MIRA
INFORM REPORT
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Report Date : |
29.09.2011 |
IDENTIFICATION DETAILS
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Name : |
THE TATA POWER COMPANY LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.03.2011 |
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Date of Incorporation : |
18.09.1919 |
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Com. Reg. No.: |
11-567 |
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Capital Investment / Paid-up Capital : |
Rs.2373.300 Millions |
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CIN No.: [Company
Identification No.] |
L28920MH1919PLC000567 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMT00252A |
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Legal Form : |
A Public Limited Liability Company. The Company's Shares are Listed on
the Stock Exchanges. |
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Line of Business : |
Generation, Transmission and Bulk distribution of electrical energy.
Energy in bulk is supplied by the companies jointly to industries,
distributing licensees and local authorities in Mumbai and surrounding areas. |
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No. of Employees : |
Not Available |
RATING & COMMENTS
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MIRA’s Rating : |
Aa (81) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 390000000 |
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Status : |
Very Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a Tata Group company. It is a well established and a
reputed company having fine track. Financial position of the company appears to
be sound. Fundamentals are strong and healthy, Trade relations are reported
as fair. Business is active. Payments are reported as fair. Business is
active. Payments are reported to be regular and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. It can be regarded as a promising business partner in medium to long
run. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
LOCATIONS
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Registered
Office / Secretarial and Legal Department / Corporate Communication : |
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Tel. No.: |
91-22-66658282 |
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Fax No.: |
91-22-66658801/ 66658867 |
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E-Mail : |
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Website : |
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Power Projects and
Related Services : |
Strategy and Business Development Department, Corporate Center Block
A, 34, Sant Tukaram Road, Carnac Bunder, Mumbai - 400 009, Maharashtra, India
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Tel. No.: |
91-22-66658733 |
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Fax No.: |
91-22-66658626 |
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E-Mail : |
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Thermal Power Stations : |
i) Trombay
Generating Station, (ii) Jojobera
Power Plant, Jojobera, (iii) Belgaum Power
Plant, Plot Nos.1234 to 1240 and 1263 to 1297, KIADB, Kanbargi Industrial
Area, Auto Nagar, Belgaum, Karnataka (iv) Haldia
Power Plant, HFC COMPLEX, Patikhali, Haldia, East Medinipur, |
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Hydro Generating Stations : |
i) Generating
Station, Bhira, P O Bhira, Taluka Mangaon, District Raigad, ii) Generating
Station, Bhivpuri, P O Bhivpuri Camp, Taluka Karjat, District Raigad, iii) Generating
Station, Khopoli, P O Khopoli Power House, District Raigad, |
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Wind Farms : |
i) Village
Shahjahanpur and Pimpalgaon, Taluka Parner, Dist. Ahmednagar, ii) Village
Khandke, Taluka and District Ahmednagar, iii) Taluka
Sakri, District Dhulia, (iv) Jamjodhpur,
Sadodar, Motapanch devda Samana, Jamnagar District, (v) Hosur,
Kanavi, Mulgund, Shiroland Harti, Gadag District, Karnataka vi) Taluka –
Sadawagapur, District Satara, |
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Transmission Division : |
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Distribution Division : |
Senapati Bapat
Marg, |
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Strategic Electronics Division : |
42/43 Electronic
City, Electronic City Post Office, |
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Customer Care Centre : |
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Overseas Office : |
Located at: ·
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DIRECTORS
As on 31.03.2010
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Name : |
Mr. Ratan N. Tata |
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Designation : |
Chairman |
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Name : |
Mr. R. Gopalakrishnan |
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Designation : |
Director |
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Name : |
Dr. H. S. Vachha |
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Designation : |
Director |
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Name : |
Mr. A. J. Engineer |
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Designation : |
Director |
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Qualification : |
B.E. (Civil), C. Engg., FIE, AIIA |
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Date of Appointment : |
11.10.1984 |
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Previous Employment : |
Indian Explosives Limited (Construction Manager) |
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Name : |
Mr. N H Mirza |
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Designation : |
Director |
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Name : |
Mr. D. M. Satwalekar |
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Designation : |
Director |
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Name : |
Mr. R. H. Patil |
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Designation : |
Director |
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Name : |
Mr. P. G. Mankad, IAS (Retired) |
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Designation : |
Director |
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Name : |
Mr. A.K. Basu |
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Designation : |
Director |
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Name : |
Mr. Anil Sardana |
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Designation : |
Managing director |
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Name : |
Mr. S. Ramakrishnan |
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Designation : |
Executive Director (Finance) |
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Qualification : |
B.Tech. (Mech), PG DBA |
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Date of Appointment : |
01/10/2004 |
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Previous Employment : |
Tata Teleservices Limited (Managing Director) |
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Name : |
Mr. S. Padmanabhan |
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Designation : |
Executive Director |
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Name : |
Mr. Banmali Agrawala |
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Designation : |
Executive Director |
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Name : |
Mr. Thomas Mathew T |
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Designation : |
LIC Nominee |
KEY EXECUTIVES
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Name : |
Mr. B. J. Shroff |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.06.2011
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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75407785 |
32.87 |
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65624 |
0.03 |
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(B) Public Shareholding |
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9880682 |
4.31 |
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699737 |
0.31 |
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88205 |
62949 |
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57145003 |
24.91 |
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47775108 |
20.83 |
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3476 |
-- |
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1552382 |
0.68 |
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34352437 |
14.98 |
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1952352 |
0.85 |
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280177 |
0.12 |
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640 |
-- |
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184377 |
0.08 |
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(C) Shares held by
Custodians and against which Depository Receipts have been issued |
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-- |
-- |
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7919215 |
3.34 |
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Total |
237307236 |
100.00 |
(1) Indian
Bodies Corporate
TrustsBUSINESS DETAILS
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Line of Business : |
Generation, Transmission and Bulk distribution of electrical energy.
Energy in bulk is supplied by the companies jointly to industries,
distributing licensees and local authorities in Mumbai and surrounding areas. |
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Products : |
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GENERAL INFORMATION
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Bankers : |
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Facilities : |
** In foreign
currency. Security (i) The Debentures mentioned in (a) and (b) have been secured by land in Village Takve Khurd (Maharashtra), moveable and immovable properties in and outside Maharashtra, as also all transmission stations/lines, receiving stations and sub-stations in Maharashtra. (ii) The loans from Asian Development Bank and Industrial Renewable Energy Development Agency mentioned in (h) and (j) respectively have been secured by a charge on the tangible moveable properties, plant and machinery and immovable properties situated at Khandke, Bramanvel and Sadawaghapur in Maharashtra. (iii) The loans from IDBI Bank, HDFC Bank and ICICI Bank mentioned in (i), (k) and (l) have been secured by a pari passu charge on all moveable Fixed Assets (excluding land and building), present and future (except assets of all wind projects both present and future) including moveable machinery, machinery spares, tools and accessories. (iv) The loans from IDFC mentioned in (m) have been secured by a charge on the moveable assets except assets of all windmill projects present and future more particularly situated in Supa, Khandke, Bramanvel, Sadawaghapur, Gadag and Samana in Maharashtra, Karnataka and Gujarat. (v) The loan from Export Import Bank of India mentioned in (n) has been secured by receivables (present and future), book debts and outstanding monies. (vi) The Debentures mentioned in (c) and (d) have been secured by a pari passu charge on land in Village Takve Khurd (Maharashtra) and moveable and immovable properties in and outside Maharashtra. (vii) The Debentures mentioned in (e) have been secured by a pari passu charge on the wind farms situated at Samana and Gadag in Gujarat and Karnataka. (viii) The Debentures mentioned in (f ) have been secured by a pari passu charge on immovable properties at Takve Khurd of Taluka Mawal, District, Pune and Sub-District Mawal and first pari passu charge on movable fixed assets (excluding land and building) present and future except assets of all windmill projects, present and future. Redemption (i) The Debentures mentioned in (a) have been redeemed on 30th July, 2010. (ii) The Debentures mentioned in (b) are redeemable at premium in three instalments at the end of 9th, 10th and 11th year from 18th October, 2004. (iii) The Debentures mentioned in (c) and (d) are redeemable at par at the end of 10 years from the respective dates of allotment viz. 25th April, 2018 and 20th June, 2018. (iv) The Debentures mentioned in (e) above are redeemable at par in fifteen instalments commencing from 23rd July, 2011. (v) The Debentures mentioned in (f) above are redeemable at par in fifteen annual instalments commencing from 18th September, 2011.
** Repayable in foreign currencies. |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Deloitte Haskins and Sells Chartered Accountants |
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Solicitors : |
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Associates: |
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Joint Ventures: |
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Subsidiaries : |
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CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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22900000 |
Cumulative, Redeemable Preference Shares |
Rs.100/- each |
Rs.2290.000 Millions |
|
300000000 |
Equity Shares |
Rs.10/- each |
Rs.3000.000 Millions |
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Total |
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Rs.5290.000
Millions |
Issued, Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
242947084 |
Equity Shares [including
2,30,308 shares not allotted but held in abeyance, 4,40,270 shares cancelled
pursuant to a Court Order, 48,04,040 shares of the Company held by the erstwhile.
The Andhra Valley Power Supply Company Limited cancelled pursuant to the
Scheme of Amalgamation sanctioned by the High Court of Judicature, |
Rs.10/- each |
Rs.2429.500
Millions |
Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
237307236 |
Equity Shares [excluding
2,30,308 shares not allotted but held in abeyance, 4,40,270 shares cancelled
pursuant to a Court Order and 48,04,040 shares of the Company held by the
erstwhile The Andhra Valley Power Supply Company Limited cancelled pursuant
to the Scheme of Amalgamation sanctioned by the High Court of Judicature,
Bombay] |
Rs.10/- each
|
Rs.2373.100
Millions |
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Less: Calls in arrears [including Rs.0.100 million in respect of the erstwhile
The Andhra Valley Power Supply Company Limited and the erstwhile The Tata
Hydro-Electric Power Supply Company Limited] |
|
Rs.0.400
Million |
|
165230 |
Add: Equity Shares forfeited - Amount paid |
|
Rs.0.600
Million |
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|
Rs.2373.300 Millions |
Of
the above Equity Shares:
(i) 1, 67, 500 shares are allotted at par as fully paid pursuant to contracts without payment being received in cash.
(ii) 11,33,790 shares issued as Bonus Shares by capitalization of General Reserve.
(iii) 49,63,500 shares issued on exercise of the options by the financial institutions for the conversion of part of their loans / subscription to debentures.
(iv) 56,81,818 shares are allotted at premium as fully paid pursuant to contracts without payment being received in cash.
(v) 5,20,84,832 shares (excluding 47,560 shares held in abeyance) have been allotted to the shareholders of the erstwhile The Andhra Valley Power Supply Company Limited pursuant to the Scheme of Amalgamation sanctioned by the High Court of Judicature, Bombay.
(vi) 3,50,97,824 shares (excluding 45,168 shares held in
abeyance) have been allotted to the shareholders of the erstwhile The Tata Hydro-Electric
Power Supply Company Limited pursuant to the Scheme of Amalgamation sanctioned
by the High Court of Judicature, Bombay.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
2373.300 |
2373.300 |
2214.400 |
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2] Share Application Money Towards Project Cost |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
104046.400 |
97614.200 |
78884.500 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
106419.700 |
99987.500 |
81098.900 |
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LOAN FUNDS |
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1] Secured Loans |
47539.100 |
41053.800 |
39317.100 |
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2] Unsecured Loans |
22353.700 |
17666.300 |
12664.900 |
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TOTAL BORROWING |
69892.800 |
58720.100 |
51982.000 |
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DEFERRED TAX LIABILITIES |
2150.500 |
2077.800 |
1144.300 |
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SPECIAL APPROPRIATION TOWARDS PROJECT COST |
5336.100 |
5336.100 |
5336.100 |
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CAPITAL CONTRIBUTIONS FROM CONSUMERS |
644.100 |
914.100 |
488.600 |
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TOTAL |
184443.200 |
167035.600 |
140049.900 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
57829.400 |
57527.400 |
51905.400 |
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Capital work-in-progress |
14695.000 |
4762.100 |
7611.600 |
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INVESTMENT |
79399.100 |
66886.200 |
54434.700 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
|
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Inventories |
6295.700
|
5893.600
|
6441.400 |
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Sundry Debtors |
19743.200
|
19763.100
|
15879.700 |
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Cash & Bank Balances |
8372.900
|
12776.400
|
455.000 |
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Other Current Assets |
172.000
|
305.700
|
485.300 |
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Loans & Advances |
25543.300
|
20803.800
|
23550.000 |
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Total
Current Assets |
60127.100
|
59542.600
|
46811.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
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Sundry Creditors |
10190.100
|
7761.500
|
8352.900 |
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Other Current Liabilities |
10392.400
|
6895.500
|
5840.400 |
|
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Provisions |
7024.900
|
7025.700
|
6519.900 |
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Total
Current Liabilities |
27607.400
|
21682.700
|
20713.200 |
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Net Current Assets |
32519.700
|
37859.900
|
26098.200 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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|
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|
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TOTAL |
184443.200 |
167035.600 |
140049.900 |
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PROFIT & LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
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SALES |
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Income |
69184.800 |
70982.700 |
72362.300 |
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|
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Other Income |
4935.800 |
2815.800 |
6323.500 |
|
|
|
TOTAL (A) |
74120.600 |
73798.500 |
78685.800 |
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Power Purchased |
7842.100 |
2516.900 |
4935.000 |
|
|
|
Cost of Fuel |
34856.400 |
40455.600 |
48076.500 |
|
|
|
Generation , distribution, administration
and other expenses |
10577.000 |
9224.100 |
7941.400 |
|
|
|
TOTAL (B) |
53275.500 |
52196.600 |
60952.900 |
|
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
20845.100 |
21601.900 |
17732.900 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
5101.400 |
4229.900 |
3277.600 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
15743.700 |
1737.200 |
14455.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
4620.200 |
4779.400 |
3288.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
11123.500 |
12592.600 |
11166.800 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
1708.600 |
3205.000 |
1944.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
9414.900 |
9387.600 |
9222.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
285.200 |
88.900 |
453.000 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Proposed dividend |
2969.200 |
2850.500 |
2552.600 |
|
|
|
Dividend |
0.000 |
3.100 |
7.200 |
|
|
|
Additional income tax on dividend |
162.700 |
379.800 |
317.500 |
|
|
|
Transfer to debenture redemption reserve |
249.200 |
597.700 |
317.800 |
|
|
|
Transfer to general reserve |
4000.000 |
4000.000 |
5000.000 |
|
|
BALANCE CARRIED
TO THE B/S |
2319.000 |
1645.400 |
1479.900 |
|
|
|
|
|
|
|
|
|
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EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Interest |
773.800 |
401.300 |
10.600 |
|
|
|
Export on FOB Basis |
0.000 |
12.900 |
53.900 |
|
|
|
Export of Services |
48.800 |
2.400 |
14.900 |
|
|
|
|
10.200 |
0.000 |
3167.200 |
|
|
|
Guarantee commission from subsidiary |
211.000 |
10.300 |
29.400 |
|
|
|
Others |
133.800 |
130.900 |
0.000 |
|
|
TOTAL EARNINGS |
1177.600 |
557.800 |
3276.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
1361.900 |
2345.900 |
1593.900 |
|
|
|
Components & Spare Parts |
191.900 |
184.500 |
200.000 |
|
|
|
Fuel |
10168.300 |
12549.700 |
22203.000 |
|
|
TOTAL IMPORTS |
11722.100 |
15080.100 |
23996.900 |
|
|
|
|
|
|
|
|
|
|
Earnings Per Share (Rs.) |
|
|
|
|
|
|
- Basic |
40.84 |
40.77 |
46.69 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
30.06.2011 |
|
Type |
|
|
1st
Quarter |
|
Sales Turnover |
|
|
19212.400 |
|
Total Expenditure |
|
|
15058.100 |
|
PBIDT (Excl
OI) |
|
|
4154.300 |
|
Other Income |
|
|
2600.000 |
|
Operating
Profit |
|
|
6754.300 |
|
Interest |
|
|
1124.100 |
|
Exceptional
Items |
|
|
0.000 |
|
PBDT |
|
|
5630.200 |
|
Depreciation |
|
|
1330.900 |
|
Profit
Before Tax |
|
|
4299.300 |
|
Tax |
|
|
1483.700 |
|
Reported PAT |
|
|
2815.600 |
|
Extraordinary Items |
|
|
(118.700) |
|
Prior Period Expenses |
|
|
0.000 |
|
Other Adjustments |
|
|
0.000 |
|
Net Profit |
|
|
2696.900 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
12.70
|
12.72
|
11.72 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
16.08
|
17.74
|
15.43 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
9.43
|
19.97
|
11.31 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.13
|
0.14 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.92
|
0.80
|
0.90 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.18
|
2.75
|
2.26 |
LOCAL AGENCY FURTHER INFORMATION
History:
Subject is largest integrated Electric Power Utility in
private sector with a reputation for reliability, incorporated in the year 1919
at Mumbai. TPC pioneered the generation of electricity in
FINANCIAL HIGHLIGHTS
Standalone results
During the year, the Company reported a Profit After Tax
(PAT) of Rs.9414.900 Millions, as against Rs.9387.600 Millions for the previous
year. The Operating Revenue was lower at Rs.6,9184.800 Millions, as against
Rs.7,0982.700 Millions, a decline of 3%. Operating Revenue was lower mainly on
account of lower fuel cost. The Operating Profit was lower by 15% mainly due to
lower generation and lower merchant tariffs in the year, as also due to
one-time impact of an order of the Appellate Tribunal for Electricity (ATE) in
the previous year.
Other Income was higher at Rs. 4935.800 Millions, as
against Rs.2815.800 Millions in the previous year, a growth of 75%. This was
mainly due to higher dividend income from the investments made by the Company.
Earnings per share (basic) was at ` 40.84, as against ` 40.77 in the previous
year.
Other power plants of Tata Power
Jojobera Thermal Power Station
The Jojobera Thermal Power Station in Jharkhand has an
installed capacity of 428 MW. During the year, the station recorded a
generation of 3,078 MUs, which is also the highest ever, as compared to 3,002
MUs in the previous year. The station also achieved highest ever plant
availability of 97% during the year. Unit 4 underwent complete turbine overhaul
for the first time since commissioning, resulting in improvement in the heat
rate of the Unit due to significant improvement in vacuum.
Belgaum Thermal Power Station
The Belgaum Thermal Power Station, an Independent Power
Producer in Karnataka, has a heavy fuel oil-based generation capacity of 81 MW.
During the year, the plant generated 300 MUs as compared to 394 MUs in the
previous year, a decrease of about 24% due to lower demand by Karnataka Power
Transmission Corporation Limited during the rainy season and major outages of
Units 2, 4 and 5. Demand for the current year was affected due to a better
monsoon than the past year, since demand for oil-based generation is primarily
for peaking purposes.
Haldia Power Plant
Haldia Power Plant in West Bengal has an installed
capacity of 120 MW consisting of 3 Turbine Generator (TG) sets (2 of 45 MW and
1 of 30 MW) and 16 waste heat recovery boilers. This is a green power plant
based on waste heat recovery from flue gas from coke ovens of Tata Steel
Limited (Tata Steel). One sixth of the power generated is sold to West Bengal
State Electricity Distribution Company Limited and the balance is traded
through Tata Power Trading Company Limited (Tata Power Trading).
During the year, the collective generation of all units
was 760 MUs. The Company completed Unit 1 TG overhauling and annual overhauling
(statutory obligations) of all 16 boilers. During the year, Haldia division
undertook several improvement initiatives for improving plant availability and
PLF like upgradation of DM plant capacity, flue gas temperature improvement,
reduction of unplanned outages and reducing grid failures by implementation of
carrier protection and proper relay coordination, etc.
Wind Generation outside Mumbai Operations
During the year, the Company acquired a 21 MW wind farm,
taking the total installed capacity outside Mumbai operations to 122 MW. The
installed capacity for wind power generation at various locations outside Mumba
The collective generation by the wind farms outside Mumbai Operations was 179
MUs during the year as against 154 MUs in the previous year.
Value Added Businesses
Tata Power Strategic Electronics Division (SED)
SED has been a leading domestic player in the defence
systems and engineering space for over four decades and has now emerged as a
prime contractor to Ministry of Defence (MoD) for indigenous defence products
and systems. During the year, SED has reinforced its position as India’s
premier private sector defence company in its role as a prime systems
integrator with the capability of leading alliances of internationally reputed
defence companies, in addition to being recognised as one of the leading
suppliers of defence equipment in India.
During FY11, SED had a turnover of Rs.1406.800 Millions as
against Rs.1224.800 Millions in FY10, a growth of 14%. SED ended the year with
an order backlog in excess of Rs.1,5000.000 Millions. During the year, SED
scored a number of achievements.
NEW GENERATION PROJECTS
Coastal Gujarat Power Limited (CGPL)
CGPL, the Company’s wholly-owned subsidiary, is
implementing the 4,000 MW (800 x 5 units) Ultra Mega Power Project (UMPP) at
Mundra in Gujarat. The project, estimated to cost Rs.17,5000.000 Millions, is
progressing as per schedule, with engineering, procurement and construction
activities in full swing. The cumulative progress till the end of March 2011
was approximately 77% with total capital commitments of 100% of total equipment
ordering and a total actual expenditure of Rs.13,1660.000 Millions. Civil,
structural, mechanical, electrical and control and instrumentation work is
underway with over 11,500 direct and indirect workmen deployed at the site.
Unit 1 boiler was lit up on 22nd March, 2011, and steam blowing is nearing
completion. The first unit is expected to be synchronized with the grid in the
second quarter of FY12. CGPL has been informed that there is a delay in
commissioning of the transmission lines by Power Grid Corporation of India
Limited (PGCIL), who are responsible for providing evacuation facilities on
behalf of the procurers. However, both PGCIL and other Government agencies
involved are making efforts to minimize the delay. The construction and
commissioning of balance four units is progressing satisfactorily. The jetties
for unloading coal, by Mundra Port and Special Economic Zone Limited, were
commissioned in December 2010 and three coal consignments totalling 0.25 MT of
coal have already been unloaded in CGPL’s stockyard till date. As a part of
ongoing efforts, adequate safety systems have been put in place including
training and systems developed with the help of leading safety experts like
DuPont. Outreach programs are organized with the help of an NGO to build bonds
with and sensitize the supervisors, workers and safety stewards. CRISIL has
revised its outlook on the long term loan to ‘Positive’ from ‘Stable’, while
reaffirming the rating at ‘A+’. The outlook revision reflects the significant
progress made on the project. CGPL has taken several initiatives for the local
community in the area of livelihood and income generation, education and
health as part of its community relationship programme
involving local communities. A green belt development plan is under
implementation to enhance environment improvement in the project area. CGPL has
a subsidiary in Singapore - Energy Eastern Pte. Limited (EEPL) for meeting its
fuel logistics.
Maithon Joint Venture Project
Maithon Power Limited (MPL), a joint venture (JV) between
the Company (74%) and Damodar Valley Corporation (26%), is constructing a 1,050
MW (2 x 525 MW) power plant at Maithon in Jharkhand. The Company is rendering
project management and O and M services to MPL. Unit 1 has been successfully
synchronized with secondary fuel oil on 28th March, 2011. Unit 1 coal firing
and Commercial Operation Declaration (COD) is expected before end of H1 FY12.
Commissioning of water system, including RW pumps, CW pumps, IDCT 1, etc. is
completed and DM plant operation has been put on automation. Stacker reclaimer
has been commissioned and coal bunkering for Unit 1 has commenced too. All the
balance work pertaining to coal handling and ash handling systems, required for
Unit 1 commissioning, is scheduled to be completed before end of H1 FY12.
In Unit 2, the stator was lifted on 31st January, 2011.
Turbine erection commenced on 25th March, 2011. Erection work of the boiler is
progressing well and boiler light up is expected to be completed by H2 FY12.
The unit commissioning is expected to be completed before end of H2 FY12. As of
31st March, 2011, the Company has infused equity of Rs.1,1629.200 Millions in MPL. The debt drawn
by MPL is Rs. 2,4202.500 Millions.
Diesel Generation (DG) Capacity
The Company has refurbished and converted for dual fuel (natural
gas + oil) operation the 4 DG sets to be commissioned at Lodhivali. The plant
is scheduled to commence commercial operation post receipt of gas from GAIL
(India) Limited in H1 FY12.
Dagachhu Hydroelectric Power Project, Bhutan
The 114 MW (2 x 57 MW) Dagachhu project is being
implemented by Dagachhu Hydro Power Corporation Limited (a JV of the Company
[26%] with Druk Green Power Corporation Limited [59%] and National Pension and
Provident Fund of Bhutan [15%]) in Bhutan. Diversion of Dagachhu river for weir
construction has been completed and weir foundation is ready for concreting.
Concreting of the desilter is in progress. Work for head race tunnel, power
house access tunnel, etc. is in progress.
Cumulatively, 3.12 kms. of tunnelling has been completed.
Manufacturing activities pertaining to bifurcator, distributor, power house
crane, switchgear, generator, etc. are in progress and generator frames have
already been dispatched to the project site. The project is expected to be
commissioned in FY14.
Renewable Projects
· Wind Power
The Company is developing wind power projects of over 200
MW, of which 150 MW is proposed to be commissioned during FY12 across
Maharashtra (50 MW) and Tamil Nadu (100 MW).
· Solar Power
The Company is developing a 25 MW solar PV plant at
Mithapur in Gujarat through its subsidiary, Industrial Power Infrastructure
Limited (IPIL). IPIL has signed a Power Purchase Agreement (PPA) with Gujarat
Urja Vikas Nigam Limited for the same. The purchase orders have been placed for
the development of solar fields and the project activities have commenced. The
Company is also developing a solar PV plant of 10 MW between Mulshi on its own
land and on the identified roofs of the plant premises of Tata Motors Limited
at Pune.
Projects Under Planning – India
Coastal Maharashtra Project
During the year, the Company has made further progress in
the Coastal Maharashtra project at Dehrand, Maharashtra. All statutory
clearances for commencement of initial phase of 1,600 MW are in place. Agreement
for fresh water allocation for the project has been signed with the Maharashtra
Industrial Development Corporation (MIDC). Subsequent to the issue of Gazette
notification by Government of Maharashtra (GoM) u/s 32(1) of the Maharashtra
Industrial Development Act, 1961 (MID Act), a high powered committee of GoM
approved the land compensation payable to land owners. Actual compensation
disbursement to land owners commenced on 3rd August, 2010, by District
Collector as per provision under MID Act. MIDC has so far acquired more than
50% of private land. Acquisition of balance land is in progress.
Socio-economic survey of project affected persons in
respective villages has been completed. Economic options for coal logistics are
under evaluation.
Tiruldih Power Project, Jharkhand
The process of land acquisition for the 1,980 MW project
is in progress and the first tranche of 101 acres of land has been transferred
in the name of the Company on 28th March, 2011. The entire land acquisition process
is scheduled to be completed by March 2012. The Company is in discussions with
the Government of Jharkhand (GoJ) for a Memorandum of Understanding (MoU) for
allocation of water, various land related permissions, right of way for
transmission lines / water pipelines, coal allocation from Jharkhand State
Mineral Development Corporation Limited in exchange for sale of power (25%
capacity) from the proposed plant, etc. Application for water allocation of 62
cusecs for the project has been made to the water resource department, GoJ. It
is anticipated that the allocation of water will be from Chandil reservoir
which is about 25 kms. away from site. In-principle clearance has been received
from Railways for transportation of coal from Tubed coal block. On Environmental
Clearance (EC), Terms of Reference (ToR) have been approved by Ministry of
Environment and Forests (MoEF). Environmental monitoring has been completed and
Environmental Impact Assessment (EIA) report is under finalization. Discussions
have been initiated with Tata Steel for developing the captive unit and
entering into a MoU for the same. The Company expects to issue Notice To
Proceed (NTP) for the project around Q4 FY12 (Zero date being considered in Q1
FY13).
Kalinganagar, Orissa 652.5 MW [3 x 67.5 MW (Gas based) + 3
x 150 MW (Coal and gas based)]
The project is being executed through Industrial Energy
Limited, a JV of the Company (74%) with Tata Steel (26%). Tata Steel has
commenced project related works for its 3 MTPA steel plant and has requested
the Company to initiate the enabling works related to power plant. RITES, a
Government of India (GoI) enterprise, has been appointed as the consultant for
preparation of combined Detailed Project Report (DPR) for Tata Steel and the
Company’s prospective coal unloading arrangements, obtaining approval from East
Coast Railways, etc. Tata Steel has already obtained EC for production
gas-based plant along with their steel plant. Water allocation has also been
obtained. Process has been initiated for obtaining coal linkage, water
allocation, EC, etc. for additional coal-based plant. The ToR has been approved
by Orissa State Pollution Control Board (OSPCB). Tata
Consulting Engineers Limited (TCE) has been engaged as the
Owners’ Engineer and DPR, plot plan, technical specifications for various
packages, etc. are under finalization. Soil investigation is currently underway
at the project site and zero date for the gas based project is envisaged in H2
FY12.
Maithon Expansion – 1,320 MW (2 x 660)
The Company has finalised the DPR and initiated studies
for obtaining EC for the project. No additional water allocation is required
for expansion project as the Water Optimization Study by TCE has confirmed that
water allocated for Phase I will suffice the Phase II requirements also.
Currently, the environmental consents are in progress. Subsequently, the
Company expects to start the site related activities by H1 FY13 and place
orders for its main plant equipment in H2 FY13 (Zero date being considered in
H2 FY13).
Dugar Hydroelectric JV Project
The consortium of the Company and SN Power Singapore Pte.
Limited (SN Power), a subsidiary of Statkraft, Norway, was successful in
winning the Dugar hydroelectric power project through a competitive bidding
process carried out by the Government of Himachal Pradesh (GoHP). The project
is being developed through a Special Purpose Vehicle (SPV), Dugar Hydro Power
Limited (DHPL). DHPL is a JV between the Company (50% + 1 share) and SN Power
(50% - 1 share). The capacity for the project is estimated to be between 236
MW-280 MW. This is a Peaking-Run-of-the-River (PROR) project with storage, for
peaking capacity in the lean season. It is the last project in cascade in
Himachal Pradesh on the river Chandrabhaga (Chenab).
The letter of intent was issued to the Company on 5th
April, 2011, and the letter of allotment on 4th May, 2011. The
Pre-implementation Agreement is to be signed with the Directorate of Energy,
GoHP, shortly. The Company is undertaking a detailed exploration and design
study to plan and finalize the project implementation.
Naraj Marthapur Project, Orissa
The major clearances for the 660 MW Naraj Marthapur
project have been obtained. The EC has been granted by MoEF, subject to
clearance from National Board of Wild Life for which the process is on.
Projects Under Planning – International
Tamakoshi - 3 Hydroelectric Power Project, Nepal
On 22nd July, 2010, the Company signed a Shareholders’
Agreement (SHA) with SN Power to acquire an equity holding of 50% - 1 share in the
project SPV to develop, own and operate the Tamakoshi 3 Hydroelectric Power
Project located at the Dolakha and Ramechhap districts in Nepal. The SHA is
pending approval of Government of Nepal (GoN).
Sorik Marapi Geothermal Project, Indonesia
On 2nd September, 2010, the consortium of Tata Power –
Origin – Supraco was awarded the 240 MW Sorik Marapi geothermal project in
Indonesia based on the tariff of USD 0.081 / kWh. The development of the
project will require a process of progressively proving the technical and
commercial viability of the project while also meeting a range of regulatory
obligations.
From the assessment of existing resource data, preliminary
locations have been identified for exploration wells within the inferred high
temperature resource area. Initial surface exploration (geology, geochemistry
and geophysics) have commenced along with community relations activities at the
project area. The exploration phase would end by H1 FY13, after which the
project implementation details will be finalised.
SECTOR OVERVIEW
Global
Energy Demand
The global average per capita consumption of energy is
currently at about 2,500 kWh. It is said that the basic minimum need of energy for
a decent quality of life is about 4,500 to 5,000 kWh per capita1. Further,
global population is expected to rise from about 6.8 billion currently to about
9 billion by 2050 and then stabilize2. Therefore, no matter which way one looks
at energy demand viz. either to just provide a basic quality of life to the
existing population or to take care of the needs of another 2.2 billion people,
the world will need more energy. While the rate of growth in energy consumption
is expected to be very high in growing economies like China, India, Africa,
South America, etc., the growth in energy consumption in absolute terms is
projected to be the highest in China followed by North America, India, Middle
East, etc. For the power sector, growth in absolute energy consumption is more
relevant than just percentage change in energy consumption. Further, it is also
seen that the ability to pay in markets that have high energy growth rates is
weaker as compared to the developed markets. In absolute terms, the United
States of America (USA) is by far the largest consumer of energy followed by
China and Western Europe. Japan, South Korea, the Middle East and Russia are
the other big consumers. In comparison, India’s energy consumption today is
much lower but is expected to be around the current levels of Japan, South
Korea, and others by 20303. With evolving consumer needs and technology, energy
and electricity are getting more fungible. Electricity, however, is the most
convenient form of energy and, hence, it is expected that its share of
delivered energy will rise from the current 17% to 20% by 20304. The key
factors that will shape the energy / electricity markets will be climate change
and energy security. The key drivers for the power sector will be based on:
Global
Energy Supply
The World has fossil fuel reserves that are projected to
last for 91 years based on current consumption levels and around 45 years based
on increasing consumption trends. Russia has sizeable energy consumption and
also one of the largest reserves. Saudi Arabia, South Africa and Australia are
other regions of large reserves with a far lower domestic consumption and,
hence, can play a major role in the global trade of energy. Oil is the most
widely traded commodity primarily because of its ease of handling and usage.
However, oil exports are largely controlled
by countries of the Middle East, Russia and Nigeria. The
major oil importers are the USA, Western Europe, China, India and Japan.
Increasing cost of oil production, falling reserves and increasing demand are
likely to push oil prices upwards6. Volume of gas as a traded commodity is fast
increasing, facilitated by improving Liquefied Natural Gas (LNG)
infrastructure. The major gas consumers are the USA, Western Europe and Japan,
whereas the main suppliers are Russia and countries in the Middle East. The
discovery of shale gas in North America could, however, dramatically change the
gas supply scenario, leading to drop in demand and stranded LNG capacity,
resulting in lower gas prices in the near term7. Sea-borne coal trade,
especially thermal coal, accounts for only about 15% of the total coal
consumption. The main importers of coal are the USA, China, India, Western
Europe, Korea and Japan. The main suppliers are Russia, Indonesia, Australia,
South Africa and Colombia. The USA has the largest reserves of coal but is
currently not exploiting them. Growing demand for energy in China and
bottlenecks in internal supply in India are expected to drive global demand for
coal in the near term. At a macro level, this implies limited fossil fuel
supply and that many people might in their lifetime see fossil fuel
availability taper off. Hence, prices of fossil fuels are expected to rise.
This would also lead to an increase in electricity prices. Since major consuming
economies like Western Europe, Japan, South Korea and China do not have
sufficient domestic resources, nuclear power and renewable sources would be
more important to fulfill their energy requirements.
Market
Structure
While primary energy sources like coal, gas and oil are
global commodities, electricity has traditionally been a more local / regional
commodity. However, with international grids getting connected, the picture
hereunder might change.
Globally, a structure seems to be evolving where electricity
generation and retail will be open to competition and the wires will be a
natural monopoly and available to all. The power generated will be sold to a
common pool on the basis of ‘Least marginal cost of supply’ wherefrom all
retailers will buy their supply needs. The markets will permit direct hedging
contracts between the retailers and generators to manage price volatility in
the common pool. India has different models of power sale ranging from an
integrated utility (the old State Electricity Board [SEB] structure), to a
‘single buyer’ (MoU based / regulated generation), to ‘wholesale competition’
(Ultra Mega Power Projects [UMPPs], Case 1) and retail competition (Mumbai).
Migration to developed market structure is expected to occur as soon as the gap
between demand and supply is narrowed.
While the electricity market structure is subject to a
high degree of regulation, the basic input to electricity i.e. fuel, remains
free of all control and can provide opportunities for a deregulated play over a
longer term (in India fuel is not yet free of all control – coal mines are
still ‘allocated’ and oil and gas prices are still administered).
An analysis of the value chain from fuel to electricity
generation to transmission to distribution and finally to retail suggests that
the maximum value lies on the fuel side followed by generation. The volatility
of returns in fuel, however, is higher as compared to that in generation.
India
Scenario
Current per capita consumption of electricity in India is
about 733 kWh9 which would have to grow 7-8 fold to provide a decent quality of
life. At a GDP growth rate of 5-9%, the demand is expected to grow to about 2
times the current demand by 201710. It is expected that with the 12th five year
plan (2017), India might have sufficient base load capacity. However, with
economic growth, there will still be a need to add 115 GW to 190 GW of base
load capacity between 2020 and 2030 i.e. about 12,000 MW to 19,000 MW every
year. Hence, there would be a need to continue adding base load capacity in the
13th and 14th five year plans as well11. The expected growth would mean that
about 40,000 MW will be under construction every year. About 75,000 to 80,000
new skilled workers would be required only for construction and operations in
the power sector12. However, the power sector faces competition from both
infrastructure sectors and other industries such as Information Technology (IT)
for skilled manpower. Further, at an average cost of Rs.60.000 Millions per MW
covering all forms of generation, India will need Rs.240,0000.000 Millions to
Rs.300,0000.000 Millions as capital, with an additional requirement of about
Rs.60,0000.000 Millions to Rs.80,000 Millions per year. Hence, people
development and funding are critical to cater to the growing demand.
The major fuel source for base load capacity addition is
expected to be coal. However, availability of domestic coal is a challenge on
account of various bottlenecks such as capacity expansion of Coal India Limited,
coal block allocation, tribal land acquisition, environmental and forest
clearances, etc. This is further compounded by issues around land acquisition
for the power plant, water availability and ash disposal for domestic
coal-based plants. As per the annual report of FY11 released by the Ministry of
Coal, the projected coal demand in FY12 is 713 Million Tonnes (MT) (including
both coking and non-coking coal), while the likely supply is expected to be 592
MT. This would leave a deficit of about 120 MT which would need to be made up
by imported coal or blended coal as per plant design. This would lead to
increased demand for imported coal, resulting in a rise in fuel cost for
generating companies.
In view of the inherent risks and challenges in developing
and executing new projects and rising fuel costs, the cost of generation is
likely to increase. However, the political will to pass on these costs to
consumers has been rather weak, thereby forcing Governments to increase subsidy
bills. It is ironic that while the consumers are willing to pay for diesel
generation sets and invertors, from which the cost of power is very high, they
are unwilling to pay for power from the utilities. People need to be educated
and prepared for price increases and Governments need to address this
communication challenge. Unless the challenge of an increasing subsidy bill is
addressed urgently, it could become another serious bottleneck in capacity
addition.
Currently, the power sector relies excessively on
coal-based generation. When the climate change movement gathers momentum, India
will need to move away from coal to other power generation sources such as
hydro and nuclear. Even without the challenge of climate change, just the sheer
need for more energy and the need for self-reliance will drive the Indian power
sector towards energy efficiency, conservation and cleaner power.
Towards this end, the Company has enunciated a path for
sustainability to address the fallouts and opportunities. It has undertaken
various initiatives in areas such as Environment, Architecture, Community
Development, Advocacy, Renewables, New Technology, Green Buildings, New Models
of Development, etc. It has established the Tata Power Energy Club for creating
mass awareness on energy conservation across the country and established
renewable energy generation as part of the approach.
Nuclear power is considered to be another option for
India, given the shortage of adequate existing energy sources. The three stage
process adopted by India that uses reprocessed spent fuel in fast breeder
reactors, eventually moving to a Thorium-based cycle, would offer the long term
solution, provided concerns arising out of safety issues including the recent
incident at Fukushima in Japan get addressed appropriately.
Performance
of the Indian Power Sector during the year 2010-11
Generation
The total power generation in the country during FY11 was
811.10 Billion Units (BUs) which comprised primarily 664.91 BUs from thermal,
followed by 114.29 BUs from hydro, 26.28 BUs from nuclear and import of 5.61
BUs from Bhutan. The average thermal plant load factor was 75.07%. The
installed generating capacity in the country (as shown in Chart 3) as on 31st
March, 2011, was 173.626 GW13. The base load deficit during the year was about
73,000 MUs and the average peak load deficit for the year was about 12,910
MW14.
Capacity
Addition
The capacity addition in the 9th and 10th five year plans
put together was 46.534 GW. The revised 11th plan (2007-2012) target is 62.000
GW. Capacity commissioned during 11th plan (upto 31st March, 2011) was 41.297
GW. The expected capacity addition, although much higher than earlier five year
plans, is, however, still short of the revised target.
Fuel
Availability – Coal
Current domestic coal supply has been affected by
environmental restrictions on coal mining because of which Coal India Limited
(CIL) has not been able to ramp up production to planned levels, as also, a
large quantity of coal has not been transported from the mines (about 60 MT as
per CIL). This has impacted generation availability of domestic coal-based
plants in the country. As many as 28 plants amounting to a capacity of about
30,000 MW, were facing critical fuel stock situation with a coal stock of less
than 7 days, as per the CEA monthly report. The production of CIL in FY11 was
431 MT of coal, with non–coking coal production of 390 MT.
This is significantly lower than the demand. Import of
coal is, therefore, being resorted to during the last few years and
utility-wise allocation is being made by the Ministry of Power in consultation
with CEA. The import of coal is set to rise from about 100 MT per annum (MTPA)
currently to over 150 MTPA by 201315.
Fuel
Availability – Gas
The installed generation capacity of gas-based power
stations as on 31st March, 2011, was about 17.706 GW. Although the Ministry of
Petroleum and Natural Gas has come up with guidelines for allocation of
domestic gas, there is uncertainty in domestic gas supply with respect to
quantity as well as price. Production from KG D-6 of Reliance Industries
Limited, India’s largest producing gas field, has dropped significantly during
the last few months. Due to this uncertainty, gas projects that have requested
for gas have been put on hold by the concerned authorities in the power sector
till further clarity emerges on the production scenario. Under such
circumstances, new gas-based capacities are unlikely to come up in the near
future, till the above issues are resolved. Imported LNG, which is a direct
substitute for domestic natural gas, is at almost double the price. In this
way, electricity produced from imported LNG makes the cost of generation
relatively higher to merit dispatch on a base load basis.
Transmission
The rate of growth of the transmission network (at
voltages of 220 kV and above) during the past decade has been at about 6-7% per
annum. The inter-regional transmission capacity has increased from 5.050 GW
(end of 9th plan) to about 22 GW by March 2011. However, this still falls short
of the 14% per annum growth in transmission capacity targeted in the 11th plan.
The Government policy plans to increase inter-regional transmission capacity to
58.700 GW by 2015. It is expected that thereafter, inter-regional transmission
will not be a constraint16. New Inter-State Transmission Charges and Losses
Regulations, 2010, came into effect from 1st April, 2011.
Distribution
Power distribution still remains a segment that needs significant reform, as this would have a direct impact on the sector’s commercial viability and ultimately on the consumers and generators. The sector has been plagued by high distribution losses (as high as 35-40%) and low billing recovery, resulting in poor financial health of the utilities. After the mediocre results of the Accelerated Power Development and Reforms Programme (APDRP), the Government has introduced the Revised Accelerated Power Development and Reforms Programme (R-APDRP). The programme is to be implemented in two phases. The focus of the first phase is on implementation
of IT systems for distribution. This is to be followed by
large scale distribution franchising in the second phase in order to remove
inefficiencies. The reform of the distribution sector is also crucial for the
success of the generation sector as the generation companies cannot sell power
to financially unviable entities.
At least 25% financial savings could be accrued by reducing distribution losses. This can help offset the increase in fuel and energy costs. The 13th Finance Commission has advocated that the States need to address the problem of losses in the power sector in a time-bound manner. In its recommendations, it has included the following recommendations, among others:
“i) Reduction of Transmission and Distribution (T&D) losses should be attempted through metering, feeder separation, introduction of High Voltage Distribution Systems (HVDS), metering of distribution transformers and strict anti-theft measures. Distribution franchising and Electricity Services Company (ESCO)-based structures should be considered for efficiency improvement.
ii) Unbundling needs to be carried out on priority basis and open access to transmission strengthened.”
The Company, with its integrated operation and significant experience in public private partnerships in all areas of the value chain, is well poised to address opportunities in the sector as they arise.
Alternate models for distribution, particularly decentralized generation using renewable energy sources could be effectively used to address the needs of the country’s rural and semi–rural communities.
Power Trading
The Electricity Act, 2003 (EA 2003), recognised power trading as a new segment apart from generation, transmission and distribution. Tata Power Trading Company Limited was the first company to be granted a license by the Central Electricity Regulatory Commission (CERC) in June 2004. Power trading has since enabled the country as a whole to balance its power surpluses and deficits and has helped to optimally utilise its generation resources. Electricity traded in the short term power market has gradually increased to nearly 7% of the generation, of which close to 5% is via bilateral trading and the balance 2% is through power exchanges. Power trading has been continuously evolving since its inception and the increase in volumes reflects the confidence of market participants. Open access to generators and consumers, increased share of merchant power in upcoming independent power plants, banking of power, establishment of distribution franchisees and supply of power to Special Economic Zones, etc. is expected to lead to further growth in power trading business in the future. With these increased opportunities, however, the competition has also grown fierce due to increase in number of CERC licensed traders from 13 in FY05 to 39 in FY1118.
While the outlook for power trading is bright in the longer term, the sector is currently facing several challenges that need to be addressed by the regulators and policymakers. The financial condition of the distribution sector is a matter for concern. This is limiting their purchases and constraining their ability to pay for power procured. Distribution companies (discoms) prefer to shed load rather than purchase power, resulting in lower off-take and dampened prices in the merchant market. It is a paradox in the Indian market that consumers have to invest in generating expensive power using backup power equipment while inexpensive power remains un-dispatched due to load shedding by discoms. In addition, the unwillingness of discoms to allow for open access to their consumers in spite of the provisions in EA 2003 is acting as a barrier to further growth and competition in the sector. A combination of tariff increases, distribution reforms, open access and enforcement of the ‘obligation to serve’ is required going forward.
FIXED ASSETS:
- Technical
Know-how
- Licences
- Land
(including land development)
- Hydraulic
Works
- Buildings
- Railway Sidings,
Roads, Crossings, etc
- Plant and
Machinery
- Transmission
Lines, Cable Network, etc
- Furniture,
Fixtures and Office Equipments
- Motor
Vehicles, Launches, Barges etc
- Motor
Vehicles under Finance Lease
- Helicopters
BOARD OF
DIRECTORS:
Mr. Ratan N Tata (Chairman)
Mr Tata has been on the Board since 1989. Mr Tata holds a B.Sc.
(Architecture) degree with Structural Engineering from
Mr. Ramabadran Gopalakrishnan
Mr Gopalakrishnan is a graduate in Physics from
Dr. Homiar S Vachha
Dr. Vachha has a post-graduate degree and a doctorate in Economics from
the
Mr. Adi J Engineer
Mr. Engineer graduated as a B.E. (Civil) from
Mr. Nawshir H Mirza
Mr. Mirza is a Fellow of the Institute of Chartered Accountants of India
and was a Senior Partner of Ernst and Young. He is an Advisor to Jardine
Matheson and Company Limited,
Mr. Deepak M Satwalekar
Mr. Satwalekar was the Managing Director and CEO of HDFC Standard Life
Insurance Company Limited since November 2000 and prior to this, he was the
Managing Director of HDFC Limited from 1993 - 2000. Mr Satwalekar obtained a
Bachelors Degree in Technology from the Indian Institute of Technology,
Dr Ramchandra H Patil
Dr Patil is presently the Chairman of Clearing Corporation of
Mr. Piyush G Mankad (IAS Retired)
Mr. Mankad is a retired civil servant with a distinguished career of
over 40 years in the prestigious Indian Administration Service, which he joined
in 1964, topping his batch. He was educated at
Mr. Ashok K Basu
Mr. Basu is the former Secretary - Steel, Secretary - Power and Chairman
of Central Electricity Regulatory Commission. Mr Basu was a key member in the
formulation and clearance of the Electricity Act, 2003, both as Secretary
(Power) and later as Chairman (CERC), and has a very deep knowledge of the
power business in
Mr. Thomas Mathew T
Mr. Mathew is a post-graduate in Economics and holds a Bachelor's Degree
in Law. He also holds a post-graduate diploma in Management from the
International Institute of Advanced Marketing. He is the Managing Director of
LIC since March 2006. He is the Nominee Director of LIC on the Boards of Larsen
and Toubro Limited and Corporation Bank. He is also Chairman of LIC Mutual Fund
Trustee Company Private Limited, and Director on the Board of LIC (Lanka)
Limited,
Mr. Prasad R Menon
Mr. Menon is a Chemical Engineer from IIT, Kharagpur with 38 years of
professional experience in the industry. Prior to joining the Company, he was
the Managing Director of Tata Chemicals Limited. He has also had long service
with the ICI group of companies in
Mr. Sowmyan Ramakrishnan
Mr. Ramakrishnan holds a B.Tech degree from IIT Madras and also has a
Management Degree from IIM, Ahmedabad. He joined the Tata Administrative Services
in 1972 and during his long tenure, handled a multitude of national as well as
international projects. He is on the Board of several group companies.
Mr. Sankaranarayanan Padmanabhan
Mr. Padmanabhan is a gold medallist in Electronics and Communication
Engineering from PSG College of Technology,
Mr. Banmali Agrawala
Mr. Agrawala is a Mechanical Engineer from Manipal Institute of
Technology. Prior to joining the Company, he was the Managing Director of
Wartsila India Limited. Prior to Wartsila, he was with Bajaj Auto Limited in
Research and Development division. He has a deep understanding of the Indian
power industry as well as the global renewables business. He has 23 years of
professional experience in the industry and has held several positions in
industry bodies.
PRESS RELEASE:
Tata Power-Origin Energy-Supraco
Consortium wins geothermal bid in
Mumbai, September 02, 2010
Tata Power, India's largest integrated private power company, today announced that the consortium comprising of Tata Power (47.50%), Origin Energy Limited (47.50%) and PT Supraco Indonesia (5%) were declared as the successful bidder for the Sorik Marapi geothermal project in Northern Sumatra, Indonesia.
The Sorik Marapi project is estimated to support the development of approximately 240 MW of geothermal generation capacity. The project will be developed by PT Sorik Marapi Geothermal Power (“SMGP”), a Special Purpose Vehicle formed by the Consortium. The Consortium would undertake a detailed exploration programme over the next 18 months. The expected Commercial Operation Date (COD) for the project is June 2015.
Speaking on the occasion, Mr. Prasad R Menon, Managing Director, Tata Power said, “Tata Power is happy that its efforts to explore new avenues in the renewable space is moving on a steady path and in the right direction. Tata Power has a strong mission to achieve at least 25% of its generation portfolio through renewable sources of energy by 2017, geothermal energy being one of the prime renewable growth engines. The Sorik Marapi exploration is testament to our faith in the untapped potential of geothermal energy. I would like to take this opportunity to congratulate the entire team that has put in their relentless efforts during the bidding process. Our association with Origin Energy has been fruitful and rewarding. This is in line with our overall growth strategy to build global relationships and partnerships with organizations which are leaders in their field.”
Origin’s Executive Director, Finance and Strategy, Ms. Karen Moses said “The Joint-Venture is consistent with Origin’s strategy of pursuing exploration opportunities for energy resources near growing markets. This joint venture is reflective of our belief that geothermal can provide large scale renewable base load energy.”
Tata Power with generation capabilities in Hydro, Thermal,
Solar and Wind energy has nearly 3000 MW in operation with an additional 5500
MW in construction. Tata Power has a 10% stake in Geodynamics Limited ., a
listed Australia-based organization specializing in geothermal energy and
Enhanced Geothermal Systems (EGS). Along with Geodynamics, Tata Power is
reviewing the potential of geothermal prospects outside
About Tata Power:
Tata Power is
India's largest private sector power utility with an installed generation
capacity of over 2900 MW and a presence in all the segments of the power sector
viz Generation (thermal, hydro, solar and wind), Transmission, Distribution and
Trading. The Company has successful public-private partnerships in Generation,
Transmission and Distribution - "North Delhi Power Limited" with
Delhi Vidyut Board for distribution in
About Origin Energy
Origin Energy is
In
About Supraco:
PT. Supraco
Supraco had
expanded its business activities to many areas in oil and gas service sectors:
Integrated Logistic Base Management, Offshore Crane Supply and Maintenance,
Offshore Drilling, Car and Heavy Equipment Rental Service, Maintenance of
Production Service Facilities, Manpower and Expatriate Management Services, and
many others mainly in operation support area.
For further information please contact:
Shalini Singh
Head- Corporate Communications
The Tata Power Company Limited
Tel: 022-6665 8748
Email: shalinis@tatapower.com
Rakesh Reddy / Rohini Bhagat
Vaishnavi Corporate Communications
Phone: 022-6656 8787
Cell: 9821735515 / 9819762969
Email: rakesh@vccpl.com / rohini.bhagat@vccpl.com
Fact Sheet – Geothermal Energy:
Geothermal generation is energy derived from the Earth’s intense heat. Fluid from highly pressurised, natural geothermal systems is brought to the surface by wells that vary in depth from a few hundred metres to 2.5 kilometres. At the surface this fluid is separated into two streams, one of steam and the other of water. The steam is used in a turbine to generate electricity and the hot geothermal water is either injected back into the ground or drained away.
Greenhouse gas emissions from geothermal power plants are significantly less than for a conventional thermal power station, although other gases, such as hydrogen sulphide, may be emitted with the geothermal steam.
About Sorik Marapi
Sorik Marapi is located in Northern Sumatra, Indonesia,
approximately 590km south of the city of
TATA POWER
ANNOUNCES STANDALONE AND CONSOLIDATED QUARTERLY RESULTS
STANDALONE – Q1
FY11
- REVENUES
STOOD AT Rs. 18679.000 MILLIONS
- PROFIT AFTER
TAX (PAT) FOR THE QUARTER STOOD AT RS. 2689.800 MILLIONS
(For the previous year PAT was Rs. 3770.800
Millions and is not comparable. Previous
year includes Rs. 2324.000 Millions due
to MERC tariff orders and judgment of ATE received) GENERATION UP 3%
AT 4386MUs
CONSOLIDATED – Q1
FY11
- REVENUES UP
BY 7% AT RS. 51848.400 MILLIONS
- PROFIT AFTER
TAX (PAT) AT RS. 3176.700 MILLIONS
- (PAT for the previous year
stood at Rs 5527.600 Millions which
included Rs. 2324.000 Millions due
to MERC tariff orders and judgment of ATE received. PAT for this year is
after considering Rs. 1540.000 Millions
of forex loss on account of realignment of CGPL borrowings)
- Adds 18300
retail consumers in the Mumbai License Area
- Raises US$
300 million in Coal SPVs to fund additional acquisitions and/or reduce
outstanding debt
- Is Country’s
leading private Wind Power Generator, chalks out plans to add about 150MW
in the current fiscal
- ICRA assigns
LAA rating with Positive outlook for the Company’s Rs. 6 billion
Non-Convertible Debenture programme
- CRISIL
assigns ‘AA/Positive’ rating to the Company’s Rs. 6 billion
non-convertible debenture Programme
Mumbai, 12th August 2010: The Tata Power Company Limited, India's
largest private power company, today announced its standalone and consolidated
financial results for the first quarter ended June 30th FY 2010-11.
FINANCIAL
HIGHLIGHTS- QI FY11 - STANDALONE RESULTS
During the quarter, Company’s standalone results reflected a robust
financial and operational performance. The Company reported Revenues at Rs.
18679.000 Millions as against Rs.
20156.200 Millions in the corresponding
period last year. The decrease was mainly due to lower fuel cost in the Mumbai
regulated business. Further, the Company also reduced the fuel cost by
replacing oil with cheaper RLNG gas, thereby reducing the tariff for the end
consumers. However, the cost of power purchase has gone up as we were prevented
from scheduling power generated by us to our distribution business in Mumbai.
Profit After Tax (PAT) for the quarter stood at Rs. 2689.800
Millions as compared to Rs. 3770.800
Millions in the previous year. This is
not comparable as previous year includes amount of Rs. 2324.000 Millions due to MERC tariff orders and judgment of ATE
received. Other Income has gone up by 19% at Rs.1275.400 Millions due to increased earnings out of the FCCBs
funds and interest on tax refund. The interest went down by 32% and stood at
Rs. 795.800 Millions due to repayment of
short term borrowings and refund of interest paid on tax pertaining to previous
years. PAT after Statutory Appropriations stood at Rs. 2629.800 Millions as against Rs. 3969.700 Millions in the corresponding period last year.
FINANCIAL
HIGHLIGHTS- QI FY11 - CONSOLIDATED RESULTS
On a consolidated basis, Revenues for the quarter were up by 7% at Rs.
51848.400 Millions compared to Rs.
48527.900 Millions in the corresponding
period last year. PAT was at Rs. 3176.700 Millions as compared to Rs. 5527.600 Millions in the corresponding quarter last year. This
decrease is mainly due the Rs.1540.000 Millions
of forex loss reported on account
of realignment of CGPL borrowings and also Rs. 2324.000 Millions due to MERC tariff orders and judgment of ATE
received in the previous year.
On Consolidated Segment-wise performance, Net Revenue for Power business
was Rs. 35048.100 Millions and Coal
Business for Rs 15390.600 Millions , an increase of 5% and 19% as compared to
Rs. 33429.700 Millions and Rs. 12980.600
Millions respectively, during the
corresponding periods last year. PBIT for Power Business was Rs. 5173.200
Millions against Rs. 6624.100
Millions (due to MERC/ATE orders explained
above). Whereas, PBIT for Coal Business stood at Rs. 4239.700 Millions as compared to Rs. 3731.600 Millions , 14%
higher than the corresponding quarter last year. This increase is due to higher
production and increase in coal prices.
OPERATIONAL HIGHLIGHTS:
During the quarter, Company’s Operations continued to report strong
performance. Sales volume for the quarter increased by 8% at 4533 MUs as
against 4180 MUs in the corresponding period last year. Overall Generation was
up by 3% at 4386 MUs as compared to 4260 MUs in the same period last year.
Trombay Thermal Power Station and Hydro Power Stations generated 2799
MUs and 358 MUs of power respectively as compared to 2779 MUs and 369 MUs in
the corresponding period previous year. The Jojobera Thermal Power Station
recorded a generation of 850 MUs during the quarter as compared to 803 MUs in
the previous year.
Speaking on the performance for the quarter, Mr. Prasad R. Menon,
Managing Director, Tata Power, said, “We
have started the year on a strong footing. All our businesses have performed
well in this quarter. We are encouraged by the strong performance and growth of
our retail business in Mumbai. Our generating stations have
also recorded robust increase in power
generation.
Further, we are making good progress on our
new projects under implementation. We are entering an important and exciting
leg of our growth phase as most of our large projects are in advance stages of
completion.
We believe that the growth momentum in
Renewables may gather impetus with the strict implementation of RPO obligation
and the Renewable Energy Certificate (REC) mechanism. These additional steps
can trigger demand from various States in the country. We are well placed to
capitalise on the increasing demand for renewable energy sources through a
substantially expanded portfolio including wind, solar and geothermal energy
sources. Our Joint-Venture with SN Power for Hydro projects provides the
potential to expand our presence in hydro projects in
We are glad that we are one of the leading
wind power generators in the country. Our 3 MW solar PV plant will be
the first and largest grid connected solar
plant in
BUSINESS
HIGHLIGHTS:
North Delhi Power
Limited (NDPL):
The Company’s distribution subsidiary and Joint-Venture with Delhi
Govt., NDPL posted Revenues of Rs.11156.600 Millions during the quarter, a growth of 45 % as
compared to the previous year of Rs. 7711.400 Millions . The net profit stood
at Rs. 567.100 Millions as compared to
Rs. 414.000 Millions in the
corresponding period last year. While NDPL reported an increased PAT, its cash
accruals since 1st April 2009 are under pressure due to a substantial increase
in power purchase cost which is yet to be recovered through appropriate
adjustment in tariff. This has resulted in a significant increase in working
capital of about Rs. 6400.000 Millions
(including Rs. 2900.000 Millions
this quarter) since 1st April 2009 .which has been financed through
additional borrowings.
Powerlinks
Transmission Limited (Powerlinks):
Powerlinks, the first public-private joint venture in power transmission
in
Tata Power Trading
Company Limited (TPTCL):
TPTCL traded at total of 1347 MUs during the quarter as compared to 960
MUs in the previous year, thereby resulting in an increase in its Revenues by
7% to Rs. 7163.500 Millions from Rs.
6710.700 Millions in the previous year.
The PAT also increased to Rs. 64.500 Millions
as against Rs. 17.900 Millions in
the same period last year.
Mumbai Retail
Business:
During the quarter, the Company added 18300 new customers out of which
17760 changeover customers taking its total customer base to 76800 with in 8
months. The Company had 26,005 direct consumers before it started expansion of
its retail business in the Mumbai market.
During the quarter, Tata Power signed an agreement to raise US$ 300
Million in Bhira Investments Limited and Bhivpuri Investments Limited Coal
Special Purpose Vehicles (SPVs) through shares with differential rights to be
issued to Olympus Capital Holdings Asia (Olympus Capital). Taking current
position of debt and cash in coal SPVs, the post money shareholding of Olympus
Capital may be in the range of 14-15% for an investment of US$300 million.
These funds could also be utilized to secure further long term coal supplies by
investing in coal mines or to reduce the outstanding debt in the SPVs.
CRISIL and ICRA
Ratings:
The rating exercise with ICRA and CRISIL was undertaken for the Rs.
3500.000 Millions 15 year 9.15% NCD that
was placed in the market to prepay a loan for Company’s wind projects. The
issue was fully subscribed and the money has been drawn down to prepay the
outstanding loan. The NCD is amongst the finer priced issues done. The rating
also allows the flexibility to raise an additional up to Rs.2500.000
Millions of such NCD.
GROWTH PLANS:
The Company’s growth plans include steady capacity addition
year-on-year, taking its current installed capacity to 2975 MW. Some of the
projects commissioned in FY09 and FY10 include 120 MW in Haldia, 120 MW Power
House# 6 owned by IEL,182 MW from wind farms in Maharashtra, Gujarat and
Karntaka and 250 MW Trombay expansion project. The progress on Company’s
upcoming projects is as follows:
- 4000 MW,
Mundra Project: Mundra UMPP is progressing as per schedule with
engineering, procurement and construction activities in full swing.
Overall project progress achieved is 53%. Ordering of all critical
items/major packages has been completed. The first unit is expected to be
commissioned by September 2011.
- 1050 MW
Maithon Project: is also progressing well and has achieved 82% completion.
The target of synchronising Unit 1 on oil is by October 2010 and commissioning
soon thereafter, the major challenge being the railway linkage from the
main line. All efforts are being taken to commission the unit by end of
2010.
IEL: 120 MW Unit 5 being constructed at the Company’s existing site at
Jojobera has been synchronized. The project is expected to be commissioned in
the first half of FY11.
114 MW Dagachhu Project: in partnership with The Royal Government of
Bhutan (RGoB) is progressing well. Major ordering for the project has been
completed. All statutory clearances, land, water and environment clearances
have been received and PPA for the entire quantum of power has been signed for
the project. The first unit is targeted to be commissioned by FY14.
Partnership with SN Power: The Company has signed an exclusive
partnership agreement with SN Power,
have already begun pursuing potential project opportunities based on the
vast reserves of renewable energy in
the Himalayan region.
1600 MW Coastal Maharashtra Project: During the year, the Company has
made substantial progress in this project. The R and
R authority of the GoM has approved the R and R proposal of the company. Land
acquisition is in progress. The plant is expected to be commissioned within 3
years of land acquisition.
1320 MW Naraj Marthapur, Orissa: The major clearances for
the 1320 MW Naraj Marthapur project have been obtained. Process is on for
obtaining environmental clearance from MoEF. The plant is expected to be
commissioned within 42-45 months of completion of the land acquisition, which
is expected to be completed during the year. The Company has been allotted the
Mandakini coal block located in the Angul district of Orissa, along with Monnet
Ispat and Energy Limited, and Jindal Photo Limited, which will feed coal to the
plant.
Tiruldih Power Project, Jharkhand (3 X 660 MW): The process
of land acquisition is expected to take around 12 to 18 months. The first
tranche of land (300 acres) is expected to be acquired around October 2010. In
- principle clearance has been received from Railways for transportation of
coal from Tubed Coal Block. Tubed Coal Block has been jointly allotted to Tata
Power and Hindalco in Jharkhand.
Renewable
Projects:
Wind Power: Tata Power is the leading private wind
generation company with an installed capacity of 200 MW and added another first
to its credit by commissioning 2 MW-class wind turbines designed by Kenersys
Gmbh of Germany and manufactured and installed by Kenersys
Solar
Power:
The Company is implementing a 3 MW solar photo-voltaic plant
at Mulshi and will be one of the largest grid connected plants in
SUSTAINABILITY
INITIATIVES:
Tata Power Energy Club: In FY10, the Club became a national
movement on energy conservation. In FY11, the Club plans to reach out to 275
schools nationwide and targets to save 2 million units. Key locations targeted
are Mumbai,
Energy Efficiency: MERC approved EE T5 FTL Program –
Supplier was finalized based on techno –commercial analysis. The program is
planned to be made available to the Company’s consumers by August 2010. Tata BP
Solar commissioned the solar water heating system (8,600 litres capacity) in
Trombay housing colony during March 2010.
About Tata Power:
Tata Power is India's largest integrated
private sector power utility with an installed generation capacity of about
3000 MW and a presence in all the segments of the power sector viz Generation
(thermal, hydro, solar and wind), Transmission, Distribution and Trading. The
Company has successful public-private partnerships in Generation, Transmission
and Distribution - “North Delhi Power Limited” with Delhi Vidyut Board for
distribution in
Disclaimer Statement: Some of the
statements in this document, except for the historical information, are
forward-looking statements. These forward-looking statements include references
to growth projections, plans, strategies, intentions and beliefs concerning our
business and operating environment. There are risks, uncertainties and other
factors that may cause actual results to differ materially from those projected
by these forward-looking statements.
For further information please contact:
Shalini Singh Rakesh Reddy
Chief, Corporate Communications
The Tata Power Company Limited,
Phone: 022-6665 8748
Email: shalinis@tatapower.com
Vaishnavi Corporate Communications
Tel 022-6656 8787
Cell: 9821735515
Email: rakesh@vccpl.com
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON DESIGNATED
PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions involving
their assets have been blocked or convicted, found guilty or against whom a
judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is or
was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on Corporate
Governance to identify management and governance. These factors often have been
predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.48.91 |
|
|
1 |
Rs.76.53 |
|
Euro |
1 |
Rs.66.43 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
9 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
81 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.