MIRA INFORM REPORT

 

 

Report Date :

07.08.2007

 

IDENTIFICATION DETAILS

 

Name :

VESTAS RRB INDIA LIMITED

 

 

Registered Office :

GA – 1 / B-1 Extension, Mohan Co- Operative Industrial Estate, Mathura Road, New Delhi 110 044

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

01.12.1987

 

 

Com. Reg. No.:

29949

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

DELV05133C

 

 

PAN No.:

[Permanent Account No.]

AAACV0109N

 

 

Legal Form :

Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturing and Selling of Wind Tower Generators, Wind Electric Generators and Electric Power Generators.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

A

 

RATING

STATUS

PROPOSED CREDIT LINE

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

 

Maximum Credit Limit :

USD 2254400

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

Litigation :

Clear

 

 

Comments :

Subject is a well – established and reputed company having fine track. Available information indicates high financial responsibility of the company. Directors are reported as experienced and respectable businessmen. Trade relations are reported as fair. Business is active. Payments are always correct and as per commitments.

The company can be considered good for any normal business dealings at usual trade terms and conditions.

 

 

LOCATIONS

 

Registered Office / Works:

GA – 1 / B-1 Extension, Mohan Co- Operative Industrial Estate, Mathura Road, New Delhi 110 044, India

Tel. No.:

91-11-40552222

Fax No.:

91-11-40552200

E-Mail :

pawanshakthi@vestasrrb.com

Area :

1000 sq. fts.

Location :

Owned

 

 

Works :

17, Vembuliamman Koil Street, K K Nagar (West), Chennai 600 078,

Tel. No.:

91-44-23641111

Fax No.:

91-44-23642222

E-Mail :

vestasrrbchennai@vsnl.net

 

 

Head Office :

189, Sukhdev Vihar, New Delhi – 110 025, India

Tel. No.:

91-11-26848228/26838365/26327711/26327722

Fax No.:

91-11-26335160/26835760/26327733

E-Mail :

vrrb@gnmds.globalnet.ems.vsnl.net.in

vrrb@gndel-vestas.globalnet.ems.vsnl.net.in

 

 

Factory 1 :

No. 17 (Old No. 2), Venbuliamman Koil Street, K. K. Nagar (West), Chennai – 600 092, Tamilnadu, India

Tel. No.:

91-44-24842427 / 24838651 / 24838760 /24839188

Fax No.:

91-44-24834783

E-Mail :

vrrb@mmds.global.net.in

Area :

2 Acres

Location :

Owned

 

 

Branches :

Ø       Pune

Ø       Satara

Ø       Coimbatore

Ø       Muppandal

Ø       Palladam

Ø       Tenkasi

Ø       Madurai

Ø       Bangalore

Ø       Chitradurga

Ø       Gadag

Ø       Mavinahunda

Ø       Devangere

Ø       Jaipur

Ø       Jaisalmer

Ø       Baroda

 

 

DIRECTORS

 

Name :

Mr. Rakesh Bakshi

Designation :

Managing Director

Address :

189, Sukhdev Vihar, New Delhi – 110 065

Date of Birth/Age :

1958 / 44 Years

Qualification :

B.Sc.  (Mechanical Engineer)

Experience :

21 Years

Other Directorships :

1.       Solchrome Systems India Limited, India

2.       RRB Consultant & Engineering Limited, India

Qutab Plastic Private Limited, India

 

 

Name :

Mr. M. Nandagopal

Designation :

Director

Address :

Chennai, Tamilnadu, India.

Date of Birth/Age :

9th June, 1939

 

 

Name :

Mrs. Promilla Bakshi

Designation :

Director

Address :

161 Sukhdev Vihar, New Delhi – 110 025, India.

Date of Birth/Age :

30th August, 1938

 

 

Name :

Mr. Rajeev Bakshi

Designation :

Director

 

 

KEY EXECUTIVES

 

Name :

Brig. (Dr.) Kapil Mohan Vsm (Retd.)

Designation :

Chairman

Address :

46, Pusa Road, New Delhi

Date of Birth/Age :

29th July, 1929

Qualification :

Ph. D.

 

 

Name :

Mr. P. Krishnasamy

Designation :

Company Secretary

 

 

Name :

Mr. Sarvesh Kumar

Designation :

Chief Operating Officer

Date of Birth/Age :

1963

Qualification :

M. Com

Experience :

19 Years

Previous Employment:

Solchrome Systems India Limited, India

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Names of Shareholders

No of Shares

 

% of Shares

 

Mr. Kapil Mohan

10,000

--

Ms. Promilla Bakshi

3,300

0.05 %

Ms. Pushpa Mohan

100

-

Mr. Rakesh Bakshi

13,61,800

24.2 %

Ms. Seema Bakshi

1,50,100

2.6 %

Mr. Sarvesh Kumar

100

--

RRB Consultant & Engineers Private Limited

13,54,500

24.1 %

Vestas Wind Systems A/S, Denmark

27,50,000

48.9 %

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturing and Selling of Wind Tower Generators, Wind Electric Generators and Electric Power Generators.

 

 

 

 

Products :

Products Descriptions

 

ITC Code

Wind Electric Generators

841280.04

Power Generation, Transmission & Distribution

--

 

 

 

 

Imports :

 

 

Products :

Raw Materials

 

Countries :

Germany, Korea, Japan

 

 

 

 

Terms :

 

 

Selling :

Against Cash / Contract and Credit (30 days)

 

 

 

 

Purchasing :

Against Contract /  L/C (60days) / Credit (30 days)

 

 

 

PRODUCTION STATUS

(for the year ended 31st March, 2002)

Class of Goods

Licensed Capacity

Installed Capacity

Actual Production

Vestas Type V27-225 KW

400 Nos.

NA

28 Nos.

Wind Electric Generator (WEGs) Vestas Type V39-500 KW WEGs

NA

100 Nos.

28 Nos.

Vestas Type V39-500 KW WEGs

NA

NA

23 Nos.

 

 

GENERAL INFORMATION

 

Customers :

Ø       Manufacturer

Ø       End Users

Ø       Government Bodies

Ø       Tamilnadu Electricity Board, India

 

 

No. of Employees :

237 (25 in Office, 200 in Factory, 12 in Branch Office)

 

 

Bankers :

Ø       Canara Bank

Maharani Bagla, New Delhi

(The company enjoys credit limits facility of Rs. 100.000 millions dated 22.09.2003 from its’ bankers)

 

Ø       Andhra Bank

Green Park, New Delhi – 110 016

 

Ø       IDBI Bank

Chennai, Tamilnadu

 

Ø       ICICI Bank Limited

New Delhi

 

Ø       Indian Bank

New Friends Colony, New Delhi

 

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :
  1. Ferguson and Company

Chartered Accountants

 

 

Associates/Subsidiaries :

·         RRB Consultants & Engineers Private Limited, India

·         Qutab Plastics Private Limited, India

·         Solchrone Systems India Limited, India

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

15000000

Equity shares

Rs. 10/- each

Rs. 150.000 millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

5620000

Equity shares

Rs. 10/- each

Rs. 56.200 millions

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2006

31.03.2005

31.03.2004

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

56.200

56.200

56.200

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

507.400

328.500

168.500

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

563.600

384.700

224.700

LOAN FUNDS

 

 

 

1] Secured Loans

269.900

292.400

0.000

2] Unsecured Loans

0.000

0.000

0.000

TOTAL BORROWING

269.900

292.400

0.000

DEFERRED TAX LIABILITIES

0.000

0.000

0.000

 

 

 

 

TOTAL

833.500

677.100

224.700

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

323.200

278.400

225.200

Capital work-in-progress

0.000

0.000

0.000

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
567.300

631.800

297.800

 

Sundry Debtors
1818.300

1614.200

510.300

 

Cash & Bank Balances
388.400

133.400

441.200

 

Other Current Assets

0.000

0.000

0.000

 

Loans & Advances
203.700

167.000

58.100

Total Current Assets
2977.700

2546.400

1307.400

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
2373.300

2069.500

1300.500

 

Provisions
94.100

78.200

7.400

Total Current Liabilities
2467.400

2147.700

1307.900

Net Current Assets
510.300

398.700

(0.500)

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

833.500

677.100

224.700

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

31.03.2006

31.03.2005

31.03.2004

Sales Turnover

6012.700

5513.200

2568.500

Other Income

111.100

20.000

(41.800)

Total Income

6123.800

5533.200

2526.700

 

 

 

 

Profit/(Loss) Before Tax

267.600

208.400

88.000

Provision for Taxation

86.100

50.900

28.700

Profit/(Loss) After Tax

181.500

157.500

59.300

 

 

 

 

Expenditures :

 

 

 

 

Raw materials

4238.300

4010.700

0.000

 

Excise duty

0.000

0.000

0.000

 

Power and fuel cost

0.000

0.000

1819.600

 

Other manufacturing expenses

1136.600

938.500

378.400

 

Employee cost

48.000

34.100

29.800

 

Selling and administration expenses

193.200

150.900

70.900

 

Miscellaneous expenses

206.600

166.500

117.300

 

Interest and financial charges

0.000

0.000

0.000

 

Depreciation

33.500

24.100

22.700

Total Expenditure

5856.200

1314.100

2438.700

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2006

31.03.2005

31.03.2004

Debt – equity ratio

 
0.59

0.48

0.00

Long term debt equity ratio

 
0.00

0.00

0.00

Current ratio

 
1.07

1.03

0.99

TURNOVER RATIOS

 
 

 

 

Fixed assets

 
10.70

11.38

6.13

Inventory

 
10.03

11.86

11.94

Debtors

 
3.50

5.19

4.25

Interest cover ratio

 
0.00

0.00

0.00

Operating profit margin (%)

 
5.01

4.22

4.31

Profit before interest and tax margin (%)

 
4.45

3.78

3.43

Cash profit margin (%)

 
3.58

3.29

3.19

Adjusted net profit margin (%)

 
3.02

2.86

2.31

Return on capital employed (%)

 
35.43

46.22

43.33

Return on net worth (%)

 
38.28

51.69

29.11

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

HISTORY

 

The company was incorporated on 1st December, 1987 at New Delhi having Company Registration Number 29949.

 

The company has been promoted by RRB Consultants and Engineering Private Limited in Technical Collaboration with Vestas Wind System A/S, Denmark.

 

Subject is an Indo-Danish Joint Venture, for manufacture of Wind Electric Generators promoted by RRB Consultants & Engineers India Private Limited (RRB) and Vestas Wind Systems A/S (Vestas), Denmark, was established in the year 1987 with the principal object of harnessing power from wind. 

 

As on 25th July, 1999 about 698 Vestas brand Wind Electric Generators aggregating 151.595 were are operating successfully in India at different locations in the state of Gujarat, Maharashtra, Tamilnadu, Orissa, Madhya Pradesh, Kerala and Karnataka.  Another 30 Nos. vestas type V39-500 KW and 66 Nos. V27-225 KW wind Electric Generators (aggregating to 29.850 MW) are under, installation at various locations in Tamilnadu, Maharashtra and Karnataka. The vestas type V25-200 KW wind electric generators installed in the year 1990 on behalf of the Department of Non-Conventional Energy Sources (DNES) and DANIDA m* co-operation with the Gujarat Electricity Board (GEB) and Gujarat Energy Development Agency (GEDA) and the company.

 

 

 

 

 

BUSINESS

Vestas Wind Systems A/S, Denmark is one of the largest manufacturer of Wind Electric Generators in the world.  The production department of Vestas Wind Systems has been accredited the ISO 9001 Quality Standards.

 

Subject are pioneer in the industry and their brand,  “Vestas” has stood for quality product and for the ability to evolve suitable designs to cover every aspect of a Wind Farm Project. 

 

 

 

 

Performance and Financial Results:

 

Duaring the year under your company had sold 3 Nos. Vestas Type V27-225 KW Wind Electirc Generators (WEGs) and 232 Nos. Vestas Type V39-500 KW with mtr. Rotor / Pawan Shakthi 600 KW WEGs as against 3 Nos. Vestas Type V27-225 KW WEGs and 216 Nos. Vestas Type V39-500 KW with 47 mtr. Rotor WEGs sold during the previous year. Comparative figures of sales turnover etc. for the year 2004 – 05 and 2005 – 06 are summarized.

 

 

It is in trade terms with :-

 

·         Amar Polymers

·         Ascott Electricals

·         Bala Industries

·         Hydroquip Hydrolics Private Limited

·         Kalpana Gears Private Limited

·         Kamak Plastics

·         Pream Engineering

·         Trinity Electrical Industries

·         Venkateswara Fibre Glass

·         Vinai Electronic Company

·         Vestas Wind System A/S, Denmark

·         Container Lift Carriers Limited, Chennai, Tamilnadu

·         Jagdish Furnisher, Chennai, Tamilnadu

·         L & T Bed Frame Limited, Chennai, Tamilnadu

·         PNR Construction Private Limited, Chennai, Tamilnadu

·         Kalpana Overseas Private Limited

·         Megha Tech Control

 

 

 

 

Fixed Assets

Ø       Land

Ø       Building

Ø       Factory Building

Ø       Factory Office

Ø       Plant & Machinery & Tools

Ø       Plant & Machinery & Vestas Type V39-500 Kwwegs

Ø       Plant & Machinery Vestas Type V27-225 Kwwegs

Ø       Furniture & Fixtures

Ø       Office Equipments

Ø       Electrical Fittings And Vehicles

 

 

 

 

As per website details:

Company Profile:

Subject has been pioneering the cause of wind power in India since 1987. Today, the ISO 9001:2000 and ISO 14001:2004 certified company offers total custom-built turnkey solutions in the area of harnessing wind energy for power generation. This includes site selection, micrositing, preparation of detailed project report, project engineering, erection, commissioning and after sales service of the wind power projects.

 

 

 

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 records 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

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.40.37

UK Pound

1

Rs.81.97

Euro

1

Rs.55.73

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

7

PAID-UP CAPITAL

1~10

7

OPERATING SCALE

1~10

7

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

8

--PROFITABILIRY

1~10

6

--LIQUIDITY

1~10

7

--LEVERAGE

1~10

7

--RESERVES

1~10

7

--CREDIT LINES

1~10

7

--MARGINS

-5~5

--

DEMERIT POINTS

 

 

--BANK CHARGES

YES/NO

YES

--LITIGATION

YES/NO

NO

--OTHER ADVERSE INFORMATION

YES/NO

NO

MERIT POINTS

 

 

--SOLE DISTRIBUTORSHIP

YES/NO

NO

--EXPORT ACTIVITIES

YES/NO

YES

--AFFILIATION

YES/NO

YES

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

63

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

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

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

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.

 

Small

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

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NR

In view of the lack of information, we have no basis upon which to recommend credit dealings

No Rating

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions