MIRA
INFORM REPORT
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Report Date : |
18.11.2008 |
IDENTIFICATION
DETAILS
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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 : |
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 : |
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 : |
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 : |
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 : |
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 : |
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 |
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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
|
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 |
|
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 |
|
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) |
|
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 |
|
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 |
|
6585.200 |
400.500 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
|
31.03.2008 |
31.03.2007 |
|
Import Value |
|
295.762 |
NA |
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) |
|
|
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 was incorporated on February 10, 2006 and Certificate of Commencement
of Business was issued by Registrar of Companies, NCT of Delhi and Haryana on
August 25, 2006. Accordingly, the accounts for the first financial year of the
Company has been prepared for the period from the date of incorporation i.e.
Feb 10, 2006 to 31st March, 2007. The Company has not yet commenced its
commercial operations; therefore no Profit and Loss account has been prepared.
Expenditure amounting to Rs.69.063 millions during Construction Period. Further
expenditure incurred on filing/ legal fees regarding formation of the Company
and all expenses incurred prior to the incorporation of the Company has been
treated as Preliminary Expenses.
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
Government of India has envisaged a Power Generation capacity of 1,00,000 MW
during the decade 2002-12 to meet its mission of "power to all by
2012". To accomplish the mission of Govt. of India, Ministry of Power in
association with CEA and Power Finance Corporation had launched an initiative
for development of Ultra Mega Power Projects of 4000 MW capacity each. The
objective of the scheme is to develop large capacities of power generation in
India and to bring in potential investors after developing such projects to a
stage where major clearances, fuel tie up (for domestic coal based projects)
and power selling tie ups are already in place. The developers for these
projects are selected through tariff based international competitive bidding.
Power Finance Corporation (PFC) has been assigned the lead role in formulation
of the SPVs and to coordinate for the successful development of Ultra Mega
Power Project (UMPP) with the concept that once the major tie-ups, clearances,
linkages and project report are ready, bids would be invited to transfer the
projects to potential investors for execution of project.
In furtherance to above, Subject was incorporated as a wholly owned subsidiary
of the Power Finance Corporation to develop the Ultra Mega Power Project at
Mundra. The Subject site at Mundra in Kutch District was identified in
consultation with CEA and Govt. of Gujarat.
So far the company has achieved the
following progress for the development of 4000 MW Mundra UMPP of Coastal Gujarat
Power Limited.
(a) Completion of preliminary technical studies Completed Including EIA,
Fuel transportation and power
evacuation.
(b) Publication of Notification under section-6 Completed of Land
Acquisition act for the acquisition of Private land.
(c) Award of "Consent to Establish" from Gujarat Obtained
Pollution Control Board
(d) Award of Environment Clearance from MoEF Obtained
(e) CRZ Clearance from MoEF Obtained
(f) Forest Clearance for the project Under Advanced Stage (g) Water
allocation and linkage Obtained
(h) Civil Aviation Clearance Obtained
PROJECT PROGRESS:
Land acquisition for the Project is currently in progress. Gujarat Urja Vikas
Nigam Limited as lead procurer shall hand over the possession of the land within
six (6) months of signing of PPA or eight (8) months from the date of issue of
Letter of Intent, whichever is later. The Company has already placed its order
for the Boiler Package and is in the process of finalizing other major
equipments.
FINANCING AGREEMENT
The Company entered into financing agreement with Power Finance Corporation
Limited (Holding Company) and it was agreed that PFC would incur the entire
expenditure on development of the Project and shall recover the same along with
interest from the Successful Bidder at the time of award of the project.
PARTICIPATING
STATES
As per the Power Purchase Agreement dated 22nd April 2007, signed by the
Company with the Procurers, the Contracted Capacity allocated to each of the
Procurers shall be as follows:
1. Gujarat Urja Vikas Nigam Limited: 1805 MW2. Haryana Power Generation
Corporation Limited. : 380 MW3. Maharastra SEB Distribution Company Limited:
760 MW4. Punjab State Electricity Board: 475 MW
5. Rajasthan Power Procurement Centre (on behalf Of 3 Companies): 380 MW
COMMITMENT
ADVANCE
It was also agreed that, on the basis of the decision taken in the meetings
held in the Ministry of Power, the procuring States (Procurers) would
contribute commitment advance @ Rs. 10.000 Millions per 100 MW of off-take
according to power allocation to such Procurer to SPV which would park the
advance so received with PFC as intercorporate loan and, on and after the date
of its receipt by PFC, PFC would meet the aforesaid expenditure from out of
that advance. The said commitment advance was to be refunded to such procurer
as specified in this agreement after the Closing Date along with interest at
such rate as determined by PFC. As on date of this report the commitment
advance along with interest has been fully repaid.
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 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.48.99 |
|
UK Pound |
1 |
Rs.72.14 |
|
Euro |
1 |
Rs.61.57 |
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 |
|