Mumbai, April 21: Power utility major BSES Ltd has reported a 42 per cent decline in net profit to Rs 162 crore for the year ended March 2003, as against Rs 281 crore in the previous fiscal. The drop in profit was due to a change in the billing policy.

BSES explained the decline in net profit due to a credit of Rs 135 crore given to customers on reconciliation/settlement of accounts during the year.

Meanwhile, BSES board approved the appointment of Reliance Industries vice chairman and managing director Anil D. Ambani as chairman and managing director of BSES. He led a board reshuffle that saw former Chief of Army Staff, General V. P. Malik joining as an independent director. Earlier, Ambani was holding office as non-executive chairman.

BSES reported marginal drop in total income to Rs 2,777 crore as against Rs 2,783 crore posted in the previous fiscal.

The board has recommended a dividend of Rs 4.40 per share on fully paid up equity shares of Rs 10 each, the company said in a release here today.

“Excluding the impact of this change in billing policy, the performance highlights of the company would have seen net profits at Rs 297 crore as against Rs 281 crore in the corresponding previous year,” the company said.

The board has also approved the appointment of Satish Seth as executive vice-chairman and S. L. Rao, first chairman of Central Electricity Regulatory Commission (CERC), Leena Srivastava, an energy economist and J. Ramachandran, professor of business policy and strategy at IIM, Bangalore, as independent directors of the company.