MIRA
INFORM REPORT
|
Report Date : |
27.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
VADINAR POWER COMPANY LIMITED |
|
|
|
|
Registered
Office : |
Vadinar Power Company, Administration Building, Refinery Site, 39 KM, Jamnagar-Okha
Highway, Vadinar, Jamnagar-361305, Gujarat |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as
on) : |
31.03.2010 |
|
|
|
|
Date of
Incorporation : |
03.10.1997 |
|
|
|
|
Com. Reg. No.: |
04-033108 |
|
|
|
|
CIN No.: [Company Identification
No.] |
U40100GJ1997PLC033108 |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
RKTV00632C |
|
|
|
|
Legal Form : |
A closely held Public Limited Liability Company. |
|
|
|
|
Line of Business
: |
Manufacturer and Supplier of Metallurgy Machinery, Gaskets, Abrasive
Tools. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (45) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 28000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually correct |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a subsidiary or Essar Power Limited, The company can be considered for normal business dealings at usual
trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
|
|
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
LOCATIONS
|
Registered Office : |
Vadinar Power Company, Administration Building, Refinery Site, 39 KM,
Jamnagar-Okha Highway, Vadinar, Jamnagar-361305, Gujarat, India |
|
Tel. No.: |
91-2833-661444 |
|
Fax No.: |
91-2833-661919 |
|
E-Mail : |
DIRECTORS
As on 15.07.2010
|
Name : |
Mr. Naresh Kumar Nayyar |
|
Designation : |
Managing Director |
|
Address : |
Plot No. 5, Panhar 3A, Abdul Gaffar Khan Road, Worli Sea Face, Worli,
Mumbai-400018, Maharashtra, India |
|
Date of Birth/Age : |
26.03.1952 |
|
Date of Appointment : |
12.07.2008 |
|
|
|
|
Name : |
Mr. Suresh V |
|
Designation : |
Director |
|
Address : |
Flat No. 7, Jeevan Mangal, 233, Sector III, Charkop, Kandivali West,
Mumbai-400067, |
|
Date of Birth/Age : |
28.12.1957 |
|
Date of Appointment : |
15.04.2009 |
|
|
|
|
Name : |
Mr. Kalakota Vijaya Bhaskara Reddy |
|
Designation : |
Director |
|
Address : |
61, Marble Arch, |
|
Date of Birth/Age : |
01.07.1961 |
|
Date of Appointment : |
15.04.2009 |
|
|
|
|
Name : |
Mr. Kishor Bhurabhai Makadia |
|
Designation : |
Director |
|
Address : |
Flat No. E/15, |
|
Date of Birth/Age : |
05.08.1956 |
|
Date of Appointment : |
05.08.2009 |
|
|
|
|
Name : |
Mr. Bhurabhai Makadia |
|
Designation : |
Whole Time Directors |
|
Address : |
Flat No. |
|
Date of Birth/Age : |
|
|
Date of Appointment : |
|
KEY EXECUTIVES
|
Name : |
Mr. Mayank Bhargava |
|
Designation : |
Secretary |
|
Address : |
Flat No. 142, Building No. 12, Kamdhenu, Hari Om Nagar, Mulund (E),
Mumbai-400081, |
|
Date of Birth/Age : |
20.08.1971 |
|
Date of Appointment : |
01.04.2007 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 15.07.2010
|
Names of Shareholders |
|
No. of Shares |
|
Essar Power Limited, |
|
293000000 |
|
Essar Oil Limited, |
|
102999994 |
|
Essar Power Limited, |
|
1 |
|
Essar Power Limited, |
|
1 |
|
Essar Power Limited, |
|
1 |
|
Essar Power Limited, |
|
1 |
|
Essar Power Limited, |
|
1 |
|
Essar Power Limited, |
|
1 |
|
|
|
|
|
Total |
|
396000000 |
List of Allottee:
As on 30.12.2010
|
Particular |
No. of Shares |
|
Essar Power Limited, |
391998000 |
As on 15.07.2010
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Bodies
corporate |
|
100.00 |
|
Total |
|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
Manufacturer and Supplier of Metallurgy Machinery, Gaskets, Abrasive
Tools. |
PRODUCTION STATUS (AS ON 31.03.2010)
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Power |
MW |
77 |
428 |
|
Steam |
TPH |
525 |
3622193 |
GENERAL INFORMATION
|
Bankers : |
Not Available |
||||||||||||
|
|
|
||||||||||||
|
Facilities : |
Note: Security
provided to the lenders: Term loans form financial institution for the base plant (120 MW) are
secured by a pari passu first charge on all the movable and immovable assets of
the company (including leasehold land at Village Timbdi and Kathy Devalia of
Mouje, Timdi and Kathy Devlia of Taluka Jamnagar, Khambalia, Jamnagar),
present and future assignment of project documents, guarantees and issuance
policies and are also secured by a pledge of 52530000 equity shares Rs.10
each of the company by Essar Oil Limited and 201960000 equity shares of Rs.10
each of the company by Essar Power Limited. |
|
|
|
|
Banking
Relations : |
-- |
|
|
|
|
Financial Institution: |
Power Finance Corporate Limited, Urjanidhi, 1, |
|
|
|
|
Auditors : |
|
|
Name : |
Deloitte Haskins and Sells Chartered Accountant |
|
Address : |
Heritage, 3rd Floor, Near Gujarat Vidyapaith, Off |
|
Tel. No.: |
91-79-27582542/27582541 |
|
Fax No.: |
91-79-27582551 |
|
E-Mail : |
|
|
|
|
|
Holding Company: |
|
|
|
|
|
Ultimate Holding Company: |
|
CAPITAL STRUCTURE
As on 15.07.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
3000000000 |
Equity Shares |
Rs.10/- each |
Rs.30000.000 Millions |
|
1000000000 |
Preferences Shares |
Rs.10/- each |
Rs.10000.000 Millions |
|
|
Total |
|
Rs.40000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
396000000 |
Equity Shares |
Rs.10/- each |
Rs.3960.000
Millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
3960.000 |
1934.780 |
1030.000 |
|
|
2] Share Application Money |
1927.280 |
192.500 |
499.780 |
|
|
3] Reserves & Surplus |
1282.750 |
593.910 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
7170.030 |
2721.190 |
1529.780 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
2178.533 |
2723.166 |
3267.800 |
|
|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
2178.533 |
2723.166 |
3267.800 |
|
|
DEFERRED TAX LIABILITIES |
54.483 |
30.599 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9403.046 |
5474.955 |
4797.580 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
3072.544 |
3252.245 |
2.033 |
|
|
Capital work-in-progress |
10250.356 |
3604.811 |
3836.257 |
|
|
|
|
|
|
|
|
INVESTMENT |
364.668 |
190.112 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
58.347
|
60.645 |
49.272 |
|
|
Sundry Debtors |
170.477
|
176.764 |
91.280 |
|
|
Cash & Bank Balances |
671.987
|
29.666 |
823.004 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
176.255
|
890.584 |
137.552 |
|
Total
Current Assets |
1077.066
|
1157.659 |
1101.108 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
178.630
|
855.036 |
|
|
|
Other Current Liabilities |
5170.958
|
1871.254 |
140.559 |
|
|
Provisions |
12.000
|
3.582 |
1.259 |
|
Total
Current Liabilities |
5361.588
|
2729.872 |
141.818 |
|
|
Net Current Assets |
(4284.522)
|
(1572.213) |
959.290 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
9403.046 |
5474.955 |
4797.580 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
1311.778 |
1155.706 |
|
|
|
Other Income |
|
71.906 |
55.615 |
|
|
|
TOTAL (A) |
|
1383.684 |
1211.321 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Operation, Maintenance and Other Expenses |
|
168.170 |
113.602 |
|
|
|
TOTAL (B) |
|
168.170 |
113.602 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
1215.514 |
1097.719 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
318.219 |
296.377 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
897.295 |
801.342 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
|
184.571 |
170.632 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
712.724 |
630.710 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
|
23.884 |
423.279 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
|
688.840 |
593.911 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
|
593.911 |
0.000 |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
|
1282.751 |
593.911 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Stores & Spares |
|
3.942 |
16.241 |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
2.25 |
4.12 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
49.78
|
49.03 |
NA |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
54.33
|
54.57 |
NA |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
17.17
|
14.30 |
NA |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.10
|
0.23 |
NA |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.05
|
2.00 |
2.23 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.20
|
0.42 |
7.76 |
LOCAL AGENCY FURTHER INFORMATION
Note: The
registered office of the company has been shifted from
Financial
highlights:
During the year, the Company reported a Profit after tax of Rs. 688.800
Millions as against Rs. 593.900 Millions for the previous year.
Operational
highlights:
The power plant recorded an availability of nearly 95% and a high average
plant load factor of 89% during the financial year
Nature of Business:
The company has set up and operates 120 MW
captive co-generation power and steam plant at Vadinar Dist. Jamnagar,
Bankers Charges
Report as per Registry
|
This form is for |
Modification of
charge |
|
Charge
identification number of the modified |
10209796 |
|
Corporate
identity number of the company |
U40100GJ1997PLC033108 |
|
Name of the
company |
VADINAR POWER COMPANY
LIMITED |
|
Address of the
registered office or of the principal place of business in |
Vadinar Power Company, Administration Building, Refinery Site, 39 KM,
Jamnagar-Okha Highway, Vadinar, Jamnagar-361305, Gujarat, India |
|
Type of charge |
Immovable
Property Any Interest in
Immovable Property Others |
|
Particular of
charge holder |
Power Finance Corporate Limited, Urjanidhi, 1, |
|
Email |
|
|
Nature of
description of the instrument creating or modifying the charge |
The term loan of
Rs 2710.000 Millions sanctioned by Power
Finance Corporation (PFC) for term loan no.V0301003 and of Rs. 2730.000
Millions sanctioned by Axis Bank has
been fully repaid vide no dues letter of PFC and Axis dated 03.03.2011 and
29.03.2011 respectively. |
|
Date of
instrument Creating the charge |
29.03.2011 |
|
Amount secured by
the charge |
Rs.17610.000
millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Extent and
Operation of the charge The loan amount
on part of PFC to the extent of Rs.
2710.000 Millions and Axis Bank to the
extent of Rs. 2730.000 Millions has
been fully repaid paid and now Phase II Lenders shall continue as Lenders to
the Charge in terms of Common Loan Agreement dated 17.03.2010 and Novation
deed and Deed of Accession dated 02.06.2010 and LIC sanction letter dated
21.12.2009 |
|
Date of latest
modification prior to the present modification |
27.09.2010 |
|
Particulars of
the present modification |
The loan amount
on part of PFC to the extent of Rs.
2710.000 Millions and Axis Bank to the
extent of Rs. 2730.000 Millions has
been fully repaid paid and now Phase II Lenders shall continue as Lenders to
the Charge in terms of Common Loan Agreement dated 17.03.2010 and Novation
deed and Deed of Accession dated 02.06.2010 and LIC sanction letter dated
21.12.2009 |
Fixed Assets:
- Land
- Plant and Machinery
- Office Equipment
- Computer
- Furniture and Fixtures
- Software
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
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.44.59 |
|
|
1 |
Rs.73.44 |
|
Euro |
1 |
Rs.64.81 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
5 |
|
--PROFITABILIRY |
1~10 |
4 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
4 |
|
--CREDIT LINES |
1~10 |
5 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
45 |
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 |
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 |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.