MIRA
INFORM REPORT
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Report Date : |
27.09.2007 |
IDENTIFICATION DETAILS
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Name : |
PIPAVAV POWER DEVELOPMENT COMPANY LIMITED |
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Registered Office : |
NTPC
Bhawan, SCOPE Complex 7, Institutional Area, |
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Country : |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
20-12-2001 |
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Com. Reg. No.: |
113508 |
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CIN No.: [Company
Identification No.] |
U40105DL2001GOI113508 |
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Legal Form : |
A
Closely Held Public limited liability company. |
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Line of Business : |
Electricity
Generating Company with the Objectives of Construction, Operation and
Maintenance of Super Thermal Power Stations and their Associated Transmission
Lines. |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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. |
Small |
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Maximum Credit Limit : |
-- |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an old and established company having moderate track
records. Company’s profitability is under severe pressure. It has some
accumulated losses. Payments are reported as slow but correct. The company can be considered normal for small business dealings at
usual trade terms and conditions, with slight caution initially. |
LOCATIONS
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Registered
Office : |
NTPC
Bhawan, SCOPE Complex 7, Institutional Area, |
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Tel.
No.: |
91-11-24361557/24361012/24360100
(10 Lines) |
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Fax
No.: |
91-11-24368417/24361018 |
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E-Mail
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Website
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DIRECTORS
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Name : |
Mr. T. Sankaralingam |
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Designation : |
Director |
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Name : |
Mr. D. K. Jian |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Electricity
Generating Company with the Objectives of Construction, Operation and Maintenance
of Super Thermal Power Stations and their Associated Transmission Lines. |
GENERAL INFORMATION
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
K. K. Jain and Company Chartered Accountants |
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Associates/Subsidiaries : |
Ř
Gujarat Power Corporation Limited Ř
NTPC Electric Supply Company Limited Ř
NTPC Hydro Limited Ř
NTPC Vidyut Vyapar Nisam Limited Ř
Vaishali Power generating Company Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,00,00,000 |
Equity
Shares |
Rs.10/- each |
Rs. 100.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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3,70,000 |
Equity
Shares |
Rs.10/- each |
Rs. 3.700
Millions |
FINANCIAL DATA
[all figures are in
Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
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31.03.2007 |
31.03.2006 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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3.700 |
3.700 |
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2] Share Application Money |
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0.000 |
0.000 |
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3] Reserves & Surplus |
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0.000 |
0.000 |
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4] (Accumulated Losses) |
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[3.716] |
[3.690] |
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NETWORTH |
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[0.016] |
0.010 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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2] Unsecured Loans |
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0.000 |
0.000 |
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TOTAL BORROWING |
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0.000 |
0.000 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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[0.016] |
0.010 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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0.000 |
0.000 |
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Capital work-in-progress |
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0.000 |
0.000 |
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INVESTMENT |
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0.000 |
0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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0.000 |
0.000 |
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Sundry Debtors |
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0.000 |
0.000 |
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Cash & Bank Balances |
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0.009 |
0.030 |
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Other Current Assets |
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0.000 |
0.000 |
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Loans & Advances |
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60.500 |
60.500 |
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Total
Current Assets |
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60.509 |
60.530 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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60.525 |
60.520 |
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Provisions |
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Total
Current Liabilities |
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60.525 |
60.520 |
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Net Current Assets |
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[0.016] |
0.010 |
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MISCELLANEOUS EXPENSES |
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0.000 |
0.000 |
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TOTAL |
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[0.016] |
0.010 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Profit/(Loss) Before Tax |
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[0.025] |
[0.040] |
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Provision for Taxation |
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-- |
-- |
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Profit/(Loss) After Tax |
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[0.025] |
[0.040] |
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Expenditures : |
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Filing fees |
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0.003 |
0.003 |
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Professional
Fees |
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0.001 |
0.000 |
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Secretarial
audit fees |
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0.004 |
0.004 |
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Audit fees |
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0.011 |
0.013 |
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TravelIing
Expenses |
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0.000 |
0.018 |
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Miscellaneous
Expenses |
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0.006 |
0.001 |
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Total Expenditure |
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0.025 |
0.039 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
31.03.2006 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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[0.04] |
[0.07] |
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Return on Investment (ROI) (PBT/Networth) |
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[1.56] |
[4.00] |
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Debt Equity Ratio (Total Liability/Networth) |
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[3782.81] |
[6052.00] |
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Current Ratio (Current Asset/Current Liability) |
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1.00 |
1.00 |
LOCAL AGENCY FURTHER INFORMATION
OPERATIONAL REVIEW
The Company was
incorporated as a wholly owned subsidiary of NTPC under the Presidential Directive
with a view to develop Pipavav Power Project in the State of
As per the
provisions of MOD, various studies e. i. Environment Impact Assessment (EIA)
Study, Techno-Economic study for fuel, Seismic study etc. have already been
carried out. Based on the fuel study report, NTPC took up with Ministry of Coal
(through Ministry of Power) for allocation of a suitable mine block (Aunli in
Talcher) way back in June, 2005 and since it was not available, NTPC applied
for allocation of another block 'Nuagaon Telisali' in the same Talcher Block.
As confirmation on coal mine allocation was not forthcoming, NTPC applied for
long term coal linkage in June, 2006 for fuel tie-up.
As agreed to in
MOD, while NTPC was engaged in fulfilling the responsibility for selection of
suitable fuel for the project based on techno-economic considerations,
Principal Secretary (Energy & Petrochemicals), Govt. of Gujarat through its
letter dated 22nd September, 2006 communicated that the Government of Gujarat
has decided to develop the Pipavav project with a strategic partner on fast
track basis using imported coal and/or other suitable fuel. The Company was of
the view that imported coal might not be economically sustainable and instead
indigenouscoal or blend of imported and indigenous coal might be a better
option.
However, on
receipt of the letter from Government of Gujarat, NTPC vide letter dated
11.12.06 had approached the Ministry of Power to seek Ministry's approval for
NTPC dissociating from the project/ Joint Venture subject to amicable
settlement of issues and reimbursement of the expenditure incurred so far by
NTPC (with interest) by Government of Gujarat/ its agencies.
Ministry of Power
through its letter dated May 24, 2007 has conveyed the approval of competent authority
to allow NTPC Limited to dissociate from Pipavav Power Project (1000MW) - a
Joint Venture between NTPC and Government of Gujarat in view of Government of
Gujarat's decision to develop the project with another strategic partner.
Accordingly, process has been initiated for settlement of dues of NTPC with
GPCL/ Government of Gujarat and thereafter, steps for winding up of Pipavav
Power Development Company Limited or transferring the shares to GPCL/
Government of Gujarat agencies as the case may be, shall be taken up.
FINANCIAL REVIEW
During the year
Company has incurred loss of Rs. 0.025 Million as against loss of Rs. 0.040
Million incurred last year. The loss were incurred on account of various
charges like filing fees, professional fees, secretarial audit fees, traveling
expenses and other miscellaneous expenses
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.39.70 |
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1 |
Rs.80.10 |
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Euro |
1 |
Rs.56.09 |
SCORE & RATING EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
3 |
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PAID-UP CAPITAL |
1~10 |
3 |
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OPERATING SCALE |
1~10 |
3 |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
4 |
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--PROFITABILIRY |
1~10 |
2 |
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--LIQUIDITY |
1~10 |
3 |
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--LEVERAGE |
1~10 |
3 |
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--RESERVES |
1~10 |
3 |
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--CREDIT LINES |
1~10 |
3 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
NO |
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--LITIGATION |
YES/NO |
NO |
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--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
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MERIT POINTS |
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--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
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--EXPORT ACTIVITIES |
YES/NO |
NO |
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--AFFILIATION |
YES/NO |
YES |
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--LISTED |
YES/NO |
NO |
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--OTHER MERIT FACTORS |
YES/NO |
YES |
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TOTAL |
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27 |
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
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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. |
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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