MIRA INFORM REPORT

 

 

 

Report Date :

12.04.2008

 

 

IDENTIFICATION DETAILS

 

Name :

VASAVI POWER SERVICES PRIVATE LIMITED

 

 

Formerly Known As :

VASAVI ENGINEERING WORKS

 

 

Registered Office :

I Floor, Door No: 4-13, P. O. Ibrahim Patnam – 521456, Krishna District, Vijayawada, Andhra Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2006

 

 

Date of Incorporation :

15.03.2002

 

 

Com. Reg. No.:

01-38656

 

 

CIN No.:

[Company Identification No.]

U74210AP2002PTC038656

 

 

Legal Form :

Private Limited Liability Company

 

 

Line of Business :

Construction and servicing companies

Subject is engaged in providing services in power sector.

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

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

Satisfactory

 

Maximum Credit Limit :

USD 48540

 

 

Status :

Satisfactory

 

 

Payment Behaviour :

Usually correct

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having satisfactory track records. Trade relations are fair. Payments are usually correct and as per commitments. Nothing adverse reported.  

 

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

 

LOCATIONS

 

Registered Office :

I Floor, Door No: 4-13, P. O. Ibrahim Patnam – 521456, Krishna District, Vijayawada, Andhra Pradesh, India

Tel. No.:

91- 866 - 2882484 / 2883103

Mobile No.:

91 -9848126365

Fax No.:

91- 866 - 2883104

E-Mail :

vjwvewpower@sancharnet.in

Website :

http://www.vasavipower.com

 

 

Overseas Office :

P O Box No: 73228, Abu Dhabi, UAE

Tel. No.:

971- 2 - 6427363

Fax No.:

971- 2 – 6427363

Mobile No.:

971 - 50 - 8274691

E-Mail :

vaspower@emirates.net.ae

 

DIRECTORS

 

Name :

Mrs. Ramaiah Nallapu

Designation :

Chairman and Managing Director

Address :

D. No. 4-43, Ibrahimpatnam, Krishna District – 521456, Andhra Pradesh, India  

Date of Birth/Age :

04.05.1945

Date of Appointment :

15.03.2002

 

 

Name :

N. Kiran Kumar Nallapu

Designation :

Director

Address :

D. No. 4-43, Ibrahimpatnam, Krishna District – 521456, Andhra Pradesh, India  

Date of Birth/Age :

02.04.1972

Date of Appointment :

15.03.2002

 

 

Name :

Mr. Godesi Ramesh Babu

Designation :

Director

Address :

D. No. 4-8, Ibrahimpatnam, Krishna District – 521456, Andhra Pradesh, India  

Date of Birth/Age :

06.05.1959

Date of Appointment :

15.03.2002

 

 

Name :

Mrs. Godesi Kavitha

Designation :

Director

Address :

D. No. 4-8, Ibrahimpatnam, Krishna District – 521456, Andhra Pradesh, India  

Date of Birth/Age :

10.06.1970

Date of Appointment :

15.03.2002

 

 

Name :

Mrs. Nallapu Anitha

Designation :

Director

Address :

D. No. 4-43, Ibrahimpatnam, Krishna District – 521456, Andhra Pradesh, India  

Date of Birth/Age :

13.06.1978

Date of Appointment :

15.03.2002

 

 

Name :

Mrs. Nallapu Mani

Designation :

Director

Address :

D. No. 4-43, Ibrahimpatnam, Krishna District – 521456, Andhra Pradesh, India  

Date of Birth/Age :

09.11.1954

Date of Appointment :

15.03.2002

 

 

Name :

Mr. Nagamani Nallapu

Designation :

Director

Date of Birth/Age :

09.11.1954

Date of Appointment :

15.02.2002

 

 

Name :

Mr. Venkateswara Rao

Designation :

Director

Date of Birth/Age :

15.06.1948

Date of Appointment :

15.03.2002

 

KEY EXECUTIVES

 

Name :

Mr. Rahmatullah Shaik

Company Secretary

Designation :

107/C, Laxmi Comples, Erragadda, Hyderabad, India

Tel No.:

91-40-23700260

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

(As on  31.09.2003)

Names of Shareholders

 

No. of Shares

 

 

 

N. Ramaiah

 

64400

N.Kiran Kumar

 

40400

G. Ramesh Babu

 

41400

G.Kavitha

 

1000

N. Anitha

 

56700

N.Mani

 

40500

G. Venkateshwar Rao

 

31700

Sundari Praveen Kumar

 

65900

N. Veeraiah

 

36500

G. Vedadri

 

13600

 

(As on 30.09.2006)

Equity Share Breakup

 

Percentage

Category

 

 

Directors or relatives of directors

 

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Construction and servicing companies

Subject is engaged in providing services in power sector

 

 

Exports :

 

Countries :
  • United Arab Emirates
  • Middle East
  • North African Countries  

 

 

GENERAL INFORMATION

 

Customers :

ORIGINAL EQUIPMENT MANUFACTURERS

             

  • Bharat Heavy Electricals Limited, Secunderabad
  • R.C. Puram, Hyderabad
  • Nagpur
  • Baroda
  • Varanasi
  • Noida
  • Kolkata
  • Chennai
  • New Delhi
  • BHEL-GE Gas Turbine Services Private Limited, Secunderabad
  • Alstom Power India Limited, Delhi
  • NTPC Alstom Power Services Limited, Delhi
  • Ansaldo Services (P) Limited, Chennai

             

             

POWER GENERATION

             

Andhra Pradesh Generation Company              

  • Vijaywada Thermal Power Station, Vijayawada
  • Ramagundam Thermal Station, Ramagundam.

             

Tamilnadu Electricity Board     

  • Ennore Thermal Power Station, Chennai.
  • Tuticorin Thermal Power Station, Tuticorin

             

Maharashra State Electricity Board      

  • Koradi Thermal Powr Station, Koradi.
  • Bhusawal Thermal Power Staiton, Bhusawal.

             

Gujarat Electricity Board          

  • Utran Gas Power Station, Utran.
  • Ukai Thermal Power Station, Surat Dt. Ukai.

 

             

NATIONAL THERMAL POWER CORPORATION LIMITED,           

             

  • Ramagundam Super Thermal Power Station, Ramagundam.
  • Singrauli Super Thermal Power Station, Shakti Nagar.
  • Vindyachal Super Thermal Power Project, Vindya Nagar.
  • Korba Super Thermal Power Station, Korba.

             

             

PETROLEUM, OIL AND GAS      

 

  • Hindustan Petroleum Corpotation Limited, Visakhapatnam.
  • Kochi Refineries Limited, Kochi

 

OTHERS

 

  • Indo Gulf Fertilers, Lucknow.
  • Zuari Industries Limited, Goa. 
  • Indian Aluminium Company Limited Hirakud. 
  • National Aluminium Company Limited, Angul 
  • Sanghi Textiles, Hyderabad.
  • Gold Star Cements Limited, Karampudi Mandal, Guntur.
  • Mcnally Bangalore Industries Limited, Bangalore.
  • Encon Services Private Limited, Chennai.
  • Gujarat Narmada Fertilizer Corporation Limited, Bharuch

 

 

No. of Employees :

About 120

 

 

Bankers :
  • Canara Bank

Governor Pet, Vijayawada

 

  • Axis Bank Limited

Advances Cell [AP Cluster], 6-3-879/B, Greenlands, Begumpet, Hyderabad – 500016, Andhra Pradesh, India  

 

  • CITI Bank
  • Andhra Bank
  • HDFC Bank

 

 

 

Banking Relations :

Satisfactory

 

 

Auditors :

 

Name :

P. Badri Narayana

Chartered Accountant

Address :

3-19, UP Stairs, Ramalayam Street, Jagayyapet, Krishna District – 521175, Andhra Pradesh, India

 

 

CAPITAL STRUCTURE

 

AS ON 30.09.2006

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

1000000

Equity Shares

Rs.10/- Each

Rs.10.000 millions

 

 

 

 

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

502700

Equity Shares

Rs.10/- Each

Rs.5.027 millions

 

 

 

 

 

 

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

 

31.03.2006

31.03.2005

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

 

5.027

5.027

2] Share Application Money

 

0.000

0.000

3] Reserves & Surplus

 

7.108

3.774

4] (Accumulated Losses)

 

0.000

0.000

NETWORTH

 

12.135

8.801

LOAN FUNDS

 

 

 

1] Secured Loans

 

17.602

12.203

2] Unsecured Loans

 

6.761

7.250

TOTAL BORROWING

 

24.363

19.453

DEFERRED TAX LIABILITIES

 

0.769

0.508

 

 

 

 

TOTAL

 

37.267

28.762

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

 

25.407

12.788

Capital work-in-progress

 

0.000

0.000

 

 

 

 

INVESTMENT

 

1.650

1.448

DEFERREX TAX ASSETS

 

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
 

0.000

0.000

 

Sundry Debtors
 

12.627

4.457

 

Cash & Bank Balances
 

15.473

13.448

 

Other Current Assets
 

24.544

33.892

 

Loans & Advances
 

0.000

0.000

Total Current Assets
 

52.644

51.797

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Current Liabilities
 

39.549

35.965

 

Provisions
 

2.962

1.396

Total Current Liabilities
 

42.511

37.361

Net Current Assets
 

10.133

14.436

 

 

 

 

MISCELLANEOUS EXPENSES

 

0.077

0.090

 

 

 

 

TOTAL

 

37.267

28.762

 

 

 

 

 

 

 

 

 

 

 

 

PROFIT & LOSS ACCOUNT

 

PARTICULARS

 

 

31.03.2006

31.03.2005

Sales Turnover

 

198.152

51.560

Other Income

 

1.287

0.299

Total Income

 

199.439

51.859

 

 

 

 

Profit/(Loss) Before Tax

 

5.333

2.517

Provision for Taxation

 

2.000

0.760

Profit/(Loss) After Tax

 

3.333

1.757

 

 

 

 

Export Value

 

1.202

NA

 

 

 

 

Expenditures :

 

 

 

 

Financial Charges

 

3.211

1.855

 

Depreciation

 

3.702

1.003

 

Other Expenditure

 

187.193

46.484

Total Expenditure

 

194.106

49.342

 

KEY RATIOS

 

PARTICULARS

 

 
 

31.03.2006

31.03.2005

PAT / Total Income

(%)
 

1.67

3.39

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
 

2.69

4.88

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
 

6.83

3.90

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
 

0.44

0.28

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
 

5.51

6.46

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
 

1.24

1.39

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Form 8:

 

Name of the company

VASAVI POWER SERVICES PRIVATE LIMITED

Presented By

Mrs. N Ramaiah, Chairman and Managing Director 

1) Date and description of instrument creating the change

22.07.2002 Deed of Hypothecation regarding motor generator welding rectifier

22.07.2002 agreement for CDB

22.07.2002 Counter Indemnity for bank guarantee

22.07.2002 letter for over draft facilities

2) Amount secured by the charge/amount owing on the securities of charge

 

Rs in Millions

M. L.

0.370

Clean Demand Bills

1.000

Bank Guarantee

2.000

Over Draft

0.500

Total

3.870

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

Welding Motor Generator Model Supergen – 230 @ Rs. 0.087 Millions each 4 Nos.

MMA Welding Rectifier model Thyrolnxe – 600 – 1 No. 

4) Gist of the terms and conditions and extent and operation of the charge.

M. L. Repayable in 36 months equated monthly installments of Rs.0.013 Million

C. D. B. Tenable till 15.10.2002

B.G. Tenable till 15.10.2002

O. D. Tenable till 15.10.2002

5) Name and Address and description of the person entitled to the charge.

Canara Bank, Governor Pet, Vijayawada

6) Date  and brief description of instrument modifying the charge

Bank Guarantee Enhancement of Bank Guarantee limit from Rs.2.000 Millions to Rs.42.000 Millions on 08.01.2005

 

08.01.2005 Counter Indemnity

 

Over Draft : Enhanced to Rs.2.000 Millions on 08.01.2005

 

08.01.2005 Pronote

08.01.2005 Request for Over Draft facilities

08.01.2005 Letter of Renewal

08.01.2005 link Letter in respect of enhancement of Credit facilities

08.01.2005 Agreement re : Collateral Security : machinery : Vehicles along with statement of Tools and Plants   

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

Bank Guarantee Enhancement of Bank Guarantee limit from Rs.2.000 Millions to Rs.42.000 Millions on 08.01.2005

 

Over Draft : Enhanced to Rs.2.000 Millions on 08.01.2005 for the rate of interest is 13.75 %

 

 

This form is for

Creation of charge

Corporate identity number of the company

U74210AP2002PTC038656

Name of the company

VASAVI POWER SERVICES PRIVATE LIMITED

Address of the registered office or of the principal place of  business in India of the company

I Floor, D. No: 4-13, P. O. Ibrahimpatnam – 521456, Krishna District, Vijayawada (Andhra Pradesh), India

Type of charge

Immovable Property

Particular of charge holder

Axis Bank Limited, Advances Cell [AP Cluster], 6-3-879/B, Greenlands, Begumpet, Hyderabad – 500016, Andhra Pradesh, India  

sivakumar_ms2005@yahoo.co.in

Nature of description of the instrument creating or modifying the charge

Memorandum of Entry – Equitable mortgage of property by deposit of title deeds

Date of instrument Creating the charge

18.11.2006

Amount secured by the charge

Rs.5.550 Millions

Brief particulars of the principal terms an conditions and extent and operation of the charge

Rate of Interest

Axis Bank PLR 1.25 % presently at 11.75 % p.a. compounded at monthly rests

 

Terms of Repayment

Repayable on 60 months from the date of disbursement / first drawl @ EMI of Rs.0.123 Million

 

Extent and Operation of the charge

The charge operates as first charge on office premises bearing # 404 and 405 in 4th Floor, Golden Edifice, Khairatabad, Hyderabad  

Short particulars of the property charged

Equitable mortgage of the office bearing No. 404 and 405 in 4th floor admeasuring 4.103 sq. ft. with an undicided share of land adm. 160 sq. yds. In the complex “Golden Edifice” bearing No. 6-3-639, 640 and 642, Khairatabad, Hyderabad  

 

 

AS PER WEBSITE

 

Profile

 

Subject is formerly known as, Vasavi Engineering Works, was registered as a partnership firm in the year 1982. It started its business activities with rotating equipment services for the complete Energy sector. Vasavi, which has an employee strength of 500 today, was established with 4 employees, under the stupendous leadership of Mr. N. Ramaiah, an ex employee of Andhra Pradesh State Electricity Board.                                                                                                                

                                                                                                                                                                

                                                                                                                                                            

Milestones in the evolution of Vasavi's power

 

»   Established in the year 1980 with 4 employees.

»   Registered as a partnership firm in the year 1982

»   Vasavi's services have been enlisted by all major power giants of Andhra Pradesh state in India.

»   Started with handling of small rotating equipments like Pumps and Motors

»   Expansion of  its activities to almost all the other states in India.

»   Vasavi has grown up to handle heavy Steam, Gas, Hydro Turbines and Generators of various makes and capacities.

»   Vasavi has entered into global power services market by achieving first overseas service order in ADGAS, Abudhabi, UAE in the year 2002.

»   Major power plant construction order has been achieved in Libya (600 MW plant constructions in Jan 2005)

 

 

BUSINESS PARTNERS

 

Vasavi Power has signed MOUs for Business Development in various Technical and Geographical areas in order to augment to the already existing service portfolio and also to enter into global market

 

 

 

KEY PEOPLE

 

The driving force behind Vasavi Power Services Private Limited is its thoroughbred top management, which
proves that knowledgeable people make a proficient and progressive enterprise.

 

 

Mr. N. Ramaiah :

Chairman and Managing Director

 

The stupendous leadership of Mr. N. Ramaiah, the founder of Vasavi Engineering Works, established in the year 1982, has made the company evolve into one of the top organizations in providing rotating equipment services.                        

 

Mr. G. Ramesh Babu :

Executive Director

 

Mr. G. Ramesh Babu started his career as Administration and Accounts in-charge in Midland Industries Limited in Hyderabad. Later he joined vasavi in the year 1989 and  has grown up to the level of Executive Director for Administration, Accounts and Commercial departments, through sheer diligence.                                                                                      

 

Mr. N. Kiran Kumar :

Executive Director

 

Mr. N. Kiran Kumar's rich experience with MNCs like Intelligroup, Metamor Enterprises Solutions and Wipro Technologies, made him capable enough in discharging his duties as the Executive Director of Project execution and Business Development.                                                                                                                                                                    

 

Mr. G. Ashok Kumar :

General Manager

 

Mr. G.Ashok Kumar has started his career as a Graduate Engineer Trainee (Instrumentation in 1985) in a public sector. He has wide experience in Power Plants based on Oil, Coal and Gas. He co-ordinates the activities like Operation and Maintenance, Control and Instrumentation Retrofits and field services of Power Plants in India and Abroad.                          

 

 

 

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.40.10

UK Pound

1

Rs.80.40

Euro

1

Rs.63..31

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

6

PAID-UP CAPITAL

1~10

5

OPERATING SCALE

1~10

5

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

5

--PROFITABILIRY

1~10

5

--LIQUIDITY

1~10

5

--LEVERAGE

1~10

5

--RESERVES

1~10

5

--CREDIT LINES

1~10

5

--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

NO

--AFFILIATION

YES/NO

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

46

 

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.

 

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