MIRA INFORM REPORT
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Report Date : |
20.12.2014 |
IDENTIFICATION DETAILS
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Name : |
RELIANCE INFRASTRUCTURE LIMITED (w.e.f.28.04.2008) |
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Formerly Known
As : |
RELIANCE ENERGY LIMITED BOMBAY SUBURBAN ELECTRIC SUPPLY LIMITED |
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Registered
Office : |
H Block, 1st Floor, |
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Country : |
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Financials (as
on) : |
31.03.2014 |
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Date of
Incorporation : |
01.10.1929 |
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Com. Reg. No.: |
11-001530 |
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Capital
Investment / Paid-up Capital : |
Rs. 2625.800 Millions |
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CIN No.: [Company Identification
No.] |
L99999MH1929PLC001530 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
Not Available |
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PAN No.: [Permanent Account No.] |
Not Available |
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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 Distribution of Electrical Power and also Engineering, Procurement, Construction (EPC) and Contracts. |
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No. of Employees
: |
Information declined by management |
RATING & COMMENTS
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MIRA’s Rating : |
A (70) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 608000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Exist |
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Comments : |
Subject is the flagship company of the Reliance Group. It is a
well-established company having fine track record. Sales turnover of the company has declined during financial year 2014. However, the rating reflects company’s strong operational efficiencies
supported by strong financial base and adequate liquidity profile of the
company. Trade relations are reported as fair. Business is active. Payments are
reported to be regular and as per commitment. The company can be considered good for normal 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, 2014
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Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
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India |
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 |
EXTERNAL AGENCY RATING
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Rating Agency Name |
CARE |
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Rating |
Long term bank facilities: “AA-” |
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Rating Explanation |
High degree of safety and very low credit
risk. |
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Date |
07.01.2014 |
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Rating Agency Name |
CARE |
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Rating |
Short term bank facilities: “A1+” |
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Rating Explanation |
Verty strong degree of safety and lowest
credit risk. |
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Date |
07.01.2014 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2014.
INFORMATION DECLINED
MANAGEMENT NON-COOPERATIVE
(TEL. NO.: 91-22-30099999)
LOCATIONS
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Registered Office : |
H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi
Mumbai – 400710, Maharashtra , India |
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Tel. No.: |
91-22-30386290/ 30098181 |
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Fax No.: |
91-22-30376633/ 30098128 |
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E-Mail : |
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Website : |
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Corporate Office : |
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Tel. No.: |
91-22-30099999/ 26639999 |
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Fax No.: |
91-22-30099763/
26639741 |
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Power Plant
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Dahanu
Power Plant BSES Nagar,
Dahanu Road, Thane – 401602, Maharashtra, India Goa
Power Plant Opposite
Sancoale, Industrial Estate, Zuarinagar- 403 726, Sancoale Mormugao Goa, Samalkot Power Plant Industrial
Development Area, Peddapuram Mandal, Samalkot- 533440, Andhra Pradesh, India Wind
Farm Near Almangala,
Chitradurga - 577558, Karnataka, India |
DIRECTORS
AS ON 31.03.2014
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Name : |
Mr. Anil Dhirajlal Ambani |
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Designation : |
Chairman |
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Address : |
Sea Wind, 39, Cuffe Parade, Colaba Mumbai – 400005, Maharashtra, India |
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Date of Birth/Age : |
04.06.1959 |
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Date of Appointment : |
18.01.2003 |
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DIN No. : |
00004878 |
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Name : |
Mr. Sateesh Seth |
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Designation : |
Vice Chairman |
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Address : |
4th Floor, Summer Villa, 7th Road, Santa Cruz (East), Mumbai – 400055, Maharashtra, India |
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Date of Birth/Age : |
13.08.1955 |
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Date of Appointment : |
24.11.2000 |
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DIN No. : |
00004631 |
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Name : |
Mr. Vijay Kumar Chaturvedi |
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Designation : |
Director |
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Address : |
901, Tower 10, Sea Breeze CHS. Limited, Palm Beach Road, Nerul – 16, Navi Mumbai - 400706, Maharashtra India |
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Date of Birth/Age : |
01.01.1943 |
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Date of Appointment : |
21.04.2012 |
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DIN No. : |
01802454 |
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Name : |
Mr. Rana Ranjit Rai |
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Designation : |
Director |
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Address : |
A/5, Jeevan Jyot, Nepean Sea Road, Mumbai – 400036, Maharashtra, India |
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Date of Birth/Age : |
09.08.1950 |
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Date of Appointment : |
10.05.2011 |
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DIN No. : |
01625853 |
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Name : |
Mr. Surinder Singh Kohli |
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Designation : |
Director |
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Address : |
J-170, Rajouri Garden, New Delhi - 110027, India |
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Date of Birth/Age : |
10.04.1945 |
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Date of Appointment : |
14.02.2012 |
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DIN No. : |
00169907 |
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Name : |
Mr. Krishnaswamy Ravi Kumar |
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Designation : |
Director |
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Address : |
277, Asian Games Village, New Delhi - 110049, India |
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Date of Birth/Age : |
15.06.1949 |
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Date of Appointment : |
14.08.2012 |
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DIN No. : |
00119753 |
KEY EXECUTIVES
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Name : |
Mr. Ramesh Ganpati Shenoy |
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Designation : |
Company Secretary and Manager |
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Address : |
E-115, Bussa Apartments, B M Bhargava Marg, Santa Cruz (West) Mumbai – 400054, Maharashtra, India |
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Date of Birth/Age : |
07.10.1949 |
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Date of Appointment : |
22.07.1994 (Company Secretary) 21.04.2012 (Manager) |
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PAN No.: |
AHEPS6351D |
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Name : |
M S Mehta |
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Designation : |
Chief Executive Officer |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 30.09.2014
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Category of Shareholders |
No.
of Shares |
Percentage
of Holding |
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(A) Shareholding of Promoter and Promoter
Group |
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663424 |
0.26 |
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126963612 |
48.83 |
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127627036 |
49.09 |
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Total shareholding of Promoter and Promoter
Group (A) |
127627036 |
49.09 |
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(B) Public Shareholding |
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1347286 |
0.52 |
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1036116 |
0.40 |
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131575 |
0.05 |
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44290690 |
17.04 |
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52821640 |
20.32 |
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99627307 |
38.32 |
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4780678 |
1.84 |
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25337917 |
9.75 |
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1257360 |
0.48 |
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1357648 |
0.52 |
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1357648 |
0.52 |
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32733603 |
12.59 |
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Total Public shareholding (B) |
132360910 |
50.91 |
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Total (A)+(B) |
259987946 |
100.00 |
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(C) Shares held by Custodians and against
which Depository Receipts have been issued |
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0 |
0.00 |
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3002054 |
0.00 |
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3002054 |
0.00 |
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Total (A)+(B)+(C) |
262990000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Generation, Transmission and Distribution of Electrical Power and also Engineering, Procurement, Construction (EPC) and Contracts. |
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Brand Names : |
-- |
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Agencies Held : |
-- |
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Exports : |
-- |
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Imports : |
-- |
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Terms : |
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Selling : |
-- |
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Purchasing : |
-- |
PRODUCTION STATUS: NOT AVAILABLE
GENERAL INFORMATION
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Suppliers : |
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Customers : |
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No. of Employees : |
Information declined by management |
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Bankers : |
· Bank of Maharashtra, LJ Road Mahim Branch, Mangeerish Society, Mahim (West), Mumbai - 400016, Maharashtra, India ·
Canara Bank, Prime Corporate Branch - II, Canara
Bank Building, Adi Marzban Street, Ballard Estate, Mumbai - 400001,
Maharashtra, India |
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Facilities : |
LONG TERM
BORROWINGS Non-Convertible
Debentures referred above to the extent of: (a) Rs. 1250.000 Millions are secured by way of first pari-passu charge, on Company’s fixed Rs. 1250.000 Millions are secured by way of first pari-passu charge assets, both present and future, on Company’s fixed assets, both present and future, located at its plants situated at Goa and Samalkot and specific premises at Hyderabad, properties comprising certain plant and machinery and certain fixed assets of Mumbai distribution business and on Company’s specific immovable properties located in the state of Maharashtra. (b) Rs. 8500.000 Millions are secured by way of first pari-passu charge on Company’s certain fixed assets, both present and future, located at its plant situated at Dahanu and on Company’s specific premises in Mumbai. (c) Rs. 9750.000 Millions are secured by way of first pari-pasu charge on specific land and buildings and certain fixed assets of Mumbai Distribution Business of the Company. (d) Rs. 5000.000 Millions are secured by first pari-passu charge on specific properties (Land and Buildings) located in suburban Mumbai and certain fixed assets of the Company’s Mumbai distribution business. (e) Rs. 400.000 Millions are secured by assets related to 8MW Windmill Project of the Company located at Jogimatti in Chitradurga district of Karnataka and on Company’s specific immovable property located at Thane district in the state of Maharashtra. (f) Rs. 6500.000 Millions are secured by way of first pari-passu charge on assets of Company, located at its plants at Goa and Samalkot and specific premises at Hyderabad, properties comprising certain plant and machinery and certain fixed assets of Mumbai distribution business and on Company’s specific immovable properties located in the state of Maharashtra. (The existing Rs. 1250.000 Millions NCD holders also hold pari-passu charge on the above assets.) (g) Rs. 7000.000 Millions shall be secured by first ranking pari-passu charge on the following:- 1) Regulatory Assets , present and future, related to Mumbai Distribution Business 2) Escrow accounts established for the purpose and Specified immovable property (Note: The security on the above assets is yet to be created.) (h) Rs. 5000.000 Millions are secured by the following:- 1) Pledge of 18,75,000 shares of Reliance Power Limited which are owned by the Company. 2) Specific immovable property located at Thane District. 3) All of the Company’s rights, title, interest and benefits in, to and under the bank account no.0656363-00-0 of Reliance Infrastructure Limited with Deutsche Bank, Mumbai branch together with fixed deposits standing to the credit of the said bank account. The Term Loans of Rs. 22567.400 Millions are secured as under: (a) Rs. 3079.400 Millions from Central Bank of India is secured by way of first exclusive pari-passu charge on certain fixed assets of Mumbai Distribution Business. (b) Rs. 1635.000 Millions from Central Bank of India is secured by way of first exclusive pari-passu charge on certain fixed assets of EPC business. (c) Rs. 3000.000 Millions from South Indian Bank is secured by way of first pari-passu charge on certain fixed assets of Mumbai Transmission Business. (d) Rs. 920.000 Millions from Corporation Bank is secured by way of first pari-passu charge on certain fixed assets of Mumbai Transmission Business. (e) Rs. 620.000 Millions from State Bank of Hyderabad is secured by way of first pari-passu charge on certain fixed assets of Mumbai Transmission Business. (f) Rs. 2031.200 Millions from Bank of Maharashtra is secured by way of first exclusive charge on certain fixed assets of Mumbai Transmission Business. (g) Rs. 1500.000 Millions from Jammu & Kashmir Bank shall be secured by way of first pari-passu charge on the moveable & immovable assets of power plant belonging to M/s BSES Kerala Power Limited (a 100% subsidiary of the Company) located in Kochi. (The security on these assets is yet to be created.) (h) Rs. 500.000 Millions from Karnataka Bank shall be secured by way of first pari-passu charge on the fixed assets of the company and the fixed assets of power plant belonging to M/s BSES Kerala Power Limited (a 100% subsidiary of the Company) located in Kochi. (The security on these assets is yet to be created.) (i) Rs. 4000.000 Millions from Bank of Baroda shall be secured by the Regulatory Assets related to Mumbai Distribution Business, Escrow accounts established for the purpose and specified immovable property. (The security on these assets is yet to be created.) (j) Rs. 2500.000 Millions from Syndicate Bank shall be secured by the Regulatory Assets related to Mumbai Distribution Business; Escrow accounts established for the purpose and specified immovable property. (The security on these assets is yet to be created.) (k) Rs. 2000.000 Millions from PTC India Financial Services Limited shall be secured by land in Thane district and fixed assets related to two specific schemes of Mumbai Transmission Business. (The security on these assets is yet to be created). (l) Rs. 110.000 Millions from Andhra Bank are secured by way of second pari-passu charge on certain fixed assets of Mumbai Distribution Business of the Company. (The security on these assets is yet to be created). (m) Rs. 220.000 Millions from Bank of India are secured by way of second pari-passu charge on certain fixed assets of Mumbai Distribution Business of the Company. (The security on these assets is yet to be created). (n) Rs. 160.000 Millions from Canara Bank are secured by way of second pari-passu charge on certain fixed assets of Mumbai Distribution Business of the Company. (The security on these assets is yet to be created). (o) Rs. 291.000 Millions from Axis Bank Ltd. are secured by way of second pari-passu charge on certain fixed assets of Mumbai Distribution Business of the Company. (The security on these assets is yet to be created). SHORT TERM
BORROWINGS Security: Working Capital Loans and Buyers’ Credit from
Consortium Banks are secured by way of first pari-passu charge on stock, book
debts, other current assets and additionally secured by a specific immovable
property of the Company located at Mumbai. |
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Banking
Relations : |
-- |
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Financial Institution : |
IDBI Trusteeship Services Limited, Asian Building, 17, R. Kamani Marg, Ballard Estate, Mumbai - 400001, Maharashtra, India |
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Auditor 1 : |
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Name : |
Pathak H D and Associates Chartered Accountants |
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Address : |
814/815, Tulsiani Chambers, 212, Nariman Point, Mumbai – 400021, Maharashtra, India |
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Income-tax
PAN of auditor or auditor's firm : |
AAAFP1031C |
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Auditor 2 : |
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Name : |
Haribhakti and Company Chartered Accountants |
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Address : |
42, Free Press House, 4th Floor, 215, Nariman Point, Mumbai – 400021, Maharashtra, India |
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Income-tax
PAN of auditor or auditor's firm : |
AAAFH2010F |
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Subsidiaries (Including step down Subsidiaries): |
· Reliance Power Transmission Limited (RPTL) · Western Region Transmission (Gujarat) Private Limited (WRTG) · Western Region Transmission (Maharashtra) Private Limited (WRTM)* · Talcher – II Transmission Company Limited (TTCL) · North Karanpura Transmission Company Limited (NKTCL) · BSES Kerala Power Limited (BKPL) · Reliance Energy Trading Limited (RETL) · Mumbai Metro One Private Limited (MMOPL) · Parbati Koldam Transmission Company Limited (PKTCL) · CBD Tower Private Limited (CBDTPL) · Tulip Realtech Private Limited (TRPL) · DS Toll Road Limited (DSTL) · NK Toll Road Limited (NKTL) · SU Toll Road Private Limited (SUTL) up to September 29, 2013 · TD Toll Road Private Limited (TDTL) up to September 29, 2013 · TK Toll Road Private Limited (TKTL) up to September 29, 2013 · GF Toll Road Private Limited (GFTL) · KM Toll Road Private Limited (KMTL) · PS Toll Road Private Limited (PSTL) · HK Toll Road Private Limited (HKTL) · DA Toll Road Private Limited (DATL) · Reliance Cement Company Private Limited(RCPL) · Reliance Cement and Infra Private Limited (RCIPL) · Reliance Cement Corporation Private Limited (RCCPL) · Reliance Cement Works Private Limited (RCWPL)* · Utility Infrastructure & Works Private Limited (UIWPL) · Reliance Concrete Private Limited ( RCoPL) · Reliance Airport Developers Private Limited (RADPL) · Latur Airport Private Limited (LAPL) · Baramati Airport Private Limited (BAPL) · Nanded Airport Private Limited (NAPL) · Yavatmal Airport Private Limited (YAPL) · Osmanabad Airport Private Limited (OAPL) · Reliance Sealink One Private Limited (RSOPL) |
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Associates
(Including Subsidiaries of Associates) : |
· Reliance Power Limited (RePL) · Urthing Sobla Hydro Power Private Limited (USHPPL) · Rosa Power Supply Company Limited (ROSA) · Sasan Power Limited (SPL) · Vidarbha Industries Power Limited (VIPL) · Chitrangi Power Private Limited (CPPL) · Coastal Andhra Power Limited (CAPL) · Samalkot Power Limited (SaPoL) · Rajasthan Sun Technique Energy Private Limited (RSTEPL) · Dhursar Solar Power Private Limited (DSPPL) (earlier known as Dahanu Solar Power Private Limited) · Reliance Clean Gen Limited (RCGL) · JR Toll Road Private Limited (JRTL) · Mumbai Metro Transport Private Limited (MMTPL) · Metro One Operation Private Limited(MOOPL) · Delhi Airport Metro Express Private Limited (DAMEPL) · SU Toll Road Private Limited (SUTL) w.e.f. September 30, 2013 · TD Toll Road Private Limited (TDTL) w.e.f. September 30, 2013 · TK Toll Road Private Limited (TKTL) w.e.f. September 30, 2013 · Siyom Hydro Power Private Limited (SHPPL) · Coastal Andhra Power Infrastructure Limited (CAPIPL) |
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Joint Ventures : |
· BSES Rajdhani Power Limited (BRPL) · BSES Yamuna Power Limited (BYPL) · Tamilnadu Industries Captive Power Company Limited (TICAPCO) · Utility Powertech Limited (UPL) |
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Investing Party : |
AAA Project Ventures Private Limited (AAAPVPL) |
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Other Related
Parties : |
· Reliance Innoventures Private Limited(REIL) · Reliance Life Insurance Company Limited (RLICL) · Reliance General Insurance Company Limited (RGI) · Reliance Capital Limited (RCap) · Reliance Tech Services Private Limited (RTSPL) · Reliance Infocomm Infrastructure Private Limited (RIIPL) · AAA Sons Private Limited (AAASPL) · Reliance Securities Limited (RSL) · Reliance Money Precious Metals Private Limited (RMPMPL) · Reliance Capital Asset Management Company Limited (RAMCPL) · Reliance Enterprise and Ventures Private Limited (REVPL) · Reliance Infocomm Limited (RInfo) · Reliance Infratel Limited (RITL) · Reliance Big Private Limited (RBPL) · Talenthouse Entertainment Private Limited (THEPL) · Reliance Home finance Limited (RHL) |
CAPITAL STRUCTURE
AFTER 30.09.2014
Authorised Capital : Rs. 20500.600 Millions
Issued, Subscribed and Paid-up Capital : Rs.
2625.754 Millions
AS ON 31.03.2014
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
450,060,000 |
Equity Shares |
Rs.10/- each |
Rs. 4500.600 Millions |
|
8,000,000 |
Equity Shares with differential rights |
Rs.10/- each |
Rs. 80.000 Millions |
|
1,550,000,000 |
Redeemable Preference |
Rs.10/- each |
Rs. 15500.000 Millions |
|
42,000,000 |
Unclassified Shares |
Rs.10/- each |
Rs. 420.000 Millions |
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Total |
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Rs. 20500.600
Millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
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265,392,065 |
Equity Shares |
Rs.10/- each |
Rs. 2654.000 Millions |
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Subscribed and Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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262,990,000 |
Equity Shares |
Rs.10/- each |
Rs. 2629.900 Millions |
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Add: 354479 Forfeited Shares- Amounts originally paid up |
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Rs. 0.400 Million |
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Less: 450000 Shares held by R Infra ESOS Trust |
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Rs. 4.500 Millions |
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Total |
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Rs. 2625.800
Millions |
Reconciliation of the
Shares outstanding at the beginning and at the end of the year:
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Particulars |
As at March 31, 2014 |
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No. of Shares |
Rs. in Millions |
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At the beginning of the year |
26,29,90,000 |
2629.900 |
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Outstanding at the end of the year |
26,29,90,000 |
2629.900 |
Details of
Shareholders holding more than 5% shares:
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Particulars |
As at March 31, 2014 |
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No. of Shares |
% held |
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AAA Project Ventures Private Limited |
10,61,48,937 |
40.36 |
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Life Insurance Corporation of India |
2,20,42,410 |
8.38 |
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Reliance Big Private Limited |
1,95,00,000 |
7.41 |
Terms / Rights
attached to equity shares:
(a) Voting
The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.
(b) Dividends
The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. During the year ended March 31, 2014, the amount of per share dividend recognised as distributions to equity shareholders was Rs. 7.50.
(c) Liquidation
In the event of liquidation of the Company, the holders of equity shares will be entitled to receive all of the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.
Buy-back of Equity
Shares:
Aggregate number of shares bought back during the period of five years immediately preceding the reporting date – 51,83,767 (1,47,38,762)
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
I.
EQUITY
AND LIABILITIES |
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(1)Shareholders'
Funds |
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(a) Share Capital |
2625.800 |
2630.300 |
2630.300 |
|
(b) Reserves & Surplus |
210297.900 |
199726.200 |
183874.000 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
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(2)
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
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Total
Shareholders’ Funds (1) + (2) |
212923.700 |
202356.500 |
186504.300 |
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(3) Non-Current
Liabilities |
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|
|
(a) Long-term borrowings |
67123.800 |
38810.400 |
45993.800 |
|
(b) Deferred tax liabilities (Net) |
4825.200 |
5545.200 |
4495.200 |
|
(c) Other long term
liabilities |
26670.500 |
29976.000 |
48203.200 |
|
(d) Long-term
provisions |
3800.000 |
3800.000 |
3800.000 |
|
Total Non-current
Liabilities (3) |
102419.500 |
78131.600 |
102492.200 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short
term borrowings |
73461.000 |
64072.900 |
45483.500 |
|
(b) Trade
payables |
38563.500 |
37839.600 |
38246.200 |
|
(c) Other
current liabilities |
59547.900 |
56571.700 |
58797.000 |
|
(d) Short-term
provisions |
4347.700 |
3122.500 |
2272.700 |
|
Total Current
Liabilities (4) |
175920.100 |
161606.700 |
144799.400 |
|
|
|
|
|
|
TOTAL |
491263.300 |
442094.800 |
433795.900 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed
Assets |
|
|
|
|
(i)
Tangible assets |
53941.600 |
54419.600 |
46459.600 |
|
(ii)
Intangible Assets |
5871.300 |
14347.700 |
24260.100 |
|
(iii)
Capital work-in-progress |
5277.800 |
4727.500 |
6819.100 |
|
(iv)
Intangible assets under development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
134498.300 |
104965.700 |
98593.100 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
22509.600 |
5726.500 |
16556.900 |
|
(e) Other
Non-current assets |
38575.400 |
40481.300 |
39969.200 |
|
Total Non-Current
Assets |
260674.000 |
224668.300 |
232658.000 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a)
Current investments |
41020.500 |
28048.600 |
29257.500 |
|
(b)
Inventories |
3606.000 |
3672.800 |
3094.000 |
|
(c) Trade
receivables |
47223.400 |
32492.500 |
45655.900 |
|
(d) Cash
and cash equivalents |
2019.700 |
1186.500 |
6860.700 |
|
(e)
Short-term loans and advances |
100901.900 |
130566.900 |
101414.900 |
|
(f) Other
current assets |
35817.800 |
21459.200 |
14854.900 |
|
Total
Current Assets |
230589.300 |
217426.500 |
201137.900 |
|
|
|
|
|
|
TOTAL |
491263.300 |
442094.800 |
433795.900 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
113569.300 |
143220.300 |
179066.700 |
|
|
|
Other Income |
12245.200 |
10828.200 |
7086.800 |
|
|
|
TOTAL |
125814.500 |
154048.500 |
186153.500 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of Electrical Energy
Purchased |
24851.900 |
24682.500 |
24591.700 |
|
|
|
Cost of Fuel |
14889.000 |
15786.100 |
15486.700 |
|
|
|
Construction Material Consumed and Sub-Contracting Charges |
38859.500 |
66792.600 |
97376.900 |
|
|
|
Employee benefit expenses |
8231.100 |
8561.300 |
7404.800 |
|
|
|
Other expenses |
7630.800 |
8262.800 |
7957.100 |
|
|
|
TOTAL |
94462.300 |
124085.300 |
152817.200 |
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION |
31352.200 |
29963.200 |
33336.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL EXPENSES |
9962.100 |
8793.800 |
5681.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION |
21390.100 |
21169.400 |
27655.300 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
3420.700 |
3920.500 |
2677.700 |
|
|
|
|
|
|
|
|
|
Add |
EXCEPTIONAL ITEMS |
0.000 |
4183.400 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) BEFORE TAX |
17969.400 |
21432.300 |
24977.600 |
|
|
|
|
|
|
|
|
|
Less |
TAX |
2090.000 |
1437.100 |
4975.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT/
(LOSS) AFTER TAX |
15879.400 |
19995.200 |
20002.600 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
6612.100 |
6189.600 |
4001.6 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
12000.000 |
16000.000 |
15000.000 |
|
|
|
Proposed Dividend |
1972.400 |
1946.100 |
1919.800 |
|
|
|
Tax on Dividend |
335.200 |
330.700 |
311.400 |
|
|
|
Tax on Dividend written back on account of set off of Dividend Distribution Tax |
(80.300) |
(147.800) |
(15.500) |
|
|
|
Transfer to Contingency Reserve |
138.400 |
124.800 |
111.300 |
|
|
|
Transfer to Debenture Redemption Reserve |
1232.400 |
1318.900 |
487.600 |
|
|
BALANCE CARRIED
TO THE B/S |
6893.400 |
6612.100 |
6189.600 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Other Income |
3.100 |
0.035 |
1.600 |
|
|
|
Derivative Gain (Net) on commodity hedging |
0.000 |
0.000 |
131.400 |
|
|
TOTAL EARNINGS |
3.100 |
0.035 |
133.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Fuel Coal |
3604.100 |
3523.800 |
3478.300 |
|
|
|
Components & Spares Parts |
3.800 |
5.600 |
7.300 |
|
|
|
Capital Goods |
119.700 |
925.000 |
3642.300 |
|
|
|
Other Materials (including EPC contract materials) |
5961.700 |
25232.800 |
40691.00 |
|
|
TOTAL IMPORTS |
9689.300 |
29687.200 |
47818.900 |
|
|
|
|
|
|
|
|
|
|
Earnings /
(Loss) Per Share (Rs.) |
60.38 |
76.03 |
75.70 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2014 |
30.09.2014 |
|
Type |
1st
Quarter |
2nd
Quarter |
|
Net Sales |
25359.000 |
24670.600 |
|
Total Expenditure |
21053.700 |
19860.100 |
|
PBIDT (Excl OI) |
4305.300 |
4810.500 |
|
Other Income |
3955.000 |
4012.500 |
|
Operating Profit |
8260.300 |
8823.000 |
|
Interest |
3343.100 |
3539.600 |
|
Exceptional Items |
0.000 |
0.000 |
|
PBDT |
4917.200 |
5283.400 |
|
Depreciation |
897.500 |
1203.900 |
|
Profit Before Tax |
4019.700 |
4079.500 |
|
Tax |
805.000 |
519.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
|
Profit After Tax |
3214.700 |
3560.500 |
|
Extraordinary Items |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
|
Net Profit |
3214.700 |
3560.500 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2014 |
31.03.2013 |
31.03.2012 |
|
Net Profit Margin (PAT/Sales) |
(%) |
13.98 |
13.96 |
11.17 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
27.61 |
20.92 |
18.62 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.11 |
6.45 |
7.61 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.08 |
0.11 |
0.13 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt/Networth) |
|
0.66 |
0.51 |
0.49 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.31 |
1.35 |
1.39 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT EQUITY RATIO
|
Particulars |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Share Capital |
2630.300 |
2630.300 |
2625.800 |
|
Reserves & Surplus |
183874.000 |
199726.200 |
210297.900 |
|
Net
worth |
186504.300 |
202356.500 |
212923.700 |
|
|
|
|
|
|
Long-term borrowings |
45993.800 |
38810.400 |
67123.800 |
|
Short term borrowings |
45483.500 |
64072.900 |
73461.000 |
|
Total
borrowings |
91477.300 |
102883.300 |
140584.800 |
|
Debt/Equity
ratio |
0.490 |
0.508 |
0.660 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
179066.700 |
143220.300 |
113569.300 |
|
|
|
(20.018) |
(20.703) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2012 |
31.03.2013 |
31.03.2014 |
|
|
(Rs.
In Millions) |
(Rs.
In Millions) |
(Rs.
In Millions) |
|
Sales |
179066.700 |
143220.300 |
113569.300 |
|
Profit |
20002.600 |
19995.200 |
15879.400 |
|
|
11.17% |
13.96% |
13.98% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info Agents |
Available in
Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
No |
|
9] |
Name of person contacted |
No |
|
10] |
Designation of contact
person |
No |
|
11] |
Turnover of firm for last
three years |
Yes |
|
12] |
Profitability for last
three years |
Yes |
|
13] |
Reasons for variation
<> 20% |
----- |
|
14] |
Estimation for coming
financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister
concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details
(if applicable) |
No |
|
21] |
Market information |
----- |
|
22] |
Litigations that the firm
/ promoter involved in |
Yes |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking
account |
----- |
|
26] |
Buyer visit details |
----- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if
applicable |
Yes |
|
29] |
Last accounts filed at
ROC |
Yes |
|
30] |
Major Shareholders, if
available |
Yes |
|
31] |
Date of Birth of
Proprietor/Partner/Director, if available |
Yes |
|
32] |
PAN of Proprietor/Partner/Director,
if available |
No |
|
33] |
Voter ID No of
Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating,
if available |
Yes |
LITIGATION
DETAILS
|
HIGH COURT OF BOMBAY |
|||||||
|
CASE DETAILS |
|||||||
|
BENCH:- BOMBAY |
|||||||
|
PRESENTATION DATE:- 15/07/2014 |
|||||||
|
STAMP NO:- WPL/1881/2014 |
FILING DATE:- 15/07/2014 |
REG. NO.: WP/1651/2014 |
REG. DATE: 16/07/2014 |
||||
|
PETITIONER:- |
SARVAPRIYA LEASING PRIVATE LIMITED |
RESPONDENT:- |
RELIANCE INFRASTRUCTURE LIMITED |
||||
|
PETN.ADV:- |
NARAYANAN & NARAYANAN (20) |
RESP. ADV.: |
SURESH DUBEY (I2126) |
||||
|
DISTRICT:- |
MUMBAI |
||||||
|
|
|||||||
|
BENCH:- |
DIVISION |
|
|
||||
|
STATUS:- |
PRE-ADMISSION |
CATEGORY:- |
WRIT PETITION (OTHERS) |
||||
|
NEXT DATE:- |
20/12/2014 |
STAGE:- |
FOR SETTLEMENT/ FILING CONSENT TERM [ORIGINAL SIDE MATTERS] |
||||
|
CORAM:- |
ACCODING TO SITTING LIST ACCODING TO SITTING LIST |
||||||
|
LAST DATE:- |
26/08/2014 |
STAGE:- |
FOR SETTLEMENT/ FILING CONSENT TERM [ORIGINAL SIDE MATTERS] |
||||
|
LAST CORAM:- |
HON’BLE SHRI JUSTICE ANOOP V. MOHTA HON’BLE SHRI JUSTICE A.A. SAYED |
||||||
|
|
|
||||||
|
ACT:- |
BOMBAY MUNICIPAL CORPORATION ACT |
UNDER SECTION:- 88 AND 354 |
|||||
INDEX OF CHARGES
|
S.NO. |
CHARGE ID |
DATE OF CHARGE CREATION/MODIFICATION |
CHARGE AMOUNT SECURED |
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST NUMBER (SRN) |
|
1 |
10523515 |
11/09/2014 |
6,680,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BLDG., GROUND
FLOOR, 17, R.KAMANI MARG, BA |
C25175183 |
|
2 |
10518493 |
03/09/2014 |
7,711,800,000.00 |
POWER FINANCE CORPORATION LIMITED |
'URJANIDHI', 1, BARAKHAMBA LANE, CONNAUGHT PLACE, NEW DELHI, DELHI - 110001, INDIA |
C19545193 |
|
3 |
10518438 |
28/10/2014 * |
19,750,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING, R KAMANI MARG, BALLARD ESTATE, MMBAI, MAHARASHTRA - 400001, INDIA |
C33731530 |
|
4 |
10509605 |
25/08/2014 * |
7,500,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
C33061912 |
|
5 |
10504564 |
27/05/2014 |
890,000,000.00 |
AXIS BANK LIMITED |
AXIS HOUSE, GROUND FLOOR, WADIA INTERNATIONAL CENTRE, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA |
C07664212 |
|
6 |
10493583 |
10/04/2014 * |
6,500,000,000.00 |
AXIS TRUSTEE SERVICES LIMITED |
AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA |
C06497945 |
|
7 |
10512998 |
10/04/2014 * |
1,250,000,000.00 |
AXIS TRUSTEE SERVICES LIMITED |
AXIS HOUSE, 2ND FLR, BOMBAY DYEING MILLS COMPOUND, PANDURANG BUDHKAR MARG, WORLI, MUMBAI, MAHARASHTRA - 400025, INDIA |
C21404801 |
|
8 |
10504119 |
03/06/2014 * |
2,000,000,000.00 |
PTC INDIA FINANCIAL SERVICES LIMITED |
2ND FLOOR NBCC TOWER 15 BHIKAJI CAMA PLACE, NEW DELHI, DELHI - 110066, INDIA |
C09394198 |
|
9 |
10485237 |
21/03/2014 |
5,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
C00457739 |
|
10 |
10472305 |
27/12/2013 |
2,500,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING, 17, R. KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
B94140068 |
|
11 |
10448288 |
06/09/2013 |
5,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING,
GROUND FLOOR, 17, R KAMANI MARG, |
B84208263 |
|
12 |
10406102 |
01/02/2013 |
2,500,000,000.00 |
BANK OF MAHARASHTRA |
LJ ROAD MAHIM BRANCH, MANGEERISH SOCIETY, MAHIM (W), MUMBAI, MAHARASHTRA - 400016, INDIA |
B68565100 |
|
13 |
10382302 |
28/09/2012 |
7,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BUILDING.,
GROUND FLOOR, 17, R.KAMANI MARG, |
B60385192 |
|
14 |
10369278 |
17/07/2012 |
116,000,000,000.00 |
SBICAP TRUSTEE COMPANY LIMITED |
202, MAKER TOWER, 'E', CUFFE PARADE, COLABA, MUMBAI, MAHARASHTRA - 400005, INDIA |
B45178902 |
|
15 |
10364616 |
14/06/2012 |
3,500,000,000.00 |
CENTRAL BANK OF INDIA |
BALLARD ESTATE, MARSHALL BUILDING, S.V. MARG, MUMBAI, MAHARASHTRA - 400001, INDIA |
B43241892 |
|
16 |
10353278 |
07/05/2012 |
10,000,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BLDG., GROUND FLOOR, 17, R.KAMANI MARG, BALLARD ESTATE, MUMBAI, MAHARASHTRA - 400001, INDIA |
B38744165 |
|
17 |
10351900 |
30/03/2012 |
3,000,000,000.00 |
CENTRAL BANK OF INDIA |
MARSHALL BUILDING, SOORJI VALLABHDAS MARG, MUMBAI, MAHARASHTRA - 400038, INDIA |
B38282950 |
|
18 |
10156864 |
14/05/2009 |
8,500,000,000.00 |
IDBI TRUSTEESHIP SERVICES LIMITED |
ASIAN BLDG., GROUND
FLOOR, 17, R.KAMANI MARG, BA |
A61986493 |
* Date of charge modification
UNSECURED LOANS
|
PARTICULARS |
31.03.2014 (Rs.
In Millions) |
31.03.2013 (Rs.
In Millions) |
|
LONG TERM
BORROWINGS |
|
|
|
External Commercial Borrowings in foreign currency |
8987.300 |
8142.800 |
|
SHORT TERM
BORROWINGS |
|
|
|
Term Loans from banks |
7720.000 |
1500.000 |
|
Buyers' Credit - in foreign currency from banks |
8564.700 |
6128.400 |
|
Commercial Paper |
6000.000 |
12000.000 |
|
Inter Corporate Deposits received |
|
|
|
- from Related Parties |
1750.000 |
470.000 |
|
- from Others |
0.000 |
250.000 |
|
|
|
|
|
Total |
33022.000 |
28491.200 |
FINANCIAL PERFORMANCE
During the year, the Company earned an income of Rs.125810.000 Millions against Rs. 154050.000 Millions in the previous year. The Company earned profit after tax of Rs. 15880.000 Millions against Rs. 20000.000 Millions in the previous year. Shareholders’ equity (Net worth) increased to Rs. 212920.000 Millions from Rs. 202360.000 Millions in the previous year.
BUSINESS OPERATIONS
The Company is in the business of generation, transmission and distribution of electricity. The Company is the leading player in the country in the Engineering, Procurement and Construction (EPC) segment of the power and infrastructure sectors. The Company is also engaged in implementation, operation and maintenance of several projects through special purpose vehicles in various infrastructural areas.
SCHEME OF
AMALGAMATION BETWEEN WRTML AND RCWPL
The Scheme of Amalgamation between two wholly owned subsidiaries of the Company, Reliance Cement Works Private Limited (RCWPL) with Western Region Transmission (Maharashtra) Private Limited (WRTMPL) has been sanctioned by the Hon’ble High Court of Bombay on April 25, 2014, with the Appointed Date April 1, 2013. The Scheme has become effective on WRTMPL filing the Order with the Registrar of Companies, Maharashtra on June 3, 2014, as required under section 394(3) of the Companies Act, 1956. As per the Scheme, the Company would receive 8 per cent non-cumulative non-convertible redeemable preference shares of Rs. 0.200 Million of WRTMPL in lieu of the equity investment of Rs. 0.200 Million in RCWPL held and disclosed under non-current investments as at March 31, 2014.
SCHEME OF
AMALGAMATION ENVISAGING MERGER OF COMPANY’S STEP DOWN SUBSIDIARIES, WESTERN
REGION TRANSMISSION (GUJARAT) PRIVATE LIMITED AND WESTERN REGION TRANSMISSION
(MAHARASHTRA) PRIVATE LIMITED WITH THE COMPANY.
The Scheme of Amalgamation envisaging merger of the Company’s step down subsidiaries, Western Region Transmission (Gujarat) Private Limited and Western Region Transmission (Maharashtra) Private Limited with the Company, with effect from merger Appointed Date of April 1, 2013 (‘Scheme’), was sanctioned by the Hon’ble High Court of Bombay vide Order dated July 15, 2014.The Scheme shall be effective subject to obtaining approval of the Project lenders of WRTGPL and WRTMPL.
MANAGEMENT DISCUSSION
AND ANALYSIS
ECONOMIC OUTLOOK
Macroeconomic Overview- Indian Economic Environment India’s economic growth was marginally higher at 4.7 per cent in 2013-14 as compared to 4.5 per cent in 2012-13. The slowdown in growth was primarily due to weakness in industrial activity aggravated by domestic supply bottlenecks, slowdown in the services sector reflecting weak external demand, high interest rates and low level of capital investments due to drop in overall demand. There was sharp growth witnessed in agriculture sector which has grown by 4.7 per cent in 2013-14 against 1.4 per cent in 2012-13 mainly on account of better monsoons in the second half of 2013. Industry sector, after growing by a tepid 1.0 per cent in 2012-13, decelerated further to 0.4 per cent in 2013-14 mainly due to policy delays in the power sector with reference to fuel shortages, continuing contraction in the output of capital goods and consumer durables investments. The industrial slowdown and weak recovery in advanced economies caused growth in services to remain at 7 per cent. Trade, hotels, transport and communication services, which together account for more than a quarter of Gross Domestic Product, (GDP) was at 3.0 per cent in 2013-14 as industry weakened and consumption dried up. Growth in the large financial services industry was at healthy 12.9 per cent.
With the strengthening and stabilizing of the rupee and marked narrowing of the current account deficit in the second half of the year, global investors moved back into bonds. Policies that have improved reserves and substantially strengthened the external position are reflected in exchange rate developments. The Indian rupee depreciated by about 20 per cent against the US dollar from May 2013 to its low at the end of August 2013, but subsequently appreciated by about 10 per cent in March 2014. Despite difficulties, markets in India were more positive in 2013-14 than the averages achieved by emerging markets either in Asia or globally.
INFLATION AND
MONETARY CONTEXT
Sustainable inflation containment is taking monetary policy priority over promoting economic growth. Monetary policy was tightened in January 2014 despite an easing in inflation at 2013 end. The policy repo rate was increased by 25 basis points to 8.0 percent in order to set the economy firmly on a disinflationary path, taking cumulative rate hikes to 75 bps since September 2013. The Reserve Bank of India (RBI) aims to guide consumer
price inflation to below 8 per cent by January 2015 and gradually to 4 per cent over a three year horizon as part of its process to move toward an inflation-targeting monetary policy framework.
FISCAL AND CURRENT
ACCOUNT BALANCE
India’s public finances remain under pressure due to economic underperformance and pressure on the nation’s fuel and food subsidy bills. The Central Government budget deficit target for the fiscal year 2013-14 is 4.6 per cent of GDP. Imbalance in the external accounts was one of the primary concerns for investors and regulators alike during the year. Current Account Deficit (CAD) to GDP ratio is expected to be 2 per cent in FY 14. Although, non-oil and non-gold imports have moderated in the last few months and decline in the global prices of gold and oil provided temporary relief, structural impediments still remain. The Government of India (GOI) has already taken a range of initiatives to attract capital flows into the country to finance the large CAD, including liberalization of Foreign Direct Investment (FDI) limit in various sectors, policy reforms to attract inflows from foreign investors, relaxation of Foreign Institutional Investors (FII) debt limit, sharp cut in withholding tax to 5 per cent from 20 per cent on investments in domestic debt, etc.
OVERALL REVIEW
Reliance Infrastructure Limited is India’s leading private sector infrastructure company, with aggregate group revenues of about Rs.400400.000 Millions (US$ 6.7 billion) and gross fixed assets of Rs.436000.000 Millions (US$7.3 billion). Reliance Infrastructure is ranked amongst India’s leading private companies on all major financial parameters, including assets, sales, profits and market capitalization. The highlights of the performance of the Company during 2013-14 are furnished hereunder:
• Total Income of Rs.125810.000 Millions (US$ 2.1 billion)
• Net Profit before exceptional items of Rs.15880.000 Millions (US$ 265 million)
• Cash Earnings per Share before exceptional items of Rs.71 (US$ 1.2) for the year
• Earnings per Share (EPS) before exceptional items of Rs.60 (US$1.0)
In order to optimise shareholder value, the Company continues to focus on in-house opportunities as well as selective large external projects for its Engineering, Procurement and Construction (EPC) and Contracts Division. The EPC and Contracts Division (the EPC Division) order book position stood at Rs.66150.000 Millions (US$ 1.1 billion) as on March 31, 2014.
FISCAL REVIEW
Reliance Infrastructure’s total income for the year ended March 31, 2014 was Rs.125810.000 Millions (US$ 2.1 billion) as compared to Rs.154050.000 Millions (US$ 2.8 billion) in the previous financial year.
The total income includes earnings from sale of electrical energy of Rs.66690.000 Millions as compared to Rs.63430.000 Millions recorded last year. The sale of electrical energy includes income of Rs.1230.000 Millions (US$ 21 million) and Rs.3230.000 Millions (US$ 54 million) from the Samalkot Power Station and the Goa Power Station, respectively.
The income of the EPC business was Rs.46870.000 Millions (US$ 781 million), as compared to Rs.79790.000 Millions in the previous year. During the year, interest expenditure increased to Rs.9960.000 Millions (US$ 166 million) as compared to Rs.8790.000 Millions in the previous year. During the year 2012-13, the Company, in order to reflect the true value of its prime assets, revalued the free hold land, buildings and plant and machinery of the power stations located at Samalkot and Goa and windfarm at Chitradurga with effect from April 1, 2012 by Rs.4960.000 Millions (US$ 83 million). On account of such revaluation, the depreciation on such revalued assets was higher by Rs.290.000 Millions (US$ 5 million) and the same was adjusted by withdrawing equivalent amount from the revaluation reserve, which was credited to the Statement of Profit and Loss Account. The generation plants – Samalkot power station, Goa power station and the wind farm in Karnataka are all eligible for tax holiday under Section 80IA of the Income-tax Act, 1961 for a total of 10 consecutive years out of 15 years, from commencement of commercial operation.
The corporate tax liability for the year was Rs.2090.000 Millions (US$ 35 million) as compared to Rs.1440.000 Millions in the previous year.
Cash profit before exceptional items for the year was Rs.18580.000 Millions (US$ 310 million) as compared to Rs.20780.000 Millions in the previous year.
Net profit before exceptional items for the year was Rs.15880.000 Millions (US$ 265 million) as compared to Rs.15810.000 Millions in the previous year.
At its meeting held on May 19, 2014, the Board recommended payment of dividend of Rs.7.50 per share, aggregating to a payout of Rs.1970.000 Millions (US$ 33 million) (excluding dividend distribution tax) for the year ended March 31, 2014.
The capital expenditure during the year was Rs.4230.000 Millions (US$ 71 million), incurred primarily on modernizing and strengthening of the transmission and distribution network.
Total gross fixed assets increased during the year to Rs.116020.000 Millions (US$ 1.94 billion).
With a networth of about Rs.212920.000 Millions (US$ 3.6 billion), Reliance Infrastructure ranks among the top performing Indian private sector companies in the country.
RESOURCES AND
LIQUIDITY
The Company continues to maintain its conservative financial profile, as reflected in its credit ratings in the current business environment.
The Company’s gross debt as at the end of the financial year stood at Rs.148420.000 Millions (US$ 2.5 billion). The average final maturity of the Company’s long-term debt is about 3.4 years. The average annual interest cost is about 10.88 per cent.
The Company funds its long-term and project related financing requirements from a combination of internal accruals and external sources. The working capital requirements are met through commercial rupee credit lines provided by a consortium of Indian and foreign banks.
The Company also undertakes liability management transactions and enters into other structured derivative arrangements such as interest rate and currency swaps. This is practised on an ongoing basis to reduce overall cost of debt and diversify liability mix.
INFRASTRUCTURE
INDUSTRY STRUCTURE AND DEVELOPMENT
The rapid growth of the Indian economy in recent years has placed increasing stress on physical infrastructure i.e. electricity, railways, roads, ports, irrigation, water supply and sanitation, all of which already suffer from deficit in terms of capacities as well as efficiencies. The pattern of inclusive growth averaging at 9 per cent per year as conceived under the 12th Plan (2012-17) can be achieved only if this infrastructure deficit is overcome and adequate investment takes place to support higher growth and improved quality of life for both urban and rural communities. Based on projections provided in the Mid-Term Appraisal of the 12th Plan, in order to attain a 9 per cent real GDP growth rate, infrastructure investment should be on an average of almost 10 per cent of GDP during the 12th Plan. Therefore, the Government of India (the Government) has set a massive target for doubling investment in infrastructure from Rs.21 trillion in 11th Plan to Rs.56 trillion during the 12th Plan, out of which 50 per cent is expected from the private sector.
ROADS
India has the second largest road network in the world aggregating 4.7 million kms of road which constitutes 77 per cent passenger traffic and 62 per cent freight traffic in the country. However, road sector in India has been in the grip of slowdown in the last two years due to execution delays arising out of delay in obtaining environmental and regulatory clearances and land acquisition. This has resulted in project cost escalations and highly leveraged balance sheet of developers. The inordinate delay by National Highways Authority of India Limited (NHAI) in resolving the impediments to project execution has further aggravated the situation. In 2013-14, there has been muted traffic growth across the country due to overall slowdown in the macro-economy and only 1,646 kms of road was awarded mostly on EPC basis mainly due to land acquisition issues. However NHAI is now better placed especially with respect to land acquisition problems and is planning to award 5,600 kms of road projects worth Rs.450 billion in FY2014-15 especially in the state of Gujarat, Madhya Pradesh, Rajasthan and Uttar Pradesh. The Government has proposed to setup a regulatory authority to address financial stress, construction risks and contract management in the sector and has envisaged total investment of Rs.9,200 billion in the 12th Plan out of which 33 per cent is expected to be financed by the private sector.
RAIL TRANSPORT
India has the world’s fourth largest rail network and the second largest network under single management. The Government has planned total investment of Rs.5,200 billion in the 12th Plan as against Rs.2,320 billion in 11th Plan excluding Metro rails, out of which Rs.1000 billion (i.e 20 per cent) is expected to be financed by the private sector and balance funding through internal generation of funds. According to the working sector group report for 12th Plan, the internal requirement of funds will be met through 12 per cent Compounded Annual Growth Rate (CAGR) in passenger receipts and 9.9 per cent increase in freight receipts. The Government has also laid special emphasis on development of Mass Rapid Transit System (MRTS) like Metro Rails and Mono Rails and has planned that any city with population of more than 2 million to have a metro/mono rail. The Government has identified 16 new cities like Ahmedabad, Chandigarh, Hyderabad, Gurgaon, Jaipur, Kochi, Patna, etc. with metro rail network of more than 1,500 kms in next 10 years. The total investment in the metro rail sector is envisaged to be Rs.1,250 billion in 12th Plan against Rs.420 billion in 11th Plan, with significant investment of about 42 per cent coming from the private sector.
CEMENT
India is the second largest cement producer in the world with nearly 364 million tones of installed cement production capacity. Cement is a cyclical commodity with a high correlation with GDP. The per capita consumption in India is very low i.e. 192 kg against world average of 365 kg and this sector has grown at CAGR of 8 per cent in the last decade. The housing sector is the biggest demand driver of cement, followed by infrastructure sector, commercial construction and industrial construction. The sector is mainly dominated by private players with nearly 98 per cent under the private sector. Cement, being a bulk commodity, is a freight intensive industry and transporting it over long distances can prove to be uneconomical. This has resulted in cement being largely a regional play with the industry divided into five main regions viz. north, south, west, east and the central region. The Southern region of India has the highest installed capacity, accounting for about one-third of the country's total installed cement capacity. Given the high potential for growth, quite a few foreign transnational companies have ventured into the Indian markets. While companies like Lafarge, Heidelberg and
Italicementi have already made a couple of acquisitions, Holcim has increased its stake in domestic companies, Ambuja Cements and ACC, to over 50 per cent to gain controlling interest.
POWER
India has perennially remained a power deficit country. Huge potential exists for power generation, transmission and distribution companies as the country’s per capita electricity consumption of 917 kwh is much lower than the world average of 2,933 kwh. However, the power sector has remained under pressure due to issues like, fuel (coal and gas availability), fuel cost escalations due to import of coal and gas, poor financial health of State Electricity Boards (SEBs), land and environmental issues, etc. which have adversely affected the performance and financial position of the companies in the private sector.
However recognizing the impact, the Government and regulatory agencies have taken many steps to resolve the issues hampering the growth of the sector. These steps include financial restructuring of many SEBs to improve their financial health, cost pass through allowed for some power plants for increased fuel cost, regular electricity tariff hikes allowed by electricity regulatory commissions to meet the escalating power purchase cost for discoms, etc. which are likely to revive the momentum and improve the capial expenditure cycle of utility players in the sector. G ven the power shortages and increasing demand for electricity, the total investment in the sector is expected to increase to Rs.15,000 billion in 12th Plan from Rs.8,045 billion in 11th Plan, out of which 48 per cent is expected from the private sector.
GENERATION
India has the fifth largest generating capacity in the world with total installed capacity of 243 GW as on March 31, 2014, of which the contribution of the State Government is 38 per cent, the Central Government 28 per cent and the private sector contribution 34 per cent. To tackle the threat of power deficit and maintain country’s high economic growth, the Government has undertaken massive power generation capacity addition plans and expects to add 88 GW of generation capacity in the 12th Plan, of which more than 50 per cent is expected from the private sector. The estimated fund requirement for generation, including renewable is estimated to be Rs.6400 billion during 12th Plan.
TRANSMISSION
Massive capacity addition in generation sector will be of little use without robust transmission and distribution network in the country. India has historically underinvested in the transmission and distribution sector substantially falling short, vis-a-vis corresponding growth in generation sector. To make the transmission network more robust and supplement the addition of generation capacity, GOI has planned Rs.1,800 billion investments in 12th Plan and Rs.2,000 billion investments in 13th Plan, respectively. In order to successfully achieve the planned targets, the Governments, both at the Centre and States, need to attach top priority to resolve the right of way issues coming in the way of speedy execution of projects.
DISTRIBUTION
Power distribution is the final and the most crucial link in the electricity supply chain and unfortunately, the weakest link in the power sector with negligible participation from the private sector (7 per cent). Over the past almost 2 to 3 years, investments by SEBs have been particularly very low due to poor financial situation, increasing gap between revenue and costs for political reasons, rising Aggregate Technical and Commercial (AT&C) losses and other inefficiencies. The Government has taken stringent measures to bring down the losses. The total accumulated losses by the SEBs was Rs. 2.4 trillion till 2011-12. The Government is contemplating several measures including debt restructuring package for SEBs financed through short term loans from banks and financial institutions (Rs.1.9 trillion) and State Government loans (Rs. 0.5 trillion). SEBs are also focusing on lowering Transmission and Distribution (T&D) losses through a mix of network upgradation and appointing private parties as franchises to undertake distribution operations. The Government plans to increase the spending in the distribution segment under the 12th plan to the tune of Rs. 3,300 billion.
RELIANCE ENERGY –
ENERGY DISTRIBUTION DIVISION
MUMBAI DISTRIBUTION
BUSINESS
“Reliance Energy”, the Energy Distribution Division of the Company, has been in the field of electricity distribution for over 84 years and has achieved the distinction of consistently operating its distribution network at 99.98 per cent reliability.
AWARDS AND
RECOGNITIONS
RInfra has been continually striving for excellence in all the areas of business in which it operates and the untiring efforts of their employees have been recognized and appreciated with numerous awards in various business segments as highlighted below:
Dahanu Power Station
• Srishti Good Green Governance Award for 2012
• Power Line Award – Runner up in the category of ‘Best Performing Thermal Power Station’
• 8th State Level Energy Conservation Awards by Maharashtra Energy Development Agency
• 14th National Award for Excellence in Energy Management 2013 by Confederation of Indian Industry (CII)
• National Award for Meritorious performance in Power Sector - "Silver Shield for Performance in Thermal Power
Station - 2011" – by the Ministry of Power
• National Award for Meritorious performance in Power Sector - "Bronze Shield for Performance in Thermal Power
Station - 2012"– by the Ministry of Power
• National Award for Meritorious performance in Power Sector - "Silver Shield for Environment Management Award Scheme for Coal based Thermal Power Stations - 2012"– by the Ministry of Power
• DTPS was featured as the best performing power plant in the country in the magazine “Power and Energy Solutions”
Samalkot Power
Station
• Greentech Environment Excellence Award 2013 in Gold category.
• Greentech Safety Excellence Award 2013 in Gold category.
• Received the appreciation Certificate for the best safety practices from National Safety Council, Mumbai.
Goa Power
Station
• Honoured with “12th Annual Greentech Safety Award 2013” in Gold category in Power – Gas based sector from
Greentech Foundation.
Delhi Discoms – BSES
Rajdhani Power Limited (BRPL)
• Greentech Safety Award 2013 in the Gold Category.
• Two Achievement Awards for supervisors category by the Construction Industry Development Council
• IUKAN Best Practice Award from the Indian Utility Knowledge and Networking (IUKAN) for Operations Maintenance and Asset Management
• Two Par Excellence Awards and three Excellence Awards for Quality concepts by Quality Circle Forum of India
• Demand Side Management Award by the Indian Chamber of Commerce
• Most Innovative Discom Award by the Indian Chamber of Commerce
• Most Profitable Private Discom Award by the publication, Power Today
• Special Award for Service Excellence in Power Distribution by Prime Time Research Limited
• Runner up Award for Most Improved Power Distribution Company by the Independent Power Producers Association of India (IPPAI)
• Times Business Award for Business Excellence
• Quality Circle Forum of India has given seven Gold Awards and one Silver Award
• Quality concepts for NCR
• Winners (BRPL and BYPL) of the Think Media National CSR Awards for Best Practices 2014
Delhi Discoms – BSES
Yamuna Power Limited (BYPL)
• International Safety Award 2014 - British Safety Council, UK
• Achievement Award for supervisor category by the Construction Industry Development Council
• Asian Oil and Gas Award for Best Safety Practices
• Greentech Environmental Award by Greentech Foundation
• Demand Side Management Award by the Indian Chamber of Commerce
• Most Improved Power Distribution Company (DISCOM) by Independent Power Producers Association of India (IPPAI)
• Company of the Year – utility by Stevie – International Business Award, USA
• Health, Safety and Environmental Award by Stevie – International Business Award,
• Edison Award – Finalist by USA Edison Electric Institute, USA
• Safety Innovation Award by Institute of Engineers, India Mumbai Transmission
• Golden Peacock Award 2013 for “Occupational Health and Safety (OHSAS)”
• “Arogya World India Award” in Gold category
Roads
• Won accolades for “Outstanding Contribution in Roads and Highways (EPC category) during the 4th EPC World Awards 2013 conducted by the EPC World Media Group.
• Hosur Krishnagiri Toll Road Project has been awarded Safety Awards 2013 (Construction Sector) "Suraksha Puraskar" by the National Safety Council of India (NSCI).
• Kandla Mundra Toll Road Project has been awarded the International Safety Award by British Safety Council – UK.
Human Resources
• Golden Peacock HR Excellence Award 2013
• Received "Asian Learning and Development Leadership Award 2013" in categories 'Best-in-Class Technologies', 'Best Learning Programme', ‘Best Services' and 'Best Practices In Training'.
• Received “Asia’s Training and Development Excellence Award 2013” in the category of “Best Customer Services Program”
The EPC Division
• Project Management Institute (PMI) has awarded runnerup “Project of the Year” in large category
• Greentech Foundation conferred ‘Safety Award’ in Gold category in Thermal Power construction for various
initiatives on safety.
STATEMENT
OF STATEMENT OF FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED SEPTEMBER
30, 2014
(RS. IN MILLIONS)
|
SR. NO. |
PARTICULARS |
Quarter Ended |
Half Year Ended |
|||
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
||||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||||
|
1 |
Income from
Operations |
|
|
|
||
|
|
a. Net Sales/ Income from Power Business |
18978.400 |
19589.200 |
38567.600 |
||
|
|
b. Income from EPC and Contracts Business |
552.100 |
5653.800 |
11176.900 |
||
|
|
c. Other Operating Income |
169.100 |
116.000 |
285.100 |
||
|
|
Total Income from Operations |
24670.600 |
25359.000 |
50029.600 |
||
|
2 |
Expenses |
|
|
|
||
|
|
a. Cost of Power Purchased |
8326.600 |
10147.400 |
18474.000 |
||
|
|
b. Cost of Fuel |
2878.100 |
3078.500 |
5956.600 |
||
|
|
c. Construction Materials Consumed and Sub-contracting Charges |
4214.100 |
4040.400 |
8254.500 |
||
|
|
d. Employee Benefits Expenses |
2442.500 |
2216.800 |
4659.300 |
||
|
|
e. Depreciation and amortisation Expense |
1203.900 |
897.500 |
2101.400 |
||
|
|
f. Other Expenses |
1998.800 |
1570.600 |
3569.400 |
||
|
|
Total Expenses |
21064.000 |
21951.200 |
43015.200 |
||
|
3 |
Profit from Operations before Other Income (net), Finance Costs & Exceptional Items |
3606.600 |
3407.800 |
7014.400 |
||
|
4 |
Other Income (net) |
4012.500 |
3955.000 |
7967.500 |
||
|
5 |
Profit from ordinary activities Before Finance Costs & Exceptional Items |
7619.100 |
7362.800 |
14981.900 |
||
|
6 |
Finance Costs |
3539.600 |
3343.100 |
6882.700 |
||
|
7 |
Profit from ordinary activities before exceptional items |
4079.500 |
4019.700 |
8099.200 |
||
|
8 |
Exceptional Items |
-- |
-- |
-- |
||
|
9 |
Profit from ordinary activities before Tax |
4079.500 |
4019.700 |
8099.200 |
||
|
10 |
Tax Expense (Including Deffered tax and tax of for earlier years) |
519.000 |
805.000 |
1324.000 |
||
|
11 |
Profit from ordinary activities after tax |
3560.500 |
3214.700 |
6775.200 |
||
|
12 |
Extraordinary Items |
-- |
-- |
-- |
||
|
13 |
Profit for the period |
3560.500 |
3214.700 |
6775.200 |
||
|
14 |
Paid up Equity Share Capital (Face Value of Rs.10/- Each) |
2625.800 |
2625.800 |
2625.800 |
||
|
15 |
Reserves including Statutory Reserves excluding Revaluation Reserves |
|
|
|
||
|
16 |
Earnings Per Share (* not annualised) |
|
|
|
||
|
|
a. Basic |
13.54 |
12.22 |
25.76 |
||
|
|
b. Diluted |
13.54 |
12.22 |
25.76 |
||
|
|
||||||
|
A |
PARTICULARS OF
SHAREHOLDING |
|
|
|
|
|
1 |
Public shareholding |
|
|
|
|
|
|
a. Number of shares |
135362964 |
135362964 |
135362964 |
|
|
|
b. Percentage of shareholding |
51.47 |
51.47 |
51.47 |
|
|
2 |
Promoters and promoter group shareholding |
|
|
|
|
|
|
a. |
Pledged/Encumbered |
|
|
|
|
|
Number of shares |
-- |
-- |
-- |
|
|
|
|
Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
-- |
-- |
-- |
|
|
|
Percentage of shares (as a % of the total share capital of the Company) |
-- |
-- |
-- |
|
|
b. |
Non-encumbered |
|
|
|
|
|
Number of shares |
127627036 |
127627036 |
127627036 |
|
|
|
|
Percentage of shares (as a % of the total shareholding of promoter and promoter group) |
100.00 |
100.00 |
100.00 |
|
|
|
Percentage of shares (as a % of the total share capital of the Company) |
48.53 |
48.53 |
48.53 |
|
PARTICULARS |
Quarter ended 30.09.2014 |
|
B INVESTOR COMPLAINTS (Nos.) |
|
|
Pending at the beginning of the quarter |
Nil |
|
Received during the quarter |
10 |
|
Disposed of during the quarter |
10 |
|
Remaining unresolved at the end of the quarter |
Nil |
SEGMENT-WISE REVENUE, RESULTS AND CAPITAL EMPLOYED
(RS. IN MILLIONS)
|
|
PARTICULARS |
Quarter Ended |
Half Year Ended |
|
|
30.09.2014 |
30.06.2014 |
30.09.2014 |
||
|
(Unaudited) |
(Unaudited) |
(Unaudited) |
||
|
1 |
Segment Revenue |
|
|
|
|
|
Power Business |
19145.400 |
19702.900 |
38848.300 |
|
|
EPC and Contracts Business |
5525.200 |
5656.100 |
11181.300 |
|
|
Less: Inter Segment Revenue |
24670.600 |
25359.000 |
50029.600 |
|
|
Net Sales/ Income from Operations |
|
|
|
|
|
|
|
|
|
|
2. |
Segment Results before exceptional items |
|
|
|
|
|
Profit before tax and interest from each segment |
|
|
|
|
|
Power Business |
3588.000 |
2952.100 |
6540.100 |
|
|
EPC and Contracts Business |
584.800 |
899.100 |
1483.900 |
|
|
Total |
4172.800 |
3851.200 |
8024.000 |
|
|
Finance Costs |
(3539.600) |
(3343.100) |
(6882.700) |
|
|
Interest Income |
2781.200 |
2764.300 |
5545.500 |
|
|
Other Unallocable Income net of expenditure |
665.100 |
747.300 |
1412.400 |
|
|
Profit before Tax |
4079.500 |
4019.700 |
8099.200 |
|
|
|
|
|
|
|
3. |
Capital Employed |
|
|
|
|
|
Power Business |
76132.800 |
78547.900 |
76132.800 |
|
|
EPC and Contracts Business |
6965.900 |
5688.700 |
6965.900 |
|
|
Unallocated Assets (Net) |
136413.900 |
131694.200 |
136413.900 |
|
|
Total |
219512.600 |
215930.800 |
219512.600 |
STANDALONE STATEMENT OF ASSETS AND LIABILITIES
(RS. IN MILLIONS)
|
|
Particulars |
30.09.2014 |
|
A |
EQUITY AND
LIABILITIES |
|
|
1 |
Shareholders’
funds |
|
|
|
(a) Share capital |
2625.800 |
|
|
(b) Reserves and surplus |
216886.800 |
|
|
Sub-total
- Shareholders' funds |
219512.600 |
|
|
|
|
|
2 |
Non-current liabilities |
|
|
|
(a) Long-term borrowings |
75800.900 |
|
|
(b) Deferred tax liabilities (Net) |
4395.200 |
|
|
(c) Other long term
liabilities |
27953.700 |
|
|
(d) Long-term
provisions |
3800.000 |
|
|
Sub-total
- Non-current liabilities |
111949.800 |
|
|
|
|
|
3 |
Current
liabilities |
|
|
|
(a) Short-term borrowings |
70810.000 |
|
|
(b) Trade payables |
36447.500 |
|
|
(c) Other current liabilities |
58270.300 |
|
|
(d) Short-term provision |
4707.800 |
|
|
Sub-total - Current
liabilities |
170235.600 |
|
|
TOTAL - EQUITY AND
LIABILITIES |
501698.000 |
|
|
|
|
|
B |
ASSETS |
|
|
1 |
Non-current
assets |
|
|
|
(a) Fixed assets |
64777.200 |
|
|
(b) Non-current investments |
162694.000 |
|
|
(c) Long-term loans and advances |
7695.000 |
|
|
(d) Other non-current assets |
36014.600 |
|
|
Sub-total
- Non-current assets |
271180.800 |
|
2 |
Current assets |
|
|
|
(a) Current Investments |
31949.500 |
|
|
(b) Inventories |
2383.700 |
|
|
(c) Trade receivables |
50141.900 |
|
|
(d) Cash and cash equivalents |
3719.600 |
|
|
(e) Short-term loans and advances |
108954.800 |
|
|
(f) Other current assets |
33367.700 |
|
|
Sub-total
- Current assets |
230517.200 |
|
|
TOTAL
- ASSETS |
501698.000 |
NOTE
1. a) The Company has opted for amortising the foreign exchange fluctuation gain / (loss) on the long term foreign currency monetary items over the balance life of such items. Accordingly, the Company has carried forward unamortised portion of net gain of Rs. 252.64 crore to “Foreign Currency Monetary Items Translation Difference Account” as on September 30, 2014.
b) Pursuant to the option exercised under the Scheme of Amalgamation of
Reliance Infraprojects Limited with the Company sanctioned by the Hon’ble High
Court of Judicature at Bombay, net foreign exchange loss of Rs. 419.700
Millions and Rs. 419.100 Millions (net off of foreign exchange loss of Rs.
1105.000 Millions and Rs. 1617.800 Millions attributable to finance cost) for
the quarter and half year ended September 30, 2014 respectively has been
debited to Statement of Profit and Loss and an equivalent amount has been
withdrawn from General Reserve. Had the Scheme not prescribed this treatment,
the profit before tax for the quarter and half year ended September 30, 2014
would have been lower by Rs. 419.700 Millions and Rs. 419.100 Millions
respectively. The treatment prescribed under the Scheme overrides the relevant
provision of Accounting Standard 5 (AS-5) 'Net Profit or Loss for the Period,
Prior Period Items and Changes in Accounting Policies’, which has been referred
to by the Auditors in their report.
2. Delhi Airport Metro Express Private Limited (DAMEPL), SPV of the Company, had
terminated the Concession Agreement with Delhi Metro Rail Corporation (DMRC)
for the Delhi Airport Metro Line, on account of Material Breach and Event of
Default under the provisions of the Concession Agreement by DMRC and the
operations were taken over by DMRC with effect from July 01,2013.
As per the terms of the Concession Agreement, DMRC is now liable to pay DAMEPL
a Termination Payment, which is estimated at Rs. 28230.000 Millions, as the
termination has arisen owing to DMRC’s Event of Default. The matter has been
referred to arbitration and the process for the same has been continuing.
Pending final outcome of the arbitration, the Company continues to fund the
statutory and other obligations of DAMEPL post take over by DMRC and
accordingly has funded Rs. 633.200 Millions and Rs. 1226.700 Millions in the
current quarter and half year ended September 30, 2014 respectively. As legally
advised, the claims for the Termination Payment are considered fully
enforceable and the Company is confident of recovering its entire investment of
Rs. 15728.800 Millions in DAMEPL as at September 30, 2014. This matter has been
referred to by the Auditors in their report.
3. The Board of directors, vide resolution dated November 11, 2013, had
approved the Scheme of Amalgamation of two wholly owned subsidiaries of the
company viz. Western Region Transmission (Maharashtra) Private Limited and
Western Region Transmission (Gujarat) Private Limited with the Company. The
Hon’ble High Court at Mumbai vide its order dated July 15, 2014 has sanctioned
the said Scheme subject to obtaining the requisite approvals. Pending the
receipt of requisite approvals, no effect of the Scheme has been given in the
accounts.
4. Pursuant to the option given in notification dated August 29, 2014 issued by
Ministry of Corporate Affairs (MCA) relating to assets whose life has expired
as on March 31, 2014, the WDV of those assets amounting to Rs. 47.500 Millions,
which was charged off to General Reserves during the previous quarter is now
charged off to Statement of Profit and Loss.
5. Ratios have been computed as under:
- Debt Service Coverage Ratio = Earnings before Interest and Tax / (Interest on
Long Term Debt + Principal Repayment of Long Term Debt due within one year)
- Interest Service Coverage Ratio = Earnings before Interest and Tax / Interest
on Long Term Debt
6. After review by the Audit Committee, the Board of Directors of the Company
has approved the Standalone financial results at their meeting held on November
12, 2014. The statutory auditors have carried out a limited review of the
financial results for the quarter ended September 30,2014 of the Company, as
per listing agreement entered into with the stock exchanges in India.
7. Figures of the previous period / year have been regrouped / reclassified
wherever considered necessary.
CONTINGENT
LIABILITIES (AS ON 31.03.2014)
i) Counter guarantees given to banks against guarantees issued by the banks on behalf of the jointly controlled operations aggregate to Rs. 7.900 Millions (Rs. 5.500 Millions) and for subsidiaries and associates Rs. 3689.100 Millions (Rs. 3689.100 Millions). ii) Corporate Guarantees given to banks and other parties aggregating Rs. 19502.800 Millions (Rs. 22072.600 Millions) in respect of subsidiaries /associates/ other body corporates.
iii) Claims against the Company not acknowledged as debts and under litigation aggregate to Rs. 11094.500 Millions (Rs. 15196.500 Millions). These include claim from suppliers aggregating to Rs. 2736.300 Millions (Rs. 2485.800 Millions), income tax claims Rs. 4289.000 Millions (Rs. 8476.800 Millions), claims from sales tax authorities aggregating to Rs. 3737.300 Millions (Rs. 3956.800 Millions) out of which claims of Rs. 1223.300 Millions (Rs. 1223.300 Millions), if materialised, will be recovered from the customers and other claims Rs. 331.900 Millions (Rs. 277.100 Millions).
iv) The Company’s application for compounding in respect of its ECB of USD 360 million has been deemed by the Reserve Bank of India (RBI) as never to have been made subsequent to the withdrawal of the compounding application. Accordingly, there is no liability in respect of the compounding fee of Rs. 1246.800 Millions earlier specified by RBI. Subsequent to the withdrawal of the compounding application, the matter has been referred to the Enforcement Directorate where the same is still pending.
FIXED ASSETS
Tangible Assets
· Freehold Land
· Leasehold Land
· Buildings
· Plant and Equipment
· Distribution Systems
· Railway Siding
· Furniture and Fixtures
· Vehicles
· Office Equipment
· Computers
· Electrical Installations
Intangible Assets
· Computer Software
· Toll Collection Rights
· Container Trains Licence Fee
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 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 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. 63.07 |
|
|
1 |
Rs. 98.73 |
|
Euro |
1 |
Rs. 77.46 |
INFORMATION DETAILS
|
Information Gathered
by : |
NYA |
|
|
|
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
BVA |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
YES |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
70 |
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.