MIRA
INFORM REPORT
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Report Date : |
27.09.2007 |
IDENTIFICATION DETAILS
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Name : |
VAISHALI
POWER GENERATING 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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Com. Reg. No.: |
55-153167 |
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CIN No.: [Company
Identification No.] |
U40102DL2006GOI153167 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
PTNV00518A |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business : |
Generation of Electricity |
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 : |
USD 3900000 |
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Status : |
New Company |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is a new company and yet to commence commercial operations. Directors
are reported as experienced and respectable businessmen. Trade relations are
fair. Payments are reported as slow but correct. The company can be considered or small business dealings 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. A. K. Singhal |
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Designation : |
Director |
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Name : |
Mr. T. Sankaralingam |
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Designation : |
Director |
BUSINESS DETAILS
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Line of Business : |
Generation of Electricity |
GENERAL INFORMATION
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Bankers : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Kapoor Jain and Associates Chartered Accountants |
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Associates/Subsidiaries : |
Ø
Pipavav Power Development Company Limited Ø
Gujarat Power Corporation Limited Ø
NTPC Electric Supply Company Limited Ø
NTPC Hydro Limited Ø
NTPC Vidyut Vyapar Nisam Limited |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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100,000,000 |
Equity
Shares |
Rs.10/- each |
Rs. 1000.000 Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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1,00,000 |
Equity
Shares |
Rs.10/- each |
Rs. 1.000
Million |
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 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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1.000 |
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2] Share Application Money |
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0.000 |
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3] Reserves & Surplus |
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974.961 |
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4] (Accumulated Losses) |
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0.000 |
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NETWORTH |
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975.961 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
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2] Unsecured Loans |
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22.020 |
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TOTAL BORROWING |
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22.020 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
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997.981 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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306.238 |
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Capital work-in-progress |
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540.592 |
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Construction Stores and Advances |
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1003.026 |
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INVESTMENT |
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0.000 |
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DEFERREX TAX ASSETS |
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0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
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135.264 |
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Sundry Debtors |
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0.000 |
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Cash & Bank Balances |
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1.103 |
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Other Current Assets |
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0.000 |
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Loans & Advances |
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0.417 |
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Total
Current Assets |
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136.784 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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988.324 |
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Provisions |
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0.335 |
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Total
Current Liabilities |
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988.659 |
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Net Current Assets |
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[851.875] |
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MISCELLANEOUS EXPENSES |
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0.000 |
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TOTAL |
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997.981 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
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31.03.2007 |
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Profit/(Loss) Before Tax |
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[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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[0.040] |
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Expenditures : |
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Employees'
remuneration and benefits |
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-- |
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Administration
& other expenses |
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0.040 |
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Depreciation |
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-- |
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Interest and
finance charges |
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-- |
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Total Expenditure |
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0.040 |
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KEY RATIOS
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PARTICULARS |
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31.03.2007 |
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Return on Total Assets (PBT/Total Assets} |
(%) |
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[0.01] |
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Debt Equity Ratio (Total Liability/Networth) |
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1.04 |
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Current Ratio (Current Asset/Current Liability) |
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0.14 |
LOCAL AGENCY FURTHER INFORMATION
FORMATION OF THE
COMPANY
The Company has
been incorporated on 6th September 2006 as a joint venture of NTPC
Limited and Bihar State Electricity Board (BSEB), with the object to acquire,
establish, operate and maintain Muzaffarpur Thermal Power Plant (2X110 MW) in
Muzaffarpur District of
OPERATIONAL REVIEW
Pursuant to the
Memorandum of Agreement entered into among Govt. of Bihar, Bihar State
Electricity Board and NTPC dated 26th December 2005 for carrying out all the work
related to refurbishment, renovation and modernization including studies to be
undertaken in relation to the Muzaffarpur Thermal Power Station (MTPS), the
Joint Venture Company i.e. Vaishali Power Generating Company Limited look-over
assets of MTPS on the transfer value based on depreciated book value subject to
physical verification of assets as on date of transfer, free from all
encumbrances and charges. Further, as per the MOA, the cost of carrying out
R&M and refurbishment works including studies etc. has been estimated Rs.
3500 Millions, which shall be financed out of grant already available with the
Government of Bihar under the "Rashtriya SAM Vikas Yojana" of
Government of India.
In terms of MOA
dated 26th December, 2005 and with a view to give effect to the transfer of
MTPS, the Government of Bihar has issued Transfer Notification viz. The
Further, a five
party Memorandum of Understanding were entered into amongst the Bharat Heavy
Electricals Limited, NTPC Limited, Bihar State Electricity Board, Govt. of
Further, Company
has awarded consultancy contract for R&M work of Unit-l to the NTPC
Consultancy wing and based on the specifications given by them R&M work
will be awarded to BHEL.
FINANCIAL REVIEW
During the period
under review i.e. from the date of incorporation 6th September 2006 to
31stMarch 2007, Company has incurred an expenditure of Rs. 35.79 million and
out of which Rs. 39,500 has been charged to the Profit and Loss Account and
rest of the amount has been capitalized as Incidental Expenditure During
Construction. Under the "Rashtriya SAM Vikas Yojana'af Government
of India, the Company has received grant of Rs. 975 million from the Government
of India.
Fixed Assets
- Buildings
- Furniture, fixtures & other office
equipment
- EDP, WP machines and SATCOM equipment
- Vehicles including speedboats
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 |
- |
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FINANCIAL CONDITION |
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--BUSINESS SCALE |
1~10 |
- |
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--PROFITABILIRY |
1~10 |
- |
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--LIQUIDITY |
1~10 |
5 |
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--LEVERAGE |
1~10 |
5 |
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--RESERVES |
1~10 |
5 |
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--CREDIT LINES |
1~10 |
5 |
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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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26 |
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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