1. Summary Information
|
|
|
Country |
|
|
Company Name |
TORRENT POWER LIMITED |
Principal Name 1 |
Mr. Sudhir Mehta |
|
Status |
Good |
Principal Name 2 |
Mr. S K Barua |
|
|
|
Registration # |
04-044068 |
|
Street Address |
Torrent House, Off |
||
|
Established Date |
29.04.2004 |
SIC Code |
-- |
|
Telephone# |
91-79-26583060 |
Business Style 1 |
Generator |
|
Fax # |
91-79-26582326 |
Business Style 2 |
Distributor |
|
Homepage |
Product Name 1 |
Electricity |
|
|
# of employees |
7184 [Approximately] |
Product Name 2 |
-- |
|
Paid up capital |
Rs.4,724,483,000/- |
Product Name 3 |
-- |
|
Shareholders |
Promoter
and Promoter Group-52.80%, Public Shareholding – 47.20% |
Banking |
Not Available |
|
Public Limited Corp. |
Yes |
Business Period |
8 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
A [65] |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiary |
-- |
Torrent Power Grid Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
16,995,800,000 |
Current Liabilities |
9,743,200,000 |
|
Inventories |
2,634,500,000 |
Long-term Liabilities |
30,595,000,000 |
|
Fixed Assets |
66,142,300,000 |
Other Liabilities |
12,581,800,000 |
|
Deferred Assets |
0 |
Total Liabilities |
52,920,000,000 |
|
Invest& other Assets |
15,018,700,000 |
Retained Earnings |
43,146,800,000 |
|
|
|
Net Worth |
47,871,300,000 |
|
Total Assets |
100,791,300,000 |
Total Liab. & Equity |
100,791,300,000 |
|
Total Assets (Previous Year) |
96,541,800,000 |
|
|
|
P/L Statement as of |
31.03.2011 |
(Unit: Indian Rs.) |
|
|
Sales |
65,356,400,000 |
Net Profit |
10,657,200,000 |
|
Sales(Previous yr) |
58,232,100,000 |
Net Profit(Prev.yr) |
8,365,500,000 |
MIRA
INFORM REPORT
|
Report Date : |
28.05.2012 |
IDENTIFICATION DETAILS
|
Name : |
TORRENT POWER LIMITED |
|
|
|
|
Registered
Office : |
Torrent House, Off |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2011 |
|
|
|
|
Date of
Incorporation : |
29.04.2004 |
|
|
|
|
Com. Reg. No.: |
04-044068 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 4724.500 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L31200GJ2004PLC044068 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
AHMT02435G |
|
|
|
|
PAN No.: [Permanent Account No.] |
AACCT0294J |
|
|
|
|
Legal Form : |
Public Limited Liability company. The company’s shares are listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Subject is engaged in the generation and distribution of electricity.
|
|
|
|
|
No. of Employees
: |
7184 [Approximately] |
RATING & COMMENTS
|
MIRA’s Rating : |
A (65) |
|
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
Maximum Credit Limit : |
USD 190000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a well established and a reputed company having fine
track. Trade relations are reported as
fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made on
e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – 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 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered/ Corporate Office : |
Torrent House, Off |
|
Tel. No.: |
91-79-26583060/ 5090/ 2658 |
|
Fax No.: |
91-79-26582326 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Plants : |
v
Power House, Sabarmati, Ahmedabad – 380 005, v
Vatva Gas Power Station, Vatva, Ahmedabad – 382
445, v
SUGEN Mega Power Project, Off |
|
|
|
|
Zonal Office : |
Located at: v
Ahmedabad v
Gandhinagar v
|
|
|
|
|
Distribution Divisions : |
v
Electricity House, Lal Darwaja, Ahmedabad -380 001, v
Torrent House, v
Old v
6, Raghunath Nagar, Suresh Plaza Market,
Opposite, Sanjay Place, M. G. Road, Agra – 282002, Uttar Pradesh, India |
DIRECTORS
AS ON 29.07.2011
|
Name : |
Mr. Sudhir Mehta |
|
Designation : |
Executive Chairman |
|
|
|
|
Name : |
Mr. S K Barua |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Kiran Karnik |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Keki Mistry |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Pankaj Patel |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. Sridhar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Samir Mehta |
|
Designation : |
Executive Vice Chairman |
|
|
|
|
Name : |
Mr. Markand Bhatt |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Mr. Murli Ranganathan |
|
Designation : |
Whole-time Director |
|
|
|
|
Name : |
Mr. T. P. Vijayasarathy |
|
Designation : |
Whole-time Director |
KEY EXECUTIVES
|
Name : |
Mr. Rajiv Shah |
|
Designation : |
Company Secretary |
|
|
|
|
Audit Committee |
Keki M. Mistry
(Chairman) S. K. Barua Kiran Karnik K. Sridhar |
|
|
|
|
Shareholders’ |
Pankaj Patel
(Chairman) |
|
|
|
|
Grievances
Committee |
Markand Bhatt Samir Mehta |
|
|
|
|
Nomination and
Remuneration Committee |
Kiran Karnik
(Chairman) Sudhir Mehta Pankaj Patel |
|
|
|
|
Committee of
Directors |
Samir Mehta
(Chairman) Markand Bhatt Murli Ranganathan |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.03.2012
|
Category of Shareholder |
No. of Shares |
Percentage of
Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
13,007 |
- |
|
|
249,448,986 |
52.80 |
|
|
249,461,993 |
52.80 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
249,461,993 |
52.80 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
27,872,992 |
5.90 |
|
|
4,479,092 |
0.95 |
|
|
7,057,896 |
1.49 |
|
|
75,017,718 |
15.88 |
|
|
11,610,978 |
2.46 |
|
|
126,038,676 |
26.68 |
|
|
|
|
|
|
48,835,594 |
10.34 |
|
|
|
|
|
|
29,159,212 |
6.17 |
|
|
13,682,139 |
2.90 |
|
|
5,270,694 |
1.12 |
|
|
3,860,000 |
0.82 |
|
|
1,254,603 |
0.27 |
|
|
156,091 |
0.03 |
|
|
96,947,639 |
20.52 |
|
Total Public shareholding (B) |
222,986,315 |
47.20 |
|
Total (A)+(B) |
472,448,308 |
100.00 |
|
(C) Shares held by Custodians and against which Depository
Receipts have been issued |
|
|
|
(1) Promoter and Promoter Group |
-- |
-- |
|
(2) Public |
-- |
-- |
|
Sub Total |
-- |
-- |
|
Total (A)+(B)+(C) |
472,448,308 |
100.00 |
(1) Indian
Individuals / Hindu Undivided Family
Individual shareholders holding nominal share
capital up to Rs. 0.100 millionBUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the generation and distribution of
electricity. |
|
|
|
|
Products : |
Electricity Generation, Distribution and Electrical Contracting |
GENERAL INFORMATION
|
No. of Employees : |
7184 [Approximately] |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Bankers : |
Not Available |
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
Facilities : |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountants |
|
Address : |
Heritage, 3rd Floor, Near Gujarat Vidhyapith, Off |
|
Tel. No.: |
91-79-27582542/ 27582543/ 66073100 |
|
Fax No.: |
91-79-27582551 |
|
|
|
|
Subsidiaries : |
v
Torrent Power Grid Limited v
Torrent Energy Limited v
Torrent Pipavav Generation Limited |
|
|
|
|
Associates : |
v
AEC Cements and Constructions Limited v
Tidong Hydro Power Limited |
|
|
|
|
Enterprises controlled by the Company : |
v
TPL (Ahmedabad) Gratuity Trust v
TPL (Ahmedabad) Superannuation Fund v
TPL ( v
TPL ( v
TPGL Gratuity Trust v
TPGL Superannuation Fund |
|
|
|
|
Enterprises controlled by the Holding Company : |
v
Torrent Private Limited v
Torrent Pharmaceuticals Limited v
Torrent Cables Limited v
Gujarat Lease Financing Limited v
Torrent Power Services Private Limited v
Torrent Bhiwandi Limited v
Torrent Do Brasil Ltda. v
Heumann Pharma GmbH and Company Generica KG v
Zao Torrent Pharma v
Torrent Pharma GmbH v
Torrent Pharma Inc. v
Torrent Pharma Philippines Inc. v
Torrent Australasia Pty. Limited v
Laborotrios Torrent SA de CV v Torrent Pharma
Canada Inc. v Torrent Pharma ( v Norispharm GmbH v Heunet Pharma
GmbH. v Torrent Pharma ( v
Laborotrios Torrent ( v
Torrent Pharma S.R.L. v
Torrent Financiers v
Torrent Pharmaceuticals v
Torrent Pharmaceuticals Dahej |
|
|
|
|
Enterprises controlled by Key Management Personnel/ Relatives of Key
Management Personnel |
v U. N. Mehta Charitable Trust v D. N. Modi Charitable Trust v Zeal Pharmachem India Private Limited v U.N.Mehta Institute of Cardiology & Research Centre v Shardaben Mehta Charitable Trust v Tsunami Tours & Travels Private Limited v Diamond Infrastructure Private Limited v Dushyant Shah Charitable Trust v Torrel Cosmetics Private Limited v
Munjal Bhatt Associates |
CAPITAL STRUCTURE
AS ON 31.03.2011
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2,000,000,000 |
Equity Shares |
Rs.10/- each |
Rs.20,000.000 millions |
|
|
|
|
|
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
472,448,308 |
Equity Shares |
Rs.10/- each |
Rs.4724.483
millions |
|
|
|
|
|
- 249,335,872 equity shares (249322865 equity shares as at 31.03.2010)
of Rs.10/- each fully paid up are held by holding company – Torrent
Private Limited.
- 472,435,808 equity shares (472435808 equity shares as at 31.03.2010)
of Rs.10/- each fully paid up were issued pursuant to the Scheme of
Amalgamation between the erstwhile Torrent Power AEC Limited, Torrent
Power SEC Limited and Torrent Power Generation Limited.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
4724.500 |
4724.500 |
4724.500 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
43146.800 |
34877.000 |
27609.500 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
47871.300 |
39601.500 |
32334.000 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
28185.100 |
31333.100 |
31926.900 |
|
|
2] Unsecured Loans |
2409.900 |
579.800 |
596.100 |
|
|
TOTAL BORROWING |
30595.000 |
31912.900 |
32523.000 |
|
|
Other Fund |
|
|
|
|
|
Service Line and Security Deposits from Consumers |
4659.200 |
4240.500 |
3546.700 |
|
|
|
|
|
|
|
|
DEFERRED TAX LIABILITIES |
3582.900 |
2589.400 |
1165.400 |
|
|
|
|
|
|
|
|
TOTAL |
86708.400 |
78344.300 |
69569.100 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
66142.300 |
65318.100 |
36382.100 |
|
|
Capital work-in-progress |
5377.100 |
1706.700 |
28671.000 |
|
|
|
|
|
|
|
|
INVESTMENT |
9641.600 |
3579.000 |
1577.900 |
|
|
DEFERRED TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Interest accrued on Investments |
1440.500
|
2.700 |
2.700 |
|
|
Inventories |
5429.400
|
1440.500 |
1679.600
|
|
|
Sundry Debtors |
11714.300
|
5429.400 |
4875.900
|
|
|
Cash & Bank Balances |
2.700
|
11714.300 |
6404.900
|
|
|
Loans & Advances |
7351.100
|
1503.800 |
4534.300
|
|
Total
Current Assets |
19630.300
|
25938.000
|
17497.400
|
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
7986.600
|
7986.600 |
7644.500
|
|
|
Other Current Liabilities |
783.200
|
783.200 |
848.300
|
|
|
Provisions |
9427.700
|
3580.400 |
6066.500
|
|
Total
Current Liabilities |
14082.900
|
18197.500
|
14559.300
|
|
|
Net Current Assets |
5547.400
|
7740.500
|
2938.100
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
86708.400 |
78344.300 |
69569.100 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Revenue from Power Supply |
65356.400 |
58232.100 |
43157.600 |
|
|
|
Net Income/ Loss of Services Division |
(2.100) |
|
|
|
|
|
Other Income |
3915.900 |
1332.600 |
1496.400 |
|
|
|
TOTAL |
69270.200 |
59564.700 |
44654.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Electrical Energy Purchased |
14758.600 |
13950.400 |
22604.400 |
|
|
|
Generation, Distribution, Administrative
& Other Expenses |
32907.600 |
27252.600 |
13816.200 |
|
|
|
Transfer from Service line Contribution,
APDRP Grant and others |
(217.200) |
0.000 |
0.000 |
|
|
|
TOTAL |
47449.000 |
41203.000 |
36420.600 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION |
21821.200 |
18361.700 |
8233.400 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES |
3389.000 |
3143.700 |
1554.800 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
18432.200 |
15218.000 |
6678.600 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
4144.000 |
3353.500 |
1830.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
14288.200 |
11864.500 |
4848.100 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
3631.000 |
3499.000 |
769.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX |
10657.200 |
8365.500 |
4078.900 |
|
|
|
|
|
|
|
|
|
Less |
CONTINGENCY
RESERVE |
10.000 |
10.000 |
10.000 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
4994.000 |
2291.200 |
1327.800 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
4000.000 |
4000.000 |
2000.000 |
|
|
|
Proposed Dividend |
2598.500 |
1417.300 |
944.900 |
|
|
|
Corporate Dividend Tax |
421.500 |
235.400 |
160.600 |
|
|
BALANCE CARRIED
TO THE B/S |
8621.200 |
4994.000 |
4994.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
707.500 |
16.600 |
7.700 |
|
|
|
Capital Goods |
1812.600 |
1869.300 |
319.400 |
|
|
TOTAL IMPORTS |
2520.100 |
1885.900 |
327.100 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
22.56 |
17.71 |
8.63 |
|
QUARTERLY /
SUMMARISED RESULTS
|
PARTICULARS |
30.06.2011 |
30.09.2011 |
31.12.2011 |
31.03.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
3rd
Quarter |
|
Sales Turnover |
20695.20 |
19982.40 |
18834.80 |
19665.80 |
|
Total Expenditure |
14223.70 |
14323.50 |
14278.90 |
13813.30 |
|
PBIDT (Excl
OI) |
6471.50 |
5658.90 |
4555.90 |
5853.50 |
|
Other Income |
195.20 |
234.90 |
193.80 |
394.50 |
|
Operating
Profit |
6666.70 |
5893.80 |
4749.70 |
6248.00 |
|
Interest |
796.80 |
806.80 |
730.10 |
773.20 |
|
Exceptional
Items |
0.00 |
0.00 |
0.00 |
0.00 |
|
PBDT |
5869.90 |
5087.00 |
4019.60 |
5474.80 |
|
Depreciation |
1034.00 |
1048.80 |
1071.50 |
504.50 |
|
Profit
Before Tax |
4835.90 |
4038.20 |
2948.10 |
4970.30 |
|
Tax |
1348.80 |
1118.40 |
835.30 |
1115.40 |
|
Reported PAT |
3487.10 |
2919.80 |
2112.80 |
3854.90 |
|
Extraordinary Items |
0.00 |
0.00 |
0.00 |
0.00 |
|
Prior Period Expenses |
0.00 |
0.00 |
0.00 |
0.00 |
|
Other Adjustments |
0.00 |
0.00 |
0.00 |
0.00 |
|
Net Profit |
3487.10 |
2919.80 |
2112.80 |
3854.90 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2011 |
31.03.2010 |
31.03.2009 |
|
PAT / Total Income |
(%) |
15.38
|
14.04
|
9.13
|
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
21.86
|
20.37
|
11.23
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
16.66
|
13.00
|
9.00
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.21
|
0.30
|
0.15
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.93
|
1.27
|
1.46
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.39
|
1.43
|
1.20
|
LOCAL AGENCY FURTHER INFORMATION
|
Check List by Info Agents |
Available in Report (Yes / No) |
|
Yes |
|
Yes |
|
Yes |
|
No |
|
Yes |
|
Yes |
|
Yes |
|
Yes |
|
No |
|
No |
|
Yes |
|
Yes |
|
-- |
|
No |
|
Yes |
|
Yes |
|
No |
|
No |
|
No |
|
No |
|
-- |
|
-- |
|
Yes |
|
Yes |
|
-- |
|
-- |
|
Yes |
|
Yes |
|
Yes |
|
No |
HISTORY:
Subject is an integrated power
company engaged in the generation and distribution of electricity in the cities
of Ahmedabad, Gandhinagar and
HIGHLIGHTS
The key highlights
for the Financial Year 2010-11 are:
v All round
improvement in the financial performance of the Company
• Increase in Revenue by 12.23% to
Rs. 65356.400 Millions
• Increase in PBDIT by 17.68% to Rs. 21604.000
Millions
• Increase in PAT by 27.40% to
Rs. 10657.200 Millions
v Reduction in T and
D losses in Ahmedabad, Gandhinagar and Surat distribution circles to 7.23% as
against 7.62% in FY 2009-10; one of the lowest in the country. Reduction in T
and D losses in Bhiwandi also to 17.95% as against 19.33% in FY 2009-10.
v Multi Year Tariff
Petition for the second control period from FY 2011-12 to FY 2015-16 in respect
of Ahmedabad Generation (AMGEN), Ahmedabad Distribution and Surat Distribution
has been filed with the Hon’ble Gujarat Electricity Regulatory Commission
(GERC) .
v First year of
Distribution Franchisee operations at
v The 1,147.5 MW
Sugen Mega Power Plant has obtained ISO 9001, ISO 14001 and OHSAS 18001 certifications.
v The EPC contract
for the 1,200 MW Gas based DGEN Mega Power Project at Dahej SEZ (being
implemented by the Company’s subsidiary – Torrent Energy Limited) has been
signed with Siemens and construction work is in progress.
v The 382.5 MW
UNOSUGEN Gas based plant, the brown field expansion to SUGEN Project has
received Mega Power Project Status. EPC Contract has been awarded to Siemens
and construction work is in progress
v The third and
final phase of 144.5 kms, 400 kV Double Circuit line, part of transmission
infrastructure from SUGEN Generating Station to Pirana sub-station of PGCIL
with Loop in Loop out at 400 kV sub-station of the Company at Pirana has been
commissioned by a subsidiary of the Company.
v Entry into
renewable energy sector by signing agreement with Enercon (
ECONOMY AND POWER
SECTOR SCENARIO
ECONOMY
The economic growth in 2010-11 has been swift and broad-based. Growth in
2010-11 is estimated to be 8.6% as against 8.0% in 2009-10. Agricultural sector
showed a rebound at a growth rate of 5.4% and industry continued to regain its
earlier momentum with a growth rate of 8.1%, while service sector showed 25 a
decelerated growth of 9.6%. The main concern has been the continuous price rise
as indicated by Wholesale Price Index. FY 2010-11 started with 11% headline
inflation in April 2010. Overall average inflation from April-December 2010 at
9.4% is the highest recorded in the last ten years. Despite concerns about such
high inflation, which will be impacting the cost of all commodities including
power,
INFRASTRUCTURE
The fast growth of the economy in the recent years has placed increased
stress on physical infrastructure such as electricity, railways, roads, ports,
airports, irrigation, urban and rural water supply and sanitation, all of which
already suffer from a substantial deficit from the past in terms of capacities
as well as efficiencies in the delivery of critical infrastructure services.
The pattern of inclusive growth of the economy projected for the Eleventh Plan
can be achieved only if this infrastructure deficit can be overcome and
adequate investment takes place to support higher growth and an improved
quality of life for both urban and rural communities. Much progress is evident
in sectors like telecommunication, roads, airports and ports but Power sector
continues to lag behind despite various reforms.
POWER SECTOR
SCENARIO
Power Sector is the prime mover of economic growth and is the key
element for the sustenance of a modern economy. Future economic growth
crucially depends on the long term availability of energy from sources that are
affordable, accessible, sustainable and environment friendly.
The Indian Power Sector has come a long way over the past six decades
since independence. From an installed generation capacity of a meagre 1,362 MW
in 1947,
DEMAND AND SUPPLY
SCENARIO
The Ministry of Power has projected the actual power demand in the range
of 1,029-1,077 billion units by the end of the Eleventh Plan. The 17th Electric
Power Survey of India projects a 7.05% CAGR for power demand from 2011-12 to
2021-22 and 6.92% CAGR for peak demand during the same period.
There has been a persistent mismatch in power demand-supply scenario
over the past three consecutive Five Year Plans. The peak power deficit has
reduced from 16.60% to 10.40% and the Energy deficit has decreased from 9.90%
to 8.60% during the current Five Year Plan.
The western region of the country faced the highest energy deficit i.e.
13.40% and Peak demand deficit i.e. 16.80% during the period April 2010 –
February 2011. However, in the state of
Shortages of this magnitude can significantly constrain industrial
activity and restrict economic growth of any country. On the basis of our past
experience and prevalent trend in this sector, it would not be wrong to say
that if India continues to grow even at current pace and necessary actions are
not taken, Power demand-supply gap is likely to persist over the coming decade.
Deficits mentioned above can be tamed if necessary steps are initiated
in time and required infrastructure for transmission of Power generated in one
part of the country to other parts comes in place. Most of the generation
capacity is coming up in the eastern region of the country. Inter-regional
transmission capacity needs to be strengthened to transport this power to the
high load northern and western regions.
GENERATION
SCENARIO
The total generation capacity increased to 173,626 MW as on 31st March,
2011 as compared to 159,398 MW on 31st March, 2010, an increase of 8.90%. The
western region has the highest installed capacity of 53,562 MW as on 31st
March, 2011 as compared to 50,225 MW as on 31st March, 2010, an increase of
6.60%. The total Generation Capacity Addition (other than renewable) during the
year 2010-11 was 12,160 MW as compared to 9,585 MW during the year 2009-10, an
increase of 27%. This is almost thrice the average annual capacity ddition of 4,236 MW in the Tenth five year
plan.
The generation segment has been able to meet only around 50% of the
Planned targets during the Eighth, Ninth and Tenth Plan periods. Despite these
slippages, the government has set an ambitious target for capacity addition of
78,700 MW in the Eleventh Five Year Plan, which has been revised to 62,374 MW
in the mid-term review. So far, approximately 30,000 MW has been added in the
first three and half years of the Eleventh Five Year Plan and generation
projects for the remaining capacity are under construction. Though for the
first time since early nineties, it seems that the planned capacity addition is
on track,
Until recently, role of the private sector was very meagre and there was
barely any major incentive for the private sector to enter this highly regulated
and capital intensive sector. The generation sector has seen high private
participation after it was de-licensed by the enactment of the Electricity Act,
2003. The share of private sector which was around 4% in 1993-94 has now
increased to 20% of the capacity and 14% of the total power generation
(excluding generation from renewable sources). The private sector is expected
to install about 19,797 MW during the current plan period, contributing about
32% of the capacity to be added in the Eleventh Plan period.
At 65%, as per the above chart, thermal power (coal, gas and diesel)
contributes the highest to the installed capacity. Coal is going to remain the
mainstay fuel, though declining gradually, for power generation in the coming
years as well. The share of hydro stands at about 22% and renewable energy
contributes approximately 11%. However, the share of thermal capacity has
gradually decreased from 72% in 1999-2000 to 65% in 2010-11. Thermal sources
have mainly been replaced by renewables whose contribution has increased from a
miniscule 1% to about 10.6% during the last decade.
The key trends and developments in the generation sector are as under:
1. Budget 2011 has extended Excise Duty exemption to goods required for
expansion of mega / ultra mega power projects under specified conditions at par
with exemption from countervailing duty on the import of goods for expansion of
such projects.
2. New coal linkage norms for deciding coal linkages on point basis for
future power projects are issued whereby sector wise priority for coal linkage
is proposed. The coal linkage policy also proposes a methodology of allotting
weightage points for prioritizing between projects. This involves parameters
such as supercritical technology, location, water linkage and land acquisition.
The methodology incentivizes projects which are based on supercritical
technology and have tied up critical project resources such as water and land
well in advance.
3. Ministry of Power decided to adopt a set of criteria for recommending
gas allocation for Twelfth Plan projects. This involves parameters such as land
acquisition, plant efficiency, Terms of Reference/ environmental clearance etc.
The policy explicitly states that domestic gas linkage will be upto 60% of
requirement. In the initial stage, projects will be given in-principle approval
for domestic gas.
4. To encourage indigenous manufacturing, Central Electricity Authority
issued a directive to central and state public sector utilities to procure
supercritical equipments only from domestic manufacturers.
5. The Ministry of Power in consultation with Central Electricity
Regulatory Commission and Central Electricity Authority has taken a policy
decision to mandate competitive tariff based bidding for thermal power plants
from 5th January, 2011.
6. The Government of
7. Eligibility period for deduction under Section 80 (IA) of Income Tax
Act, 1961 has been extended by one year in the Union Budget 2011-12.
Total Installed Capacity: 93,294 MW Total Installed Capacity: 1,73,626
MW
TRANSMISSION
SCENARIO
In order to realize ambitious power sector objectives of providing
‘Power for All’ by 2012 and to meet the demands of a growing economy, it has
become imperative to ensure that the transmission segment grows in sync and
that the momentum of investment in transmission sector is accelerated and
sustained. The Eleventh and Twelfth Plans have set some challenging targets for
the transmission sector. The total requirement of funds for transmission during
the Eleventh Plan works out to Rs. 1,400 billion and the planned investment for
the Twelfth Plan is Rs. 2,400 billion including Rs. 1,400 billion in the
central sector (interstate system) and Rs. 1,000 billion in the state sector
(intrastate system).
According to the statistics of Central Electricity Authority, transmission
lines have grown by over two and a half times from around 156,000 ckt. Kms. in
March 1985 to more than 403,000 ckt. Kms. in March 2010. From 1997 to 2010, the
network had grown by almost 60%. The target is to take the line length to
atleast 450,000 ckt. Kms. by 2012, through additions at 220 kV and above
voltages. The inter-regional transmission capacity increased from 5,050 MW at
the end of the Ninth Plan to 14,100 MW at the end of the Tenth Plan and further
to 20,750 MW by March 2011. The inter-regional transmission capacity targets to
be achieved by the end of the Eleventh Plan have been revised downwards to
32,650 MW from the earlier 37,700 MW. The Central Electricity Authority
anticipates that inter-regional transmission capacity would be 57,000 MW by
2015 and 75,000 MW by the end of the Twelfth Five Year Plan.
Transmission projects continue to be accorded high priority in the
context of the need to evacuate power from generating stations to load centres,
system strengthening and creation of a synchronized National Grid. The New Grid
with only Southern Grid remaining to be integrated is one of the largest
synchronously connected grids in the world. Central Electricity Regulatory
Commission has notified new Indian Electricity Grid Code (lEGC) effective from
3rd May, 2010. The New IEGC will facilitate larger integration of renewable
energy sources with the grid and bring stricter grid discipline.
The country’s transmission segment has been undergoing radical changes in
the last couple of years. In future, Inter State Transmission System (ISTS)
schemes would be built through competitive bidding and many private sector
entities would own and operate ISTS elements. Already a number of ISTS schemes
owned by private sector or Joint Venture between private sector and Power Grid
Corporation of India Limited (PGCIL) are under construction. National
Electricity Policy stipulates the implementation of a national transmission
tariff framework which is sensitive to distance, direction and related to
quantum of flow. The new framework facilitates cost effective transmission of
power across the regions. The CERC’s recently announced transmission pricing
regulations mark a paradigm shift from the earlier ‘postage stamp’ mechanism. The
process facilitates integration of electricity markets and enhances open access
and competition by removing the need for pan-caking of transmission charges.
The distinction between generation and demand customers would provide siting
signals to the users, through accurate transmission charges.
The organizational structure of the transmission segment has also
changed significantly which had become inevitable to ensure fair access to the
network to all grid entities. At the central level, Power System Operation
Corporation Ltd (POSOCO) was formed to handle the power management function of
PGCIL. It is responsible through National Load Dispatch Centre and Regional
Load Dispatch Centre to ensure the integrated operation of the grid in a
reliable, efficient and secure manner. Meanwhile, a modest beginning has been
made in the separation of the state load dispatch centers (SLDCs) from state
transmission utilities (STUs) with separation of their accounts in several
states.
The central transmission utility (CTU) - Power Grid Corporation of India
Limited- has begun work on introducing ultra high voltage technologies and has
initiated a few pilot projects to implement smart grid technologies. This has
become important not only to accommodate the huge intermittent renewable energy
that is expected to be added in the coming years, but also to ensure more
efficient power transmission from generation centers to demand centers and for
facilitating power trading.
DISTRIBUTION
SCENARIO
Power distribution is the final and most crucial link in the power
sector value chain and unfortunately, the weakest one in the country. For quite
some time, this segment has been struggling with persistently high systemic
losses of about 27% to 30%. The sector currently suffers from huge losses
arising from technical as well as non-technical factors. It is also plagued by
power thefts, technical problems, corruption, dilapidated networks, inadequate
metering, poor recovery of dues, lack of consumer orientation and poor
operational and financial management.
A comprehensive report prepared by the Forum of Regulators (FoR), titled
‘Assessment of Financial Viability of Discoms’, November 2010, has revealed
that the financial viability of state distribution utilities (Discoms) is
increasingly becoming a matter of concern. In several states, book losses of
the utilities are rising, power purchase costs are increasing, rates are not
being rationalised, subsidies are not released regularly to distribution
utilities and reduction in transmission and distribution (T&D) losses
according to the assigned trajectory is not being complied with.
Though the distribution sector still remains the weak link in the value
chain, government programmes such as the Restructured Accelerated Power
Development and Reforms Programme (R-APDRP) and Rajiv Gandhi Grameen
Vidyutikaran Yojana (RGGVY) have provided the much needed impetus.
Implementation of open access at the distribution level still remains difficult
to achieve with states using Section 11 of the Electricity Act, 2003 to deny
the open access.
The state utilities, which are the major suppliers of electricity to
consumers, own almost 85% distribution infrastructure in the country. Private
ownership of distribution is limited to the states of Orissa and
The estimated total distribution line length is 7.3 million ckt kms as
of FY 2009-10 for voltage levels of 33kV and below. The distribution network
caters to 173 million consumers with total energy consumption at 531,482 MUs
during FY 2009-10.
The following table shows the consumption pattern across
broad categories.
|
|
2008 - 09 |
2009 - 10 |
||||
|
Consumer |
No. of |
MUs |
% |
No. of |
MUs |
% |
|
Category |
consumers |
|
|
consumers |
|
|
|
Domestic |
123,898,458 |
131,979 |
26.69 |
130,989,722 |
137,682 |
25.91 |
|
Commercial |
15,419,003 |
41,992 |
8.50 |
15,571,202 |
50,107 |
9.43 |
|
Industry |
3,269,578 |
159,072 |
32.17 |
3,680,879 |
157,065 |
29.55 |
|
Agriculture |
13,904,717 |
97,614 |
19.74 |
14,406,349 |
107,688 |
20.26 |
|
Others |
8,285,175 |
63,786 |
12.90 |
8,823,899 |
78,940 |
14.85 |
|
Total |
164,776,931 |
494,443 |
100.00 |
173,472,051 |
531,482 |
100.00 |
The State Electricity Regulatory Commissions facilitate optimal cost of
power through a prescription of measures for reducing AT&C losses, demand
side management (DSM) and increasing operational efficiency. The impact of
implementing key DSM measures such as ToD tariffs has been seen in states such
as Andhra Pradesh where significant achievements have been made in stabilizing
the load curve of utilities
RENEWABLE ENERGY
The issue of climate change has garnered significant concern in the
recent years. Power generation from fossil fuels has been unanimously accepted
as the single largest emitter of Green House Gases (GHGs). In this regard,
there has been tremendous interest in putting up renewable power projects. The
renewable capacity has gone up to 18,454 MW in March 2011 from 15,521 MW in
March 2010, an increase of 19%.
|
Sr. No. |
Source |
Potential
Capacity (MW) |
Installed
capacity as on 30th June 2010 (MW) |
Installed
capacity as on 30th March 2006 (MW) |
CAGR (%) |
|
1 |
Wind Power |
45,195 |
12,009 |
4,434 |
28.29 |
|
2 |
Biomass |
16,881 |
901 |
868 |
094 |
|
3 |
Small Hydro Power |
15,000 |
2,767 |
777 |
37.37 |
|
4 |
Bagasse |
5,000 |
1,412 |
77 |
106.94 |
|
5 |
Waste to Energy |
2,700 |
72 |
35 |
19.76 |
|
6 |
Solar Power (*estimated) |
>100,000 |
15* |
-- |
-- |
|
|
Total |
>184,776 |
17,176 |
6191 |
29.06 |
Further, the potential of renewable energy is also subject to upward
revision as a result of better technologies and following the forward looking
steps taken by the Government of India.
A positive trend has been an increase in the share of renewable energy
with greater policy support such as Renewable Purchase Obligation, Preferential
Tariff, Renewable Energy Certificates, Jawaharlal Nehru National Solar Mission
and Generation based incentives. The National Action Plan on Climate Change has
targeted 25,000 MW of renewable based installed capacity by 2012.
With an imminent scarcity of conventional fuels, various demand segments
have emerged for renewable energy. These include telecom towers, billboards and
major service sector enterprises such as hotels, data centres, business process
outsourcing units, etc. all of whom largely draw upon diesel-based generation
as backup power. Also important is the demand created from energy efficiency initiatives
in commercial buildings, where renewable options have a strong case.
POWER TRADING
Of the total quantum of power generated in
Demand of power was high in FY 2009-10, mainly due to drought conditions
and general elections, which ultimately resulted in higher short term power prices.
While in 2010-11, despite Commonwealth Games in
Currently, the two exchanges viz. Indian Energy Exchange Limited (IEX)
and Power Exchange of India Limited (PXIL) have more than 400 participants and
enjoy widespread participation by the state utilities owing to easy and
efficient electronic access. A third power exchange by NTPC Limited along with
NHPC Limited, Power Finance Corporation Limited and Tata Consultancy Services
Limited named as the National Power Exchange (NPEX) is in the offing.
RISKS AND CONCERNS
The power sector continues to be haunted by many issues despite all the
positive approaches made in the sector.
The perennial issue of power deficit continues to hover over the sector
due to under-achievement of capacity addition plans in the past. The sector has
also been grappling with shortage of fuel. The supply of both coal and natural
gas has failed to match the growing demand. The heavy dependence on coal in the
fuel mix and the shortage of domestic coal present its own set of problems for
power producers. Lack of infrastructural development and other regulatory
issues act as constraints for uninterrupted fuel supply. Equipment supply has
been among the most frequent causes of failure in achieving timely capacity
additions and other factors like availability of contractors, skilled workers
and infrastructural facilities delay the project implementation. Lack of
coordination among various government departments constrains and delays the
acquisition of scarce land, requisite environmental clearance, water
availability and other clearances. Inadequate transmission network leads to
delay in commissioning of generation projects as proper evacuation facilities
are not in place in time.
Fiscal performance of the state transmission companies continues to be
poor. The rising loss levels could deter the states from undertaking huge
investments required in the sector for augmentation and strengthening of the
transmission system independently. Both public and private transmission project
developers are facing procedural delays in land acquisition, obtaining right of
way (ROW), environmental and related statutory clearances and equipment
deployment, use and repair, particularly in the hostile terrains.
High Aggregate Transmission and Commercial losses constitute the major
impediment for the distribution sector. The huge aggregate losses of the state
utilities limit their ability to make investments to upgrade distribution
systems and introduce new practices.
FUTURE OUTLOOK AND
OPPORTUNITIES
Despite recent international economic turmoil, the Indian economic
forecast remains robust and growth is likely to remain around 9% or higher in
the coming years. It is estimated that this will require an installed capacity
base of atleast 780 GW by 2031-32, which will create fresh opportunities for
investments.
New opportunities would also be available in the transmission and
distribution sector once privatization of distribution gathers further
momentum. The Government has already invited competitive bids from private
participants for certain EHV lines for commensurate development of the
transmission sector in tandem with generation. The recent guideline of
competitive bidding being compulsory from 5th January, 2011, has opened up new
opportunities for the private sector. The franchisee model in distribution
provides vast opportunities for public private partnership (PPP).
It has been established beyond doubt that in order to ensure rapid
progress of any sector, it is imperative to provide a level playing field to
the private sector. A healthy public private partnership can bring about the
desired changes in every sector. With the liberalization of the power sector
and introduction of the Electricity Act, 2003 coupled with the announcement of
progressive reforms, there is an increased participation from the private
sector. Involvement of private sector not only reduces funding constraints, but
also has other advantages like improvement in competitiveness of the projects
and more efficient project execution with latest technology.
REVIEW OF
COMPANY’S BUSINESS
The Company is an integrated utility having interests in power generation,
transmission and distribution.
Generation
SUGEN Mega Power
Plant near Surat
Out of its total capacity of 1147.5 MW, the power plant caters to the
power needs of Ahmedabad, Gandhinagar and
AMGEN Power Plant
at Ahmedabad
During the year from its 500 MW capacity, the Company achieved PAF of
92.98% (Previous Year- 95.81%) and PLF of 82.53% (Previous Year - 93.44%) and
dispatched 3,327 MUs. The PLF is lower on account of shutdown, application of
merit order dispatch route, etc.
Distribution
Ahmedabad and
The sales were higher at 8,527 MUs as against 8,045 MUs during the
previous year, registering a reasonable growth of 6%. The T&D losses were
reduced marginally to 7.23% from 7.62% during the previous year and is one of
the lowest in the country. The consumer base for both the areas as on 31st
March, 2011 was 2.087 millions (Previous
Year – 2.014 millions). The overall peak system demand for these distribution
areas during FY 2010-11 was 1,646 MW, which increased by 9.51% as against 1,503
MW in the Previous Year.
The Electricity Act, 2003 requires the state electricity regulatory
commission to specify terms and conditions for determination of tariff, which
shall include Multi Year Tariff principles and other principles that reward
efficiency in performance. Accordingly, the Hon’ble Gujarat Electricity
Regulatory Commission has notified Multi Year Tariff Regulations for the second
control period of FY 2011-12 to FY 2015-16. The Company has filed necessary
petition for determination of Annual Revenue Requirement for the second control
period of FY 2011-12 to 2015-16 and tariff for FY 2011-12.
Bhiwandi
The sales were higher at 2,511 MUs as against 2,449 MUs during the
Previous Year, registering a marginal growth of 2.53%. The T&D Losses were
marginally lower at 17.95% as against 19.33% during the Previous Year. The
consumer base as on 31st March, 2011 was 0.221 millions (Previous Year 0.194
millions). The peak system demand for this distribution area was 523 MW during
FY 2010-11, which is marginally lower as against the 525 MW in the Previous
Year.
The Company commenced distribution franchisee operations at
sales during the year were 980 MUs. The T&D losses were at 53.64%.
FUTURE GROWTH
PLANS
Upcoming Projects
The Company is geared to expand its capacities through various upcoming
projects which are as follows:-
v
LALPUR WIND
PROJECT
The Company has forayed into the thrust area of renewable energy by
conceptualizing the 44 MW wind power generation project. It has signed an
Agreement with Enercon (
v
UNOSUGEN
The Company is developing its brown field project, the 382.5 MW gas
based combined cycle power plant adjacent to the existing SUGEN plant, for
which the EPC Contract has been awarded to Siemens. The project has received
MEGA Power Project status from the Ministry of Power, environmental clearance
from MoEF and connectivity approval from Central Transmission Utility. 36% of
the EPC work has been completed and efforts are being made to commission the
project before its scheduled date. This project is expected to meet 278 MW
additional demand of Ahmedabad and
v
UP SANDILA
The Company has signed a MoU with the Government of Uttar Pradesh for
development of 1,320 MW Coal Based Power Plant at Sandila, Dist. Hardoi, Uttar
Pradesh which is in its initial stage of development.
FINANCE
The Company has executed Loan Facility Agreements for Rs 1,283 Crores
for UNOSUGEN project with KfW-Germany, Infrastructure Development Finance
Company Limited, State Bank of
RISKS AND CONCERNS
OF THE COMPANY
The infrastructure sector and in particular the power sector is prone to
multiple potential risks including Legal Risks (tariff regulation,
environmental regulation and statutory changes), Fuel Risks (availability and
pricing), Consumer Risks (revenue realization, transmission risks), Asset Risks
(natural calamity etc.), Human Resource Risks and IT Risks. Continuous
endeavors are being made to evolve appropriate measures for mitigating these
risks including through insurance to the extent possible.
Though the Company’s regulated distribution business has put in all the
efforts for efficiently carrying out its operations, it is not getting due
recognition and incentives for its most efficient operations, rather such
efficiency has continuously become its hurdle rate. The situation of 1% to 2%
tariff increase after no tariff increase for a long period of 7 years is not
encouraging. The MYT Regulations for the second control period have not
incentivised the power distribution utilities sufficiently for better
performance. Inadequate tariff would affect the future CAPEX spending which in
turn will impact the quality, safety and reliability of Regulated Distribution.
Also, the Company has been extremely positive in its HR areas including through
comprehensive performance based rewards which cannot be sustained in the long
run if the profits are impaired. This would further enhance the difficulties
faced by the regulated business in attracting and retaining qualified and
experienced talent – both technical and commercial. Thus, tariff determination
remains an area of concern for the Company.
Increase in fuel prices is another major concern for the Company. The
prices of A and B Grades coal have gone up by more than 100% effective from
27th February, 2011. Also, there is an upward price movement in the case of
both domestic gas and Regassified Liquified Natural Gas.
After satisfying the long term arrangement of 835 MW to Ahmedabad and
The Company also bears the risk of adequate availability of technical
personnel, which it proposes to overcome through pro-active recruitment and
training.
INTERNAL CONTROL
SYSTEMS
The Company has an adequate system of Internal Controls aimed at
achieving efficiency in operations, optimum utilization of resources and
compliance with all applicable laws and regulations. An independent firm of
Chartered Accountants is appointed as auditors for conducting internal audit
function. Besides, the company has its own in-house audit function, which
conducts routine audit of activities. The observations and recommendations for
improvement of the business operations are reviewed by the management and are
reported to the Audit Committee. The Audit Committee comprises of only
independent directors.
SUBSIDIARIES
The Company has three subsidiary companies namely, Torrent Power Grid
Limited, Torrent Energy Limited and Torrent Pipavav Generation Limited.
A. Torrent Power Grid Limited
During the year, the third and final phase of the Project (for
evacuation of power from SUGEN power generating station) of 144.5 kms 400 kV
Double Circuit line as part of transmission infrastructure from SUGEN to Pirana
sub-station of Power Grid Corporation of India Limited with Loop in Loop out at
400 kV sub-station of the Company at Pirana has been commissioned.
The company has filed a petition for determination of tariff for the
first and second phase of the Project pursuant to the provisions of CERC (Terms
and Conditions of Tariff) Regulations, 2009.
B. Torrent Energy
Limited (DGEN)
Torrent Energy Limited is implementing the gas based DGEN Mega Power
Project at Dahej SEZ. It proposes to establish 3 units of approximately 400 MW
each for which the EPC contract has been awarded. Environmental clearance has
been received from MoEF for 2 units and the Terms of Reference for other unit
have been approved. EPC implementation is in progress. Non-EPC work has
commenced and raw water reservoir and road / drains are nearing completion.
Connectivity and Long Term Open Access for 1,200 MW has been granted by the
Central Transmission Utility. The project is expected to meet 387 MW additional
demand of Ahmedabad and
C. Torrent Pipavav
Generation Limited
Torrent Pipavav Generation Limited is setting up the 1,000+ MW
coal-based power project at Pipavav in Amreli District of Gujarat. The project
has Coal Linkage of Baitarni coal mines and will meet the balance requirement
of coal through additional domestic coal linkages / imports. Though the Hon’ble
Gujarat High Court has approved the consent settlement with the land owners,
the Company is still facing difficulties in land acquisition and efforts are
being made to resolve the issue. Terms of Reference have been cleared by MoEF
and environmental field studies have been completed.
D. Torrent Power
Bhiwandi Limited
During the year under review, the Company has divested its shareholding
from Torrent Power Bhiwandi Limited (TPBL). TPBL has, therefore, ceased to be a
subsidiary of the Company.
CORPORATE SOCIAL
RESPONSIBILITY
The Company’s CSR initiatives are highly influenced by the philosophies
of its group Founder Chairman, Shri U. N. Mehta. He firmly believed that it was
the responsibility of every member of the society to give back for all the good
that the society has bestowed upon them. The Company continues to make focused
efforts for fulfilling its Corporate Social Responsibility, with the thrust
areas being education, health and sanitation and public awareness.
During the year, the Company carried out the following CSR activities:
• Expansion of U. N. Mehta Institute of Cardiology and Research Centre (UNMICRC),
state of the art cardiac hospital with 450 beds, which has since been
completed. The Company has contributed Rs. 40.000 Millions during the year and
cumulatively Rs. 150.000 Millions for this project. The new facility would
include ICUs and ICCUs, cath labs, AHU rooms, conference room, auditoriums and
library.
• The Company has completed construction of class rooms at
• The Company has also sponsored Shardashish Scholarship Programme
through U. N. Mehta Charitable Trust, which provided financial support to 50
meritorious students from economically weak background.
BOARD OF DIRECTORS
During the year, term of appointment of Shri Sudhir Mehta, Executive
Chairman was preclosed and he was appointed afresh for a period of 5 years
effective from 1st August, 2010. Shri Samir Mehta has been appointed as
Executive Vice Chairman for a period of 5 years effective from 1st August,
2010. Also, the term of appointment of Shri Markand Bhatt and Shri Murli
Ranganathan, Whole-time Directors were pre-closed and they were appointed
afresh for a period of 5 years effective from 1st April, 2011. Shri T. P.
Vijayasarathy has been appointed as Whole-time Director for a period of 5 years
effective from 1st November, 2010. Shri Murli Ranganathan and Shri S. K. Barua
retire by rotation and being eligible, they have offered themselves for
re-appointment.
For the perusal, a brief resume of the Directors being appointed /
re-appointed and other relevant details are given in the Explanatory Statement
to the Notice convening the Annual General Meeting. The Board of Directors recommends
their appointment / re-appointment for approval of the shareholders of the
Company.
The Board of Directors comprises of ten Directors of which five
Directors are Independent Non-Executive Directors. Composition of the Board is
in conformity with the provisions of the Code. The Board of Directors met four
times during the year on 7th May, 2010, 31st July, 2010, 27th October, 2010 and
24th January, 2011.
Shri T. P. Vijayasarathy was appointed as Whole-time Director effective
from 1st November, 2010. Details of directorship given above exclude
directorship held in private companies, foreign companies and companies
registered under Section 25 of the Companies Act, 1956. Details of committee
membership include membership/ chairmanship of Audit Committee and
Shareholders’/ Investors’ Grievances Committee of public companies.
Shri S. K. Barua and Shri Murli Ranganathan are liable to retire by
rotation at the ensuing Annual General Meeting and being eligible, they have
offered themselves for re-appointment. The Board of Directors has, at its
meeting held on 31st July, 2010, appointed Shri Sudhir Mehta afresh as
Executive Chairman of the Company for a period of 5 years effective from 1st
August, 2010, by pre-closing his existing term of appointment. At the said
meeting, the Board has also appointed Shri Samir Mehta as Executive Vice
Chairman for a period of 5 years effective from 1st August, 2010. Similarly,
the Board also appointed Shri Markand Bhatt and Shri Murli Ranganathan afresh
as Whole-time Directors for a period of 5 years effective from 1st April, 2011,
by pre-closing their existing term of appointment.
Shri T. P. Vijayasarathy was appointed as Whole-time Director for a
period of 5 years effective from 1st November, 2010. Necessary
resolutions seeking approval of the shareholders for the said appointments form
part of the Notice convening the 7th Annual General Meeting. Brief resume and
other relevant details of the Directors proposed to be appointed/ re-appointed
are given in the Explanatory Statement annexed to the Notice of the Annual
General Meeting. Shri Sudhir Mehta and Shri Samir Mehta are related to each
other. None of the other Directors are related inter-se. The Board meetings are
normally held in Ahmedabad. The Board meets atleast once in a quarter with gap
between two meetings not exceeding four months. The Board agenda papers and
other explanatory notes are circulated to the Directors in advance. Senior
executives are invited to attend the Board meetings as and when required
Company’s Philosophy
on Corporate Governance
The Company recognises that transparency, disclosure, financial controls
and accountability are the pillars of a good system of corporate governance.
The Company believes that the Corporate Governance Code of the Listing Agreement
prescribes a framework for governance of a business in corporate framework. The
Company’s philosophy is to develop the desired framework and institutionalise
the spirit it entails. This will lay the foundation for further development of
superior governance practices, vital for successful business in the interest of
all
stakeholders in the best possible manner.
CONTINGENT
LIABILITIES
(Rs.
in Millions)
|
Particulars |
31.03.2011 |
31.03.2010 |
|
|
|
|
|
(i) Letters of Credit established and Guarantees given by banks on behalf of the Company |
604.600 |
287.100 |
|
(ii) Disputed Income-tax matters |
234.500 |
218.100 |
|
(iii) Disputed Sales-tax matters |
2.100 |
2.100 |
|
(iv) Disputed Custom Duty matters |
4.400 |
4.400 |
|
(v) Disputed Stamp Duty matters |
2.600 |
2.600 |
STATEMENT OF STAND ALONE AUDITED FINANCIAL
RESULTS FOR THE YEAR ENDED
31ST MARCH,2012
(` in Millions except per share
data)
|
Particular |
For the Quarter
Ended |
For the Year Ended |
|
|
|
31.03.2012 (Unaudited) |
31.12.2011 (Unaudited) |
31.03.2012 (Unaudited) |
|
Income from Operations |
|
|
|
|
Net Sales/Income from Operations |
18313.900 |
18487.400 |
74457.800 |
|
Other Operating Income |
1351.900 |
347.400 |
4720.400 |
|
Total Income from
operations (net) |
19665.800 |
18834.800 |
79178.200 |
|
|
|
|
|
|
Expenses |
|
|
|
|
(a) Power Purchase |
6449.700 |
5808.700 |
22827.200 |
|
(b) Fuel Cost |
5358.000 |
5997.000 |
24272.600 |
|
(c) Employee benefit expenses |
460.400 |
670.500 |
2415.900 |
|
(d) Depreciation and amortization expenses |
504.500 |
1071.500 |
3658.800 |
|
(e) Other Expenses |
1544.200 |
1802.700 |
7122.700 |
|
Total Expenses |
14316.800 |
15350.400 |
60297.200 |
|
Profit from Operations
before Other Income, Finance costs and Execeptional item |
5349.000 |
3484.400 |
18881.000 |
|
Other Income |
394.500 |
193.800 |
1018.400 |
|
Profit/ Loss from
Ordinary Activities before Finance costs and Execeptional item |
5743.500 |
3678.200 |
19899.400 |
|
Finance costs |
773.200 |
730.100 |
3106.900 |
|
Profit/ Loss from
Ordinary Activities after Finance costs but Execeptional item |
4970.300 |
2948.100 |
16792.500 |
|
Execeptional
item |
-- |
-- |
-- |
|
Profit/ Loss from Ordinary Activities
before tax |
4970.300 |
2948.100 |
16792.500 |
|
Tax Expenses |
|
|
|
|
- Current Tax |
994.500 |
583.000 |
3389.400 |
|
- Deferred
Tax Liability/ Assets |
141.600 |
252.300 |
1052.600 |
|
- Short/ Excess
Provisions for Current Tax of earlier years |
(20.700) |
0.000 |
(24.100) |
|
Net Profit/ Loss from Ordinary Activities
after tax |
3854.900 |
2112.800 |
12374.600 |
|
Extraordinary
Items |
-- |
-- |
-- |
|
Net Profit for the period |
3854.900 |
2112.800 |
12374.600 |
|
Paid- up
Equity Share Capital (Face value
of the share – Rs. 10) |
4724.500 |
4724.500 |
4724.500 |
|
Reserves
excluding revaluation reserves as per balance sheet of Previous Accounting
Year |
-- |
-- |
52754.300 |
|
Earnings per share
(before extraordinary items) (of Rs. 10/-
each) (not annualized) -
Basic |
8.16 |
4.47 |
26.19 |
|
- Diluted |
8.16 |
4.47 |
26.19 |
|
Earnings per
share (after extraordinary items) (of Rs. 10/-
each) (not annualized) - Basic |
8.16 |
4.47 |
26.19 |
|
- Diluted |
8.16 |
4.47 |
26.19 |
|
|
|
|
|
|
PARTICULARS OF SHAREHOLDING |
|
|
|
|
1. Public
shareholding |
|
|
|
|
Number of
Shares |
222.986 |
223.006 |
222.986 |
|
Percentage of Shareholding |
47.20 |
47.20 |
47.20 |
|
2. Promoters
and promoter group shareholding |
|
|
|
|
a)
Pledged/Encumbered |
|
|
|
|
- Number of Shares |
4.164 |
4.164 |
4.164 |
|
- Percentage of Shares (as a % of the Total Shareholding
of promoter and promoter group) |
1.67 |
1.67 |
1.67 |
|
- Percentage of Shares (as a % of the Total Share Capital
of the Company) |
0.88 |
0.88 |
0.88 |
|
|
|
|
|
|
Non - encumbered |
|
|
|
|
- Number of
Shares |
245.298 |
245.278 |
245.298 |
|
- Percentage
of Shares (as a % of the
total shareholding of promoter and promoter
group) |
98.33 |
98.33 |
98.33 |
|
- Percentage
of Shares (as a % of
the total share capital of the company) |
51.92 |
51.92 |
51.92 |
|
|
Particulars |
Quarter Ended 31st
March 2012 |
|
B |
Investor
complaints |
|
|
|
Pending at the beginning of the quarter |
Nil |
|
|
Received during the quarter |
26 |
|
|
Disposed of during the quarter |
26 |
|
|
Remaining unresolved at the end of the quarter |
Nil |
Notes:
1) The Figures for the corresponding period have been regrouped, wherever necessary, to make them comparable with the figures for the current periods.
2) Figures for the quarters ended March 31, 2011 and March 31, 2012 are, in accordance with recent amendment to Listing Agreement(s), the balancing figures between audited figures for the full financial year ended March 31, 2011 and March 31, 2012 and the published year to date figures upto the third quarter of the respective financial years; figures would need to be interpreted / analysed accordingly
3) Accounting policy concerning depreciation in respect of assets of Ahmedabad Generation, Ahmedabad Distribution and Surat Distribution has been changed during the year from higher of rates as per Appendix III of CERC Regulation 2009 or rates prescribed under Schedule XIV to the Companies Act, 1956 to rates applicable in the year of addition as per CERC Tariff Regulations in the context of notification no 51/23/2011-CL-III dated 31st May, 2011 issued by Ministry of Corporate Affairs with effect from 1st April, 2011. Depreciation for the year is lower by Rs. 601.200 millions and Profit for the year is higher by Rs. 601.200 millions on account of such changes.
4) The Company operates only in one business segment viz. Generation, Transmission and Distribution of Electricity.
5) During the quarter, the Company made investment of Rs. 692.500 millions by way of share application money in its subsidiary Torrent Energy Limited.
6) The Board of Directors has recommended special dividend as final dividend of Rs. 3.50 (35%) per equity share of Rs. 10/- each fully paid up for the financial year 2011-12. The aggregate amount of special dividend to be distributed is Rs. 1921.800 millions including Rs.268.300 millions as tax on profit to be distributed. This special dividend along with normal annual dividend distributed as interim dividend of Rs. 3.00 (30%) per equity share works out to total dividend of Rs. 6.50 (65%) per equity share for the financial year 2011-12.
7) The Audit Committee has reviewed the above results and the same have been approved by the Board of Directors in their respective meetings held on 11th May, 2012.
Standalone Statement of Assets and
Liabilities (Audited)
(Rs.
in Millions)
|
Particulars |
31.03.2012 |
31.03.2011 |
|
|
A. EQUITY AND LIABILITIES |
Unaudited |
Audited |
|
|
1.
Shareholders Funds |
|
|
|
|
a] Share Capital |
4724.500 |
4724.500 |
|
|
b] Reserves and Surplus |
52754.300 |
43146.800 |
|
|
Sub-total –
Shareholders’ funds |
57478.800 |
47871.300 |
|
|
|
|
|
|
|
2. Non-current
Liabilities |
|
|
|
|
a] Long term Borrowings |
31832.700 |
24293.500 |
|
|
b] Deferred Tax Liabilities |
4635.500 |
3582.900 |
|
|
c] Other current liabilities |
2398.400 |
3309.300 |
|
|
d] Long term provisions |
869.500 |
1034.100 |
|
|
Sub-total -
Non-current Liabilities |
39736.100 |
32219.800 |
|
|
|
|
|
|
|
3. Current Liabilities |
|
|
|
|
a] Short term Borrowings |
0.000 |
1859.600 |
|
|
b] Trade Payables |
6584.00 |
7444.100 |
|
|
c] Other Current Liabilities |
13548.400 |
11545.800 |
|
|
d] Short Term Provision |
2398.400 |
3309.300 |
|
|
Sub-total - Current Liabilities |
22530.800 |
24158.800 |
|
|
TOTAL - EQUITY
AND LIABILITIES |
118287.100 |
100977.400 |
|
|
|
|
|
|
|
B ASSETS |
|
|
|
|
1. Non-current assets |
|
|
|
|
a] Fixed assets |
84333.500 |
69987.600 |
|
|
b] Non-current investment |
10448.600 |
8558.100 |
|
|
c] long Term loans and Advances |
953.900 |
1546.600 |
|
|
d] Other non-current assets |
6.600 |
6.600 |
|
|
Sub-total – Non- current assets |
95742.600 |
80098.900 |
|
|
|
|
|
|
|
2.
CURRENT ASSETS |
|
|
|
|
|
Current Investments |
2253.800
|
1083.500 |
|
|
Inventories |
2995.500
|
2634.400 |
|
|
Trade Receivables |
6459.600
|
5037.500 |
|
|
Cash & Bank Balances |
5734.200
|
9256.100 |
|
|
Short Term loans and advances |
2076.700
|
1788.400 |
|
|
Other Current Assets |
3024.700
|
1078.600 |
|
Sub-total – Current Assets |
22544.500
|
20878.500 |
|
|
|
|
|
|
|
TOTAL - ASSETS |
118287.100 |
100977.400 |
|
FIXED ASSETS:
Tangible Assets
- Land –
Freehold
- Land -
Leasehold
- Buildings
- Railway
Siding
- Plant and
Machinery
- Transmission
and Distribution Systems
- Electrical
Fittings and Apparatus
- Furniture,
Fixture and Office Equipments
- Vehicles
Intangible Assets
- Software
AS PER WEBSITE
DETAILS
PROFILE:
Torrent Power is one of the leading brands in the Indian power sector, promoted by the Rs. 82000.000 millions Torrent Group – a group committed to its mission of transforming life by serving two of the most critical needs - Healthcare and Power. Torrent Pharmaceuticals Limited, the flagship company of the Torrent Group, is a major player in the Indian pharmaceuticals industry with a vision of becoming a global entity in the arena.
With an all-round experience in generation, transmission and
distribution of power, and a proven track record of implementing large power projects,
Torrent Power is the most experienced private sector player in
Torrent Power foresaw the prospects in the power sector much before the liberalization, when it took-over an ailing power cable company in 1989 (now known as Torrent Cables Limited) and successfully turned it around.
The high points of Torrent’s foray into power however were
the acquisitions of two of the
Torrent has a generation capacity of 1647.5 MW and
distributes over 3 million customer annually in Ahmedabad, Gandhinagar and
The company is currently implementing a 1200 MW gas based
power project at Dahej in
Distribution Franchise business is one area which Torrent Power has been
aggressively pursuing as part of its expansion plans. Torrent Power created
history by entering into the country’s first distribution franchisee agreement
with Maharashtra State Electricity Distribution Company Limited for
PRESS RELEASE
12.05.2012
Torrent Power Ltd has informed BSE that the Register of
Members & Share Transfer Books of the Company will remain closed from June
18, 2012 to June 20, 2012 (both days inclusive) for the purpose of Payment of
Final Dividend.
The dividend, if declared by the shareholders at the 8th Annual General
Meeting, will be distributed on or after July 30, 2012.
11.05.2012
Torrent Power Ltd has informed BSE that the Board of
Directors of the Company at its meeting held on May 11, 2012, inter alia, has
recommended special dividend as final dividend of Rs. 3.50 (35%) per equity
share of Rs. 10/- each fully paid up for the financial year 2011-12. The
aggregate amount of special dividend to be distributed is Rs. 192.18 Crores
including Rs. 26.83 Crores as tax on profit to be distributed. This special
dividend along with normal annual dividend distributed as interim dividend of
Rs. 3.00 (30%) per equity share works out to total dividend of Rs. 6.50 (65%)
per equity share for the financial year 2011-12.
MILESTONES:
A Non-Stop Journey of Excellence
:: 2010-11 ::
- Torrent
Power commences distribution operations in
- Torrent Power and its subsidiary, Torrent Energy Limited, awards EPC contract to Siemens for implementing UNOSUGEN (stand alone 382.5 MW generation plant at its existing SUGEN plant location) and DGEN (1200 MW generation plant at Dahej SEZ) projects
- Torrent Energy Limited, subsidiary of Subject, commenced distribution operations in Dahej SEZ effective from 04.04.2010
:: 2009-10 ::
- All three units of SUGEN Power Plant commissioned; commences commercial production
- Phase II of Torrent Power Grid Limited transmission system commissioned i.e LILO of Dehgam-Jhanor
- Torrent
Power signs distribution franchise agreement with UPPCL for
- Torrent Power signs SHA with GPCL for setting up 1000+ MW coal based plant at Pipavav, district Amreli, Gujarat
:: 2008-09 ::
- Phase I of Torrent Power Grid Limited transmission system commissioned i.e LILO of Vapi-Jhanor
:: 2007-08 ::
- Torrent Power Grid Limited obtains license from CERC to setup the 400kV transmission line
- Torrent
Power signs MOU with GPCL for setting up the 1000+ MW coal based power
project at Pipavav in
:: 2006-07 ::
- Torrent Power bags MoP’s Gold Shield award for two years for outstanding performance in power distribution
- Torrent
Power commences distribution operations in Bhiwandi,
:: 2005-06 ::
- Torrent
Power Generation Limited awards EPC contract for its upcoming SUGEN 1147.5
MW CCPP
to a consortium of Siemens AG and Siemens Limited India; commences construction of its first power block - Torrent
Power Generation Limited and Siemens creats a 50:50 JV to provide O and M
services to
its SUGEN 1147.5 MW CCPP
:: 2004-05 ::
- Torrent brings together three of its group companies Torrent Power AEC Limited, Torrent Power SEC Limited and Torrent Power Generation Limited under a single, unified brand – Torrent Power
- Torrent Power Generation Limited achieves financial closure
:: 2002-03 ::
- Work
on 1147.5 MW combined cycle mega power project near
:: 2001-02 ::
- The Ahmedabad Electricity Company's turnover crosses the Rs.10 billion mark
:: 1999-00 ::
- The Ahmedabad Electricity Company’s customer base crosses 1 million mark
:: 1998-99 ::
- Torrent acquires management control of The Ahmedabad Electricity Company
- Combined Cycle operations of GTEC commissioned in mid-December 1998
:: 1996-97 ::
· Foundation stone for GTEC laid and Zero date announced
· Torrent acquires management control of Surat Electricity Company
:: 1989-90 ::
· Mahendra Electricals taken over and renamed as ‘Torrent Cables Limited' – Torrent’s initial foray into power
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners, controlling
shareholders or senior officers as terrorist or terrorist organization or whom
notice had been received that all financial transactions involving their assets
have been blocked or convicted, found guilty or against whom a judgement or
order had been entered in a proceedings for violating money-laundering,
anti-corruption or bribery or international economic or anti-terrorism sanction
laws or whose assets were seized, blocked, frozen or ordered forfeited for
violation of money laundering or international anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs. 55.73 |
|
|
1 |
Rs. 87.26 |
|
Euro |
1 |
Rs. 69.89 |
INFORMATION DETAILS
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
65 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.