MIRA
INFORM REPORT
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Report Date : |
06.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
KSK ENERGY VENTURES LIMITED |
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Registered Office : |
8-2-293/82/A/431/A, Road No. 22, Jubilee Hills, Hyderabad – 500033,
Andhra Pradesh |
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Country : |
India |
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Date of Incorporation : |
21.02.2002 |
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Com. Reg. No.: |
038542 |
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CIN No.: [Company
Identification No.] |
U40109AP2002PTC038542 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDK00871D |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Project Development and Assets Management Company |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
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Status : |
New Project |
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Payment Behaviour : |
Usually Correct |
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Litigation : |
Clear |
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Comments : |
Subject has been successful in implementing various power projection
private sectors. Some more projects are in pipe – line. The company has brought house funds for new projects. However, no performance and financial details could be available. Even though, company can be considered normal for business dealings at
usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
8-2-293/82/A/431/A, Road No. 22, Jubilee Hills, Hyderabad – 500033,
Andhra Pradesh |
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Tel. No.: |
91 40 23559922/23/ 24/ 25 |
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Fax No.: |
91 40 23559930 |
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E-Mail : |
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Website : |
DIRECTORS
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Name : |
Mr. T.L. Sankar |
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Designation : |
Chairman |
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Name : |
Mr. S.R. Iyer |
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Designation : |
Independent Director |
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Profile: |
Formerly Managing Director, State Bank of India |
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Name : |
Dr Rajendra Singh |
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Designation : |
Independent Director |
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Profile: |
Formerly Chairman & Managing Director (CMD) -
NTPC |
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Name : |
Mr. Abhay Nalawade |
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Designation : |
Independent Director |
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Profile: |
Formerly Managing Director, Thermax Limited |
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Name : |
Mr. Girish Kulkarni |
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Designation : |
Independent Director |
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Profile: |
Managing Director, TDA Capital PartnersPrior -
ICICI Securities & IFD, ICICI |
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Name : |
Mr. Narayana Murthy |
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Designation : |
IDBI Nominee |
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Name : |
Mr. Kishore S |
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Designation : |
Promoter Director |
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Profile: |
FCA, Founder Director of K&S CG Extensive
advisory & consulting experience |
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Name : |
Mr. Sastry K.A. |
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Designation : |
Promoter Director |
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Profile: |
FCA, Founder Director of K&S CG Extensive
advisory & consulting experience |
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Name : |
Mr. Hari Kiran V |
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Designation : |
Promoter Director |
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Profile: |
FCA, Director of K&S CG Extensive advisory
& consulting experience |
KEY EXECUTIVES
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Management: |
Shri K.B. Raju - President - Corporate Affairs Shri Tanmay Das - Head - Financial Services Group Shri Ramesh Kumar - Head – Operations Shri C. Srinivas - Head - Accounts Group Shri Shishir Kalkonde - Head - Resources Group |
BUSINESS DETAILS
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Line of Business : |
Project Development and Assets Management Company |
GENERAL
INFORMATION
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Bankers : |
Not Available |
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Facilities : |
-- |
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Banking
Relations : |
Unknown |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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48000000 |
Equity Shares |
Rs. 10/- Each |
Rs. 480.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10800000 |
Equity Shares |
Rs. 10/- Each |
Rs. 108.000
Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
Unfortunately, no financials are available
from Registry Several Contracts were made at the all the possible management
levels but never received the requested details
LOCAL AGENCY
FURTHER INFORMATION
As per website
details
KSK Energy, a premier Project Development &
Asset Management company, was promoted by K&S Consulting Group Pvt Ltd in
2001 and structured as a holding company for their energy sector initiatives in
the country.
Currently with over USD 130 Million in total project
asset size and USD 50 Million( SIB Fund)under management, KSK is fast emerging
as a significant player in the unique "Bulk Consumers" segment of the
power sector in India.
KSK, with 4 operating assets totaling ~ 80 MW and 5
additional assets totaling ~ 320 MW under construction / setup, is probably the
only company in India pursuing this pioneering effort as a Business Model as
soon expected to control commissioned assets of ~ 400 MW
With exclusive focus on outsourced asset development, KSK
targets to work with leading corporates both in India & across Asia to
emerge as the leading outsourcing organization in the infrastructure
development domain.
KSK is currently working on a portfolio of projects
upward of 1000+ MW for development and acquisition over the next two years.
Thus, the company is poised for exciting growth in
the future with a target of controlled investments of USD 1.5 Billion &
1500+ MW power plant capacities in a geographically, consumer & fuel
diversified portfolio of assets
KSK's Project Development strategy involves its ability to leverage co-investment equity capital & other dedicated investment portfolio for investment in multiple power projects being undertaken.
Currently the Investment Manager for the "Small is Beautiful"(SIB) fund, a USD 50 Million, 12-year close - ended power sector venture fund.
In addition, currently in discussion with several Investment banks and overseas investors for raising additional equity capital of USD 75-100 Million for investment into their developed assets
KSK's development focus is not just restricted to
generation activity and the complete value chain of the Power sector. Some of
their complementary growth initiatives include foray into Fuel Management, O&M Contracting, DISCOM acquisition & other infrastructure assets.
Project under
operation
Four power plants have been successfully
implemented by KSK Energy.
v RVK Energy (20 MW) - Natural gas Based Plant in A.P
v Kasargod Power Corporation Limited (21 MW) - Liquid Fuel (LSHS) Based in Kerala
v MMS Steel & Power (11 MW) - Natural Gas Based in Tamil Nadu
v Coromandel Electric Company Ltd (26 MW) - Natural Gas Based in Tamil Nadu.
Project Under Setup
KSK is currently implementing five projects, with an installed capacity of 319 MW in states of Chattisgarh, AP, Rajasthan, Tamil Nadu and Assam. The capacities of the plant range from 25 MW to 150 MW, using varied fuels such as lignite, coal and natural gas.
The Business model of these plants is to address the power requirements of the Bulk consumer segment & include:
v Arasmeta Power (43 MW) for Lafarge - Worlds No1 Manufacturer of Cement
v Regency Power (58 MW) - Collective Captive of Major industrial consumers in Tamil Nadu
v Zuari Power (43 MW) - for Italicementi Group - Worlds No3 Manufacturer of Cement
v Marudhar Power (2 X 75 MW) - Collective Captive of Major industrial consumers in Rajasthan based on Captive Lignite Mining in the Power sector
v Maithili Power (25 MW) - Collective Captive of Major industrial consumers in Assam
Investment
Milestones
As the pioneering private power project developer in India, KSK has played a crucial role in the deregulation of the Indian market - since the 2003 Electricity Act. So far, the company has an amazing 8 year track record of delivering power solutions to a total capacity of 400 MW.
When it comes to investment, KSK operates on a range of equity finance channels. Till date, the company has an existing customer participation in project equity of US $ 18 m in the total US $ 38 m of equity committed. The company's unique "Small is beautiful" Fund is a Venture Capital Fund of Rs. 2310 million (US $ 50 m). It is funded by 21 major public sector banks / financial institutions in India.
The KSK – Lehman Joint Venture
Lehman Brothers, one of the world's biggest investment firms is all set to partly finance KSK's 1250 MW capacity power projects that are to be set up in association with Gujarat Mineral Development Corporation (GMDC) in Chhattisgarh and Jharkhand.
KSK in the London Stock exchange
Recently KSK was listed on the AIM market of the London Stock Exchange as KSK Power Venture Public Limited. The company was floated on AIM with a share price of 107 p and market capitalization of £ 138 million. Gross proceeds of the IPO were £ 31 million.
The Future
With an envisioned growth rate of 8% for 2007, India offers significant power generation opportunities in the near future. There is bound to be a significant and growing requirement for consistent power supply for Indian businesses. With its multi-fuel experience and unique business models such as "Captive Power" and "SIB", KSK has projects to the tune of 3,200 MW in the pipeline. The company is also well positioned to benefit from increasing tariffs and demand over the next decade.
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper payments
to government officials for engaging in prohibited transactions or with
designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE
GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.43.15 |
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UK Pound |
1 |
Rs.85.22 |
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Euro |
1 |
Rs.57.63 |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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