MIRA INFORM REPORT
|
Report Date : |
08.05.2014 |
IDENTIFICATION DETAILS
|
Name : |
RELIANCE POWER LIMITED |
|
|
|
|
Registered Office
: |
H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi
Mumbai – 400710, Maharashtra |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2013 |
|
|
|
|
Date of
Incorporation : |
17.01.1995 |
|
|
|
|
Com. Reg. No.: |
11-084687 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 28051.300 Millions |
|
|
|
|
CIN No.: [Company Identification
No.] |
L40101MH1995PLC084687 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMR07195G |
|
|
|
|
Legal Form : |
A Public Limited Liability Company. The Company’s Shares are Listed on
the Stock Exchanges. |
|
|
|
|
Line of Business
: |
Generation of Power on
Commencement of Project. |
|
|
|
|
No. of Employees
: |
Information declined by Management. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (54) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 673100000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a part of Reliance Anil Dhirubhai Ambani group a well-known
industrial house in the country. It is an established company having fine track record. Fundamentals of the company is decent. Financial position of the
company is strong and healthy. Trade relation reported to be fair. Business is active. Payment terms
are reported to be regular and as per commitment. The company can be considered normal for business dealing 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 – March 31, 2014
|
Country Name |
Previous Rating (31.12.2013) |
Current Rating (31.03.2014) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
INDIAN ECONOMIC OVERVIEW
US investment bank
Goldman Sachs has upgraded its outlook on Indian markets as it expects positive
impact of the election cycle.
India’s economy may
grow 4.7 % in the current financial year, lower than the official estimate of
4.9 %, Fitch Rating said. The global rating agency expects the economy to pick
up in the next two financial years.
Global ratings
agency Standard & Poor said increasing focus by India Inc on lowering debt
is likely to improve their credit profiles.
Singapore (1.1
million Indian tourists in 2012), Thailand (one million), the United Arab
Emirates ().98 million) and Malaysia ().82 million) emerged as the preferred
holidays hotspots for Indians. The total figure is expected to increase to 1.93
million by 2017, according to the latest Eurmonitor international report.
There is a $29.34 bn
outward foreign direct investment by domestic companies between April and
January of 2013/14 which has seen some signs of recovery according to a Care
Ratings report.
There are 264 number
of new companies being set up every day on average during 2014. Most of them
are registered in Mumbai. India had 1.38 million registered companies at the
end of January, 2014.
Twitter like
messaging service Weibo Corporation has filed to raise $ 500 million via a US
initial public offering. Alibaba, which owns a stake in Weibo is expected to
raise about $ 15 billion New York this year in the highest profile Internet IPO
since Facebook’s in 2012.
Bharti Airtel has
raised Rs.2,453.2 crore (350 million Swiss Francs) by selling six-year bonds at
a coupon rate of three per cent and maturing in 2020. This is the largest ever
bond offering by an Indian company in Swiss Francs. Bharat Petroleum
Corporation raised 175 million Swiss Francs by selling five year bonds at 2.98
% coupon rate in February.
Indian Oil
Corporation plans to invest Rs 7650 crore in setting up a petrochemical complex
at its almost complete Paradip refinery in Odhisha in three to four years. The
company board is set to consider the setting up of a 700000 tonne per annum
polypropylene plant at an estimated cost at Rs.3150 crore.
Global chief information
officers at gathering in Bangalore in April to meet Indian startups at an event
called Tech50 Watchout for Little Eye Labs-Facebook type deals in the making.
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Non fund based limits = A- |
|
Rating Explanation |
Adequate degree of safety and low credit
risk. |
|
Date |
February 2014 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short term debt programme = A1 |
|
Rating Explanation |
Very strong degree of safety and lowest
credit risk |
|
Date |
February 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
31-03-2012.
INFORMATION DENIED
Management Non Co- operative
Contact No.: 91-22-22842384
LOCATIONS
|
Registered Office : |
H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai –
400710, Maharashtra, India |
|
Tel. No.: |
91-22-30386010/30373333 |
|
Fax No.: |
91-22-30376633/30385169 |
|
E-Mail : |
reliancepower.ipo@relianceada.com |
|
Website : |
|
|
|
|
|
Corporate Office : |
Maker Chamber IV, 3rd Floor, 222 Nariman Point, Mumbai – 400021,
Maharashtra, India |
|
Tel. No.: |
91-22-22842384/22842929 |
|
Fax No.: |
91-22-22826076 |
|
|
|
|
Investor Service Centre : |
G Block, Ground Floor, Dhirubgai Ambani Kowledge City, Navi Mumbai 400
710, Maharashtra, India |
|
Tel. No.: |
91-22-30385565 |
|
Fax No.: |
91-22-30385169 |
DIRECTORS
As on 31.03.2013
|
Name : |
Mr. Anil Dhirubhai Ambani |
|
Designation : |
Chairman |
|
|
|
|
Name : |
Mr. J. L. Bajaj |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Yogendra Narain |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. V. K. Chaturvedi |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Ramaswami Kalidas |
|
Designation : |
Company Secretary and Manager |
|
Name : |
Mr. J. P. Chalasani |
|
Designation : |
Chief Executive Officer |
SHAREHOLDING PATTERN
As on 31.03.2014
|
Category of Shareholder |
Total No. of Shares |
Total
Shareholding as a % of Total No. of Shares |
|
(A) Shareholding
of Promoter and Promoter Group |
||
|
|
|
|
|
|
2212425 |
0.08 |
|
|
2101182579 |
74.92 |
|
|
2103395004 |
75.00 |
|
|
|
|
|
Total
shareholding of Promoter and Promoter Group (A) |
2103395004 |
75.00 |
|
(B) Public
Shareholding |
||
|
|
|
|
|
|
14099020 |
0.50 |
|
|
15808787 |
0.56 |
|
|
385600 |
0.01 |
|
|
117706455 |
4.20 |
|
|
180700800 |
6.44 |
|
|
328700662 |
11.72 |
|
|
|
|
|
|
47994639 |
1.71 |
|
|
|
|
|
|
291874095 |
10.41 |
|
|
24944128 |
0.89 |
|
|
7632713 |
0.27 |
|
|
7632713 |
0.27 |
|
|
372445575 |
13.28 |
|
Total Public
shareholding (B) |
701146237 |
25.00 |
|
Total (A)+(B) |
2804541241 |
100.00 |
|
(C) Shares held by
Custodians and against which Depository Receipts have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
585225 |
0.00 |
|
|
585225 |
0.00 |
|
Total
(A)+(B)+(C) |
2805126466 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
Generation of Power on
Commencement of Project. |
GENERAL INFORMATION
|
No. of Employees : |
Information declined by Management |
|
|
|
|
Bankers : |
|
|
Banking
Relations : |
-- |
|
|
|
|
Auditors : |
|
|
Name 1: |
Chaturvedi and Shah Chartered Accountants |
|
|
|
|
Name 2: |
Price Waterhouse Chartered Accountants |
|
|
|
|
Subsidiaries (Direct and step-down subsidiaries) : |
|
|
|
|
|
Major investing parties/promoters having significant influence on the
Company directly or indirectly : |
|
|
|
|
|
Others : |
|
CAPITAL STRUCTURE
As on: 31.03.2013
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
11000000000 |
Equity Shares |
Rs. 10/- each |
Rs. 110000.000 Millions |
|
5000000000 |
Preference Shares |
Rs. 10/- each |
Rs. 50000.000 Millions |
|
|
TOTAL |
|
Rs. 160000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
2805126466 |
Equity Shares |
Rs. 10/- each |
Rs. 28051.300 Millions |
Terms/ rights attached to equity shares
The Company has
only one class of equity shares having par value of Rs.10 per share. Each
holder of the equity share is entitled to one vote per share. In the event of liquidation
of the Company, the holders of equity shares will be entitled to receive the
remaining assets of the Company, after distribution of all preferential amounts
Details of shares held by shareholders holding more than 5% of the
aggregate shares in the Company
|
Particulars |
No. of Shares |
Percentage of share holding |
|
Reliance Infrastructure Limited |
1024448193 |
36.52 |
|
AAA International Capital Private Limited |
267776331 |
9.55 |
|
Reliance Enterprises and Ventures Private Limited |
267776331 |
9.55 |
|
AAA Project Ventures Private Limited |
537387901 |
19.16 |
|
Total |
2097388756 |
74.78 |
Aggregate number of bonus shares issued and shares issued for consideration
other than cash during the five years immediately preceding the reporting date
- During the year ended March 31, 2009, the Company had issued
136,800,000 equity shares of Rs.10 each as fully paid bonus shares by
capitalization of Rs. 1368.000 Millions from securities premium account.
- During the year ended March 31, 2011, the Company had issued
408,282,606 equity shares of Rs.10 each fully paid to the shareholders of
Reliance Natural Resources Limited as consideration for transfer of
business undertaking from Reliance Natural Resources Limited under the
composite scheme of arrangement sanctioned by High Court of Bombay on
October 15, 2010.
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
I.
EQUITY
AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
28051.300 |
28051.300 |
28051.300 |
|
(b) Reserves & Surplus |
140200.600 |
134567.000 |
130914.300 |
|
(c) Money
received against share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
168251.900 |
162618.300 |
158965.600 |
|
|
|
|
|
|
(3)
Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
0.000 |
0.000 |
0.000 |
|
(b) Deferred tax liabilities (Net) |
0.000 |
0.000 |
0.000 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term
provisions |
30.400 |
17.500 |
27.700 |
|
Total Non-current
Liabilities (3) |
30.400 |
17.500 |
27.700 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term
borrowings |
18777.800 |
0.000 |
2150.000 |
|
(b) Trade payables |
86.100 |
275.700 |
320.900 |
|
(c) Other current
liabilities |
322.800 |
169.800 |
14224.800 |
|
(d) Short-term
provisions |
7.000 |
4.400 |
5.600 |
|
Total Current
Liabilities (4) |
19193.700 |
449.900 |
16701.300 |
|
|
|
|
|
|
TOTAL |
187476.000 |
163085.700 |
175694.600 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
823.400 |
854.700 |
849.700 |
|
(ii) Intangible Assets |
17.400 |
25.200 |
2.600 |
|
(iii) Capital
work-in-progress |
0.000 |
90.100 |
394.100 |
|
(iv)
Intangible assets under development |
4.100 |
32.100 |
4.000 |
|
(b) Non-current Investments |
146571.800 |
94439.400 |
61611.400 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
16499.900 |
41244.900 |
38983.800 |
|
(e) Other
Non-current assets |
1495.700 |
1603.800 |
2491.600 |
|
Total Non-Current
Assets |
165412.300 |
138290.200 |
104337.200 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
50.000 |
1751.800 |
24171.800 |
|
(b) Inventories |
0.000 |
0.000 |
0.000 |
|
(c) Trade receivables |
19.200 |
191.500 |
122.000 |
|
(d) Cash and cash
equivalents |
5568.200 |
2059.500 |
9857.500 |
|
(e) Short-term loans
and advances |
15489.300 |
18766.900 |
36047.300 |
|
(f) Other current assets |
937.000 |
2025.800 |
1158.800 |
|
Total Current Assets |
22063.700 |
24795.500 |
71357.400 |
|
|
|
|
|
|
TOTAL |
187476.000 |
163085.700 |
175694.600 |
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
|
|
SALES |
|
|
|
|
|
|
|
Operating Income
|
120.100 |
661.200 |
363.800 |
|
|
|
Other Income |
6460.900 |
4657.300 |
4351.500 |
|
|
|
TOTAL (A) |
6581.000 |
5318.500 |
4715.300 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employee Cost |
476.300 |
386.500 |
606.000 |
|
|
|
Administrative Expenses |
718.900 |
736.300 |
905.600 |
|
|
|
Purchase of coal rejects |
0.000 |
68.900 |
43.300 |
|
|
|
Fuel handling and service charges |
0.000 |
384.700 |
189.100
|
|
|
|
TOTAL (B) |
1195.200 |
1576.400 |
1744.000 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
5385.800 |
3742.100 |
2971.300 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
220.600 |
603.400 |
423.500 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
5165.200 |
3138.700 |
2547.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
31.400 |
29.300 |
11.400 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
5133.800 |
3109.400 |
2536.400 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
(5.500) |
0.800 |
(209.100) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
5139.300 |
3108.600 |
2745.500 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
12022.316 |
8913.716 |
6168.216 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
17161.616 |
12022.316 |
8913.716 |
|
|
|
|
|
|
|
|
|
|
FOREIGN EXCHANG EARNING
|
142.000 |
67.900 |
28.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
1.83 |
1.11 |
1.06 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2013 |
31.03.2012 |
31.03.2011 |
|
PAT / Total Income |
(%) |
204.88 |
58.44
|
58.22 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
4274.60 |
470.26
|
697.19 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.55 |
4.54
|
2.23 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.03 |
0.02
|
0.01 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.11 |
0.00
|
0.10 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.15 |
55.11
|
4.27 |
FINANCIAL ANALYSIS
[all figures are
in Rupees Millions]
DEBT/EQUITY RATIO
|
Particular |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns.) |
(INR
in Mlns.) |
(INR
in Mlns.) |
|
Share Capital |
28,051.300 |
28,051.300 |
28,051.300 |
|
Reserves & Surplus |
130,914.300 |
134,567.000 |
140,200.600 |
|
Net
worth |
158,965.600 |
162,618.300 |
168,251.900 |
|
|
|
|
|
|
long-term borrowings |
0.000 |
0.000 |
0.000 |
|
Short term borrowings |
2,150.000 |
0.000 |
18,777.800 |
|
Total
borrowings |
2,150.000 |
0.000 |
18,777.800 |
|
Debt/Equity
ratio |
0.014 |
0.000 |
0.112 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
363.800 |
661.200 |
120.100 |
|
|
|
81.748 |
(81.836) |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2011 |
31.03.2012 |
31.03.2013 |
|
|
(INR
in Mlns) |
(INR
in Mlns) |
(INR
in Mlns) |
|
Sales |
363.800 |
661.200 |
120.100 |
|
Profit After Tax |
2,745.500 |
3,108.600 |
5,139.300 |
|
|
754.67% |
470.15% |
4279.18% |
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 |
No |
|
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 |
--------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
No |
|
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 |
No |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
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 |
FINANCIAL
PERFORMANCE
During the year, the
total Income of the Company was Rs.6581.000 Millions against Rs.5318.500
Millions in the previous year on a standalone basis. The Company has earned a
Profit after tax of Rs.5139.300 Millions compared to Rs.3108.600 Millions in
the previous year on a standalone basis.
BUSINESS OPERATIONS
The Company is in the business of setting up
and operating power projects and in the development of coal mines either
directly or through its Subsidiaries. The Company has a large portfolio of
power projects and is also developing coal mines in India and Indonesia. Of the
power projects which the Company is developing through its Subsidiaries, 2,200
MW are already operational while the other power projects are under various
stages of development. The first 660 MW unit of the 6X660 MW Ultra Mega Power
Project (UMPP) being developed by its Subsidiary, Sasan Power Limited was
commissioned towards the close of the financial year. The Sasan Project is the
largest integrated power project in the world with its own captive coal mines
to cater to the fuel requirements of the Plant. The first Unit (300MW) of the
Power Plant at Butibori being developed by its Subsidiary, Vidarbha Industries
Power Limited commenced commercial operations in April 2013.
The second unit of the Butibori Power Project
(Capacity 300 MW) and the Wind Power Project at Vashpet, Maharashtra (Capacity
45 MW) are also expected to be commissioned during the current financial year
which will make the operational capacity 2545 MW.
The year gone by was significant in that the
Company could make significant additions to its capacity.
The portfolio of projects which the Company is
developing is diversified with regard to location, fuel and off-take. The
projects are spread across various states in India and its coal mines are also
located in Indonesia. A major portion of the power generating capacity would be
based on coal as the primary fuel. The others include gas based power projects,
hydro-electric power projects and power projects based on renewable energy resources
such as solar and wind.
OPPORTUNITIES AND THREATS
In the past decade, the government has taken
various initiatives to increase public as well as private investments in the
sector to enhance generation capacity and eliminate power deficit. After enacting
the Electricity Act in 2003, the government has followed up on the reform
agenda with many other policy measures to make power generation attractive for
investors. The Electricity Act, 2003, requires the Central Electricity
Authority (CEA) to lay out the National Electricity Plan once every five years,
revising it from time to time in accordance with the National Electricity
Policy. This Plan serves as a roadmap for accelerated growth of the power
sector. Now 100 per cent Foreign Direct Investment (FDI) is allowed in
generation, transmission and distribution segments. These policy initiatives
have resulted in building up investor confidence in the power sector and
increased participation by the private sector. In order to attract further
private participation in the power sector, the Government of India had
announced the Ultra Mega Power Projects (UMPP) scheme under which the
government would partner with the private sector for developing large power
projects. The policy framework for the power sector encourages developers to
put up power projects to sell power through long term Power Purchase Agreements
(PPAs) at attractive and sustainable returns, and also to sell power through
short term contracts (bilateral contracts) or spot markets (unscheduled interchange,
power exchanges).India needs to substantially bridge the gap between demand and
supply of electricity for sustained economic growth and to kindle hope in the
livesof its people and to accomplish that, the Country needs all sources of
power it can get access to. Clean energy from renewable sources, apart from
being an environmentally friendly source of power, can also contribute to
India’s power needs. The potential for generating energy from renewable
sources in India is enormous. This potential is currently estimated at
48,500 MW for wind energy and 25,000 MW for solar. Besides, hydroelectric
capacity is estimated at 148,700 MW, of which so far only 25 per cent has
become operational.India’s renewable energy capacity has gone up from 7,761 MW
2007 to 27,542 MW now – a growth of over 250 per cent in just six years. With
fuel shortage staring India in the face, it has become imperative for the
Country to have a focused strategy for renewable energy. The government has
initiated steps in this direction, including:
·
Policy envisaging that
all states should mandatorily meet Renewable Purchase Obligations (RPO) of 5
per cent of total generation.
·
Launch of Jawaharlal
Nehru National Solar Mission (JNNSM), which aims to ensure that solar energy
technologies in the Country achieve grid parity by 2022. It has plans for
deployment of 20 GW of solar power by 2022.
·
Imposition of carbon cess of ` 50 per tonne
for all domestic and imported coal based projects. The funds raised will be
utilised to drive development in the renewable energy sector.
·
Created a framework for issuance and trading
of Renewable Energy Certificates (RECs) which will allow generators of
renewable energy to obtain additional revenuesby selling these certificates to
the distribution Companies With increasing focus on environment related issues,
power projects employing clean and environment-friendly technology
(hydroelectric and other renewable energy sources) are also earning carbon
credits.
·
UNSECURED LOAN
|
Particulars |
As on 31.03.2013 Rs. in Millions |
As on 31.03.2012 Rs. in Millions |
|
Short term
borrowing |
|
|
|
Loan and advance from related party |
|
|
|
-Inter corporate deposits from subsidiaries (interest free and
repayable on demand. |
4657.800 |
0.000 |
|
--Advance against proposed issue of non – convertible debentures
(carries interist rate of 10 % per annum and repayable within one year from
the date of allotment. |
12000.000 |
0.000 |
|
commercial paper (issued at a discount of 10.5% and is to be settled after 180 days) |
2120.000 |
0.000 |
|
Total |
18777.800 |
0.000 |
MANAGEMENT DISCUSSION AND ANALYSIS
FORWARD
LOOKING STATEMENTS
Statements in this Management Discussion and Analysis
of Financial Condition and Results of Operations of the Company describing the
Company's objectives, expectations or predictions may be forward looking within
the meaning of applicable securities laws and regulations. Forward looking
statements are based on certain assumptions and expectations of future events.
The Company cannot guarantee that these assumptions
and expectations are accurate or will be realized. The Company assumes no
responsibility to publicly amend, modify or revise forward-looking statements,
on the basis of any subsequent developments, information or events. Actual
results may differ materially from those expressed in the statement. Important
factors that could influence the Company's operations include cost of fuel,
determination of tariff and such other charges and levies by the regulatory
authorities, changes in government regulations, tax laws, economic developments
within the Country and such other factors.
The financial statements are prepared under
historical cost convention, on accrual basis of accounting, and in accordance
with the provisions of the Companies Act, 1956 (the Act) and comply with the
accounting standards notified under Section 211 (3C) of the Act read with
Companies (Accounting Standards) Rules, 2006. The management of Reliance Power
Limited ("Reliance Power" or "the Company") has used
estimates and judgments relating to the financial statements on a prudent and
reasonable basis, in order that the financial statements reflect in a true and
fair manner, the state of affairs and profit for the year.
The following discussions on their financial
condition and result of operations should be read together with their audited
consolidated financial statements and the notes to these statements included in
the Annual Report. Unless otherwise
specified or the context otherwise requires, all references herein to
“they", "them", "the", "the Company”,
“Reliance" or "Reliance Power" are to Reliance Power Limited
and/or its subsidiary Companies.
ECONOMIC
OUTLOOK
The year
2012-13 turned out to be a difficult one for the Indian economy as the GDP
growth rate fell to just 5.0 per cent, the lowest in a decade. The slowdown can
be attributed both to domestic and external factors. High fiscal deficit,
dependence on foreign inflows to finance the current account deficit (CAD),
lower savings and lower investment, a tight monetary policy to contain
inflation - all contributed to lowering growth. Global economic growth also
fell from 3.9 per cent in 2011 to 3.2 per cent in 2012primarily because of the
Euro crisis and uncertainties in fiscal policy in the US. This further
contributed to lowering India's growth. There was a widespread concern in
almost all sectors which were affected by the slowdown.
However,
recent developments indicate that 2013-14 could turn out to be better. The
government has announced several measures in the recent months to curb fiscal
deficit and improve the financial health of the Country. Falling crude oil
prices should also help in reducing the Current Account Deficit (CAD). Even the
RBI has slowly reduced interest rates to provide impetus to growth. The global
economy has also shown signs of stabilization with improving financial
conditions and investment environment. Improvements in the housing sector and low
unemployment rates in the US led to the Dow Jones Industrial Average reaching
an all-time high in May 2013. Thus, the prospects for 2013-14 look better with
projected GDP growth at 5.5 per cent.
POWER
SECTOR
As is
widely acknowledged, there is a very high degree of correlation between power
sector growth and economic growth. Therefore, it is imperative that power
sector needs to grow for sustainable economic growth. The power sector faced a
slowdown in 2012-13primarily due to fuel constraints and challenging policy
environment. The growth in electricity generation fell to just 4 per cent in
2012-13 compared to 8.1 per cent in2011-12.
The
government is conscious of the difficulties being faced by the power sector and
has accordingly initiated steps to revive the investment environment in the
sector. A major impediment for the sector has been the undue delay in getting
regulatory clearances due to lengthy decision making process which involve
different ministries both at the Central and State government levels. As a step
towards mitigating these problems, the government has established the Cabinet
Committee on Investment (CCI) which aims to fast track regulatory clearances
and resolve inter-ministerial differences at the Central Cabinet level. This is
expected to significantly reduce the time taken for obtaining clearances.
The
government has recognised that, distribution reforms are also critical for
improvement of the financial condition of the power sector. The government has
notified a scheme for Financial Restructuring of the State Distribution
Companies. Once implemented, this scheme is expected to significantly bolster
the financial health of the distribution companies.
Another
major problem plaguing the sector is availability of fuel - both coal as well
as gas for power generation. The government, at the highest levels, has been
considering various measures for improving fuel availability for power plants
including import of coal and gas till domestic production is ramped up.
However, the critical issue has been the modalities for passing on the
increased cost of fuel. The government has been considering various methods
including pooling. Regulators, at the Central and State levels have also been
playing an important role in providing a framework under which mutually
acceptable solutions could be arrived at for the difficult problems being faced
by the power sector. In view of all these measures it is expected that many of
the challenges presently being faced by the power sector would be addressed.
VIEW INDEX OF CHARGES
|
S.No. |
Charge ID |
Date of Charge
Creation/Modification |
Charge amount
secured |
Charge Holder |
Address |
Service Request
Number (SRN) |
|
1 |
10486481 |
26/03/2014 |
600,000,000.00 |
IDBI Bank
Limited |
IDBI Bank Limited,
IDBI Tower World Trade Centre |
C01023209 |
|
2 |
10438810 |
16/07/2013 |
1,500,000,000.00 |
AXIS BANK LTD |
Corporate Banking
Branch, Wadia Intl Centre, P.B. Marg, Worli, Mumbai, Maharashtra - 400025,
India |
B80382955 |
FIXED ASSETS
- Freehold Land
- Plant and
Machinery
- Building
- Furniture and
Fixtures
- Office
Equipment
- Computers
- Motor
Vehicles
WEBSITE DETAILS
MEDIA RELEASE
RELIANCE POWER’S
TOTAL OPERATIONAL CAPACITY REACHES NEARLY 4000 MW
RELIANCE POWER’S
600 MW BUTIBORI POWER PLANT IN MAHARASHTRA IS FULLY OPERATIONAL
POWER BEING
SUPPLIED TO RELIANCE INFRASTRUCTURE LIMITED FOR MUMBAI DISTRIBUTION UNDER LONG-TERM
POWER PURCHASE AGREEMENT FOR 25 YEARS
Mumbai, April 1,
2014: Butibori Power Plant (2 X 300 MW) developed
by Vidharbha Industries Power Limited, a subsidiary of the Reliance Power
Limited, is fully operational. The plant has commenced supplies under the Long
Term Power Purchase Agreement for 25 years with Reliance Infrastructure Limited
– Mumbai Distribution Licensee.
About Reliance
Power:
Reliance Power Limited, a part of the Reliance Group, is India’s leading
private sector power generation company. The company has the largest portfolio
of power projects in the private sector based on coal, gas, hydro and renewable
energy, with an operating portfolio of 3,865 megawatts. The company also has
the largest captive coal reserves in the private sector, estimated at two
billion tonnes. Besides, the company is developing three coal mines in
Indonesia and is also developing coal bed methane blocks in India. For more
information, please visit www.reliancepower.co.in
.
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.60.04 |
|
|
1 |
Rs.101.97 |
|
Euro |
1 |
Rs.83.58 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Analysis Done by
: |
SUM |
|
|
|
|
Report Prepared
by : |
SNT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
|
DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
54 |
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.