MIRA
INFORM REPORT
|
Report Date : |
29.08.2008 |
IDENTIFICATION
DETAILS
|
Name : |
CHIRANJJEEVI WIND ENERGY LIMITED |
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Registered Office : |
45-3A, Arts College Road Lane, Opposite To Bala Lodge, Coimbatore - 641 018, Tamil Nadu |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
24.12.1997 |
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Com. Reg. No.: |
18-008239 |
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CIN No.: [Company
Identification No.] |
U45108TZ1997PLC008239 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
CMBC03295F |
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Legal Form : |
A closely held Public Limited Liability Company |
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Line of Business : |
Manufacturer and
Supplier of Wind Electric Generators |
RATING &
COMMENTS
|
MIRA’s Rating : |
Ba |
|
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 400000 |
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Status : |
Good |
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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. Trade relations are fair. Business is active. General
financial position is satisfactory. Payments are reported as usually correct
and as per commitments. The company can be considered good for normal business dealings. |
INFORMATION PARTED
BY
|
Name : |
Mr. Prakash |
|
Designation : |
Accountant |
|
Date : |
29.08.2008 |
LOCATIONS
|
Registered Office : |
45-3A, Arts College Road Lane, Opposite To Bala Lodge, Coimbatore - 641 018, Tamil Nadu, India |
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Tel. No.: |
91-95422-2302079 |
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Mobile No.: |
91-9865121119 (Mr. Felix) |
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E-Mail : |
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Website : |
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Location: |
Rented |
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Administrative Office : |
26, Kamaraj Road, Mahalingapuram, Pollachi – 642 002, Coimbatore, District, Tamilnadu, India. |
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Tel. No.: |
91 – 4259 – 224438 |
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Fax No.: |
91- 4259 – 224437 |
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E-Mail : |
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Factory : |
R.S. No.12/5, Madagadipet – 605 107, Pondicherry, India |
DIRECTORS
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Name : |
Mr. Ramaswamy Venkitasubbu Marimuthu |
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Designation : |
Director |
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Address : |
11/12 Palakkad Road, Pollachi -642 001, Coimbatore, India |
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Date of Birth/Age : |
13.09.1938 |
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Date of Appointment : |
01.01.2007 |
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Name : |
Mr. Kumaravel Kumaravel |
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Designation : |
Director |
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Address : |
3 Ammaneswaran Koil Street, Nehru Colony, Mahalingapuram, Pollachi –
642 002, Tamil Nadu, India |
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Date of Birth/Age : |
12.05.1964 |
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Date of Appointment : |
01.01.2007 |
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Name : |
Mr. Ramaswamy Gounder Sundarkalimuthu |
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Designation : |
Director |
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Address : |
86-A, Palaghad Road, Pollachi – 642 001, Coimbatore, Tamil Nadu, India
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Date of Birth/Age : |
20.02.1942 |
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Date of Appointment : |
04.12.2000 |
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Name : |
Mr. Kanakaraj Kandakumarraj |
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Designation : |
Director |
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Address : |
39-A, Nehru street Udumalpet
642 126, Tamil Nadu, India |
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Date of Birth/Age : |
13.10.1972 |
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Date of Appointment : |
01.09.2003 |
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Name : |
Mr. Kaliyannan Marudhamalla Gounder |
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Designation : |
Director |
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Address : |
51 B, Pazhaniappan Veedhi, Coimbatore North, Tamil Nadu, India |
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Date of Birth/Age : |
25.08.1938 |
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Date of Appointment : |
27.09.2000 |
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Date of Cessation : |
31.03.2007 |
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Name : |
Mr. G Subramaniam |
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Designation : |
Director |
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Address : |
Anthiyur Poolankinaru Post Udumalpet , Coimbatore, District, Tamil
Nadu, India |
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Date of Appointment : |
09.06.2005 |
KEY EXECUTIVES
|
Name : |
Mr. Prakash |
|
Designation : |
Accountant |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
|
Names of Shareholders |
|
No. of Shares |
|
Mr. R Gopalsamy |
|
3501 |
|
Mr. U K P Rajagopal |
|
3501 |
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Mr. P Senthil |
|
3501 |
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Mr. R Sundara Kali Muthu |
|
575000 |
|
Mr. S Krithika |
|
20000 |
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Mr. S Soundarya |
|
20000 |
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Mr. R G Navya |
|
91801 |
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Mr. N Saravanaram |
|
20000 |
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Mr. N Anilkandeswari |
|
20000 |
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Mr. V Ramdinesh |
|
20000 |
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Mr. N Sindujaabirami |
|
20000 |
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Mr. G Vishnuram |
|
20000 |
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Mr. G Saranyameenachi |
|
20000 |
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Mr. K Hemalatha |
|
295502 |
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Mr. V Shanmugavalli |
|
304201 |
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Names of Allottees |
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No. of Shares |
|
Dubai Ventures LLC |
|
2908004 |
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Mr. R V S Marimuthu |
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1128901 |
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Mrs. K Hemalatha |
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548105 |
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Mr. P K Muthukumaravel / Minor / By F and G Mr. Kumaravel |
|
210000 |
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Mr. K K Amirthavarshini /
Minor / By F and G Mr. Kumaravel |
|
210000 |
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Mrs. V Shanmugavalli |
|
28000 |
|
Mr. R Sundarakalimuthu |
|
28000 |
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Mr. N Saravanram |
|
28000 |
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Mr. V Radhinesh |
|
28000 |
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Mr. G Vishnuram |
|
28000 |
|
Marudhavel Industries Limited |
|
210000 |
Equity Share Breakup (Percentage of Total Equity):-
|
Category (As on 31.03.2007) |
Percentage |
|
Directors or relative of directors |
96.00 |
|
Others |
4.00 |
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Total |
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and
Supplier of Wind Electric Generators |
GENERAL
INFORMATION
|
No. of Employees : |
35 |
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Bankers : |
Canara Bank Industrial Finance Branch, 166 T V, Swamy Road, R S Puram,
Coimbatore – 641 002, Tamil Nadu, India |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
P N Raghavendra Rao and Company Chartered Accountants |
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Address : |
33 Desabandhu Street, Ramnagar, Coimbatore – 641 009, Tamil Nadu,
India |
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|
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
(As on 31.03.2007)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
11000000 |
Equity Shares |
Rs. 10/- each |
Rs.110.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
5592517 |
Equity Shares |
Rs. 10/-
each |
Rs.55.925
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2007 |
31.03.2006 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
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1] Share Capital |
|
55.925 |
14.370 |
|
|
2] Share Application Money |
|
0.000 |
0.000 |
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|
3] Reserves & Surplus |
|
23.040 |
37.285 |
|
|
4] (Accumulated Losses) |
|
0.000 |
0.000 |
|
|
NETWORTH |
|
78.965 |
51.655 |
|
|
LOAN FUNDS |
|
|
|
|
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1] Secured Loans |
|
12.103 |
10.460 |
|
|
2] Unsecured Loans |
|
2.500 |
0.000 |
|
|
TOTAL BORROWING |
|
14.603 |
10.460 |
|
|
DEFERRED TAX LIABILITIES |
|
4.271 |
0.481 |
|
|
|
|
|
|
|
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TOTAL |
|
97.839 |
62.596 |
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|
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|
|
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APPLICATION OF FUNDS |
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|
|
|
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|
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FIXED ASSETS [Net Block] |
|
33.801 |
8.911 |
|
|
Capital work-in-progress |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
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INVESTMENT |
|
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
|
0.000 |
0.000 |
|
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
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|
Inventories |
|
58.433 |
93.283 |
|
|
Sundry Debtors |
|
61.116 |
39.216 |
|
|
Cash & Bank Balances |
|
8.072 |
5.766 |
|
|
Other Current Assets |
|
0.058 |
0.029 |
|
|
Loans & Advances |
|
43.797 |
36.006 |
|
Total
Current Assets |
|
171.476 |
174.300 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Current Liabilities |
|
95.924 |
114.055 |
|
|
Provisions |
|
11.737 |
6.857 |
|
Total
Current Liabilities |
|
107.661 |
120.912 |
|
|
Net Current Assets |
|
63.815 |
53.388 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
|
0.223 |
0.297 |
|
|
|
|
|
|
|
|
TOTAL |
|
97.839 |
62.596 |
|
PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
|
Sales Turnover |
357.092 |
306.286 |
56.078 |
|
|
Other Income |
5.086 |
0.606 |
0.327 |
|
|
Total Income |
362.178 |
306.892 |
56.405 |
|
|
|
|
|
|
|
|
Profit/(Loss) Before Tax |
30.725 |
29.665 |
6.551 |
|
|
Provision for Taxation |
9.046 |
6.807 |
0.744 |
|
|
Profit/(Loss) After Tax |
21.679 |
22.858 |
5.807 |
|
|
|
|
|
|
|
|
Expenditures : |
|
|
|
|
|
|
Raw Material Consumed |
277.829 |
230.143 |
35.803 |
|
|
Salaries, Wages, Bonus, etc. |
5.739 |
3.735 |
1.583 |
|
|
Managerial Remuneration |
0.840 |
0.120 |
0.120 |
|
|
Payment to Auditors |
0.148 |
0.109 |
0.081 |
|
|
Interest |
1.697 |
1.826 |
0.789 |
|
|
Insurance Expenses |
1.539 |
0.557 |
0.170 |
|
|
Power & Fuel |
0.168 |
0.118 |
0.017 |
|
|
Depreciation & Amortization |
1.439 |
0.823 |
0.564 |
|
|
Other Expenditure |
42.054 |
39.796 |
10.727 |
|
Total Expenditure |
331.453 |
277.227 |
49.854 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2007 |
31.03.2006 |
31.03.2005 |
|
PAT / Total Income |
(%) |
5.99
|
7.45 |
10.30 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.60
|
9.69 |
11.68 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
14.96
|
16.19 |
NA |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.39
|
0.57 |
NA |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.58
|
2.54 |
NA |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.59
|
1.44 |
NA |
LOCAL AGENCY
FURTHER INFORMATION
FORM 8:-
|
Name of the company |
CHIRANJJEEVI WIND ENERGY LIMITED |
|
Presented By |
R. Sundarakalimuthu, Director |
|
1) Date and description of instrument creating the change |
Common
hypothecation agreement dated 03.02.2005 |
|
2) Amount secured by the charge/amount owing on the securities of charge |
Rs. 20.000
millions |
|
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 |
First charge on
various components, raw materials required for manufacture of WEG stored at. Godown at 5/51,
Dharampura, Road, Poolavadi Post, Udumalet Taluk Processing units
(tower manufacturing at Trichy, gear box
assembling unit of M/s Shanthi Gears Limited, Coimbatore Works /
assembling unit at RS No. 12/5 Madagadipet, Pondicherry and Book Debts |
|
4) Gist of the terms and conditions and extent and operation of the charge. |
First charge on
stock and book debts |
|
5) Name and Address and description of the person entitled to the charge. |
Canara Bank,
Industrial Finance Branch, No. 66 T V Samy Road (West), R S Puram, Coimbatore
– 641 002 |
|
Corporate
identity number of the company |
U45108TZ1997PLC008239 |
|
Name of the
company |
CHIRANJJEEVI WIND
ENERGY LIMITED |
|
Address of the
registered office or of the principal place of business in India of the company |
45-3A, Arts College Road Lane, Opposite To Bala Lodge, Coimbatore - 641 018, India |
|
This form is for |
Modification of
charge |
|
Type of charge |
Immovable property |
|
Particular of
charge holder |
Canara Bank,
(Consortium Leader) Industrial
Finance Branch, 166, T V Samy Road, (West), R S Puram, Coimbatore – 641 002, Tamil
Nadu, India E-mail: cbr2342_fex@canbank.co.in |
|
Nature of
instrument creating charge |
Memorandum of
deposit of title deeds |
|
Date of
instrument Creating the charge |
12.02.2008 |
|
Amount secured by
the charge |
Rs. 100.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate of Interest : As per the
Agreement Terms of Repayment : As per the
Agreement Margin : As per the
Agreement Extent and Operation of the charge : The total credit
limits of Rs. 100.000 millions is
secured by Memorandum of deposit of title deeds on pari-passu first charge
basis with SBH of · Company factory L and B at 12/5, Madagadipet, Pondicherry. · EMT of wind Farm lands of 62.075 Acres at Rameswaran in various SF Nos. Mentioned in Schedule I annexed herewith ·
Land measuring 5.80 acres at G S No. 90, Patta No. 11
and L and B Measuring 2.15 Acres at G S No. 91/1 and 2 at Kondampatti
Village, Udumalpet Taluk, Tiurupur SRO.. |
|
Short Particulars
of the property charged |
· Company factory L and B at 12/5, Madagadipet, Pondicherry. · EMT of wind Farm lands of 62.075 Acres at Rameswaran in various SF Nos. Mentioned in Schedule I annexed herewith ·
Land measuring 5.80 acres at G S No. 90, Patta No. 11
and L and B Measuring 2.15 Acres at G S No. 91/1 and 2 at Kondampatti
Village, Udumalpet Taluk, Tiurupur SRO. |
|
Particulars of the present modification |
The total credit
limits of Rs. 100.000 millions is collaterally secured by Memorandum of
Deposit of title deeds on pari-passu first charge basis with SBH of · Company factory L and B at 12/5, Madagadipet, Pondicherry. · EMT of wind Farm lands of 62.075 Acres at Rameswaran in various SF Nos. Mentioned in Schedule I annexed herewith ·
Land measuring 5.80 acres at G S No. 90, Patta No. 11
and L and B Measuring 2.15 Acres at G S No. 91/1 and 2 at Kondampatti
Village, Udumalpet Taluk, Tiurupur SRO. |
WEBSITE DETAILS:-
Profile
Instituted in the
year 1997, subject is a reputed manufacturer and supplier of highly advanced
wind electric generators (WEGs). Based in South India, the company acquired the
certificate for commencement of business in January 1998.
The ISO 9001:2000 certified company manufactures and supplies wind electric
generators to set up wind farms to generate power. Approved by the Center for
Wind Energy Technology (C-WET) for installation of wind turbines in India, the
company has installed more than hundred numbers of 250 KW WEGs in Maharashtra,
Karnataka and Tamil Nadu.
Fabrication Unit
The company has a
well-equipped factory in Pondicherry. Backed by a skilled team of technicians,
engineers and managers, who have wide experience and expertise, Subject caters
to orders and specifications of the customers. Subject uses high quality raw
materials and latest technology to fabricate wind electric generators.
The company lays special emphasis on the manufacturing process of the
customized motors. The company has a team of quality checkers, who do strict
quality checking of the products.
The company boasts about having a strong and reputed names as its regular
patrons.
Management
The Board of Directors of the company includes a team of well-qualified and
experienced professionals.
Sri. R. Sundarakalimuthu, Whole Time Director, boasts about having wide
experience of thirty years in foundry and textiles.
Sri. K. Kandakumar Raj, practicing advocate with 7 years of wide experience
Sri M. Kaliannan has
experience of nearly 40 years with Tamil Nadu Electricity Board
Sri. G.Subramaniam, associated with TNEB for 35 years in various senior
positions including Chief Engineer (Non-Conventional Energy Sources)
Advantage of wind
project
CAPTIVE CONSUMPTION
/ SALE TO BOARD
Wind Electric Generators (WEGs) are generally installed in those areas
where the speed of the wind is high. The power generated from the WEGs can be:
Option - i ) Wheeled and consumed
Option - ii ) Consumed by their sister concern where at least two Directors are
general in the both companies
Option - iii ) Sold to Electricity Board at a rate that is fixed by the Board
WHEELING
The
wind electrical generators are installed in areas where the velocity of wind is
high and the units generated can be transmitted through EB grid and consumed
for its industry within the state. For utilizing the TNEB feeder for the
transmission of energy, TNEB charges a wheeling charge of 5% of the units
generated by the WEGs .
BANKING
The
excess units after consuming the power in the particular month can be banked
with TNEB and utilized for the next month consumption. TNEB charges 5% as
banking for the units carrier over to the subsequent month.
DEPRECIATION
BENEFITS
According to the Income - Tax Act, 80% of the investment in wind farm
project is permissible as depreciation in the first year itself.
INCOME - TAX
HOLIDAY
The revenue earned from the WEG is not liable for income - tax for any
consecutive 10 years between the first 15 years from the date of installation.
NO INPUT COST
The input cost is nil. as wind is totally free. Taking into account O
& M and Insurance charges the generation cost is just 25 paise only per
unit after the back period is over.
LESS MAN POWER
REQUIRED
The labor force required to operate the wind farm is limited compared to
any other industry for the same investment.
MARKETING OF THE
PRODUCT
TNEB buys the entire units generated from the WEGs irrespective of the
quantity of generation.
VERY LOW GESTATION
PERIOD
Supply, installation and commissioning of wind farm project is
accomplished within a short gestation period. Thus, the repayment of loan is
made according to schedule and return on investment is also risk free, compared
to other projects.
PRICE FLUCTUATION
The sale price of any product usually fluctuates varying upon its demand
and supply. However, the Electricity Tariff is moving in the upward direction.
Consequently, the revenue from the wind farm project is increased according to
the projections.
FUNDING FOR THE
PROJECT
All banks, financial institutions are sanctioning loan with a promoter's
contribution of 20% to 30% on case-to-case basis.
Product and
services
Subject manufactures hardwearing and durable wind turbines, using the
latest technology, advanced CNC production system and high quality of raw
materials. The wind turbines are fabricated with an integrated gearbox as the
load-bearing structure. The turbine is sturdy in design, consistent and easy to
maintain.
The wind turbine operates with readiness factor of over 98%. The wind turbine
is connected to a monitoring system, which registers its operation constantly.
In case of discontinuation of operation, the customer is guaranteed service
within 24 hours. Further, the company offers extensive services including wind
prediction, free training programmes, preparing budget and consultation to
financial solutions
Technical
specification
C 2920-250/60 KW is a horizontal-axis, stall regulated wind turbine with
dual winding generator. A distinctive reactive power compensation system is
provided to restrain withdrawal of reactive power from the grid. The turbine is
sturdy in construction, reliable in operation and is easy to maintain.
|
GENERAL DATA |
|
|
|
|
|
Nominal power |
250KW |
|
Power limitation
|
Stall |
|
Start up, wind
speed |
3.5 m/s |
|
Cut-in, wind
speed |
4 m/s |
|
Cut-out, wind
speed |
25 m/s |
|
Hub height |
31.5/41.5/50 m |
|
Rotor speed |
38.5 RPM |
|
|
|
|
YAW SYSTEM |
|
|
Type |
Electrical yaw gear with friction brakes |
|
Yaw Drives |
2 Ele, Motors, Combined Planetary and parallel gears |
|
Control |
Wind vane |
|
|
|
|
ROTOR |
|
|
No. of blades |
3 |
|
Blade type |
LM 13.4 |
|
Rotor diameter |
29.2 m |
|
Swept area |
670 m2 |
|
|
|
|
WIND TURBINE
CONTROLLER |
|
|
Type |
Microprocessor |
|
No. |
1 |
|
Power factor |
cos phi>0.95 |
|
|
|
|
MONITORING |
|
|
Power quality |
Voltage, Current, Frequency, Power factor, Power output |
|
R P M |
Rotor, Generator |
|
Temperature |
Generator windings, |
|
|
|
|
GEAR BOX |
|
|
Type |
3 Step, helical |
|
Ratio |
1:39.4 q |
|
Lubrication |
Forced |
|
Oil volume |
80 L |
|
Other |
Out door, gear oil, Thyristors Wind speed and direction |
|
|
|
|
TOWER |
|
|
Type |
Tubular, Conical (30/40m) |
|
|
|
|
GENERATOR |
|
|
Type |
4/6 Pole asynchronous |
|
Nominal power |
270/60 Kw |
|
Voltage |
415 V |
|
RPM |
1512/1012 |
|
Protection |
IP 55 |
|
|
|
|
LIGHTNING
PROTECTION |
|
|
In accordance
with IEC 1024 – 1 |
|
|
|
|
|
WEIGHTS |
|
|
Total |
26,000/33,500/36,500 kg |
|
Tower |
14,500/22,000/25,000 kg |
|
Rotor |
4,250 kg |
|
Nacelle top unit
|
|
|
without rotor |
7.250 kg |
|
Subject to
change without prior notices |
|
|
|
|
|
BRAKE SYSTEM |
|
|
Mechanical brake
|
dices Brake |
|
Position |
high - speed shaft |
|
Aerodynamic
brake |
turnable blade tips (Hydraulic) |
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.43.73 |
|
UK Pound |
1 |
Rs.80.31 |
|
Euro |
1 |
Rs.64.61 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
6 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
5 |
|
--LIQUIDITY |
1~10 |
6 |
|
--LEVERAGE |
1~10 |
6 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--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 |
|
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. |
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 |
|