Bses

Whereas the transmission & distribution (T&D) loss is expected to be lower by 0.5 - 0.75 per cent in the current year. During 1995-96, it was 12.5 per cent. Each percentage point reduction in T&D losses result in savings of almost Rs 15 crore.

On the other hand, BSES is hopeful that the hike in demand charges would not be passed on by Tata Electric Company (TEC). Even if this hike materialise, BSES is in a position to pass on the hike to its customers.

Apart from this, the proposed Palgarh project is in the final stages of clearance and since the status will be that of licensee, even the assets under construction will earn returns.

 

BSESs has a comfortable debt-equity ratio and also internal accruals to fund the project. Equity dilution therefore, is not predicted.

Parekh Platinum

The shareholders of Parekh Platinum have only just started receiving the annual report for 1995-96. This at a time when most companies are busy releasing their half yearly results.

However the notes to accounts seem to have a reason for this inadvertent delay. In August 1996, the Income Tax authorities had carried out a search and seizure operation at the company premises. This has seemingly delayed the annual report.

In the annual report ,the first figure that attracts attention is that of sales. Almost 47 per cent of sales is from Gold semi finished products compared with nil earlier.

This has been largely due to the jewellery project of the company which has gone on-stream in September 1995.

Another interesting point is the amount due from individuals/ concerns in which directors and their relatives are interested. This figure has gone up from Rs 5.11 crore to Rs 18.13 crore. This may irk shareholders. The explanation given by the management is that the premises which is on lease has been acquired from these parties. However, profits for the year have been lower by Rs 1.44 crore as the company has changed the system of accounting for amortisation and pre-operative expenses.

But with the opening of its first showroom in Mumbai revenues could receive a boost revenues in the current year. The opening of another showroom in Mumbai itself should drive profitability. However, the perception towards the stock is unlikely to change mainly due to the recent IT raid.