Indian Infrastructure

268 Pages·2015·5.21 MB·English

Srei Infrastructure Finance Limited
Annual Report 2014-15
Indian
Infrastructure

A journey
Board of Directors Stakeholders Relationship Nomination and
Committee Remuneration Committee
Mr. Salil K. Gupta
Chief Mentor Mr. Salil K. Gupta Mr. Salil K. Gupta
Mr. Hemant Kanoria Chairman Chairman
Chairman & Managing Director Mr. Hemant Kanoria Mr. Sunil Kanoria
Mr. Sunil Kanoria Mr. Sunil Kanoria Mr. Shyamalendu Chatterjee
Vice Chairman Mr. Sandeep Lakhotia Mr. Sandeep Lakhotia
Secretary Secretary
Mr. Srinivasachari Rajagopal
Mr. Shyamalendu Chatterjee
Asset Liability Management Corporate Social
Dr. Punita Kumar Sinha
Committee Responsibility Committee
Dr. Tamali Sengupta
Mr. T. C. A. Ranganathan Mr. Sunil Kanoria Mr. Hemant Kanoria
Chairman Chairman
Mr. Shyamalendu Chatterjee Mr. Sunil Kanoria
Chief Executive Officers
Mr. Sanjeev Sancheti Mr. Shyamalendu Chatterjee
Mr. John Moses Harding Mr. P. C. Patni Mr. Madhusudan Dutta
Mr. Bajrang Choudhary Mr. Sandeep Lakhotia Secretary
Mr. Bijoy Daga Mr. Moses Harding John
Mr. S. B. Tiwari Corporate Identification
Company Secretary Secretary Number
Mr. Sandeep Lakhotia L29219WB1985PLC055352
Credit Committee
Chief Financial Officer Registered Office
Mr. Hemant Kanoria
Mr. Kishore Kumar Lodha Chairman ‘Vishwakarma’
Mr. Sunil Kanoria 86C, Topsia Road (South)
Auditors
Mr. Shyamalendu Chatterjee Kolkata – 700 046
Haribhakti & Co. LLP. Mr. S. B. Tiwari Telephone : [phone]
Chartered Accountants Secretary Facsimile : 91-33-2285 7542/8501
E-mail : [email protected]
Principal Banker
Investment Committee Website : www.srei.com
Axis Bank Limited
Mr. Hemant Kanoria
Listing
Chairman
Audit Committee
The Calcutta Stock Exchange Limited
Mr. Sunil Kanoria
Mr. Salil K. Gupta BSE Limited
Dr. Punita Kumar Sinha
Chairman National Stock Exchange of India Limited
Mr. Sanjeev Sancheti
London Stock Exchange - Global
Mr. Sunil Kanoria
Secretary
Depository Receipts
Mr. Srinivasachari Rajagopal
Mr. Shyamalendu Chatterjee Risk Committee Depositories
Mr. Sandeep Lakhotia
Secretary Mr. Shyamalendu Chatterjee National Securities Depository Limited
Chairman Central Depository Services (India)
Committee of Directors Mr. Hemant Kanoria Limited
Mr. Sunil Kanoria
Mr. Hemant Kanoria Registrar and Share Transfer
Mr. S. B. Tiwari
Chairman Agents
Secretary
Mr. Salil K. Gupta
Karvy Computershare Private Limited
Mr. Sunil Kanoria
Mr. Sandeep Lakhotia
Secretary 30th Annual General Meeting on Saturday, August 01, 2015 at 10.30 a.m. at
Science City Main Auditorium, JBS Haldane Avenue, Kolkata - 700 046
Contents
n Vision, Mission, Values 05 n Chairman and Managing Director’s message 08 n Vice Chairman’s message 12 n Mining for value 16
n Building new roads 18 n Powering the economy 20 n Connecting countless lives 22 n Diverse needs of the infrastructure sector 24 n Srei’s
robust business model 26 n Corporate sustainability 28 n Analysis of our financial statements 30 n Our performance over the years 34 n Directors’
profile 36 n Directors’ report 38 n Report on corporate governance 94 n Shareholders’ information 110 n Independent auditor’s report and
financial statements 124 n Consolidated financial statements 196
1 billion = 100 crore, 1 million = 10 lacs
All figures attributed to Srei are figures of Srei Consolidated unless otherwise stated.
Build roads.
accelerate National
Growth.
Generate power.
Energise the nation.
Construct towers.
Connect with the world.
So when you wish to widen
the pool of prosperity,
all you really need to do
is invest in the Building
block of national growth.
Because all human
progress essentially
starts with strong
infrastructure.
Roads and highways.
Schools. Hospitals.
Expressways. Ports.
Airports. Transmission
lines. Mining. Oil and Gas
exploration. Thermal
power. Hydro power.
Wind and solar energy.
Railways and Metro
Rail system. Airports
and ports. Logistics.
Housing and townships.
Hospitality and healthcare.
Sewage and solid waste
management. Water supply
utilities. Commercial and
industrial infrastructure.
Telecommunications and
broadband.
India invested significantly in these infrastructural building blocks over the
last 25 years – higher than in the preceding 40 years.
The result: India has emerged among the fastest growing nations. The
third largest global economy in PPP terms. Its GDP growth climbed from an
average of 5.7 per cent between 1990 and 2000 to over 8 per cent in the
later half of past decade. India’s foreign exchange strengthened from merely
15 days of import cover in 1991 to over nine months today.
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Srei Infrastructure Finance Limited Annual Report 2014-15
Probably, the only thing bigger than India’s infrastructure industry is the hope
of its billion-plus citizens for a better tomorrow.
India needs about USD 1 trillion worth investment in its infrastructure over
the next 5-7 years.
To build an infrastructurally
strong nation. To ensure
the complete welfare of its
citizens.
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In the last 25 years, Srei
Infrastructure Finance
Limited has grown to
emerge as one of the
largest private sector
infrastructure focused
public finance institutions.
The big idea Srei as a trusted knowledge partner.
25 years in existence I 42,554 customers The Company was classified as an ‘Infrastructure Finance
Srei was born as the child of a dream to make India’s Company’ by the Reserve Bank of India and as a ‘Public
infrastructure world-class. Financial Institution’ by the Ministry of Corporate Affairs
in 2011.
The Company was conceived with the objective to fund
infrastructure growth at a time (1989) when the concept
Activities
of private sector infrastructure financing was virtually non-
Rs. 35,241 crore of assets under management
existent in the country.
Srei is more than a financier; it is an integrated
Srei today is more than just a company; it is an integral
infrastructure institution serving the entire ecosystem of
part of India’s infrastructure growth story.
the country’s infrastructure sector.
Promoters u Offering customised project financing solutions across
various sectors.
Deep sectoral knowledge | Rich experience
Srei Infrastructure Finance Limited is spearheaded by u Offering structured financing solutions that mitigate
Hemant Kanoria (Chairman and Managing Director) and risks and meet unique equipment financing needs of
Sunil Kanoria (Vice Chairman) with a team of high calibre customers
professionals. u Ideating, developing and executing infrastructure
projects
The Company is recognised for its deep industry
knowledge, integrated value proposition for customers u Providing strategic equity solutions for infrastructure
and partners, sound business practices and strong projects
financials. u Offering project advisory solutions, and
The result is that Srei has been an innovator and u Investment banking advisory solutions, among others
pioneer in India’s infrastructure sector as well as a The result is that Srei is respected for its ability to offer
preferred partner. Global and local corporations exploring simple, out-of-the-box solutions addressing complex
opportunities in India’s infrastructure development seek
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Srei Infrastructure Finance Limited Annual Report 2014-15
problems across sectors - power, ports, logistics, Values
transportation, urban infrastructure and telecom. Customer partnership: Intense customer engagement,
affection and understanding facilitate us to create a
Presence
mutually profitable partnership.
86 branch offices | 2,088 employees
Respect for people: We treat our employees like family,
Srei is a national player headquartered in Kolkata with
providing them with an inspiring work environment that
86 pan-Indian branches. The Company enjoys a sizeable
encourages initiative and recognises excellence.
international presence with branches in Germany, Nigeria,
Mauritius, Russia and Singapore, among others. Srei’s Integrity: All our actions are guided by strong morals and
shares are listed and traded actively on the Bombay we are committed to ethical practices.
Stock Exchange and the National Stock Exchange. The
Stakeholder value enhancement: We enhance value for
company was among the first from India to have its Global
our stakeholders by focusing on growth and profitability,
Depositary Receipts (GDRs) listed on the London Stock
managing risks and contributing to the society.
Exchange.
Passion for excellence: Our passion for excellence is
Vision instrumental in driving us to be innovative, solution-
To be the most inspiring global holistic infrastructure focused and impactful.
institution.
Professional entrepreneurship: With over 26 years of
experience, our spirit of entrepreneurship enables us to
Mission
overcome obstacles and complexities with professional
To be an Indian multinational company providing
expertise.
innovative infrastructure solutions.
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Journey of India’s
infrastructure sector
1989 National Highways Authority of India constituted
1991 Oil & Gas E&P policy liberalised u Private investment allowed in power generation and distribution
1992 Telecom sector liberalised; private sector allowed to participate u Private and foreign companies allowed to develop
already -discovered oil & gas fields
1993 Directorate General of Hydrocarbons sets up independent regulatory body to supervise E&P activities of all companies
1993 National Mineral Policy announced
1994 License for providing cellular mobile services granted for four metros – Delhi, Mumbai, Kolkata and Chennai
1995 Kolkata becomes the first metro with a cellular network u National Highways Authority of India becomes formally
operational as an autonomous entity u Airports Authority of India comes into being by merging the erstwhile National
Airports Authority and International Airports Authority of India u Orissa becomes the first state to introduce major power
sector reforms through enactment of Orissa Reforms Act, 1995 u Mega Power Policy, 1995 introduced to accelerate
investments in power generation by giving additional incentives to plants with >1,000 MW-capacity
1997 Telecom Regulatory Authority of India and Tariff Authority for major ports launched
1998 New Exploration Licensing Policy to provide level playing field for all players and concessions to public and private
sector companies in E&P of hydrocarbons announced u Refining sector de-licensed u Electricity (Amendment) Act,
1998 passed to make transmission a separate activity for inviting investment from public and private sectors u Electricity
Regulatory Commission Act, 1998 paves the way for forming the Central Electricity Regulatory Commission
1999 National Telecom Policy announced
Golden Quadrilateral and North-South East-West highway projects announced
2002 Indian Railway Catering & Tourism Corporation Limited become operational
2003 Promulgation of the Electricity Act 2003; creates an open environment for investment and competition
2005 The National Electricity Policy (2005) provides detailed initiatives and programmes to carry out mandates of The
Electricity Act, 2003 u Bharat Nirmaan announced; objective to spruce rural infrastructure in areas of electricity, roads,
telecom, housing, water and irrigation u Jawaharlal Nehru National Urban Renewal Mission launched to improve life
quality and urban infrastructure
2006 National Tariff Policy (2006) aimed to strengthen financial viability of the power sector
2008 Wagon Leasing Scheme introduced in the Railway Budget
2009 Airports Economic Regulatory Authority set up with the objective of determining tariff levels
2011 Wagon Leasing Scheme made more attractive to investors u National Optical Fibre Network (NOFN) programme approved
2012 National Telecom Policy announced
2013 Real Estate (Regulation and Development) Bill, 2013 that makes the process of real estate development transparent u
New Civil Aviation Policy aims to create regional and international aviation hubs in India, build and modernise airports in
Tier-II and Tier-III cities and promote MRO (maintenance-repair-overhaul) business
2015 Telecom frequency re-auction u 4G airwave auction u Announced 5,000 km Bharat Mala road corridor connecting
Gujarat and North-east India u Coal mining auction
Over the years, Srei has capitalised on these government policies to emerge bigger, nimbler and stronger.
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Srei Infrastructure Finance Limited Annual Report 2014-15
Journey of SREI’s
infrastructure sector Business
1989 1992 1997 2005
Commenced operations and Initial Public Offering. Currently International Developmental First Indian NBFI to be listed on
identified the infrastructure listed on all major Stock Exchanges Institutions – IFC, Washington the London Stock Exchange
sector as its core business – BSE, NSE and CSE (World Bank Group); DEG
(Owned by Govt. of Germany)
and FMO (Owned by Govt.
of Netherlands) invested as
strategic equity partners
2008 2009 2010 2011
JV with BNP Parlbas for Strategic partnership with Tata Synergistic integration of Srei ‘Infrastructure Finance
equipment financing business Group for Passive Telecom and Quippo to create a fully Company’ and ‘Public Finance
Infrastructure business integrated holistic infrastructure Institution’ status
institution
2012 2014
Received Certificate of Registration Received Certificate of
for Mutual Fund (Infrastructure authorization from RBI to set
Debt Fund) from SEBI up, own and operate White
Label ATMs
India’s infrastructure gap
Per capita electricity Average speed of trucks Per capita road Mining
consumption on Indian roads availability
(units)* (kmph)** (km)
2,972 0.02 Coal Share of
75
reserve global
position production
5th globally 7.8 per
cent (2013)
35
917
0.003 Iron ore Share of
reserve global
position production
[n.reuters.com] 5th globally 8 per cent
India World India World India United States
*[Source: Key world energy **[Source: n.reuters.com]
statistics, 2014]
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CHAIRMAN AND MANAGING DIRECTOR’S MESSAGE
Hemant Kanoria, Chairman and Managing Director, Srei Infrastructure Finance Limited
Now that we are through with our 25th year’s celebrations,
Dear
it is time to look ahead and gear up for the next 25 years
Shareholders,
and onwards on a path that will be more exciting, enriching,
challenging and fulfilling. It has been a great learning
experience and a journey of building long term partnerships.
We started the journey with a noble intention, pursued our
goals sincerely and built an organization on strong foundations
of values, ethics and principles. We are sure that the next
decades and centuries for this institution would be full of
opportunities and promises.
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