MIRA
INFORM REPORT
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Report Date : |
16.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
ADANI POWER LIMITED |
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Registered Office : |
Shikhar Building, 9th Floor, Near Mithakali Six Roads,
Navrang Pura, Ahmedabad – 380009, Gujarat, India |
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Country : |
India |
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Financials (as on) : |
31.03.2007 |
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Date of Incorporation : |
22.08.1996 |
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Com. Reg. No.: |
030533 |
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CIN No.: [Company
Identification No.] |
U40100GJ1996PLC030533 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
AHMA01102D |
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PAN No.: [Permanent
Account No.] |
AABCA2957L |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business : |
Subject is engaged in the power trading business across the country
and also aiming to enter into power transmission in a big way. |
RATING &
COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 10427600 |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a Adani Group Company engaged in generation and
distribution on power. Company is yet to commence commercial operations.
Trade relations are fair. Payments are reported as usually correct and as per
commitments. The company can be considered normal for business dealings at usual
trade terms and conditions. |
LOCATIONS
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Registered Office : |
Shikhar Building, 9th Floor, Near Mithakali Six Roads,
Navrang Pura, Ahmedabad – 380009, Gujarat, India |
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E-Mail : |
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Website : |
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Corporate Address: |
7th Floor, Sambav Building (Sambav Press), Judges Bunglow Road,
Bodakdev, Ahmedabad - 380015, Gujarat, India |
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Tel No.: |
91-79-25556927/ 6985 |
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Fax No.: |
91-79-26873335 |
DIRECTORS
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Name : |
Mr. Gautham S. Adani |
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Designation : |
Chairman |
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Name : |
Mr. R K Gupta |
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Designation : |
Managing Director |
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Name : |
Mr. Ameet H. Desai |
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Designation : |
Director |
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Name : |
Mr. B B Tandon |
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Designation : |
Additional Director |
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Name : |
Mr. Pradeep M. Mittal |
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Designation : |
Director |
KEY EXECUTIVES
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Name : |
Mr. Manoj Chanduka |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Subject is engaged in the power trading business across the country
and also aiming to enter into power transmission in a big way. |
GENERAL INFORMATION
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Bankers : |
Not Available |
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Banking
Relations : |
- |
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Auditors : |
Not Available |
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Associates/Subsidiaries : |
Adani Power Maharashtra Private Limited (APMPL) |
CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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3000000000 |
Equity Share |
Rs.10/- each |
Rs.30000.000 Millions |
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Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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260690000 |
Equity Share |
Rs.10/- each |
Rs.2606.900 Millions |
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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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2606.900 |
9.500 |
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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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0.000 |
0.000 |
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NETWORTH |
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2606.900 |
9.500 |
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LOAN FUNDS |
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1] Secured Loans |
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567.800 |
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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567.800 |
0.000 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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3174.700 |
9.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
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10.400 |
1.800 |
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Capital work-in-progress |
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6038.800 |
115.100 |
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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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497.000 |
2.700 |
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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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11.900 |
10.700 |
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Total
Current Assets |
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508.900 |
13.400 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
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3382.500 |
120.900 |
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Provisions |
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1.000 |
0.000 |
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Total
Current Liabilities |
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3383.500 |
120.900 |
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Net Current Assets |
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(2874.600) |
(107.500) |
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MISCELLANEOUS EXPENSES |
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0.100 |
0.100 |
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TOTAL |
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3174.700 |
9.500 |
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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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Debt Equity Ratio (Total Liability/Networth) |
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1.51 |
12.73 |
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Current Ratio (Current Asset/Current Liability) |
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0.15 |
0.11 |
LOCAL AGENCY
FURTHER INFORMATION
Director’s Report
Conversion into Public Limited Company:
The Directors are pleased to inform that the company has
been converted into a Public Limited Company and accordingly its name has been changed
to Subject. The necessary approval for the same was obtained from the Registrar
of Companies, Gujarat and Fresh Certificate of Incorporation consequent to the
change of name was issued by the Registrar of Companies, Gujarat on 12th April,
2007.
Financial Highlights:
During the year under review, Phase I of the Power Project consisting of 2 Units of 330 MWs each was under implementation and hence no Profit and Loss Account has been prepared.
However, during the year the Authorised Share Capital of the Company has been
increased to Rs.25000.000 Millions to take care of the equity capital
requirements of the Company's future Expansion projects. Equity capital
aggregating to Rs.2698.900 Millions has been infused during the year bringing
the total Equity capital to Rs. 2806.900 Millions as on March 31, 2007. The
Company has achieved Financial Closure for the Phase I of the Project and has
availed Rs.567.800 Millions as a Term Loan from the Consortium of the
Bankers.
The company has incurred expenditure of Rs.360.624 Millions during the year
bringing the Pre Operative Expenditure to Rs.475.468 Millions as on March 31,
2007 compared to Rs.114.844 Millions as at the end of the previous year.
POWER SCENARIO:
·
India Power
Sector:
Indian Power Sector has grown manifold since 1947 and India today is third
larges, producer of Asia. India is positioned as eleventh largest manufacturer
of energy at present representing 2.4% of the overall energy output per annum.
It is also world's sixth largest energy user, comprising about 3.3% of the
overall global energy expenditure per year. The power generating capacity of
India has increased from 1362 MW in 1947 to 128432 MW as on 16th February,
2007. In spite of 9330% increase in the installed capacity, most of the regions
in the country are facing power shortages. The all India approx. average
shortages for the period April 2006 to January 2007 were 9.3% in terms of
energy and 13.9% in terms of peak load. The main reasons for shortages are high
growth in demand of power outstripping the growth in capacity addition, low
Plant Load Factor of thermal generating units and poor record of capacity
addition against the target set in IXth and Xth Plan by the power
Ministry.
·
Power
Scenario-Gujarat
The power requirements of the
state are met by the power generated by state utility, IPPs, state's share in
the power generated by the central sector power stations and purchases from
other states. Total existing capacity in the state as on August 31 st, 2006 was
10024.3 out of which, 58% is owned by State Utilities, 23% by Private sectors
and 20% was generated through share in the Central Power Stations. The power
generating capacity of Gujarat has been doubled in the last decade. In spite of
such a significant increase, the state is facing power shortages. The approx.
shortages for the period April 2006 to February 2007 were 14.28% in Perms of
energy and 29.13% in terms of peak load. The reason may be lack of optimum
utilization of existing generation capacity, large scale theft, skewed tariff
structure etc.
·
Power Scenario-Maharashtra:
The power sector in Maharashtra, excluding Mumbai, is served by Maharashtra State Power Generation Co. Ltd. (MSPGCL). The Mumbai area is served by three power utilities Tata Power Company Ltd., BSES Ltd. and BEST, MSPGCL has an installed capacity of 9771 MW, while Tata Power Company Ltd. and BSES have an installed capacity of 1774 MW and 500 MW respectively. Maharashtra has a share of 2375 MW from Central generating sources. In addition, captive generating capacity in the State is currently 641 MW. In terms of fuel mix (excluding captive), thermal, hydro and nuclear capacities in the State account for 78%, 19% and 3% respectively.
The generation capacity of MSPGCL has grown from 760 MW in 1960-61 to 13838 MW in 2005-06. However, the State faces a shortage in meeting peaking requirements. The approx. shortages for the period April 2006 to February 2007 were 19.05% in terms of energy and 25.89% in terms of peak load.
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Power Purchase
Agreements:
Gujarat Urja
Vikas Nigam Limited (GUVNL) to meet the shortage of power initiated the process
of tying up long-term purchase of Power through competitive bidding process on
the guidelines issued by the Ministry of Power. The company participated in the
bidding process initiated by Gujarat Urja Vikas Nigam Limited (GUVNL). During
the year under review, the company has executed two Power Purchase Agreements
(PPA) with Gujarat Urja Vikas Nigam Limited (GUVNL) for Supply of power of 1000
MW each on Long Term basis. This is an important milestone achieved by the
Company which ensures firm off take of power generated from Projects under
implementation
PROJECT
HIGHLIGHTS:
·
PHASE I
During the year under review
the Implementation of Phase I of 2 x 330 MW Power Project has progressed
according to schedule. The company is in possession of the land admeasuring
293-88-10 hectares to meet the entire requirement of power plant upto the
capacity of 2640 MW at Mundra. The initial site development activities and
construction of the Infrastructure Facilities like Roads, Compound Wall, etc.
are complete. The civil works relating to construction of Chimney and Boiler
Turbine Foundation have already commenced.
The Contract for the Supply and Erection of Main Equipment consisting for the
Boiler, Turbine, Generator and related Auxiliaries (BTG) has been entered into
with an Overseas Supplier. The company has made the Advance payment to this
Supplier and has also established the Letter of Credit in their favour as per
the Terms of Contract. The company has also received the initial shipment of
the BTG Package form the Supplier. The company has placed the orders for supply
of long delivery Balance of Plant (BOP) packages to ensure that the BOP is
ready according to the scheduled commissioning of the Power Plant.
EXPANSION PLANS:
·
PHASE II
The
Directors are pleased to inform that the company is putting up another 2 x 330
MW Power Plant as Phase II at the same site. The company has already executed
the contract for supply and erection of main plant equipment consisting of
Boiler, Turbine and Generator with an overseas supplier. The delivery of these
equipments is expected to start during the ensuing year.
The Power Generated from Phase I and Phase II will meet the requirement to sale
1000 MW of Power committed to GUVNL under 1st Power Purchase Agreement (PPA)
signed under Bid-I.
·
PHASE III
The company is also embarking upon another expansion of 1320 MW Power Plant.
The Power generated from this Power Plant will meet the requirement of
committed power supply of 1000 MW to GUVNL under 2nd Power Purchase Agreement
(PPA) signed with them under Bid-II.
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PHASE IV
The company is planning to set up grass root Power Plant of 2000 MW at Tiroda,
Dist Gondia, and Maharashtra to augment the Power Supply in the State of
Maharashtra. This Project will be implemented by M/s. Adani Power Maharashtra
Pvt. Ltd a subsidiary Company of Subject formed for implementing this Project.
Maharashtra Industrial Development Corporation has allotted necessary land
required for implementing this Project. The Company has already commenced the
site development activities like topography survey, soil investigation, etc.
the Project construction activities will commence from the ensuingy year.
INSURANCE:
The Company has obtained necessary Project Insurance from
reputed Insurance Companies, which provides a comprehensive insurance cover
during the Project construction Phase including Delayed Start up cover and
Advance Loss of Profit.
SEZ
NOTIFICATION:
The directors are pleased to inform that the company has received approval from
Department of Commerce (SEZ Section), Ministry of Commerce and Industry,
Government of India vide its letter dated 19th December, 2006 for setting up a
sector specific Special Economic Zone for power sector for supply of power to
SEZs, EOUs in Gujarat and other SEZs, EOUS and others over and area of
293-88-10 hectares at Village Tunda and Siracha, Taluka Mundra, District Kutch,
Gujarat.
SUBSIDIARY
COMPANY:
Adani Power Maharashtra Private Limited (APMPL) had become subsidiary of the
Company, by virtue of investment into Equity share capital of that
Company.
Website details:
Subject is a member of 4.6 Billion US Dollar Adani Group, has taken up
implementation of Mega Thermal Power Projects at various locations in India in
view of the growing needs of Power requirements in the country.
Subject propose to implement 2640 MW Coal based Thermal Power Project at
Mundra, Dist. Kutch, Gujarat, India. Subject also propose to implement 1320 MW
Coal based Thermal Power Project at Tiroda, Gondia, Maharashtra through its
100% subsidiary, Adani Power Maharashtra Pvt. Ltd. (APMPL)
Subject is also actively planning to implement other Thermal Power Stations at
various locations in India, totaling to about 10000 MW in the coming years.
Subject is engaged in the Power Trading business across the country and also
aiming to enter into Power Transmission in a big way.
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 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.39.66 |
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UK Pound |
1 |
Rs.78.16 |
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Euro |
1 |
Rs.58.09 |
SCORE & RATING
EXPLANATIONS
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SCORE FACTORS |
RANGE |
POINTS |
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HISTORY |
1~10 |
6 |
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PAID-UP CAPITAL |
1~10 |
6 |
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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 |
8 |
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--LEVERAGE |
1~10 |
8 |
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--RESERVES |
1~10 |
7 |
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--CREDIT LINES |
1~10 |
7 |
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--MARGINS |
-5~5 |
- |
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DEMERIT POINTS |
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--BANK CHARGES |
YES/NO |
YES |
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--LITIGATION |
YES/NO |
NO |
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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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42 |
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 |
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