability of tariff based competitive bidding for selection of developers
for all transmission projects with some exceptions. So far, eight inter-state
transmission projects have undergone tariff based competitive bidding process.
These projects were identified by the Government of India for development by
private players on a Build, Own, Operate and Maintain (BOOM) basis.
Reliance Power Transmission
Limited (RPTL), a wholly owned subsidiary of the Company, has emerged as
successful bidder in four of these projects approximately worth Rs.45000.000
Millions . With these projects, RPTL is now executing inter state transmission
projects worth approximately Rs.55000.000 Millions. Five more new projects
worth approximately Rs.80000.000 Millions have been notified by the Ministry of
Power recently and are due to undergo the process of tariff based competitive
bidding. RPTL shall be actively participating in the same. Further, huge
investment in intra-state transmission is envisaged to be opened up for private
participation through competitive bidding route. In this direction, Rajasthan
state has identified two projects worth Rs.3000.000 Millions which shall be
awarded through this process.
Western Region System Strengthening
Scheme II (WRSSS II)
Two projects under the scheme
worth approximately Rs.13800.000 Millions were awarded to the Company on BOO
basis. These involve construction, maintenance and operation of 9 transmission
lines of 3,285 ckt kms length for 25 years of license period (6 lines with line
length, of 2,317 ckt kms to be executed by Western Region Transmission
(Maharashtra) Private Limited, and 3 lines with line length of 967 ckt kms by
Western Region Transmission (Gujarat) Private Limited). The scheme will enable
transfer of power from Eastern to Western Region of the
country. The contractual arrangement for the project is in place and all
financing requirements have been tied up. Project implementation is in full
swing at the site and the projects are scheduled for commissioning by end of
second quarter of financial year 2011-12.
One of the transmission lines associated with WRSSS - II in
the state of Maharashtra, namely LILO of Solapur Karad with line length of 116
kms was commissioned on January 21, 2011. This is the first ever 100 per cent
privately owned transmission line in India to achieve commercial operation. The
line is commissioned in a record time of 15 months much ahead of schedule and
revenue generation has commenced from this line since January 2011. Another
transmission line in the Gujarat region, namely Limbdi - Vadavi has been
completed and all requisite clearances have been obtained. Line is ready for
commissioning and process of interconnection of the line with the substation is
underway.
Substantial progress has been made in the remaining lines of
the project, despite facing several Right of Way and Forest issues. 73 per cent
progress in the Maharashtra project and 84 per cent in Gujarat project has been
achieved so far. In quantitative terms, around 3,300 tower foundations have
been laid, more than 2,600 towers have been erected and about 400 kms of
stringing has been completed.
Parbati Koldam Transmission Corporation Limited
The project, awarded to the Company is a Joint venture with
Powergrid Corporation of India Limited involving construction, maintenance and
operation of 400 KV Transmission lines from 800 MW Parbati-II HEP (being constructed
by National Hydro Power Corporation Limited) and 800 MW Koldam HEP (being
constructed by NTPC Limited) hydro projects in Himachal Pradesh. It entails
construction of three lines- two single circuit lines from Parbati-II to Koldam
and one double circuit line from Koldam to Ludhiana with total line length 480
ckt kms. The power evacuated from these stations shall be utilized by 13
beneficiaries of Northern Region states of Uttar Pradesh, Rajasthan, Punjab,
Haryana, Jammu and Kashmir, Himachal Pradesh, Delhi, Chandigarh and
Uttarakhand. The Company has entered into bulk power transmission agreements
with all of these beneficiaries. Transmission License has been granted by CERC.
Indemnification Agreement has been signed with the generator i.e. National
Hydro-electric Power Corporation Limited (NHPC) with December 2012 as zero
date. Statutory approvals like approvals under Section 68 and Section 164 and
aviation clearances are in place. StageI forest clearance has also been
received for all the transmission lines. Loan sanctions have been received for
project to be funded by Power Finance Corporation Limited and Rural
Electrification Corporation Limited and Financial Closure achieved in October
2010. Thereafter, CERC approval for hypothecation of movable assets and
mortgaging of fixed assets to lenders received in February 2011. The first
disbursement of loan from Lenders is expected in May 2011. The engineering
activities like tower and foundation designs and type testing of towers
completed. The award for tower packages placed and site construction work
started and till date 80 foundations completed with 385 towers and 230 stubs
supplied to site. The site work is progressing with targeted completion
schedule as June 2012 for Koldam Ludhiana and December 2012 for Parbati
Koldam.
Mumbai Transmission
To meet the ever-increasing load growth of the city of
Mumbai, projects worth over Rs.18000.000 Millions were conceptualized for the
internal strengthening of the transmission network of Mumbai. The projects had
received the approvals from the State Transmission Utility (STU) and the
regulatory body, MERC. The projects would boost the transmission network of
Mumbai by augmentation of transmission capacity by 2,625 MVA and addition of
114 ckms of transmission lines.
The projects include commissioning of 8 new 220kV EHV
sub-stations amongst other schemes to improve the availability and reliability
of the network. In the first phase, 5 such EHV sub-stations are under execution
at different locations in Mumbai with 3 of them at Goregaon, Gorai and Saki
being successfully charged in the year. The innovation of the Company was at
its forefront with the vertical configuration of the EHV sub-stations within
the building. This unique vertical designing helped in erection of the
sub-stations in a minimal area of approximately 3,500 sq mtrs which is 10 per
cent of that required for a conventional AIS switchyard. Extremely difficult
and challenging activities such as laying 220 kV cable through the busy streets
of Mumbai were successfully completed as a part of these projects. Works for
the balance projects under execution too are in full swing and would be
commissioned progressively.
A total capital expenditure of approximately Rs.4350.000
Millions was incurred with Rs.2230.000 Millions capitalised in the year. The
Company also received in-principle clearance worth more than Rs.2000.000
Millions in the year from MERC.
On the network availability front too, the Companys network
has not tripped for close to 300 days at a stretch. RInfras transmission
network has registered an all time high availability of 99.76 per cent during
the year as against the regulatory target availability of 98 per cent. The
system also maintained a very high reliability index of 99.997 per cent. This
was possible due to the philosophy of adopting the best practices and the
tireless efforts of thier dedicated team.
North Karanpura Transmission Project
The project was awarded on Build, Own, Operate and Maintain
(BOOM) basis with approximate project cost of Rs.16000.000 Millions. It
involves construction of three 765 kV transmission lines of length of
approximately 800 kms and two 400 kV transmission lines of length of
approximately 250 kms. These lines would connect Lucknow, Bareilly, Meerut,
Agra, Gurgaon, Sipat and Seoni.
The project being executed through a SPV viz. North
Karanpura Transmission Company Limited also involves construction of one
400/220 kV GIS substation at Gurgaon.
Financial Closure for the project has been achieved. Transmission
License for the project has already been received and the project execution has
commenced.
Talcher II Augmentation Project
This project was awarded on BOOM basis with approximate
project cost of ` 900 crore. The project being executed through an SPV viz.
Talcher II Transmission Company Limited comprises of three 400 kV double ckt
transmission lines of 670 kms length. The lines shall connect Talcher,
Rourkela, Behrampur and Gazuwaka. One substation of 400/220 kV at Behampur is
also in scope of execution of the project.
Financial Closure for the project has been achieved.
Transmission License for the project has already been received and project
execution has commenced.
EPC Business
Overview
EPC Division of RInfra undertakes the Engineering, Procurement
and Construction (EPC) turnkey contracts for power generation projects in coal
based thermal and gas, transmission, distribution and road projects. In recent
times, EPC players have to face the following challenges in terms of completing
the projects on fast track basis:
a. Maintaining profitability as well as retention of
skilled and experienced personnel
b. Timely delivery of equipment
c. Handling the contractual disputes of executing
agency
The EPC division however looks at these increased
challenges as opportunities to be capitalised.
The division is equipped with the requisite expertise
and vast experience to undertake the EPC projects and execute them successfully
on standalone basis. It employs state-of-the-art technology in engineering
design and project management to execute its projects.
The division has grown from limited work execution
provider to total solution provider in the Indian power sector. The division
gives utmost priority for implementation of its projects within the stipulated
time frame. The Companys advanced and cost effective Integrated Project
Management and Control System have been contributing significantly for project
execution.
The division has continued to perform well during
2010-11 and the order book position as on March 31, 2011 is Rs.296350.000
Millions.
Turnover for the financial year 2010-11 was at
Rs.35970.000 Millions as against Rs.35220.000 Millions for the financial year
2009-10, while Profit is Rs.3730.000 Millions as against Rs.2840.000 Millions
for 2009-10, registering an increase of 31 per cent.
Ongoing Projects
The EPC division of the Company is executing 7 power
projects aggregating of 9,900 MW, one transmission project of length of 3,285
circuit kms and 6 road projects totalling to 570 kms. The Company has mobilised
more than 25,000 workforce working on various sites including 1,600 engineers.
The EPC division is well positioned for building large power projects and is
developing competencies in other infrastructure sectors such as metro/mono
rails, airports, cement plants, etc.
Major Project Highlights
6 x 660 MW Sasan Ultra Mega Power
Project
Sasan Ultra Mega Power Project was awarded under
tariff based competitive bidding route by CEA and Power Finance Corporation
Limited to Reliance Power Limited (RPower). Sasan Ultra Mega Power Project is
the largest domestic coal based power plant. The project is being executed by
the EPC division of RInfra. Major highlights of the project are:
60 per cent engineering work has been completed
All major packages
have been awarded
General civil works near Boiler Turbine Generator (BTG) area
for all six units are under progress
400 and 765 KV civil
and electrical work is in progress in switchyard area.
3,500 MT boiler, 1,250 MT in Electrostatic Precipitator
(ESP) erection work and 8,000 MT in Bunker and power house fabrication work
completed for two units
Chimney work completed for over 90 meters
Over land conveyor for coal transportation from mines
including the bridge, raw water reservoir and pump house construction work in
progress
2,400 MW Samalkot Combined Cycle
Power Plant - 3 modules (Two Gas Turbine Genarator and One Steam Turbine
Genarator)
RInfras EPC division is executing Indias largest
brown-field gas based combined cycle power plant being set by Samalkot Power
Limited, a wholly owned subsidiary of RPower, at Samalkot, Andhra Pradesh.
Natural gas for this project would be sourced from the KG basin. Notice to
proceed for this project was issued in August 2010.
Major highlights of the project are:
Major orders for gas and steam turbine as also generator
have been placed
Major civil work awarded to Shapoorji Pallonji and Company
Limited
90 per cent packages awarded
Civil work started in January 2011 and 20 per cent progress
achieved
Foundations of all three GTG power blocks under
advanced stage for construction. HRSG, PHB foundation is under progress
2 x 300 MW Butibori Power Project
RPower bagged the prestigious Group Captive Thermal
Power Project (GCPP), the first in the state of Maharashtra. The project was
awarded by the Maharashtra Industrial Development Corporation (MIDC) through
the competitive bidding route. Major highlights of the project are:
80 per cent engineering work completed.
All packages awarded
and Boiler Drum Lifting for both the units completed
Chimney Shell casting
completed till 220 m for both the chimneys
90 per cent of 220 KV
switchyard erection work completed
Raw water reservoir construction completed
BOP packages DM,
FOPH are in advanced stage of construction
2 x 600 MW Raghunathpur Thermal
Power Stations
The project was awarded to RInfra by Damodar Valley
Corporation (DVC) for 2x600 MW Thermal Power Plant at Raghunathpur in West
Bengal. Major highlights of the project are:
Overall progress is 70 per cent in spite of land acquisition
delays and non-conducive local environment
Boiler structure erection completed for both the units
Power house 9,500 MT
erection completed for both the units
400 KV switchyard is
in advanced stage of completion
Chimney construction
work is in progress
2 X 600 MW Rajiv Gandhi Thermal
Power Project, Hisar
This project is a turnkey project awarded by Haryana
Power Generation Corporation Limited for generating power in Haryana. The
project work is in closing stage. Major highlights of the project are:
Trial run for both the units completed and under commercial
operation by HPGCL
Provisional take over
of units is in progress
Performance guarantee tests
of the units under progress
2 x 250 MW Parichha TPP II (Unit 5
and 6) Balance of Plant (BOP) Package
The project was awarded to RInfra by Uttar Pradesh
Rajya Vidyut Utpadan Nigam Limited for 2X250 MW Parichha Thermal Power Plant Ext-II.
Major highlights of the project are:
90 per cent progress achieved
Systems are in advanced
stage of mechanical completion and commissioning under progress.
Projects under Execution
1. Delhi Airport Metro Express
Private Limited
Delhi Airport Express Line project, the first high
speed airport link project was awarded by Delhi Metro Rail Corporation Limited
(DMRC) through a global competitive bidding process on
Public-Private-Partnership (PPP) framework to RInfra led consortium in 2008. A
special purpose vehicle, namely, Delhi Airport Metro Express Private Limited
was incorporated for the implementation, operations and maintenance of the
project.
The metro connects the city centre i.e. New Delhi
railway station to the International Airport and with further connection to
Dwarka. Delhi Airport Metro Express Line became operational in the fourth
quarter of financial year 2010-11 and is also the first PPP metro project to
become operational in India. The project has been built in a record time of 27
months from the date of signing of Concession Agreement with DMRC and has
received an overwhelming response from the commuters. In addition to high speed
connectivity to Airport/Dwarka, the line also is designed to provide city check
in facility, wherein passengers can check in their luggage at the city airport
terminals counters set up at the stations.
2. Mumbai Metro One Private Limited
Versova-Andheri-Ghatkopar (VAG) Corridor Mass Rapid
Transit System (MRTS) project, first metro project in the country was awarded
by Mumbai Metropolitan Region Development Authority (MMRDA) through a global
competitive bidding process on Public-Private-Partnership (PPP) framework to
RInfra led consortium.
A special purpose vehicle, namely, Mumbai Metro One
Private Limited (MMOPL) was incorporated which entails design, financing,
construction, operation and maintenance of the project. The metro will provide
the much needed east to west connectivity and carry about 6 lakh commuters/day
initially at very affordable fares benchmarked to fares charged by Brihanmumbai
Electric Supply and Transport (BEST) Undertaking. The biggest advantage would
be the substantial reduction in travel time from the current 90 minutes to
about 20 minutes along with much improved and comfortable traveling experience.
The project achieved financial closure in 2008 and
all contracts have been awarded. Civil work is going on in full fledged manner
and is in advanced stage of completion. Preparations for operations and
maintenance are also in full swing.
The first train has arrived in Mumbai from China in
April 2010. Factory Acceptance Test of various other rail systems equipment is
largely complete and their delivery to site is in progress. Till date, MMOPL
has obtained Rs.3330.000 Millions of viability gap funding from MMRDA, out of a
total of Rs.6500.000 Millions. Despite various ground constraints, the project
is scheduled to be commissioned before its contractual commissioning date i.e.
September 2012.
Though intense efforts are being made to complete the
project ahead of the contractual commissioning date, several constraints
including the delay in the following is impeding the speedy completion of the
project:
a. Delay in receipt of land and Right of Way to the
project. Even at this stage of the project, some portion of the right of way is
still to be given for carrying out the project execution work.
b. Very narrow and congested right of way in many
locations, encroachments, vast and complex web of underground utilities led to repeated
modifications in project designs repeatedly which had implications on timelines
and project cost.
c. Delay in obtaining clearance for construction of
the bridge across the railway lines at Andheri was the major factor causing
deferment of project timelines. The railway authorities have over the past four
years considerably changed the scope of the construction of the bridge, leading
to change in design to an all steel bridge necessitating construction of a pier
between railway tracks.
Besides, congested roads with high vehicular and
pedestrian traffic and restricted working hours during night in many stretches
due to opposition from residents are also hampering the speedy execution of the
project.
Despite various ground constraints, the project is
scheduled to be commissioned before its contractual commissioning date.
3. Mumbai Metro Transport Private
Limited
Charkop-Bandra-Mankhurd Corridor
Mass Rapid Transit System (MRTS) project was awarded by
MMRDA through a global competitive bidding process on
Public-Private-Partnership (PPP) framework to RInfra led consortium in 2009. A
special purpose vehicle, namely, Mumbai Metro Transport Private Limited (MMTPL)
was incorporated which entails design, financing, construction, operation and
maintenance of the project. This project involves viability gap funding of `
2,298 crore which will be obtained from MMRDA.
The metro will provide the much needed connectivity between
all the suburban lines i.e., VAG corridor at Andheri, Western line at Bandra,
Central Line at Kurla and Harbour Line at Mankhurd and will carry about 14 lakh
commuters/ day initially at very affordable fares benchmarked to fares charged
by BEST. The biggest advantage would be the substantial reduction in travel
time along with much improved and comfortable traveling experience.
MMTPL has achieved financial closure of Rs.70000.000
Millions which is the largest financial closure for a PPP project in the
country. MMTPL has already commenced the initial design and engineering works,
appointment of consultants, obtaining necessary approvals, etc.
Airports
As globalization continues to take hold, the competitiveness
of industry is increasingly relying on airports and aviation infrastructure.
With rising passenger and cargo traffic, the importance of airports as growth
and development catalysts will only increase in the future. With big airports
facing increasing congestion and fierce resistance to expansion plans, the
small and medium-sized sectors have enormous upside. Small and medium-sized
airports are notching up double-digit growth rates and to cash in on this
development Reliance Airport Developers Private Limited (RADPL) has ventured
into this business connecting emerging small towns of India to the rest of the
world.
Airport Projects
RInfra bids for and implements airport projects through the
subsidiary company Reliance Airport Developers Private Limited (RADPL). It has
been awarded lease rights to develop and operate 5 brownfield airports in
Maharashtra at Nanded, Latur, Baramati, Yavatmal and Osmanabad for 95 years for
which upfront premium of Rs.630.000 Millions has been paid. It has also
extended support to Sasan Power Limited, a wholly owned subsidiary of Reliance
Power for developing airstrip / airport at Sasan where a captive power plant is
being developed. These airports are located in regions with strong political,
industrial, agricultural and religious activities and play host to many
national and international dignitaries.
Project Progress
Nanded and Latur Airports have obtained aerodrome license
from the Directorate General of Civil Aviation (DGCA). At Baramati airport, the
terminal building has been refurbished along with a VIP Room facility.
Osmanabad airport terminal building is under construction. Recarpeting and widening
of the runway at Yavatmal airport have been completed and operations by non-
scheduled aircraft have commenced. RADPL has incurred capital expenditure of
Rs.98.800 Millions for refurbishment of these airports till date.
Nanded Airport is connected to Mumbai, Delhi and Nagpur
through commercial scheduled flights by GoAir and Kingfisher Airlines. Apart
from this, charter operations are also increasing at Nanded airport. All other
airports i.e. Latur, Baramati, Yavatmal and Osmanabad host various air charter
/ non scheduled services. As part of ongoing efforts to enhance connectivity to
several other locations in India, various airlines such as Indigo, Jet, Spice
Jet and Deccan Charters have been approached to explore new
routes.
RADPL has adopted aggressive business development
strategies. Both outdoor and indoor advertising opportunities are also being
explored at all the airports. Aviation Training academies are being operated
from 2 airport locations. Terminal retail and hotel development deals are at
advanced stages. Apart from these, RADPL has added innovative revenue streams
at these airports such as automobile testing, film / TV commercials shooting,
aero sports events, airshows, etc.
Cement
During the year under review, Reliance Cementation Private
Limited, the wholly owned subsidiary of RInfra, has achieved certain milestones
towards setting up two plants, one in Maihar, Madhya Pradesh and the other in
Mukutban, Maharashtra. In line with its vision to set up cement plants across
India, it has applied for various mining leases (ML) / prospecting licences
(PL) in the states of Karnataka, Orissa, Chattisgarh, Gujarat and Rajasthan.
Following milestones were achieved at the project sites for
the first two plants:
Madhya Pradesh
Land
Acquisition in mines and plant area is approaching completion
Environmental
Clearance has been received
Mining
lease has been executed for a considerable portion of limestone resources
Letters
of Intent have been issued for remaining area and the mining plans have also
been submitted for statutory approval
No-Objection Certificate has been
received from the Pollution Control Board
Maharashtra
Majority of the required plant and mine
land has been acquired
Applications
for ML for a considerable portion of limestone resources are at advanced stage
of approval
Ministry
of Environment and Forest has approved the project for Environment Clearance
Real Estate / SEZ
RInfra has been working with Andhra Pradesh Industrial Investment
Corporation Limited (APIIC) for restructuring its Hyderabad Trade Tower and
Central Business District (CBD) project, and has been able to obtain most of
the required approvals for the key changes in the project structure. The
restructuring agreements between APIIC and the Companys special purpose
vehicle for the project, viz., CBD Tower Private Limited, subsidiary of RInfra
is expected to be executed during the current year. RInfra is working on
preparation of the master plan and detailed project Report for the project,
which will be submitted to APIIC for its concurrence.
The Company is planning to go ahead with non-speculative
construction, mainly built to suit office spaces, Hotel and some residential
options, and will undertake further components in line with the improvement in
Hyderabad real estate market.
RInfra also has a number of other real estate projects in
various stages of bidding, planning and negotiations. However, in view of the
changed market realities, the Company, being cautious, is taking exposure only
after extensive due diligence of the project economics.
Major Associate Company - Reliance Power Limited
Reliance Power Limited (RPower), an associate company in
which the company has a 38.41 per cent equity stake is currently developing 17
large and medium sized power projects with a combined planned installed
capacity of over 35,000 MW, one of the largest portfolio of power generation
assets under development in India in the private sector. RPower is also
developing some of the largest coal mines owned by it in India and Indonesia
which would ultimately be producing almost 100 MTPA of coal making it one of
the largest integrated power and coal companies in the world.
UNAUDITED
STANDALONE FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER 30,
2011
(Rs. In Millions)
|
Particulars |
Quarter Ended 30.09.2011 |
Half Year ended 30.09.2011 |
|
|
UnAudited |
UnAudited |
|
|
|
|
|
a. Net Sales / Income from Electricity Business |
13403.700 |
28263.700 |
|
b. Income From EPC and Contract Business |
24309.000 |
43157.600 |
|
c. Other Operating Income |
1792.700 |
4691.200 |
|
Total
Operating Income |
39505.400 |
76112.500 |
|
|
|
|
|
Expenditure |
|
|
|
a) Cost of Electrical Purchased |
5853.900 |
12556.400 |
|
b) Cost of Fuel |
3685.300 |
7718.600 |
|
c) Cost of Materials and Sub-contract Charge |
18730.000 |
33755.800 |
|
d) Employee Cost |
2027.500 |
4138.400 |
|
e) Depreciation |
638.400 |
1327.600 |
|
f) Other Expenditure |
2112.200 |
3882.200 |
|
Total
Expenditure |
33047.300 |
63382.200 |
|
|
|
|
|
Profit
From Operations before Other Income (net) and Interest |
6458.100 |
12730.300 |
|
|
|
|
|
Other Income |
1126.300 |
2218.900 |
|
|
|
|
|
Profit Before Interest |
7584.400 |
14949.200 |
|
|
|
|
|
Interest and Finance Charges |
832.600 |
1402.200 |
|
|
|
|
|
Profit
from Ordinary Activities before Tax |
6751.800 |
13547.000 |
|
|
|
|
|
Tax Expense |
|
|
|
-- Current Tax |
1051.000 |
2251.000 |
|
-- Deferred Tax
(net) |
743.400 |
2033.400 |
|
|
|
|
|
Net
Profit after Tax |
4957.400 |
9262.600 |
|
|
|
|
|
Paid-up Equity Share Capital (Face Value of 10/- Each) |
2635.700 |
2635.700 |
|
|
|
|
|
Reserves Excluding Revaluation Reserve |
|
|
|
|
|
|
|
Basic
and Diluted Earning Per Share (EPS) ()-Not Annualised |
|
|
|
a) Basic and diluted EPS before extraordinary items |
18.84 |
34.90 |
|
b) Basic and diluted EPS after extraordinary items |
18.84 |
34.90 |
|
|
|
|
|
Public
Shareholding |
|
|
|
-Number of Shares |
135893272 |
135893272 |
|
- Percentage of Shareholding |
51.57 |
51.57 |
|
|
|
|
|
Promoters
and Promoter Group Shareholding |
|
|
|
a)
Pledged/Encumbered |
|
|
|
- Number of Shares |
Nil |
Nil |
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
Nil |
Nil |
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
Nil |
Nil |
|
|
|
|
|
b)
Non Encumbered |
|
|
|
- Number of Shares |
127626990 |
127626990 |
|
- Percentage of Shares (as a % of the Total Shareholding
of Promoter and Promoter Group) |
100.00 |
100.00 |
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
48.43 |
48.43 |
SEGMENT WISE REVENUE RESULTS
AND CAPITAL EMPLOYED
( Rs. In Millions)
|
Particulars |
Quarter Ended |
Half Year Ended |
|
30.09.2011 |
30.09.2011 |
|
|
UnAudited |
UnAudited |
|
|
Segment Revenue |
|
|
|
- Electricity Business |
15185.300 |
15727.800 |
|
-
EPC
And Contracts Business |
24320.100 |
43208.100 |
|
Total |
|
|
|
|
|
|
|
Less : Inter Segment Revenue ( |
0.000 |
0.000 |
|
Net Sales / Income
from Operation |
39505.400 |
76112.500 |
|
|
|
|
|
Segment Results Tax and Interest from each Segment |
|
|
|
- Electricity Business |
2794.500 |
6620.900 |
|
-
EPC
And Contracts Business |
4128.300 |
6685.900 |
|
Total |
6922.800 |
13306.800 |
|
- Interest and Finance Charges |
(832.6000) |
(1402.200) |
|
- Interest Income |
1252.400 |
1729.400 |
|
- Other Unallocable Income Net of expenditure |
590.800 |
(87.000) |
|
Profit before Tax |
6751.800 |
13547.000 |
|
|
|
|
|
Capital Employed |
|
|
|
- Electricity Business |
68737.800 |
68737.800 |
|
-
EPC And
Contracts Business |
27451.800 |
27451.800 |
|
- Unallocable Assets (net) |
88194.000 |
88194.000 |
|
|
|
|
|
Total |
184383.600 |
184383.600 |
STANDALONE
STATEMENT OF ASSETS AND LIABILITIES
(Rs. In Millions)
|
Particulars |
Quarter Ended |
|
30.09.2011 |
|
|
UnAudited |
|
|
Shareholders funds |
|
|
- Share Capital |
2635.700 |
|
-
Equity
Warrants Issued and Subscribed |
0.000 |
|
-
Reserves and Surplus |
181747.900 |
|
Total |
184383.600 |
|
|
|
|
Loan Funds |
61738.800 |
|
Deferred Tax Liability (net) |
3023.600 |
|
Total |
249145.900 |
|
|
|
|
Fixed Assets |
73704.300 |
|
Investments |
95133.700 |
|
|
|
|
Current Assets, Loans and Advances |
|
|
- Inventories |
2129.800 |
|
- Sundry Debtors |
74603.000 |
|
-
Cash and Bank Balances |
1736.600 |
|
- Other Current Assets |
24344.600 |
|
- Loans and Advances |
114126.100 |
|
Total |
216940.000 |
|
|
|
|
Less : Current Liabilities and Provisions |
|
|
- Current Liabilities |
127355.600 |
|
- Provisions |
9276.500 |
|
Total |
136632.100 |
|
Net Current Assets |
80307.900 |
|
Total |
249145.900 |
Notes :
1. The final
determination in the matter of Standby Charges payable for the years 1998-99 to
2003-04 to The Tata Power Company Limited (TPC) is pending before the Supreme
Court for final hearing. The Company has so far fully accounted the liability
of Rs.5156.000 Millions as determined earlier by Maharashtra Electricity
Regulatory Commission (MERC).
2. The final
determination in respect of the claim by TPC of Rs.3238.700 Millions, along
with interest based on the Orders passed by MERC / Appellate Tribunal for
Electricity (ATE) towards difference in energy charge and minimum offtake
charges for energy supplied by TPC at 220 kV interconnection is pending before
Supreme Court for final hearing. The Company has complied with the interim
order direction of depositing Rs.250.000 Millions with the Registrar of Supreme
Court and providing a Bank Guarantee of Rs.99.800 Millions.
3. Pursuant to the
approval of the Board of Directors for buy-back of Equity shares under Section
77A of the Companies Act, 1956, the Company bought-back 18,00,000 equity shares
during the quarter ended September 30, 2011. Consequently the paid-up capital
stands reduced to Rs.2635.200 Millions. Out of the above 150000 shares have
been extinguished subsequently on October 8, 2011.
4. Pursuant to the
clarification provided by the Ministry of Corporate Affairs vide circular dated
May 31, 2011 and based on the legal opinion obtained, the Company has provided
for depreciation in respect of its Electricity business following the rates as
well as methodology notified by the Electricity Regulators retrospectively
w.e.f April 1, 2009 as against Schedule XIV to the Companies Act, 1956 during
the quarter ended June 30, 2011. Accordingly, depreciation of Rs.2271.800
Millions for the years 2009-10 and 2010-11 has been written back during the
previous quarter ended June 30, 2011 and has been included in other operating
income. Similarly, the depreciation charge for the current quarter and six
months ended September 30, 2011 is lower and profit before tax is higher by
Rs.74.300 Millions and Rs.170.300 Millions respectively on account of such
change.
5. Information on
investor complaints pursuant to Clause 41 of the listing agreement for the
quarter ended September 30, 2011: opening: Nil; additions: 07; disposals: 07;
closing: Nil.
6. There were no
exceptional / extraordinary items during the quarter ended September 30, 2011.
7. Ratios have
been computed as under:
Debt Service Coverage Ratio = Earnings before
Interest and Tax / (Interest on Long Term Debt + Principal Repayment of Long
Term Debt)
Interest Service Coverage Ratio = Earnings before
Interest and Tax / Interest on Long Term Debt
8. After review by
the Audit Committee, the Board of Directors of the Company have approved the
Standalone financial results at their meeting held on November 8, 2011.
9. Figures of the previous period / year have been regrouped /
reclassified wherever considered necessary.
CONTINGENT LIABILITIES NOT PROVIDED FOR 31.03.2011
(i) Counter guarantees given to banks against
guarantees issued by the banks on behalf of the joint ventures aggregate to
Rs.199.100 Millions (Rs.105.000 Millions). Bank guarantees issued for
performing its own obligations are not considered as part of contingent
liability.
(ii) Corporate Guarantees given to banks and
other parties aggregating Rs.29242.100 Millions (Rs.23678.800 Millions) in
respect of financing facilities granted to other body corporates (including in
respect of joint venture Rs.24.500 Millions (Rs.24.500 Millions)).
(iii) Uncalled liability on partly paid shares
Rs.838.300 Millions (Rs.452.000 Millions).
(iv) Claims against the Company not
acknowledged as debts and under litigation aggregates to Rs.13373.500 Millions
(Rs.7099.000 Millions). These include claim from suppliers aggregating to
Rs.2684.800 Millions (Rs.2434.300 Millions), income tax claims Rs.10619.200
Millions (Rs.4598.200 Millions) and other claims Rs.69.500 Millions (Rs.69.500
Millions).
(v) The Companys application for compounding
in respect of its ECB of USD 360 Million has been deemed by the Reserve Bank of
India (RBI) as never to have been made subsequent to the withdrawal of the
compounding application. Accordingly, there is no liability in respect of the
compounding fee of Rs.1246.800 Millions earlier specified by RBI. The Company
is legally advised that it is in compliance with the regulations under the
Foreign Exchange Management Act, 1999. Accordingly, no provision is considered
necessary in this regard.
FIXED ASSETS
Softwares
Toll Collection Rights
Freehold Land
Leasehold Land
Buildings and Roads
Railway Siding
Plant and Machinery
Distribution Systems
Furniture, Fixtures,
Computers and Office Equipments
Vehicles
Electrical Fittings and
Apparatus
Refrigerators and
Domestic Appliances
WEBSITE DETAILS
PROFILE
Subject is a part of the Reliance Group, one of the leading
business houses in India. Incorporated
in 1929, Reliance Infrastructure is one of Indias fastest growing companies in
the infrastructure sector. It ranks among Indias top listed private companies
on all major financial parameters, including assets, sales, profits and market
capitalization.
Reliance Infrastructure companies distribute more than 36
billion units of electricity to over 30 million consumers across an area that
spans over 1,24,300 sq kms and includes Indias two premier cities, Mumbai and
Delhi. The Company generates over 940 MW of electricity through its power
stations located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa.
Reliance Infrastructure has emerged as the leading player in
India in the Engineering, Procurement and Construction (EPC) segment of the
power sector.
In the last few years, Reliance Infrastructure has expanded
its foot-print much beyond the power sector. Currently, Reliance Infrastructure
group is engaged in the implementation of projects not only in the fields of
generation, transmission, distribution and trading of power but also in other
key infrastructural areas such as highways, roads, bridges, metro rail and
other mass rapid transit systems, special economic zones, real estate,
airports, cement, etc.
Mission: Excellence in Infrastructure
To
attain global best practices and become a world-class utility.
To create world-class assets and
infrastructure to provide the platform for faster, consistent growth for India
to become a major world economic power.
To achieve excellence in service,
quality, reliability, safety and customer care.
To earn the trust and confidence of all
customers and stakeholders, exceeding their expectations and make the Company a
respected household name.
To work with vigour, dedication and
innovation with total customer satisfaction as the ultimate goal.
To consistently achieve high growth
with the highest levels of productivity.
To be
a technology driven, efficient and financially sound organisation.
To be
a responsible corporate citizen nurturing human values and concern for society,
the environment and above all people.
To
contribute towards community development and nation building.
To
promote a work culture that fosters individual growth, team spirit and
creativity to overcome challenges and attain goals.
To
encourage ideas, talent and value systems.
To uphold the guiding principles of
trust, integrity and transparency in all aspects of interactions and dealings.
BUSINESS DESCRIPTION
Subject is a part of the Reliance Group. Reliance Infrastructure companies distributes about 36 billion units of electricity to over 30 million consumers across an area that spans over 1,24,300 square kilometers and includes Indias two cities, Mumbai and Delhi. The Company generates over 940 Megawatt of electricity through its power stations located in Maharashtra, Andhra Pradesh, Kerala, Karnataka and Goa. The Company operates in two business segments: Electrical Energy and Engineering, Procurement and Contracts (EPC). In the case of electrical energy, the Company operates a 500 megawatts thermal power station at Dahanu, a 220 megawatts combined cycle power plant at Samalkot, a 48 megawatts combined cycle power plant at Mormugao, a 7.59 megawatts Windfarm at Chitradurga and also purchases power from third parties and supplies the power through the Company’s own distribution grid. It supplies power to residential, industrial, commercial and other consumers. For the nine months ended 31 December 2010, Reliance Infrastructure Limited's revenues increased 3% to RS119.14B. Net income increased 9% to RS11.41B. Revenues reflect an increase in income from EPC and Contracts segment, rise in Other segment income and higher income Roads segment. Net income also reflects a decrease in cost of fuel and lower tax on sale of electricity charges. The operates in the infrastructure sector.
MORE BUSINESS DESCRIPTION
Engaged in the generation, transmission and distribution of
electricity, EPC and trading and the construction and development of infrastructure
such as roads, highways, metro rails, airports and speciality real estate.
Reliance Energy Limited (formerly BSES) is the largest power distribution company in India and holds the exclusive license for distribution of power in substantial areas of Mumbai, Delhi and the state of Orissa. The company and its subsidiaries provide electricity services to over 5mn consumers and have an installed capacity of 885 MW. In addition, Reliance Energy Transmission is responsible for improving power supplies to the company's own network and to networks across the country. Reliance Energy Trading trades in electricity, both physically as well as through derivatives. Reliance Industries owns over 58% of the company and has management control.
BOARD OF DIRECTORS
Shri. Anil Dhirubhai
Ambani (Non-Executive Non-Independent Chairman of the Board)
Shri. Anil Dhirubhai Ambani is Non-Executive Non-Independent Chairman of the Board. He is the Chairman of Reliance Communications Limited, Reliance Capital Limited, Reliance Infrastructure Limited and Reliance Power Limited. He is also on the board of Reliance Infratel Limited and Reliance Anil Dhirubhai Ambani Group Limited. He is the President of the Dhirubhai Ambani Institute of Information and Communication Technology, Gandhinagar, Gujarat. An MBA from the Wharton School of the University of Pennsylvania, Shri Ambani is credited with several path-breaking financial innovations in the Indian capital markets. He spearheaded the country’s first forays into overseas capital markets with international public offerings of global depository receipts, convertibles and bonds. Under his Chairmanship, the constituent companies of the Reliance Group have raised nearly US$ 7 billion from global financial markets in a period of less than 3 years. Shri Ambani has been associated with a number of prestigious academic institutions in India and abroad. He is currently a member of: l Wharton Board of Overseers, The Wharton School, USA l Board of Governors, Indian Institute of Management (IIM), Ahmedabad l Executive Board, Indian School of Business (ISB), Hyderabad. In June 2004, Shri Ambani was elected as an Independent member of the Rajya Sabha - Upper House, Parliament of India, a position he chose to resign voluntarily on March 29, 2006.
Shri. Satish Seth
(Non-Executive Non-Independent Vice Chairman of the Board)
Shri. Satish Seth is Non-Executive Non-Independent Vice Chairman of the
Board. He is has an exposure in developing, strategizing and overseeing businesses
in petrochemicals, petroleum and financial sectors. He has experience in the
areas of finance, commercial, banking, accounts, audit, taxation, legal,
project execution and general management. Shri Seth was appointed to the board
on November 24, 2000. Currently, he is the Vice Chairman of the Board of the
Company. He is also a director of Reliance Telecom Limited and Reliance Anil
Dhirubhai Ambani Group Limited. He is chairman of audit and shareholders /
investors grievances committee of Reliance Telecom Limited.
Shri. Suresh Chand
Gupta (Director - Operations, Non-Independent Executive Director)
Shri. Suresh Chand Gupta is Director - Operations, Non-Independent
Executive Director. He is a graduate in electrical and mechanical engineering
and also M.Sc. (Engineering) in power systems. He was appointed to the board on
January 18, 2003. He was actively involved in the design and implementation of
captive power plants of Reliance Industries Limited at Hazira, Patalganga,
Naroda and Jamnagar totalling 750 MW and development of Independent Power
Projects (IPPs) at various locations. He is responsible for closely monitoring
the operation of existing power plants of the Reliance Anil Dhirubhai Ambani
Group totalling to approximately 980 MW and continuous improvements of
operation and maintenance of Power Plants. He is also responsible for the EPC
(Engineering, Procurement and Construction) Group and responsible for
implementing a numbers of power projects, within the Group and also for
external agencies. He is on the board of BSES Kerala Power Limited. He is also
a member of the audit committee of BSES Kerala Power Limited.
Ved Prakash Malik
(Non-Executive Independent Director)
General Retired Ved Prakash Malik is Non-Executive Independent Director.
He was chief of the Indian Army from October 1997 to September 2000.
Concurrently, he was Chairman, Chief of Staff Committee of India for two years.
As Army Chief, Gen Malik had dual responsibility of being an advisor to the
Government as well as commander of over one million Indian army. He managed all
its functions to fulfill its national role and assigned missions. During his
tenure, he oversaw intensified anti terrorist operations in Jammu and Kashmir,
in the north east, and management of disputed border with China and other
neighbouring countries. He planned, coordinated and oversaw execution of
Operation Vijay to defeat Pakistans attempted intrusion in Kargil sector in
1999. Gen Malik was awarded the Ati Vishishta Seva Medal in 1986, and Param
Vishishta Seva Medal, the highest national award for distinguished services in
India in 1996. He was given excellence in leadership award by Atur Foundation,
Pune, Distinguished Fellowship of the Institute of Directors, New Delhi in
1999, and Pride of the Nation award by the Doon Citizens Council in July
2000. Since retirement (September 30, 2000), he keeps himself engaged in
spreading awareness and sharing his views on Indias national security
challenges and international relations. For two years, he served as a member of
the National Security Advisory Board. In 2007, he was nominated on the judges
panel to select and rank Top Companies for Leaders in Asia Pacific Region by
Hewitt Associates, who undertook this exercise in collaboration with Fortune
Magazine and The RBL Group. He is on the board of Hero Honda Motors Limited,
BSES Rajdhani Power Limited and BSES Yamuna Power Limited. He is a member of
the audit committee of the Company, Hero Honda Motors Limited, BSES Rajdhani
Power Limited and BSES Yamuna Power Limited and Chairman of Shareholders /
Investors Grievances Committee of the Company.
Shri. R. R. Rai
(Non-Executive Independent Director - Nominee of Life Insurance Corporation of
India)
Shri. R. R. Rai is Non-Executive Independent Director - Nominee of Life
Insurance Corporation of India. He is a graduate in science and law from the
University of Delhi. He joined Life Insurance Corporation of India as a direct
recruit officer after a short stint in the Ministry of Works and Housing (now
named as Ministry of Urban Development), New Delhi. He has served the
Corporation in various important positions viz., Marketing Manager, Divisional
Manager, Regional Manager (Public Relations and Publicity), and later Personnel
and Industrial Relations), Principal, Zonal Training Centre Director,
Management Development Centre, Mumbai, Zonal Manager (In-charge), Western
Zone., Executive Director (Corporate Communication and International
Operations), Central Office. He retired from the services of the Corporation on
August 31, 2010. He had an opportunity to closely interact with the people
inside the industry and outside, viz. dealing with the elite towards the end of
the career and poor, downtrodden in the deep rural, semi-urban, urban and
metros in the beginning and middle of his career. He made an attempt to
contribute towards developing potential and shaping attitudes of personnel
during his tenure in the training institutes and aimed at sustaining harmonious
relationship among stakeholders. He participated in premier institute
programmes at ISB, Hyderabad; Administrative Staff College of India, Hyderabad
and Management Development Institute, Gurgaon. He is a nominee director on the
board of Tourism Finance Corporation of India, New Delhi and member on the
Board of Studies of the School of Commerce, S.V.K.Ms Narsee Monjee Institute
of Management Sciences University, Mumbai. He is a member of the audit
committee of the Company.
Shri. Surendra L.
Rao (Non-Executive Independent Director)
Shri. Surendra L. Rao is Lead Non-Executive Independent Director. He has
been a professional manager for 28 years in multinational companies, is an
applied economist, a widely read newspaper columnist, writer and speaker on
governance, the economy and infrastructure issues. He has taught in reputed
management schools in India as visiting faculty. He was a Visiting Fellow at
the Indian Ocean Centre, Australia (1996-98). From 1990 to 1996 he was Director
- General of the National Council of Applied Economic Research (NCAER), a
premier research institution in India, which during his tenure, was known the
world over for its work on Indian markets, human development indicators, social
infrastructure and economic forecasting. He was the first Chairman of the
Central Electricity Regulatory Commission (CERC) in 1998. He was founder
Chairman of the Forum of Indian Regulators. He has co-authored or edited 14
books and articles on the economy and management. His last book was From
Servants to Master, The Evolution of Professional Management in India (2007).
He was Chairman and is Member of the Board of Governors, The Institute for
Social and Economic Change, Bangalore. He is Member of the National Committee,
Aga Khan Foundation of India, Board of Governors of Indian Institute of
Management, Lucknow, and Institute for Integrated Learning and Management,
Delhi, (CIRC)-CUTS Institute of Regulation and Competition, Trustee of
Dakshinachitra (Museum), Madras, and Bangalore International Centre, He is on
the Board of Honeywell Automation India Limited, Kanoria Chemicals and
Industries Limited, Reliance Power Limited, Rain CII Carbon (Vizag) Limited and
three private limited companies. He is the Chairman of the Audit Committee of
the Company, Honeywell Automation India Limited and Rain CII Carbon (Vizag)
Limited as also a member of the Audit Committee and of Shareholders/ Investors
Grievances Committee of Reliance Power Limited.
Dr. Leena
Srivastava (Non-Executive Independent Director)
Dr. Leena Srivastava Ph.D, is Non-Executive Independent Director. She is
the Executive Director, The Energy and Resources Institute (TERI), an
independent not-for-profit research institution working in the areas of energy,
environment and sustainable development. Dr Srivastava held additional charge
as Dean, Faculty of Policy and Planning, TERI University from June 2000 –
June 2008. She has a PhD. in Energy Economics from the Indian Institute of
Science in Bangalore, India and has a number of publications to her credit. She
is on the Editorial Boards of various international journals dealing with
energy and environment issues. Dr Srivastava was a member of the Advisory Group
on Energy and Climate of the UN Secretary General (2009- 10) and is on the
International Advisory Board of the Global Carbon Capture and Storage Institute
(GCCSI), Australia; Member, World Banks ESMAP Expert Panel on Sustainable
Energy Supply, Poverty Reduction and Climate Change; Member of the
International Public Policy Advisory Board (IPPAB), The Coca Cola Company, USA;
Member, Board of Directors, World Environment Center, USA; Member, Board of
Directors, Meridian Institute, USA; Member of the Foresight Advisory Council of
Suez Environment, France; Member, Council of Advisors for Fraunhofer, India;
Member, Sustainable Development Advisory Board, Caterpillar Inc. USA; Member,
Governing Board of the Stockholm Resilience Centre; Member, Advisory Board of
Alfred Deakin Research Institute and Member of KPMGs Audit Committee
Institute, India. She was a Coordinating Lead Author for Working Group III of
the Third Assessment Report of Intergovernmental Panel on Climate Change (IPCC)
and cross-cutting theme Anchor on “Sustainable Development” for the Fourth
Assessment Report of the IPCC. She is a member of the Shareholders/ Investors
Committee and the Audit Committee of the Company.
Shri. Lalit Jalan
(Non-Independent Whole- time Director)
Shri. Lalit Jalan is Non-Independent Whole- time Director since April
25, 2007. He is CEO and Whole time Director of Reliance Infrastructure Limited
and also the Chairman of BSES Rajdhani and BSES Yamnua Private Limited. He
joined Reliance Industries in 1995 as CEO, Polypropylene Business as the
organisations youngest ever CEO. From 2003 onwards, Shri Jalan has led the
metamorphosis of the erstwhile electricity distribution utility BSES to one of
the infrastructure companies of India, involving three key phases: BSES Mumbai
to Reliance Energy -transformation of a conventionally well run DISCOM to a
cutting edge world class utility. He did his MBA in Finance from prestigious
Wharton School and MS in Computer Science from Moore School, University of
Pennsylvania, 1982. Prior to that he did his BTech from IIT, Kanpur in 1979. He
graduated throughout in top 2% of his class. He was the winner of
Directors-Honours and Deans List at Wharton. In recognition of his
achievements, Shri Jalan was awarded the Distinguished Alumni Award from IIT,
Kanpur. He was also showcased as one of the 15 achievers from the IIT system at
the 1st PAN IIT meet in California in January’ 2003. Recently he has been
selected in the prestigious IIK@ 50 at the Golden Jubilee Alumni Convention at
IIT Kanpur in Jan’ 2010. In 2009, he also featured in the Economic Times
elite list of Indias 100 Most Powerful CEOs. He is on the Board of BSES
Rajdhani Power Limited, BSES Yamuna Power Limited, Reliance Power Transmission
Limited, Reliance Digital World Limited, Jaybee Mercantiles Limited and various
private limited companies. He is also Chairman of Audit Committee of BSES
Rajdhani Power Limited and BSES Yamuna Power Limited and member of
Shareholders/ Investors Committee of the Company.
PRESS RELEASE
Reliance
Infrastructure Q2 profit after tax increases
Reliance
Infrastructure Limited, a part of the Reliance Group, and an electric
distribution company, has reported profit after tax, share in associates and
minority interest of INR3.61 billion, or INR13.74 per diluted share, for the
second quarter ended September 30, 2011, compared to INR3.6 billion, or
INR14.51 per diluted share, for the second quarter ended September 30, 2010.
Total
operating income for second quarter ended September 30, 2011 was INR57.28
billion, compared to INR39.7 billion for the same quarter ended September 30,
2010.
Profit
after tax, share in associates and minority interest for the first half ended
September 30, 2011 was INR7.67 billion, or INR29.15 per diluted share, compared
to INR7.35 billion, or INR29.62 per diluted share, for the corresponding period
ended September 30, 2010.
BT500 2011 list a
treasure trove ; The 2011 edition of the 'India's Most Valuable Companies'
offers just one listing of the private firms and PSUs....
BT500
2011 list a treasure trove ; The 2011 edition of the 'India's Most Valuable
Companies' offers just one listing of the private firms and PSUs. The most
comprehensive ranking reflects a new world where investors reward, or punish,
companies in proportion to the value (shareholder wealth) they create or
destroy; ownership is incidental.
0h,
East is East, and West is West, and never the twain shall meet...
Rudyard
Kipling, The Ballad of East and West, 1892
Twenty
years ago, when Business Today was born, private companies and government-owned
companies (or public-sector units, PSUs) would marry well with Kipling's
immortal line. Finance Minister Manmohan Singh had just announced the onset of
nation-changing economic reforms, but their impact would be visible only later.
India,
an agrarian nation subject to extreme red-tapism, was growing at sluggish
'Hindu' growth rates of around 3.5 per cent.
PSUs
enjoyed monopoly - through regulation - in their sectors. More importantly from
BT's perspective, most of the big listed PSUs had very low public float and
were almost completely owned by the government.
So,
when the first was published in 1992, only those PSUs were ranked that had low
government ownership. Needless to say, they were very few. It was only a few
years later that PSUs were put together and ranked in a separate list.
In
these 20 years, the country has transformed. 'New India' is one of the world's
fastest growing economies, driven by sectors like software services, telecom,
pharmaceuticals, retail, real estate and automobiles. Global investors have
taken note, and both FII (foreign institutional investor) and FDI (foreign
direct investment) have become buzz-words.
There
are four PSUs in the top 10 of BT500, and eight in the top 20
The
Top 10 in the metals and mining sector outshone their counterparts in other
sectors with a 47 per cent growth in McapThousands of multinational
corporations have set up shop, even as thousands of Indian companies have made
a beeline to foreign shores.
That
last set - surprise - also includes leading PSUs; they are almost
unrecognisable today compared to 20 years ago. They are acquiring both
companies as well as assets abroad; they have become leaner, more efficient,
more competitive.
More
importantly, their ownership is not as dominated by government shareholding,
thanks to the disinvestment process, which also brought into the stock markets
a variety of government companies in various sectors.
And
so, 20 years after the BT500 rankings began, there remains no case for PSUs and
private companies to be ranked separately. The 2011 edition of the BT500,
therefore, offers just one listing.
The
most comprehensive ranking of 'India's Most Valuable Companies' just got more
comprehensive. The change reflects a new world where investors reward, or
punish, companies in proportion to the value (shareholder wealth) they create
or destroy; ownership is incidental.
Change
is in the air
In
the merged list, one outcome remains unchanged. Reliance Industries,
traditionally the No. 1 private company, retains its top billing in the
combined list as well. But traditional PSU No. 1, ONGC, does not take the No. 2
slot. That goes to new hot stock Coal India, a PSU that listed on November 4,
2010 to an overwhelming response.
There
are four PSUs in the top 10, and eight in the top 20. These are all strong
companies in their own right, and capable of challenging the big private
entrepreneurs and their enterprises.
To
ensure better comparability, we also combined last year's private and PSU
rankings. All last year ranks mentioned here reflect that. This year, two of
the biggest value creators have added more value than last year, a significant
achievement in a volatile, even sliding, market.
Helped
by its Rs 10,000-crore capital outlay plan over the next three years, UltraTech
Cement posted an 88.85 per cent growth in its market cap this year
(April-September, the period taken into account for BT500 rankings), compared
to 74.18 per cent last year. Also significant is Bharti Airtel's performance in
the light of its strong foray into African markets.
Last
year, the telecom major's market cap had declined 24.13 per cent; but this
year, it has grown 27.7 per cent. But many other big companies saw the dice
roll the other way. Three of Reliance-ADAG's companies lost significant market
value.
Reliance
Communications, thanks to mounting debt, saw a decline of 46 per cent in market
value in 2011, following a 37.97 per cent fall in 2010. Reliance Infrastructure
and Reliance Capital's market caps have fallen 45.6 per cent and 31.8 per cent,
respectively.
Four
PSU companies - Hindustan Copper, MMTC, Neyveli Lignite Corporation and Steel
Authority of India - recorded erosion in their 2011 market value compared to
growth posted in 2010, due to a decline in global commodity prices.
In
terms of sectors, information technology, or IT, put up a relatively better
show this year. A 1.6 per cent slide in Infosys's market cap and a 37 per cent
growth in TCS's market cap propelled the latter into No. 1 rank in IT after
three years.
TCS
leveraged its broad-based services offerings and delivery capabilities, even as
Infosys focused on pricing and margins. The change in guard at Infosys also
created some uncertainty.
A
stable rupee for the larger part of financial year 2010/11 propped up the IT
companies, which found many takers for their services in the cost-conscious,
recession-hit Western economies. On the other hand, the real estate sector has
seen the maximum damage.
DLF's market cap has fallen
28 per cent, and Unitech's, 56 per cent. While DLF's rank slid by 10 slots,
Unitech fell from No. 69 last year to No. 123 this year. Their beleaguered
situation reflects the state of the industry.
Rising interest rates and
scarcity of working capital have increased their cost of funds; and buyers are
sitting on the fence owing to higher prices and increased home loan rates.
Experts feel high prices and low volumes cannot co-exist for long, particularly
in a tight liquidity environment.
So,
unless interest rates go down and make borrowing and buying affordable, price
correction is the only immediate source of respite.
That
interest rates are unlikely to go down in a hurry is evident from the high
inflation levels, despite hikes in interest rates by the banking regulator -
Reserve Bank of India - becoming a way of life. The rate hikes have percolated
into the deposit and lending rates of banks, increasing the cost of funds for
banks and the borrowing costs for its customers.
"Banking
stocks have been marred by the perception of high credit costs," says
Raamdeo Agrawal, Joint Managing Director of Motilal Oswal Financial Services.
Agrawal feels rate hikes have crossed their peak, and banking will be a much
bigger opportunity when the hikes are reversed. However, the rising interest
rate scenario coupled with a slowing economy could spell trouble for the
banking sector with the likelihood of rising non-performing assets.
Rising
inflation and interest rates have hit companies hard, but there are other
worries, too: higher input costs (including raw materials), fuel costs and
salary costs. The net result is stress on profitability and compression in
margins. The uncertain global economic climate, especially in Europe, has led
to bouts of volatility in the capital markets. While equity capital raising has
been at a near standstill, higher interest rates have made debt capital
expensive too. Companies have little choice but to pass on much of these costs
to customers.
Happily,
consumer demand has been unrelenting, leading to healthy top-line growth (read
The Slow, Great Squeeze, page 76). What has added to the gloom is the slowdown
in FII inflows. A comparison of BT500 data with FII inflows over the past five
years reveals interesting details. In 2007, the top 500 companies (including
the public sector) had a healthy 25 per cent growth in their April- September
average market capitalisation; FII inflows in the same period surged by $10.98
billion. In 2008 and 2009, the BT500 market capitalisation declined by 0.68 and
1.75 per cent, respectively. In 2008, FIIs recorded an outflow of $5.77 billion
in the first six months.
But
in April-September 2009, with India's improving domestic prospects and lack of
better investment opportunities elsewhere, FIIs registered a net inflow of
$13.37 billion. That improved further in April-September 2010, when the FII
inflow of $13.83 billion was matched by a 36 per cent growth in the BT500 market
cap. This April-September, though, the top 500 companies' market cap has inched
up by 2.71 per cent; FII inflows have been just $0.66 billion.
Finally,
even as we made the landmark decision to merge private companies and PSUs into
a unified ranking, we also looked at two sides of a certain coin. On one side,
we examined companies that have slipped out of the top 25 over the past 19
years (read Fallen Leaves, page 70) and what lessons their slide holds. On the
other, we looked at companies that have inexorably risen through the ranks over
the past five years. One of them, Adani Enterprises, ranks at No.19. Read about
Adani, and the six other companies in this league in Chartbusters, on page 62.
Twenty years later, these companies might be the big boys, with other
challengers hot on their heels. But let us leave that for another day.
'Govt failure may
lead to dark days ahead'
Mumbai:
The city may head for "powerless" days in future if the government fails
to clear the stumbling blocks land acquisition and environmental
clearances-hampering the project of setting up a new transmission network of
high-capacity lines.
With
the city's existing transmission lines, which bring in a major share of
electricity from outside, breaking down and failing to sustain the shooting
electricity demand of Mumbaikars, load-shedding could become inevitable if new
lines were not laid in time, warned officials of Reliance Infrastructure and
Tata Power Company.
The
caution was sounded at an interactive session between the officials and
citizens at a symposium on "The power situation in the state; can it be
free from load-shedding by 2012?" held at Vile Parle on Wednesday. State
power company officials, though being invited to the event, organized by Urja
Prabodhan Kendra and Utkarsha Mandal, chose not to attend it.
Incidentally,
MSETCL, MERC, RInfra, TPC and IIT-B, in their reports, had recently warned of
power cuts if the state failed to set up a high tension network and substations
for Mumbai by 2012. much more than the existing 3,191 MW during peak hours. .
TPC
official Anant Kakirde said TPC, RInfra and MSETCL had been trying to lay the
high-tension network, as per the transmission plans approved by the state
electricity regulatory commission, MERC. "But opposition from slum
dwellers and problems over permissions from the forest and the CRZ departments
are deterring us from achieving the target," said Kakirde, adding that
Mumbai's power demand was growing faster than in any other part of the country.
Pointing
at the seriousness of the situation, Pravin Hundiwale of RInfra said if any of
the transmission lines collapsed, the city would plunge into long hours of
load-shedding. "Without a new receiving station for Mumbai, it will be
difficult to get additional power required to meet the demand in the city. The
new system also promises less transmission and distribution loss, thus saving
more electricity," Kakirde added.
INDIA'S RELIANCE
INFRA BUYS BACK 200,000 SHARES
NEW
DELHI, Nov 11Asia Pulse - India's Reliance Infrastructure (BSE:000390) on
Wednesday said it has bought back 200,000 equity shares from the open market.
"Reliance
Infrastructure has on Wednesday bought back 2 lakh shares of the company,
pursuant to the buy-back programme of the company," it said in a filing to
BSE.
Reliance
Infrastructure, which is developing two metro rail projects in Mumbai, had in
April this year launched its Rs.10000.000 Millions (US$200 million) share
buyback programme to reduce short-term volatility in its share price.
Since
the launch of the programme, the company has bought back 42.25 lakh shares from
the market for an aggregate amount of Rs.2260.500 Millions, it said.
The
net profit of the Anil Ambani-led company remained flat at Rs 361.63 crore
during the July-September quarter of the current fiscal year.
It
has an order book of Rs 24,325 crore, as on September 30.
MEDIA RELEASE
CONSOLIDATED TOTAL OPERATING INCOME OF Rs.57290.000 MILLIONS
(US$ 1.2 BILLION) FOR THE QUARTER AN INCREASE OF 44%
CONSOLIDATED NET PROFIT MAINTAINED AT Rs.3620.000 MILLIONS (US$ 74
MILLION)
FOR THE QUARTER
CONSOLIDATED EPC REVENUE OF Rs.22120.000 MILLIONS (US$ 452 MILLION) FOR
THE QUARTER
AN INCREASE OF 211%
CONSOLIDATED BOOK VALUE OF Rs.927 (US$ 19) PER SHARE AND NETWORTH OF
Rs.244190.000 MILLIONS (US$ 5.0 BILLION)
CONSERVATIVELY FINANCED WITH DEBT: EQUITY OF 0.61
Mumbai, November 8, 2011: Reliance
Infrastructure Limited today announced its un-audited consolidated financial
results for the quarter ended September 30, 2011. The highlights are:
Key Highlights
Mumbai Distribution :
MERC granted distribution
license for next 25 years
MERC has approved the
recovery of Regulatory Assets of Rs .23160.000 Millions from all consumers
connected to RInfras network including those supplied by Tata Power
MERC has allowed levy of
Cross Subsidy Surcharge on all migrating consumers from date of migration
Delhi
Distribution :
Delhi Electricity
Regulatory Commission (DERC) in its recent order has approved Tariff hike of
22% and Introduction of quarterly Fuel Price Adjustment surcharge w.e.f October
01, 2011 for Delhi Distribution business.
Generation :
Dahanu Thermal Power
plant becomes the first plant in the world to receive ISO 50001:2011 certification
for Energy Management System
Transmission:
WRSS project (1,500 km in
Gujarat and Maharashtra) : More than half (i.e 5 out of 9 transmission lines)
of the project is commissioned and revenue generating. The project is expected
to be fully operational within FY2012
Mumbai Transmission
project : MERC granted Mumbai Transmission license for next 25 years. Three
Extra High Voltage (EHV) stations have been charged and registered an all time
high availability of 99.8%
Road Projects: Developing 12
road projects of 1,000 kms including the iconic sea link of the country
Have 4 operational
projects and additional 6 road projects would start generating revenue in
FY2012
Hosur Krishnagiri (in
Tamil Nadu) 6 laning project, part of Bengaluru Chennai Golden quadrilateral
became operational in FY2012
First road developer in
the country to launch Mobile Environment Monitoring System at Pune Satara
Toll road which offers commuter, pollution free commute on the corridor.
Metro Projects : Developing 3
metro rail projects in Mumbai and Delhi with a total stretch of 66 kms, having
45 stations
Reliance Metro Airport Link in Delhi ( 23 kms
and 6 Stations) :
Daily commuters have
crossed to over 18,000 in just 8 months of operation
Airline check-in with baggage
facility started at Shivaji Stadium station, New Delhi Railway station and
Dhaula Kuan stations
Trains are running
successfully for 18 hours a day
Frequency of train
increased to 12 mins during peak hours and 15 mins for remaining day
Retail deals closed of -
30,000 sqft with key players like W H Smith, Caf Coffee Day, Samsonite, VIP,
Dabur, Caf Oz, etc at stations
Advertisement deals
signed with marquee vendors like Lufthansa, Pepsi, Lipton, Reebok, etc.
Various initiatives like
Feeder Buses, Chota Pass, Monthly Pass has been started to create awareness and
increase ridership
Reliance Metro Line I in
Mumbai (12 kms and 12 stations) : More than 80% of civil work is completed and
the project is scheduled to be commissioned in FY2012
Reliance Metro Line II in
Mumbai (32 kms and 27 stations) : Achieved financial closure; Topographical
survey of alignment is complete and Geo Technical investigation is in progress
EPC Revenue : EPC revenue
of Rs.22120.000 Millions for the quarter an increase of 211%
Buy-Back : Bought-back
40.3 lakh shares of Rs.2170.000 Millions till November 7, 2011
Consolidated Quarter ended September 30, 2011
Total Operating Income of
Rs.57290.000 Millions (US$ 1.2 billion), against Rs.40430.000 Millions in the
corresponding quarter of previous year, an increase of 44%
Net Profit of Rs.3620.000
Millions crore (US$ 74 million), against Rs.3600.000 Millions in the
corresponding quarter of previous year
Cash Profit of
Rs.5380.000 Millions (US$ 110 million), against Rs.4860.000 Millions in the
corresponding quarter of previous year, an increase of 11%
Cash Earnings Per Share
(Cash EPS) of Rs.20.4 against Rs.19.8 in the corresponding quarter of previous
year
Earnings Per Share (EPS)
of Rs 13.8 against Rs.15.0 in the corresponding quarter of previous year
On Consolidated basis, the net worth of the
Company stood at Rs.244190.000 Millions (US$ 5.0 billion) and book value per
share at Rs.927 as on September 30, 11. The Companys total debt on
consolidated basis stood at Rs.149800.000 Millions (US$ 3.1 billion). The
company has enough borrowing capacity with debt to equity ratio of 0.61 as on
September 30, 2011.
The Company remains debt free at the net level
and enjoys the top end ratings of AA+ and AA from CRISIL and FITCH
respectively.
The Companys total equity contribution in
various infrastructure SPVs is Rs.40100.000 Millions (US$ 819 million)
MANAGEMENT DISCUSSION AND ANALYSIS
ELECTRICITY BUSINESS
Electricity business includes distribution business,
power plants, transmission lines and trading business.
Energy Sales
The Company achieved aggregate sales of
electrical energy on standalone basis of 2,060 million units during the quarter
ended September 30, 2011 against 2,415 million units in the corresponding
quarter of previous year
The Companys aggregate revenue from energy
sales was Rs.15190.000 Millions during the quarter ended September 30, 2011
against Rs.15730.000 Millions in the corresponding quarter of previous year.
Mumbai Distribution
The Mumbai distribution business achieved
aggregate sales of electrical energy of 1,628 million units during the quarter
ended September 30, 2011 against 1,914 million units in the corresponding
quarter of previous year
The Companys aggregate revenue from energy
sales in Mumbai Distribution is Rs.10600.000 Millions during the quarter ended
September 30, 2011 compared to Rs.13410.000 Millions in the corresponding
quarter of previous year. In addition, the Company earned wheeling income of
Rs.540.000 Millions during the quarter compared to Rs.290.000 Millions in the
corresponding quarter of previous year owing to shift of consumers to Tata
Power.
During the period, the Company purchased 858
million units of electrical energy from external sources as compared to 1,055
million units purchased in the corresponding quarter of previous year.
The cost of energy purchased decreased by 6%
to Rs.6080.000 Millions in Q2FY2012 compared to Rs.6430.000 Millions in the
corresponding quarter of previous year.
During the period, the Company added 19,837
consumers and there are 28.3 lakh consumers using RInfras network.
Maharashtra Electricity Regulatory Commission
(MERC) granted distribution license to RInfra for the next 25 years for
distributing power in Mumbai suburban area.
MERC in its order dated July 29, 2011 has
approved recovery of regulatory assets of Rs.23160.000 Millions from all
consumers on RInfra network.
MERC in its order dated September 09, 2011 has
determined the Cross Subsidy Surcharge to be recovered from migrated consumers
who contribute towards consumers paying less than cost of supply
Delhi Distribution
The Delhi distribution business achieved
aggregate sales of electrical energy of 4,369 million units during the quarter
ended September 30, 2011 against 4,032 million units in the corresponding
quarter of previous year. The Companys aggregate revenue from energy sales in
Delhi Distribution is Rs.21800.000 Millions during the quarter ended September
30, 2011 compared to Rs.18140.000 Millions in the corresponding quarter of
previous year.
Delhi Electricity Regulatory Commission (DERC)
in its recent order has approved tariff hike of 22% and introduction of
quarterly Fuel Price Adjustment surcharge for Delhi Distribution business.
Transmission
The Company is developing 5 transmission
projects including 2 Ultra Mega Transmission Projects (UMTPs) i.e. North
Karanpura and Talcher II, with total project outlay of Rs.66000.000 Millions
WRSS project: More than
half of 1,500 kms transmission line (i.e 5 lines out of 9 lines) in Maharashtra
and Gujarat are commissioned and revenue generating. This is the first
transmission line to be commissioned in a record time of 15 months and will
enable transmit 4,000 MW of power in western region. Stringing has been
completed for 684 kms of transmission lines and complete project is expected to
be operational within FY2012
Mumbai Strengthening
project: MERC granted Mumbai Transmission license for next 25 years. Three
Extra High Voltage (EHV) stations have been charged and registered an all time
high availability of 99.82% against MERC target of 98%. The Company also won
Asias 2nd Best Employer Brand Award 2011.
Power Generation
During the quarter, all the generating plants
continue to outperform all major operational parameters and Dahanu Power Plant
continues to have PLF of over 100% for consecutive 7th year. Dahanu Power Plant
becomes the first power plant in the world to receive ISO 50001:2011 certification
for Energy Management System. The total units generated by the plants are 1,492
million units during the quarter ended September 30, 2011.
Energy Trading Business
The division has traded 1,054 million units
during the quarter ended September 30, 2011 as compared to 1,583 million units
in the corresponding quarter of previous year. The Company is now focusing more
on trading through Exchange to increase the trading business. RETL is
consistently ranked amongst the top five trading licensees by CERC.
EPC BUSINESS
During the quarter, the turnover of the
division was Rs.22120.000 Millions against Rs.7120.000 Millions in the
corresponding quarter of previous year a significant increase of 211%. The
Division has order book position of Rs.243250.000 Millions as on September 30,
2011.
The EPC Division is working on 6 power
projects of over 9,900 MW, one transmission project of 1,500 kms along with 6
road projects totaling 570 kms.
INFRASTRUCTURE PROJECTS
The Company is developing infrastructure projects
comprising of 12 Roads, 3 Metro Rail, 5 Airports and 2 Cement projects. RInfra
is the countrys largest infrastructure company on an ownership basis.
During the quarter, the Companys aggregate
revenue from infrastructure business was Rs.770.000 Million against Rs.130.000
Millions in the corresponding quarter of previous year a significant increase
of over 500%
Roads
The Company is developing 12 road projects of
~1,000 kms worth Rs.165000.000 Millions. Of which, 4 projects are already
operational and additional 6 road projects would start generating revenue in
FY2012. First road developer in the country to launch Mobile Environment
Monitoring System at Pune Satara Toll road to offer commuters pollution free
commutes on the corridor. Construction progress is at full swing with more than
6,500 people working on various sites.
Sea link
The Company is developing the first sea link
of the country i.e. Western Freeway Sea Link in Mumbai with project outlay of
Rs 4,550 crore. The project has an agreement with MSRDC for 40 years of
concession period. The project has already achieved financial closure.
Metro Rails
The Company is the largest private player in
metro rail sector in the Country. The Company is developing 3 metro rail
projects in Mumbai and Delhi worth around Rs.170000.000 Millions.
Some of the major mile stones achieved in
metro projects are :
Reliance Metro Airport
Link in Delhi started commercial operations in Q4FY11 First PPP metro project
to become operational in India. The patronage in all the passenger segments has
shown satisfactory response touching a passenger throughput of about 18,000
passengers on a daily basis. Trains are running successfully for 18 hours a day
at a frequency of 12 mins during peak hours and 15 mins for remaining day.
Airline check-in with baggage facility started at Shivaji Stadium station, New
Delhi Railway station and Dhaula Kuan stations.
Almost 30,000sqft
area of retail deals closed with key players like W H Smith, Caf Coffee Day,
Samsonite, VIP, Dabur, Caf Oz, etc at stations. Advertisement deals signed
with marquee vendors like Lufthansa, Pepsi, Lipton, Reebok etc. Various
initiatives like Feeder Buses, Chota Pass, Monthly Pass has been started to
create awareness and increase ridership.
Reliance Metro Line I in
Mumbai construction is in full swing for major structures including Western
Express Highway Bridge, Railway Line Bridge, etc. Viability Gap Funding of
Rs.3880.000 Millions has been received from MMRDA. More than 80% of the civil
work completed and the project is scheduled to be commissioned in FY2012.
Reliance Mumbai Metro
Line II in Mumbai - Topographical Survey of the alignment is completed and Geo
Technical investigation is in progress. M/s Systra of France is appointed as design
consultants.
Cement
Reliance Cement Company Private Limited, a
100% wholly owned subsidiary of the Company is developing two cement plants of
5 million tons each in Maharashtra and Madhya Pradesh. Major order has been
placed for Plant and Machinery and formal Environmental clearance received for
both the projects. Two mining lease has been granted for Madhya Pradesh
project. 35% of civil construction work completed in grinding unit at Butibori.
Reliance Infrastructure Limited
(RInfra) is the largest infrastructure company
developing projects, through various Special Purpose Vehicles, in several high
growth areas in Infrastructure sector i.e. Roads, Metro rail, Airports, etc.
The Company is also leading utility company having presence across the value
chain of power businesses i.e. Generation, Transmission, Distribution, EPC and
Trading.
The Company is developing two metro rail
projects in Mumbai and operating Airport Metro Express in Delhi; awarded twelve
road projects with total length of 1,000 kms; operate and maintain five
airports in Maharashtra and developing 2 cement plants of 5 Mn tons each in
Maharashtra and Madhya Pradesh.
RInfra generates 940 MW of power through its
five power stations; distributes power to over 5.4 million consumers in Mumbai
and Delhi; developing five transmission projects including first Independent
Private Transmission project in India.
RInfra also provides Engineering, Procurement
and Construction (EPC) for developing power and road projects and currently
have an orderbook of about Rs.243250.000 Millions.
Reliance Infrastructure Limited unveils YES Anthem
YES is Young
Energy Savers; RInfras Energy Conservation initiative.
Initiative
involves Students as Ambassadors for the cause.
YES Anthem,
dedicated to Energy Conservation movement, is first of its kind.
Anthem aimed
at popularizing Energy Conservation movement.
YES Anthem
simplifies and makes complex topic more interesting.
Initiative
aimed at inviting more and more participation from people.
Students of
City International School, Oshiwara, Andheri to launch the Anthem
Mumbai, October 20, 2011: Reliance
Infrastructure Limited, the largest power distributor in Mumbai, today unveiled
the YES Anthem; a song dedicated to the movement of Energy Conservation.
The song
christened as YES Anthem was launched at an informal event at the City
International School, Oshiwara, Andheri (West) today, where a group of students
along with the band that composed the YES Anthem and other students sung the
same together and took a pledge to save energy. With this, the YES Anthem has
become the first ever such attribution and acknowledgement towards the cause of
Energy Conservation.
While
elaborating the need and logic behind creating a dedicated song for energy
conservation movement, Spokesperson, Reliance Infrastructure Limited said, We need to act now and together only to
save mother earth and create a sigh of
relief for their future generations. It is their moral duty. Kids at their tender age love anything that is
playful, interesting and easy to understand. YES Anthem is easy and rhymes well hence it will be loved
by the kids.
He
further added, The subject energy
conservation has a tremendous depth and has inbuilt complexities, due to which,
we are little bit negligent in practicing it in their day to day life. We
therefore understood the need and have endeavoured towards creating a message
of energy conservation in a fun and interesting manners and popularize YES
amongst the children and their immediate contact groups.
YES,
sounding to be highly positive in its name itself is an initiative by Reliance
Infrastructure Limited Where the Company is undertaking several programmes to
inculcate energy saving habits among the kids at a tender age. The YES Anthem
is one of such initiatives, which connects one and all to the community in
energy saving drive. The anthem is viral will have a viral effect and is
expected to be picked up by many in the run.
The YES Anthem has been written and composed by Copyright
team, Encompass Events Private Limited And Traveling River Band presented the
same.
YES is
among RInfras many CSR initiatives targeted towards young people, who become
core influencer in advocating the cause of energy saving. The program, started
in year 2009, has successfully reached out to almost around 70,000 children in
120 schools, across Companys licensed distribution areas in Mumbai.
YES
program has been designed keeping in mind the need of the hour that calls for
all individuals to take action and make a conscious effort to save Mother Earth
from disruption. YES program 2011 2012 will have innovative concepts like YES
Anthem, 11th Innovative Idea Contests, and Donate Electricity, in addition to
the conventional aspects of school activities, conducted during last two years.
To reiterate, as a part of its several ongoing activities to educate consumers
and widely spread importance of energy conservation, RInfra, in the past, had
initiated several campaigns like I Will, Mumbai Will;
distribution of energy efficient gadgets etc., among consumers.
Reliance Infrastructure Limited:
Reliance Infrastructure Limited (RInfra) is the largest
infrastructure company developing projects, through various Special Purpose
Vehicles; in several high growth areas in Infrastructure sector i.e. Roads,
Metro rail, Airports, etc. The Company is also leading utility company having
presence across the value chain of power businesses i.e. Generation,
Transmission, Distribution, EPC and Trading.
The Company is developing two metro rail projects in Mumbai
and operating Airport Metro Express in Delhi with a total stretch of 66 Kms
having 45 stations; awarded eleven road projects with total length of 970 Kms;
operate and maintain five airports in Maharashtra.
RInfra generates 940 MW of power through its five power
stations; distributes power to over 5.4 million consumers in Mumbai and Delhi;
developing five transmission projects including first Independent Private
Transmission project in India.
RInfra also provides Engineering, Procurement and
Construction (EPC) for developing power and road projects and currently have an
order book of about Rs.280000.000 Millions.
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 Intl
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 companys 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.51.35 |
|
|
1 |
Rs.80.97 |
|
Euro |
1 |
Rs.69.26 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
This score serves as a reference to assess SCs 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.