MIRA
INFORM REPORT
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Report Date : |
22.03.2007 |
IDENTIFICATION
DETAILS
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Name : |
GVK INDUSTRIES LIMITED |
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Registered Office : |
"Paigah House", 156-159, Sardar Patel Road, Secunderabad - 500 003 |
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Country : |
India |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
18.06.1992 |
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Com. Reg. No.: |
01-14388 |
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CIN No.: [Company
Identification No.] |
U99999AP1992PLC014388 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
HYDG00853G |
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PAN No.: [Permanent
Account No.] |
AAACG7499J |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
The company is engaged in the business of Power Generation |
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 : |
USD 22000000 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well – established and reputed company having satisfactory
track. Directors are reported as experienced and respectable businessmen.
Trade relations are reported as fair. Business is active. Payments are
usually correct and as per commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
"Paigah House", 156-159, Sardar Patel Road, Secunderabad - 500 003 |
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Tel. No.: |
91-40-27902663/64 |
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Fax No.: |
91-40-27902665 |
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E-Mail : |
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Website : |
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Project Location : |
Jegurupadu,
Kadiam Mandal, East Godavari District, Andhra Pradesh |
DIRECTORS
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Name : |
Mr. G. V. Krishna Reddy |
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Designation : |
Chairman |
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Age: |
69 Years |
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Qualification: |
BA |
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Experience: |
41 Years |
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Name : |
Mr. G. Indira K. Reddy |
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Designation : |
Director |
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Name : |
Mr. Som Bhupal |
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Designation : |
Managing Director |
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Name : |
Mr. G. V. Sanjay Reddy |
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Designation : |
Vice Manager |
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Age: |
41 Years |
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Qualification: |
B. Tech, MBA |
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Experience: |
16 Years |
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Name : |
Mr. Devi Dayal |
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Designation : |
Director (IDBI Nominee) |
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Name : |
Mr. Ajay Lai |
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Designation : |
Director |
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Name : |
Mr. Ajit Singh |
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Designation : |
Director |
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Name : |
Dr. Abid Hussain |
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Designation : |
Director |
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Name : |
Dr. A Ramakrishna |
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Designation : |
Director |
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Name : |
Mr. K Balarama Reddi |
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Designation : |
Director |
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Name : |
Mr. Air Chief Marshal I H Latif |
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Designation : |
Director |
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Name : |
Mr. A Issac George |
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Designation : |
Director |
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Name : |
Mr. V Rama Rao |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. D Giridhar Reddy |
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Designation : |
Assistant Company Secretary |
BUSINESS DETAILS
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Line of Business : |
The company is engaged in the business of Power Generation |
PRODUCTION STATUS
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity |
Actual
Production |
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Generation |
MW |
400.00 |
216.82 |
12962.55 KWH |
GENERAL
INFORMATION
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No. of Employees : |
250 |
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Bankers : |
v
State Bank
of India, Hyderabad, Andhra Pradesh v
IndusInd
Bank Limited, Hyderabad, Andhra Pradesh v
IDBI Bank
Limited, Hyderabad, Andhra Pradesh v
Andhra Bank,
Hyderabad, Andhra Pradesh v
Indian
Overseas Bank, Hyderabad, Andhra Pradesh v
ICICI Bank
Limited, Hyderabad, Andhra Pradesh v
Deutsche
Bank, Hyderabad, Andhra Pradesh v
BNP Paribas,
Hyderabad, Andhra Pradesh |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Brahmayya &
Company Chartered Accountants |
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Address : |
403 & 404, 4th
Floor, Golden Green Apartments, Erranmanzil Colony, Hyderabad – 500 082,
Andhra Pradesh |
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Memberships : |
Confederation of
Indian Industry |
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Collaborators : |
Nil |
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Associates/Subsidiaries : |
v
Taj GVK
Hotels & Resorts Limited v
Orbit Travel
and Tours (Private) Limited v
Novopan
Industries Limited v
Sheraton
Estates Private Limited v
Marriot Land
Holdings (Private) Limited v
Pace Estates
(Private) Limited |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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350,000,000 |
Equity Shares |
Rs.10/- each |
Rs.3,500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
262,000,000 |
Equity Shares |
Rs.10/- each |
Rs.2,620.000 millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
2620.000 |
2620.000 |
2620.000 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
2930.895 |
2075.312 |
1863.800 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
5550.895 |
4695.312 |
4483.800 |
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LOAN FUNDS |
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1] Secured Loans |
7401.459 |
6378.627 |
2962.300 |
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2] Unsecured Loans |
564.675 |
1100.000 |
427.500 |
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TOTAL BORROWING |
7966.134 |
7478.627 |
3389.800 |
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DEFERRED TAX LIABILITIES |
230.027 |
1282.151 |
0.000 |
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TOTAL |
13747.056 |
13456.090 |
7873.600 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
5508.640 |
5927.178 |
6406.400 |
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Capital work-in-progress |
7092.446 |
6030.081 |
812.200 |
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INVESTMENT |
6.013 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
230.513
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331.541 |
325.900 |
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Sundry Debtors |
769.363
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861.057 |
850.000 |
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Cash & Bank Balances |
519.458
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950.483 |
484.100 |
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Other Current Assets |
0.000
|
0.000 |
0.000 |
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Loans & Advances |
281.709
|
270.751 |
322.400 |
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Total
Current Assets |
1801.043
|
2413.832 |
1982.400 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
635.052
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1049.767 |
1431.900 |
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Provisions |
27.489
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43.134 |
37.300 |
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Total
Current Liabilities |
662.541
|
1092.901 |
1469.200 |
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Net Current Assets |
1138.502
|
1320.931 |
513.200 |
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MISCELLANEOUS EXPENSES |
1.455 |
177.900 |
141.800 |
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TOTAL |
13747.056 |
13456.090 |
7873.600 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
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Sales Turnover |
2759.951 |
2969.623 |
3154.700 |
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Other Income |
26.520 |
77.336 |
50.200 |
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Total Income |
2786.472 |
3046.960 |
3204.900 |
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Profit/(Loss) Before Tax |
364.192 |
550.094 |
485.300 |
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Provision for Taxation |
(790.136) |
42.407 |
0.500 |
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Profit/(Loss) After Tax |
1154.328 |
507.687 |
484.800 |
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Earnings in Foreign Currency : |
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Export Earnings |
1.366 |
1.868 |
NA |
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Total Earnings |
1.366 |
1.868 |
NA |
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Imports : |
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Stores & Spares |
76.522 |
108.017 |
NA |
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Capital Goods |
2.129 |
3130.045 |
NA |
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Total Imports |
78.651 |
3238.062 |
NA |
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Expenditures : |
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Cost of Goods Sold |
0.000 |
0.000 |
1399.800 |
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Administrative Expenses |
441.164 |
450.983 |
226.000 |
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Purchases made for re-sale |
0.000 |
0.000 |
37.600 |
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Salaries, Wages, Bonus, etc. |
0.000 |
0.000 |
27.400 |
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Interest |
110.892 |
156.251 |
267.700 |
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Power & Fuel |
1358.342 |
1383.038 |
0.000 |
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Depreciation & Amortization |
511.879 |
506.592 |
505.900 |
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Other Expenditure |
0.000 |
0.000 |
255.200 |
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Total Expenditure |
2422.277 |
2496.864 |
2719.600 |
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KEY RATIOS
|
PARTICULARS |
31.03.2006 |
31.03.2005 |
31.03.2004 |
|
Debt Equity Ratio |
1.51 |
1.18 |
0.78 |
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Long Term Debt
Equity Ratio |
1.38 |
1.04 |
0.65 |
|
Current Ratio |
0.92 |
0.85 |
0.89 |
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TURNOVER RATIOS |
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Fixed Assets |
0.28 |
0.31 |
0.32 |
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Inventory |
10.09 |
9.28 |
9.86 |
|
Debtors |
3.48 |
3.57 |
3.62 |
|
Interest Cover
Ratio |
4.22 |
4.46 |
2.81 |
|
Operating Profit
Margin (%) |
34.90 |
39.84 |
39.91 |
|
Profit Before
Interest and Tax Margin (%) |
16.84 |
23.24 |
23.87 |
|
Cash Profit
Margin (%) |
67.66 |
33.25 |
31.40 |
|
Adjusted Net
Profit Margin (%) |
49.60 |
16.64 |
15.37 |
|
Return on Capital
Employed (%) |
3.74 |
7.19 |
10.16 |
|
Return on Net
Worth (%) |
27.44 |
11.06 |
11.43 |
LOCAL AGENCY
FURTHER INFORMATION
History
GVK Industries Limited., a part of GVK Group( a transnational business group which has strong presence in infrastructure) is the first independent power producer in India with Jegurupadu CCPP's commercial production in July 4, 1996.
The company's Jagurupaddu CCPP has a power generation capacity of 216 MW using
natural gas. The power produced by the company is supplied to AP Transco.
Earlier the Government of Andhra Pradesh which has approved an addition
of 359 MW in May 2000 has amended its approval and permeited the company to expand
its capacity at the same site by 440 MW. to be taken up in two stages of 220 MW
each. This is due non allocation of sufficient quantity of Natural Gas by MOP
to the expansion project. Alstom Power(Switzerland) has been selected as the
EPC Contractor. The project cost, estimated at Rs.7600 million is proposed to
be financed entirely by Term Loan assistance from FII/Banks in the form of a
Rupee term loan of Rs.6080 million and foreign currencey loan of US$32.44
million. IDBI has underwritten the entire debt and taking an exposure of
Rs.3000 million in the project and given an LOI in this regard to the company.
The company’s fixed assets of important value include land & site development, factory building. residential colony buildings, roads, plant & machinery, data processing equipments, vehicles, furniture & fixtures, electrical equipments, office equipments and air-conditioners
Review of
Operations:
During the year under review, the Company has achieved a Plant Load
Factor (PLF) of 68.52% as compared to 75.30% of the previous year. The
reduction in PLF is mainly attributable to the restricted gas supply from GAIL
as well as AP Transco's order not to use naphtha as a supplementary fuel and
dispatch instructions to limit the daily generation to synchronize with their
day to day demand. The Plant Availability Factor (PAF) for the year is 95.70%
when compared to 98.02% of the previous year.
Expansion
Project:
The Directors wish to inform you that the Company has completed the erection of
220MW Expansion of Jegurupadu Project (Stage-I of Phase II). Even though, there
was a delay in back-charging of the 400KV switch yard by APTRANSCO, the same
was successfully completed by charging the auxiliary equipment and power
transformers during September-October, 2005. The testing and commissioning of
the plant was completed on 8th October, 2005. The Gas Turbine and the Steam
Turbine were synchronized with the grid on 9th October, 2005 and 11th November,
2005 respectively.
The Company had also completed the pre-commissioning and load tests on
the Gas Turbine, Steam Turbine and HRSG apart from completing the performance
guarantee tests on 22nd January, 2006 in presence of the Independent Engineer,
Owners's Engineer and Lenders Engineer. The company will be in a position to
declare the Project for Commercial Operation, only after receiving the back
charging facility from APTRANSCO in terms of PPA and the natural gas from
GAIL.
Members are aware that the availability of natural gas is a major cause
of concern to all the gas based power projects. Even though the Government of
India (GOI) and Ministry of Petroleum and Natural Gas (MOPNG) have agreed to
supply the Natural Gas to all the new projects on prorata basis, they
understand that the Government of Andhra Pradesh had advised GOI and MOPNG not
to supply the gas on prorata basis to all the new projects, since the current
availability of gas is not even adequate for the existing power projects.
Given the above, the Company is not getting allocation of gas for the
Phase-II and the plant is shutdown from 22.01.2006, after completing all the
performance tests. The Company has taken over the plant from EPC contractor
i.e., ALSTOM on 12.05.2006 and the same is being kept under preserved condition
as per the OEM recommendations till GAIL starts supplying the Gas for operation
of the plant.
As per website
details
Profile
Constantly transforming challenges into opportunities, GVK enables its employees to dream collectively and achieve them by treating human capital as centre to corporate strategy. Each GVK enterprise takes great pride in its being the destination for many talented, creative people who are motivated by a common vision and feel inspired to build on ideas that provide answers to questions like "where are they going"? and "what they wish to accomplish"?. 'Pioneers', 'Thought Leaders' and 'Trendsetters', they have prepared ourselves to harness opportunities and often helped create them. From Power to Transportation, from Hotels to Urban Infrastructure, from Ports to Dams, they have built them all".
G V Krishna Reddy, Chairman
Having an asset base of Rs 50,000 Million (1,111 Million USD), GVK group of companies boasts of prestigious projects on hand worth about Rs 1,50,000 Million (3,333 Million USD). A turnover of Rs 17,000 Million (378 Million USD) for 2006-07 speaks volumes of their mission being driven by values. Backed by a strength of 7,000 professionals with sheer capabilities and technical acumen, GVK with its imprint in a wide spectrum of domains, helps its valued customers reach their long-term business objectives.
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.43.70 |
|
UK Pound |
1 |
Rs.85.90 |
|
Euro |
1 |
Rs.58.25 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
7 |
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--PROFITABILIRY |
1~10 |
5 |
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--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
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--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
|
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
54 |
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 |
|