The Hindu Business Line : Haldia Development Authority assets valued at Rs 605 cr

IN a recently-completed exercise, the total value of the fixed assets of Haldia Development Authority (HDA) in West Bengal has been placed at Rs 605.78 crore.

The fixed assets valuation exercise has been carried out by Srei Capital Markets Ltd (SCML) under a mandate, and HDA, according to State Government sources, is the first such body in West Bengal to have carried out such an exercise.

Restructuring of the financial statements, carried out by SCML, is expected to enhance the borrowing capacity of HDA, and also create an asset base, which could be offered for purposes of `Securitisation' while raising financial resources. Needless to add, the existing financial resources of the Authority are said to be grossly inadequate to meet its capital improvement programme needs necessary for proper maintenance and fixed assets upgradation and replacement.

It is pointed out that this was a prequel to further strengthening of the balance sheet of HAD for future infrastructure development projects. The valuation exercise, the sources said, was done in conformity with the relevant accounting standards of the Institute of Chartered Accountants of India (ICAI), essentially involving determination of the `Replacement Cost' and `Balance Useful Life', and preparation of a Fixed Assets Register (FAR) for HDA.

According to HDA authorities, to facilitate future activities, detailed FARs have been prepared by Srei Capital for the first time for HDA, for both moveable and immoveable property. The types of assets broadly are moveable assets, immoveable assets, water supply, roads and electrical installation.

The Authority renders essential services such as water supply, conservancy, sewerage and drainage and street lighting, and supports ancillary services such as health and education. Rendering of such services, officials point out, pre-supposes creation and maintenance of capital-intensive infrastructure assets such as water supply, land and building, roads, parks and squares and markets.

It is learnt that the assets in the record books were physically verified by a multi-disciplinary team of experts/registered valuers, and the valuation was based on `Historical Cost' wherever data was available, and where no information is there, on `Replacement Cost'.