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Southern Power Distribution Company of AP Ltd.

BSE: 511519 Sector: Infrastructure
NSE: N.A. ISIN Code: N.A.
BSE 05:30 | 01 Jan Southern Power Distribution Company of AP Ltd
NSE 05:30 | 01 Jan Southern Power Distribution Company of AP Ltd

Southern Power Distribution Company of AP Ltd. (SOUTHERNPOWER) - Director Report

Company director report

SOUTHERN POWER DISTRIBUTION COMPANY OF ANDHRA PRADESH LIMITED ANNUAL REPORT 2008-2009 DIRECTOR'S REPORT To Members, M/s Southern Power Distribution Company of A.P. Limited Tirupati Dear Members, Your Directors have pleasure in presenting the Ninth Annual Report of the Company relating to Financial Year 2008-09 and trust the Annual Audited Accounts for the said year as circulated have been perused by all of you. Financial Results: Rs. in Crores Current Previous Particulars Year Year 2008-09 2007-08 a. Total income 5302.1311 3891.6370 b. Total expenditure 5280.9660 3808.7568 c. Profit/(Loss) before tax 21.1650 82.880 d. Provision for tax e. Income Tax 1.5636 0.10 f. Fringe benefit Tax 0.9305 0.68437 g. Profit/(Loss) after tax 18.6708 82.0958 h. Net prior period credits/(Charges) 7.6938 27.9302 i. Profit/(Loss) before Contingency 10.9769 54.1655 Reserve Contingency Reserve - - Profit after Contingency Reserve 10.9769 54.1655 Dividend The Board of Directors have not declared any dividend during the year ended 31.03.2009 Energy Sales The Company's total sales increased to 11938.50 MU in 2008-09 from 10797.99 MU in 2007-08. Operational Performance of the Company for the year 2008-09: Further your Directors are pleased to present some key achievements in operational areas: Particulars As on As on 31-3-2009 31-3-2008 1. Number of 33/11 KV Sub stations 955 843 2. Length of 33 KV line in KM 10891.65 10272.61 3. Length of 11 KV line in KM 84734.16 75012.36 4. Length of LT line in KM 139692.1 132688.92 5. Number of Distribution Transformers 226238 184972 6. Power Transformers 1261 1147 7. Number of Consumers 6021853 5656339 - The registration and release of new services was made On line since August 2008 to ensure better monitoring. 1,81,270 nos Cat-I services, 12673 nos Cat-II and 1476 Nos,Cat-VII services were released through Customer Service Centres during the year 2008-09. The Customer Service Centre at Tirupati was accorded ISO 9001 : 2000 for the quality management and processes. - 225185 nos under BPL and 30983 under APL new connections have been added under Rajiv Gandhi Gramin Vidyutikan Yojana (RGGVY) during 2008-09. Vigilance Wing Continuous efforts are being made for prevention of theft of energy. Anti Power Theft Squad (APTS) Department & DPE Wing have carried out intensive inspection drives during the year. A total of 18,967 theft cases were registered during the year 2008-09 assessing Rs.2,81,25,458. During the year 15,968 cases were compounded and Rs.1,48,49,500 collected. During the year 2008-09, 292Nos. of enquiries among them 149Nos. JMD entrusted enquiries and 143Nos. CMD entrusted enquiries were completed and submitted. During the year 2008-09, 41 Nos. cases are acquittal among them 12Nos. cases were convicted 27Nos. cases were ended acquittal 1No. case is in Lok Adalat, 1No. cases is abated. Policy initiatives Central Government has initiated a number of policy initiatives viz., constitution of Appellate Tribunal for Electricity, promulgation of National Tariff Policy, Ultra Mega Projects initiative, Efforts towards developing an integrated Energy Policy and launch of nation wide Rural Electricity Infrastructure and Household Electrification Programme Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY). Directors: The Board of Directors of the Company are appointed / nominated by Government of Andhra Pradesh. The Changes which have been occurred in the composition of Board of Directors of the Company from the date of the last report are as follows: Name of the Director Date of Date of appointment change 1. Sri M.Gopal Rao 07.10.2006 09.01.2009 2. V.Krishna Murthy 15.12.2005 14.12.2008 3. Sri G.Rama krishna Reddy 09.01.2009 - 4. Sri Shaik Anwar 29.03.2007 28.03.2009 5. Sri.S.Viswanatham 02.12.2008 6. Z. Phillip 10.09.2009 Consequent to the above changes, the composition of the Board of Directors on the date of this report is as follows: Sri P.Gopal Reddy - Chairman & Managing Director Sri Umesh Sharraf, IPS - Non Whole Time Director Sri G.Ramakrishna Reddy - Non Whole Time Director) Sri T.H.N.S.Damodara Rao - Director (RAC) Sri. Y.Padmanabha Reddy - Director( Operation) Sri. A.Venkata Reddy, IRAS - Director(Finance & IT) Sri. P.Anjaiah - Director (Purchases) Sri K.Rami Reddy - Director (Energy Audit) Sri S.Viswanatham - Director (HRD) Sri. Z.Phillip - Director(Projects) Board Meetings 2008-09: The Board held its meetings on 27th June, 26th July, 29th September, 30th December all in 2008 and 2nd March in 2009 during the financial year 2008- 09 in accordance with the provisions of Section 285 of the Companies Act, 1956. Attendance at Board of Directors Meetings: Directors Meetings Remarks attended Sri P. Gopal Redd 5 Sri.Umesh Sharraf, IPS 2 Appointed as Non whole time Director on 16.09.2008 Sri. G.Ramakrishna Reddy 1 Appointed as Non whole time Director on 09.01.2009 Sri. T.H.N.S.Damodara Rao 5 Sri. Y.Padmanabha Reddy 5 Sri. A.Venkata Reddy 5 Sri. P.Anjaiah 5 Sri. K.Rami Reddy 4 Sri. S.Viswanatham 1 Appointed on 02.12.2008 Composition of Audit Committee and changes therein: In compliance with the provisions of Section 292 A of the Companies Act, 1956, during the year under review, the Audit Committee has met on 26th July, 2008, 29th September, 2008 and 2nd March, 2009. The composition of the Audit Committee on the date of this report is as follows: 1. Sri Umesh Sharraf, IPS 2. Sri G.Ramaknshna Reddy 3. Sri Y.Padmanabha Reddy The audit committee was reconstituted Sri G. Ramakrishna Reddy, Director (Finance and Revenue), APTRANSCO was appointed as Member of Audit Committee in place of Sri M.Gopal Rao, w.e.f 09.01.2009. Auditors of the Company M/s. Raju & Prasad, Chartered Accountants, No.401, 'Diamond House' Adj. Amrutha Hills, Punjagutta, Hyderabad - 500082 were appointed by Comptroller and Auditor General of India (C&AG) as the Statutory Auditors of the Company for the Financial Year 2008-09 and 2009-2010. Replies to the comments of the Statutory Auditors and CAG Replies of the Management to comments of the Statutory Auditors, Comptroller And Auditor General of India (CAG) and financial review by CAG of India on the accounts of the Company for the year ended 31st March, 2009 are annexed here to and forms part of this report. Conservation of Energy, Technology Absorption And Foreign Exchange Earning And Outgo: The information in accordance with the provisions of Section 217(1) (e) of Companies Act, 1956 read with Companies (Disclosure of Particulars in the Report of Board of Directors) Rules, 1998 in respect of conservation of energy, technology absorption and foreign exchange earning and outgo, is not furnished as they are not applicable to the Company. Particulars of Employees under Sec 217 (2A) of the Companies Act, 1956 There were no employees drawing remuneration in excess of the prescribed limits whose details are required to be disclosed under Section 217(2A) of the Companies Act, 1956 read with Companies (Particulars of Employees) Rules, 1975. Deposits During the year under review, the Company has not accepted any public deposits U/s 58A of the Companies Act, 1956 read with Companies (Acceptance of Deposits) Rules, 1975. Directors Responsibility Statement The Board of Directors of your Company has met Five times during the financial year 2008-09. In accordance with Sec.217(2AA) of the Companies Act, 1956, the Directors of the Company hereby state that: The Annual Accounts are prepared as per Schedule VI of the Companies Act, 1956 and the applicable standards are followed, so as to give a true and fair view of state of affairs of the Company as at the end of the financial year 31st March, 2009. The rates of depreciation are adopted as per the Gazette notifications issued by the Ministry of Power, Government of India from time to time. The Directors have taken proper and sufficient care for the maintenance of accounting records; for safeguarding assets of the Company; and preventing and detecting fraud and other irregularities. The Annual Accounts are prepared on a going concern basis. Industrial Relations: During the year under review, there were cordial industrial relations amongst the working force at all levels. Acknowledgements: Your Directors wish to place on record their appreciation and acknowledge with gratitude the support and Co-operation extended by the Government of Andhra Pradesh, particularly Energy Department & Finance Department, Andhra Pradesh Electricity Regulatory Commission, APTRANSCO, Other DISCOMs, Comptroller & Auditor General of India, Bankers, Financial Institutions like Rural Electrification Corporation Limited and Power Finance Corporation, suppliers and consumers. Your Directors express their deep sense of gratitude and appreciation to the employees for their unstinted support and relentless efforts at all levels which enabled the overall growth of the Company. For and on behalf of the Board of APSPDCL P. Gopal Reddy Chairman and Managing Director Place: Tirupati Date : 25-09-2009