srivathsa power projects ltd Management discussions


SRIVATHSA POWER PROJECTS LIMITED ANNUAL REPORT 2005-2006 MANAGEMENT DISCUSSION AND ANALYSIS Operations The average operating capacity of the plant during the year is 81% PLF which is considered reasonable considering the flow of natural gas being made available and maximum of 110 million delivered energy units (Kwh) per annum agreed in PPA. Availability of Raw Material In terms of the Fuel Supply Agreement entered into with Gas Authority of India Limited, the Company has been allotted a firm quantity of 65,000 SCM per day and the agreed quantum of natural gas is being supplied by GAIL without any interruption. In addition, we are able to get gas upto 1,00,000 SCM based on the agreement entered with GAIL as and when required on fall back basis. Financial Status The Company has changed the method of calculation of depreciation from existing WDV method to SLM method for better presentation of financial results. As a result the company has written back the differential depreciation to the tune of Rs.1667.60 lakhs and credited to profit and loss account. The net worth of the company has increased by Rs.2888.45 lakhs during the year 2005-06 and thereby the total net worth of the company stands as on 31.03.2006 at Rs.4012.32 lakhs. Safety, Health and Environment During the year, there were no accidents occurred and reported on any count, which proves the compliance with all the safety regulations. The Company has been taking continuous efforts to protect the environment by way of growing the plants on a continuing basis within the factory premises. Industrial Relations The industrial relations continue to be harmonious at all levels in the organization during the year.