IN RE: HMM INFRA LIMITED, CHANDIGARH Vs. STATE

JUDGEMENT

(1.) THE applicant, HMM INFRA Limited, a company registered under the Companies Act, 1956 (1 of 1956) has made the present application under sub -section (1) of Section 15 of the Electricity Act, 2003 (36 of 2003) (hereinafter referred to as "the Act") read with Central Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of Trading licence and other related matters) Regulations, 2009 (hereinafter referred to as "the Trading Licence Regulations"), for grant of Category 'IV' licence for inter -State trading in electricity in whole of India, except the State of Jammu and Kashmir. The applicant company was incorporated under the Companies Act, 1956 on 5.11.1996. In accordance with Regulation 3 (3) of the trading licence regulations, a person applying for Category 'IV' trading licence should have net worth of Rs. 1 crore, and should have maintained minimum current ratio and liquidity ratio of 1:1, consistently for three years immediately preceding the year in which the application is made. However, the net worth for a lesser period will be considered if the applicant is incorporated, registered or formed within three years. The applicant has submitted the balance sheet for the years 2006 -07 to 2010 -11 and special audited balance sheet as on 29.2.2012. Based on the balance sheet for the years 2008 -09, 2009 -10 and 2010 -11 and special balance sheet as on 28.2.2012, net worth and liquidity ratios has been worked out as under:

(2.) THE net worth of the applicant is further represented by the following:

(3.) FROM the preceding para it is noted that the applicant does not meet the liquidity ratio requirement of 1:1 to be entitled to grant of licence for electricity trader.