MIRA
INFORM REPORT
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Report Date : |
06.11.2008 |
IDENTIFICATION
DETAILS
|
Name : |
COASTAL GUJARAT POWER LIMITED |
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Registered Office : |
34, Sant Tukaram Marg, Carnac Bunder, Mumbai – 400 009, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.03.2008 |
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Date of Incorporation : |
10.02.2006 |
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Com. Reg. No.: |
11-182213 |
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CIN No.: [Company
Identification No.] |
U40102/MH2006PLC182213 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMC15498A |
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PAN No.: [Permanent
Account No.] |
AADCC1347A |
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Legal Form : |
A closely held public limited liability company |
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Line of Business : |
Specializes in Coal based Projects. |
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 30000000 |
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Status : |
Project under implementation |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a wholly owned subsidiary of Tata Power Company Limited, a Tata
Group Company, country’s premier industrial house. The company had not
commenced commercial operations as per its last financials and hence no
profit and loss account is available. The management declined to part with
any details. General financial position is good. Fundamentals are strong and
healthy. Payments are reported as usually made as per commitments. In view of strong promoters the company can be considered good for
normal business dealings. |
LOCATIONS
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Registered Office : |
34, Sant Tukaram Marg, Carnac Bunder, Mumbai – 400 009, Maharashtra,
India |
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Tel. No.: |
91-22-67171644 / 66658789 |
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Fax No.: |
91-22-67171649 |
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E-Mail : |
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Head Office : |
148, General Bhosale Marg, Station, Opp Lalith Building, Nariman
Point, Mumbai – 400 002, Maharashtra, India |
DIRECTORS
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Name : |
Mr. Ramakrishnan Ramaiengar Sowmyan |
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Designation : |
Director |
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Address : |
A-701, NCPA Apartments, ‘A’ Block, Nariman Point, MumbaI – 400 021,
Maharashtra, India |
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Date of Birth/Age : |
19.02.1949 |
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Date of Appointment : |
22.04.2007 |
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Name : |
Mr. Anil Kumar Dev Dutta Sardana |
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Designation : |
Director |
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Address : |
15, Gagan Vihar, New Delhi – 115 051, India |
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Date of Birth/Age : |
16.04.1959 |
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Date of Appointment : |
22.04.2007 |
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Name : |
Mr. Amulya Shanti Kumar Charan |
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Designation : |
Director |
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Address : |
Om Vikas, 1701/1801 B, Walkeshwar Road, Mumbai – 400 006, Maharashtra,
India |
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Date of Birth/Age : |
21.09.1948 |
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Date of Appointment : |
22.04.2007 |
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Name : |
Mr. Prasad Raghava Menon |
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Designation : |
Director |
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Address : |
50-F, Lovedale, Peddar Road, Mumbai – 400 026, Maharashtra, India |
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Date of Birth/Age : |
23.01.1946 |
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Date of Appointment : |
22.04.2007 |
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Name : |
Mr. Alok Ramdev Kanagat |
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Designation : |
Director |
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Address : |
501/502, Palm Beach, 67A, Pochkhanwala Marg, Worli, Mumbai – 400 025,
Maharashtra, India |
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Date of Birth/Age : |
18.11.1951 |
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Date of Appointment : |
05.05.2008 |
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Name : |
Mr. Ramesh Narayanswamy Subramanyam |
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Designation : |
Secretary |
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Address : |
Twin Star Jupiter, Co-operate Society Limited, 16th Floor,
Flat No. 162, 41, Cuffe Parade, Mumbai – 400 005, Maharashtra, India |
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Date of Birth/Age : |
27.06.1969 |
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Date of Appointment : |
26.07.2007 |
KEY EXECUTIVES
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Name : |
Mr. Vijay Gupta |
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Designation : |
Head – Engineering |
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Qualification : |
BE (Electrical) |
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Experience : |
26 Years |
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Date of Appointment : |
02.04.2007 |
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Previous Employment : |
General Manager, NTPC |
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Name : |
Mr. Ramesh N Subramanyam |
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Designation : |
Chief Financial Officer and Company Secretary |
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Qualification : |
B.Com, ICWA, CPA, ACS |
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Experience : |
15 Years |
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Date of Appointment : |
25.06.2007 |
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Previous Employment : |
AVP-Corp Finance and Treasury, Siemens AG |
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Name : |
Mr. Milind V Deshmukh |
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Designation : |
Head-Construction |
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Qualification : |
BE |
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Experience : |
28 Years |
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Date of Appointment : |
16.07.2007 |
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Previous Employment : |
Head-Construction Management, L and T |
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Name : |
Mr. Ravinarayan N Sahoo |
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Designation : |
Group Head-Boiler |
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Qualification : |
BSC, PGD, AIMA |
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Experience : |
20 Years |
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Date of Appointment : |
01.08.2007 |
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Previous Employment : |
Deputy General Manager – BHEL |
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Name : |
Mr. Vinay Mittal |
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Designation : |
Group Head-Project Mag |
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Qualification : |
B.Tech (Civil) |
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Experience : |
26 Years |
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Date of Appointment : |
17.08.2007 |
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Previous Employment : |
Additional General Manger NTPC |
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Name : |
Mr. Partho P Mukhopadhyay |
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Designation : |
Head-HR |
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Qualification : |
PGDBM |
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Experience : |
21 Years |
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Date of Appointment : |
01.11.2007 |
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Previous Employment : |
Head-HR, SREI Infrastructure and Finance Limited |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
(As on 02.07.2008)
|
Names of Shareholders |
No. of Shares |
|
The Tata Power Company Limited |
639999994 |
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The Tata Power Company Limited with Mr. A S Bapat |
1 |
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The Tata Power Company Limited With Mr. H M Mistry |
1 |
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The Tata Power Company Limited with Mr. S Ramakrishnan |
1 |
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The Tata Power Company Limited with Mr. A Charan |
1 |
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The Tata Power Company Limited with Mr. B J Shroff |
1 |
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The Tata Power Company Limited with Mr. Sanjay Dubey |
1 |
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Total |
640000000 |
List of Allotment
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Names of Allottes |
No. of Shares |
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The Tata Power Company Limited |
200000000 |
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Total |
200000000 |
Equity shares Breakup (percentage of total equity)
(As on 30.09.2008)
|
Category |
Percentage |
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Bodies Corporate |
100.00 |
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Total |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Specializes in Coal based Projects. |
GENERAL
INFORMATION
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Bankers : |
State Bank of India Project Finance SBU, 3rd Floor, State Bank Bhavan, Madam
Cama Road, Mumbai – 400 021, Maharashtra, India |
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Facilities : |
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Banking
Relations : |
- |
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Auditors : |
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Name : |
·
Deloitte Haskins and Sells Chartered Accountants Address : 12, Dr. Annie
Besant Road, Opp. Shiv Sagar Estate, Worli, Mumbai – 400 018, Maharashtra,
India Tel. No.: 91-22-66679000 Fax No.: 91-22-66679025 ·
Nagpal Nagpal and Associates Chartered Accountants |
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Fellow Associates : |
Tata Projects Limited |
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Subsidiaries : |
Energy Eastern Pte. Limited (Effective 31at January, 2008) |
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Fellow Subsidiaries : |
·
Aftaab Investments Company Limited ·
Chemical Terminal Trombay Limited ·
Tata Power Trading Company Limited ·
Powerlinks Transmission Limited ·
NELCO Limited ·
Tatanet Services Limited ·
Maithon Power Limited ·
Industrial Energy Limited ·
Industrial Power Utility Limited ·
Industrial Power Infrastructure Limited ·
Tata Power International Holdings Limited (Effective 17th
May 2007) ·
Tata Power (Mauritius) Limited (Effective 22nd June 2007) ·
Tata Power Cyprus Limited (Effective 22nd June 2007) ·
Veltina Holdings Limited (Effective 03rd May 2007) ·
TPC Energy Asia Pte. Limited (Effective 11th March 2008) ·
North Delhi Power Limited (Effective 22nd January 2008) |
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Holding Company : |
·
The Tata Power Company Limited
·
Power Finance Corporation Limited |
CAPITAL STRUCTURE
(As on 30.09.2008)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
4250000000 |
Equity Shares |
Rs.10/- each |
Rs.42500.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
640000000 |
Equity Shares |
Rs.10/- each |
Rs.6400.000
millions |
(As on 31.03.2008)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3500000000 |
Equity Shares |
Rs.10/- each |
Rs.35000.000 millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
400000000 |
Equity Shares |
Rs.10/- each |
Rs.4000.000
millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
|
31.03.2008 |
31.03.2007 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
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4000.000 |
0.500 |
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2] Share Application Money |
|
2000.500 |
0.000 |
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3] Reserves & Surplus |
|
0.000 |
0.000 |
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4] (Accumulated Losses) |
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0.000 |
0.000 |
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NETWORTH |
|
6000.500 |
0.500 |
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LOAN FUNDS |
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1] Secured Loans |
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0.000 |
0.000 |
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2] Unsecured Loans |
|
584.700 |
400.000 |
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TOTAL BORROWING |
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584.700 |
400.000 |
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DEFERRED TAX LIABILITIES |
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0.000 |
0.000 |
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TOTAL |
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6585.200 |
400.500 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
|
148.570 |
0.119 |
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Capital work-in-progress |
|
6076.742 |
150.559 |
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INVESTMENT |
|
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
|
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 |
|
267.959 |
0.547 |
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Other Current Assets |
|
0.000 |
0.000 |
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Loans & Advances |
|
313.906 |
270.692 |
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Total
Current Assets |
|
581.865 |
271.239 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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|
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Current Liabilities |
|
219.343 |
21.488 |
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|
Provisions |
|
2.705 |
0.000 |
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Total
Current Liabilities |
|
222.048 |
21.488 |
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Net Current Assets |
|
359.817 |
249.751 |
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MISCELLANEOUS EXPENSES |
|
0.071 |
0.071 |
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TOTAL |
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6585.200 |
400.500 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
|
CIF Value |
|
295.762 |
Nil |
KEY RATIOS
|
PARTICULARS |
|
|
31.03.2008 |
31.03.2007 |
|
Debt Equity Ratio (Total Liability/Networth) |
|
|
0.13 |
842.98 |
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Current Ratio (Current Asset/Current Liability) |
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|
2.62 |
12.62 |
LOCAL AGENCY
FURTHER INFORMATION
Form No. 8
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Corporate
identity number of the company |
U40102/MH2006PLC182213 |
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Name of the
company |
COASTAL GUJARAT POWER LIMITED |
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Address of the
registered office or of the principal place of business in India of the company |
34, Sant Tukaram Marg, Carnac Bunder, Mumbai – 400 009, Maharashtra,
India |
|
This form is for |
Creation of
charge |
|
Type of charge |
·
Uncalled
share capital ·
Immovable
property ·
Any interest
in immovable property ·
Book debts ·
Movable
property (not being pledge) ·
Floating
charge ·
Goodwill ·
Patent,
license under a patent ·
Trademark ·
Copyright or
license under a copyright |
|
Particular of
charge holder |
State Bank of India Project Finance SBU, 3rd Floor, State Bank Bhavan, Madam
Cama Road, Mumbai – 400 021, Maharashtra, India |
|
Nature of
instrument creating charge |
Indenture of
Mortgage dated September 18, 2008 executed by the Coastal Gujarat Power
Limited (in its capacity as the Borrower) in favour of State Bank of India
(in its capacity as Security Trustee for the benefit of the Senior Lenders) |
|
Date of
instrument Creating the charge |
18.09.2008 |
|
Amount secured by
the charge |
Rs.127564.000
millions |
Financial Performance
The Company has not yet commenced the
commercial operation; therefore no Profit and Loss Account has been prepared. The
Company has achieved significant progress in preliminary activities in
preparation of full fledged construction activities.
Capital Expenditure
The expenses towards fixed assets including
land (net) were Rs.148.570 millions. Capital work in progress (including
capital advances) were Rs.5270.150 millions. The incidental expenses during
construction period pending allocation to fixed assets were Rs.806.591
millions. All expenses have been treated as Incidental Expenditure during
Construction period and shown in Balance Sheet as Capital Work in Progress.
Profit
During the financial year 2007-08, the Company
has not earned any profits as the Company is under construction period and has
not started its commercial operations.
Operational Highlights
Members may recall that the Company was
successful in winning one if the first two Ultra Mega Power Projects (UMPP)
through a competitive bidding process at Mundra in the state of Gujarat. The
Letter of Intent for the 4000 MW Mundra project in coastal Gujarat was issued
to the Company in December, 2006.
The Company acquired the Project Special
Purpose Vehicle (SPV) Company – Subject in April 2007. Subject has signed Power
Purchase Agreement (PPA) with 7 procures (distribution licenses) in five states
for the sale of contracted capacity of 3800 MW. As per the PPA, the company is
committed to commission the 1st power generating unit by August 2012
and the entire project by August 2014. However the company is targeting an
accelerated schedule which has been communicated to the Procures.
The project is being funded through a debt
equity mix of 75:25. The Company has successfully tied up the entire debt
requirement through a consortium of overseas and domestic lenders and the
Financing Agreements were signed in April 2008. The estimated project cost of
Rs.170000 millions (USD 4.125 billion) is being funded through External
Commercial Borrowings (ECB) of US$ 1.8 Billion and approx Rs.55000 millions by
way of Rupee loan.
Land acquisition for the project is at an advanced
stage. Out of the total land requirement, over 70% has been acquired. In
principle approval has been received from Ministry of Environment and Forest
for diversion of forest land, constituting approximately 12% of the total land
requirement. The process of acquiring the private land is nearing completion.
The entire process of land acquisition is expected to be completed by June 08.
The coal requirement for this project is about
12 million tones per annum. Approximately half of this coal requirement will be
met from a coal contract with an Indonesian company. For the balance coal
requirements, various options are under evaluation.
The Company has formed a 100% subsidiary,
Energy Eastern Pte Limited (EEPL_ in Singapore to carry out shipping related activities
to manage its coal supply requirements. EEPL has already entered into long term
charter party agreements to substantially meet the shipping requirements of
company.
A team of experienced power plant and project
execution professionals is in place. The Current manpower strength stands at
118, which will be further strengthened as and when required.
TCE Consulting Engineers Limited is the
technical consultant to the project. Their scope includes power plant design
and detailed engineering. As per PPA, the power evacuation system will be
arranged by the Procurers through the Power Grid Corporation of India Limited.
Contracts for Boiler Island (EPC Basis) and Turbine generators (Supply) were
awarded earlier in the year. Contracts for Balance of Plant such as Condensers,
LP/HP Heaters, Deareators, high Pressure Piping, Generator Circuit Breakers,
Turbine Generator building, CW Pump, Construction Power, Chimney, piling,
foundation works as well as civil contracts for Infrastructure buildings have
been awarded.
Preliminary Construction work for the project
has commenced. Currently, civil works for Boiler area, Site infrastructure
works such as field hostels, offices, plant boundary and access roads are in
progress.
Subsidiary Company
The Company has formed a wholly owned
subsidiary “Energy Eastern Pte. Limited” under the laws of Singapore. Energy
Eastern Pte. Limited shall be engaged in the business of shipping and allied
activities and take care of transportation of coal required for the project.
The Company has invested Singapore Dollar 53000 as on 31st March,
2008 in the subsidiary company.
Fixed Assets
·
Land
·
Buildings
·
Plant and Machinery
·
Furniture, Fixtures and Office Equipment
·
Transmission Lines, Street Lights, etc
·
Motor Vehicles
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.47.18 |
|
UK Pound |
1 |
Rs.75.05 |
|
Euro |
1 |
Rs.60.89 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
3 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
- |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--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 |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
48 |
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 |
|