1. Summary Information
|
|
|
Country |
|
|
Company Name |
NEYVELI LIGNITE
CORPORATION LIMITED |
Principal Name 1 |
Mr. A.R. Ansari |
|
Status |
Good |
Principal Name 2 |
Dr. Rajiv Sharma |
|
|
|
Registration # |
3507 |
|
Street Address |
Neyveli House,
No. 135, |
||
|
Established Date |
14.11.1956 |
SIC Code |
-- |
|
Telephone# |
91-44-28255163 |
Business Style 1 |
Engaged in the business
of Lignite Excavation |
|
Fax # |
91-44-28255499 |
Business Style 2 |
Power Generation |
|
Homepage |
Product Name 1 |
Power |
|
|
# of employees |
-- |
Product Name 2 |
Lignite |
|
Paid up capital |
Rs.
16,777,096,000 /- |
Product Name 3 |
-- |
|
Shareholders |
Shareholding
of Promoter and Promoter Group 93.56%, Public Shareholding 6.44% |
Banking |
State Bank of Canara Bank |
|
Public Limited Corp. |
Yes |
Business Period |
54 Years |
|
IPO |
Yes |
International Ins. |
- |
|
Public |
Yes |
Rating |
A
(67) |
|
Related
Company |
|||
|
Relation
|
Country
|
Company
Name |
CEO |
|
Subsidiary |
|
NIC Tamilnadu Power Limited |
-- |
|
Note |
- |
||
2. Summary
Financial Statement
|
Balance Sheet as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Assets |
Liabilities |
||
|
Current Assets |
71,814,000,000 |
Current Liabilities |
23,899,100,000 |
|
Inventories |
5,029,600,000 |
Long-term Liabilities |
40,773,600,000 |
|
Fixed Assets |
52,388,000,000 |
Other Liabilities |
11,837,100,000 |
|
Deferred Assets |
000 |
Total Liabilities |
76,509,800,000 |
|
Invest& other Assets |
50,524,900,000 |
Retained Earnings |
86,469,600,000 |
|
|
|
Net Worth |
103,246,700,000 |
|
Total Assets |
179,756,500,000 |
Total Liab. & Equity |
179,756,500,000 |
|
Total Assets (Previous Year) |
|
|
|
|
P/L Statement as of |
31.03.2010 |
(Unit: Indian Rs.) |
|
|
Sales |
41,210,300,000 |
Net Profit |
12,474,600,000 |
|
Sales(Previous yr) |
33,549,100,000 |
Net Profit(Prev.yr) |
8,210,900,000 |
MIRA
INFORM REPORT
|
Report Date : |
04.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
NEYVELI LIGNITE CORPORATION LIMITED |
|
|
|
|
Registered Office : |
Neyveli House, No. 135, |
|
|
|
|
Country : |
|
|
|
|
|
Financials (as on) : |
31.03.2010 |
|
|
|
|
Date of Incorporation : |
14.11.1956 |
|
|
|
|
Com. Reg. No.: |
18-3507 |
|
|
|
|
CIN No.: [Company
Identification No.] |
L93090TN1956GOI003507 |
|
|
|
|
Legal Form : |
Public Limited Liability Company. The Company’s share are listed on
stock exchange. |
|
|
|
|
Line of Business : |
Subject is engaged in the business of Lignite Excavation and Power
Generation using Lignite Excavated. |
RATING & COMMENTS
|
MIRA’s Rating : |
A (67) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Maximum Credit Limit : |
USD 410000000 |
|
|
|
|
Status : |
Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
|
|
|
|
Comments : |
Subject is a Government of India Company. It is a well established and a reputed company having fine track.
Financial position of the company appears to be sound. Trade relations are
reported as fair. Business is active. Payments are reported to be regular and
as per commitments. The company can be considered normal for 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 : |
Neyveli House, No. 135, |
|
Tel. No.: |
91-44-28255163 – 67 / 28255499 |
|
Fax No.: |
91-44-28255499 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Corporate Office : |
Block No. 1, Neyveli – 607801, South Arcot District, |
DIRECTORS
As on 30.03.2010
|
Name : |
Mr. A.R. Ansari |
|
Designation : |
Chairman Cum Managing Director |
|
|
|
|
Name : |
Mr. Alok Perti |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Rajeev Rajan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. P. Babu Rao |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. B. Surender Mohan |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. R. Kandasamy |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. K. Sekar |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. J. Mahilselvan |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Sanjay Govind Dhande |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. K. Viswanath |
|
Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 30.09.2010
|
Names of Shareholders |
Total
No. of Shares |
Total
Shareholding as a % of total No. of Shares |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
1,569,639,300 |
93.56 |
|
|
600 |
- |
|
|
600 |
- |
|
|
1,569,639,900 |
93.56 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
1,569,639,900 |
93.56 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
544,770 |
0.03 |
|
|
287,443 |
0.02 |
|
|
78,204,624 |
4.66 |
|
|
3,234,014 |
0.19 |
|
|
82,270,851 |
4.90 |
|
|
|
|
|
|
4,230,426 |
0.25 |
|
|
|
|
|
|
18,903,542 |
1.13 |
|
|
1,440,674 |
0.09 |
|
|
1,224,207 |
0.07 |
|
|
366,064 |
0.02 |
|
|
52,777 |
- |
|
|
805,366 |
0.05 |
|
|
25,798,849 |
1.54 |
|
Total Public shareholding (B) |
108,069,700 |
6.44 |
|
Total (A)+(B) |
1,677,709,600 |
100.00 |
(1) Indian
Central Government / State Government(s)
Directors/Promoters & their Relatives
& FriendsBUSINESS DETAILS
|
Line of Business : |
Subject is engaged in the business of Lignite Excavation and Power
Generation using Lignite Excavated. |
||||
|
|
|
||||
|
Products : |
|
PRODUCTION STATUS AS ON 31.03.2010
|
Particulars |
Unit |
Installed
Capacity |
Actual
Production |
|
Lignite |
|
|
|
|
Mine – I |
Tones |
10.5 Millions |
9159230 |
|
Mine – II |
Tones |
15 Millions |
10443270 |
|
Mine – III |
Tones |
3.0 Millions |
2711422 |
|
Barsingsar |
|
|
|
|
Mines |
Tones |
2.1 Millions |
24541 |
|
|
|
|
|
|
Power |
|
|
|
|
Thermal – I |
KWHR |
600 MW |
|
|
Gross |
|
|
4114441588 |
|
Net |
|
|
3630134982 |
|
Thermal – I |
KWHR |
420 MW |
|
|
Gross |
|
|
2979434000 |
|
Net |
|
|
2720121694 |
|
Thermal – II Expansion |
KWHR |
1470 MW |
|
|
Gross |
|
|
10559690190 |
|
Net |
|
|
9549986250 |
|
Barsingsar |
KWHR |
250 MW |
|
|
Gross |
|
|
2475040 |
|
Net |
|
|
2475040 |
Note:
- Licensing requirement for mining has been dispensed with vide
government of
- Mine II capacity has been increased from 10.5 MT pr annum to 15 MT
per annum from 12.03.2010.
- Barsingsar Thermal first unit is under test and trial.
GENERAL INFORMATION
|
Bankers : |
|
|||||||||||||||||||||||||||
|
|
|
|||||||||||||||||||||||||||
|
Facilities : |
|
|
|
|
|
Banking Relations
: |
-- |
|
|
|
|
Auditors : |
|
|
Name : |
Ganesan and Company Chartered Accountant |
|
Address : |
Np. 9, Old No. 36, South Beach Avenue, MRC Nagar Main Road, R.A.
Puram, Chennai – 600028, Tamilnadu, India |
|
|
|
|
Name : |
L.U. Krishnan and Company Chartered Accountant |
|
Address : |
Sam’s |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2000000000 |
Equity Shares |
Rs.10/- each |
Rs.20000.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1613186300 |
Equity Shares |
Rs.10/- each |
Rs.16131.900
Millions |
|
60150000 |
Equity Shares |
Rs.10/- each |
Rs.601.500
Millions |
|
4373300 |
Equity Shares |
Rs.10/- each |
Rs.43.700
Millions |
|
|
Total |
|
Rs.16777.100 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 |
16777.100 |
16777.100 |
16777.100 |
|
|
2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
86469.600 |
77915.200 |
73625.700 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
103246.700 |
94692.300 |
90402.800 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
32375.000 |
31000.000 |
18748.500 |
|
|
2] Unsecured Loans |
8398.600 |
9577.000 |
9158.300 |
|
|
TOTAL BORROWING |
40773.600 |
40577.000 |
27906.800 |
|
|
DEFERRED TAX LIABILITIES |
5704.300 |
6714.400 |
6058.900 |
|
|
|
|
|
|
|
|
TOTAL |
149724.600 |
141983.700 |
124368.500 |
|
|
|
|
|
|
|
|
APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
52388.000 |
45029.600 |
37436.700 |
|
|
Capital work-in-progress |
38312.200 |
39591.500 |
35054.100 |
|
|
Advance for Capital Items |
772.600 |
1629.300 |
2803.500 |
|
|
|
|
|
|
|
|
INVESTMENT |
10449.400 |
8113.700 |
8262.200 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
5029.600
|
5358.500
|
4480.500 |
|
|
Sundry Debtors |
16116.200
|
7814.400
|
2188.300 |
|
|
Cash & Bank Balances |
48236.300
|
54522.000
|
47495.600 |
|
|
Other Current Assets |
1645.600
|
1894.700
|
1596.700 |
|
|
Loans & Advances |
5815.900
|
5981.100
|
3076.400 |
|
Total
Current Assets |
76843.600
|
75570.700
|
58837.500 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
11757.000
|
7341.600 |
|
|
|
Other Current Liabilities |
12142.100
|
13247.400
|
14659.600 |
|
|
Provisions |
6132.800
|
7926.600
|
3680.800 |
|
Total
Current Liabilities |
30031.900
|
28515.600
|
18340.400 |
|
|
Net Current Assets |
46811.700
|
47055.100
|
40497.100 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
990.700 |
564.500 |
314.900 |
|
|
|
|
|
|
|
|
TOTAL |
149724.600 |
141983.700 |
124368.500 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
41210.300 |
33549.100 |
29816.500 |
|
|
|
Other Income |
5987.300 |
6649.800 |
6564.200 |
|
|
|
TOTAL (A) |
47197.600 |
40198.900 |
36380.700 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Employees remunerations and benefits |
16965.300 |
13098.700 |
|
|
|
|
Other expenses |
11723.000 |
13137.200 |
|
|
|
|
Expenses capitalized |
(684.300) |
(342.600) |
|
|
|
|
Prior period adjustments |
(31.700) |
77.100 |
|
|
|
|
Increase / decrease in stock |
302.000 |
(558.100) |
|
|
|
|
TOTAL (B) |
28274.300 |
25412.300 |
17534.900 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
18923.300 |
14786.600 |
18845.800 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
335.800 |
81.500 |
88.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
18587.500 |
14705.100 |
18757.800 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
2538.900 |
4245.000 |
4544.900 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
16048.600 |
10460.100 |
14212.900 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
3574.000 |
2249.200 |
3197.200 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
12474.600 |
8210.900 |
11015.700 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
70713.500 |
67480.700 |
NA |
|
|
|
|
|
|
|
|
|
Add |
Exchange rate variation of previous year |
0.000 |
4.500 |
NA |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to/from interest differential
fund reserve |
125.000 |
206.900 |
NA |
|
|
|
Transfer to/from bond redemption reserve |
150.000 |
150.000 |
NA |
|
|
|
Transfer to general reserve |
1000.000 |
700.000 |
NA |
|
|
|
Interim dividend |
1677.700 |
0.000 |
NA |
|
|
|
Tax on interim dividend |
285.100 |
0.000 |
NA |
|
|
|
Proposed final dividend |
1677.700 |
3355.400 |
NA |
|
|
|
Tax on proposed final dividend |
278.600 |
570.300 |
NA |
|
|
BALANCE CARRIED
TO THE B/S |
77994.000 |
70713.500 |
NA |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Capital Goods |
559.200 |
100.500 |
470.000 |
|
|
|
Components and spares |
839.900 |
265.100 |
0.000 |
|
|
TOTAL IMPORTS |
1399.100 |
365.600 |
470.000 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
7.44 |
4.89 |
NA |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
30.06.2010 |
30.09.2010 |
|
Type |
|
1st
Quarter |
2nd
Quarter |
|
Net Sales |
|
11454.300 |
10632.000 |
|
Total Expenditure |
|
6681.700 |
7074.100 |
|
PBIDT (Excl OI) |
|
4772.600 |
3557.900 |
|
Other Income |
|
1124.900 |
1664.000 |
|
Operating Profit |
|
5897.500 |
5221.900 |
|
Interest |
|
258.200 |
269.700 |
|
PBDT |
|
5639.300 |
4952.200 |
|
Depreciation |
|
957.200 |
1035.900 |
|
Profit Before Tax |
|
4682.100 |
3916.300 |
|
Tax |
|
1261.100 |
1179.200 |
|
Profit After Tax |
|
3421.000 |
2737.100 |
|
Net Profit |
|
3421.000 |
2737.100 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
26.43
|
20.43 |
30.28 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
38.94
|
31.18 |
47.67 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
12.42
|
8.67 |
14.76 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.16
|
0.11 |
0.16 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.69
|
0.73 |
0.51 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
2.56
|
2.65 |
3.21 |
LOCAL AGENCY FURTHER INFORMATION
Performance
Highlights
Physical
Performance
During the year 2009-10 The
Company has achieved all around growth since inception in terms of
overburden removal, lignite production, generation and export of power as
under:
- Overburden
removal of 159.425 Lakh Cubic Metre (LM3) from all Mines put together.
- Total lignite
production of 22.338 Lakh Tonnes (LT) from all Mines.
- Aggregate
power generation of 1765.604 Million Units (MU)from all Power Stations.
- Export of
power from all Power Stations put together at 14828.22 MU.
- Overburden (
- Power
generation from TPS-ll at 10559.69 MU.
Financial
Performance
The Company during the year
registered a sales turnover of Rs.41210.300 Millions and profit after tax of Rs.12474.600
Millions , which are the highest since inception.
Segment-wise
Performance Mines
During the year 2009-10, the total Overburden removal was 1594.25 LM3
compared to 1463.44 LM3 achieved in the year 2008-09, registering a growth of
8.94%. The total Lignite production during the year 2009-10 was 223.38 LT as
against 213.07 LT achieved in the year 2008-09, recording a growth of
4.84%. During the year under review
Mine-I had exceeded the last year's performance in removal of
Power
During the year 2009-10, the total power generation (Gross) from all
power plants of the Company was 17656.04 MU compared to 15767.98 MU recorded
during the year 2008-09, registering a growth of 11.97%. The power export
during the year under review was 14828.22 MU as against 13204.05 MU made during
the year 2008-09, recording a growth of 12.30%. The total power generation and
export during the year 2009-10 were the highest since inception.
Thermal Power Station-I is one of the oldest power plants in the country,
having served for more than 40 years and almost nearing its extended life. It
was a remarkable performance from this plant, to register a growth of 15.01% in
the generation during the year 2009-10 compared to the generation of 2008-09.
Considering the age of this plant, it was earlier decided to taper down the
generation between the years 2009 and 2014 in phases depending upon the
condition of the Plant. However, TNEB as well as the Government of Tamilnadu
requested The Company directly and also
through Ministry of Coal, to defer the retirement of Units for some more time
in view of the prevailing power deficit situation in the State. In view of the
above it has been decided to defer the programme of tapering down generation
for the time being and firm up the same at a later date depending upon the
performance of Units and the Residual Life Assessment (RLA) study results. The
RLA study has been completed for two units and the study has indicated that the
operation of the said units could be continued for a further period of about 5
years with some minor replacements. In respect of the balance seven units, the
RLA study will be carried out for each unit on completion of the extended life
period of 15 years. During the year
2009-10, the power generation from TPS-I Expn., was less compared to the
previous year2008-09 by 4.69% due to extended maintenance works carried out in
both the units. The power generation
from TPS-II during the year 2009-10 was the highest since inception,
registering a growth of 16.50% compared to previous year 2008-09. This plant
performed exceedingly well compared to previous years on account of
availability of required quantum of lignite on sustained basis from Mine-I I
and the transportation of surplus lignite from other Mines. The Unit-I of
Barsingsar TPS generated in-firm power of 2.48 MU since its synchronization in
October 2009.
Financial
Performance
During the year under review, The
Company recorded a sales turnover of Rs.41210.300 Millions compared to Rs.33549.100 Millions achieved in the year 2008-09. The profit
before tax for the year was Rs.16048.600 Millions (previous year Rs.10460.100 Millions ) while
the profit after tax was Rs. 12474.600 Millions
(previous year Rs. 8210.900 Millions ).
The increase in the sales turnover and the profit for the year ended
31st March, 2010 compared to previous year ended 31st March, 2009 was mainly on
account of higher generation and export of power during the year 2009-10 and
also due to adoption of higher tariff rate as per the tariff petitions filed
before CERC.
Sanctioned
Projects
Expansion
Programme
The Government of India had sanctioned implementation of Mine-ll Expn.,
linked to TPS-II Expn., project at Neyveli at an aggregate revised capital cost
of Rs.47495.000 Millions . The Company
is also implementing a Mine-cum-Power Project at Barsingsar in Rajasthan at an
aggregate revised capital cost of Rs.18806.900 Millions . The status of
implementation of the above projects is as under:
Mine-ll Expansion
(10.5 MTPA to 15.0 MTPA)
The Company has successfully
completed the implementation of this project and this Mine attained rated
production capacity during March 2010. Mine-ll Expansion was formally dedicated
to the Nation on 5th April, 2010 by Shri. Sriprakash Jaiswal, the Hon'ble Union
Minister of State (Independent Charge) for Coal, Statistics and Programme
Implementation. Overburden removal from Mine-ll Expansion during 2009-10 was
226.55 LM3 against the target of 190.00 LM3. The cumulative expenditure
incurred upto 31st March,2010 was Rs. 18083.400 Millions .
Thermal Power
Station-ll Expansion (2x250 MW)
During the year 2009-10 hydro test of the Boiler for Unit-I and
construction of Chimney and Cooling Tower-ll were completed. 400 KV switch yard
was also commissioned during the year and the Generator Stator has been lifted
and positioned. Erection of Water Treatment and Effluent Treatment Plants and
Lignite Handling System are nearing completion. Erection of Boilers and
Turbo-generators, Circulating Water System & Fire Protection System, Power
Transformers, Ash Handling System and other miscellaneous works are in
progress.
View of TPS-ll
Expn.
The anticipated commissioning of Unit-I and Unit-ll as per the present
progress of implementation is December 2010 and June 2011 respectively. Members
may be aware that M/s. BHEL the Main Plant Package contractor, delayed in the
initial stages the starting of the civil works and consequent erection works.
The erection works are also progressing at a slow pace. Continuous review is
being done at various levels with the top management of BHEL besides apprising
Ministry of Coal, Ministry of Power and Ministry of Heavy Industries and also
CEAfor expediting the erection activities by BHEL and for early commissioning
of the project. The cumulative expenditure incurred upto 31st March, 2010 was Rs. 19482.700 Millions .
Barsingsar Mine
Project in Rajasthan (2.1 MTPA)
Overburden removal during the year 2009-10 was 101.24 LM3. Lignite excavation
commenced on 23rd November, 2009 and production attained the rated capacity on
31st January, 2010. The Lignite
production in this Mine during the year 2009-10 was 0.25 LT against the target
of 5.00 LT. As stated earlier production during the year under review was
regulated based on the slow progress of the power plant under implementation.
The cumulative expenditure incurred upto 31st March,2010 was Rs.2145.100
Millions .
View of Barsingsar
Mine
Barsingsar Thermal
Power Station (2 x 125 MW)
The Unit-I (125 MW) of the Barsingsar Thermal Power Project was
synchronised during October 2009 and was formally dedicated to the Nation on
5th June, 2010 by Shri. Sriprakash Jaiswal, the Hon'ble Union Minister of State
(Independent Charge) for Coal, Statistics and Programme Implementation. The
Unit-ll (125MW) of the above project has also been synchronised on 5th June,
2010 after completion of major erection activities and the commissioning of
this Unit is expected by September 2010. Project execution got delayed due to
initial delay in supply and erection activities of Main Plant Package,
Switchyard and Power transformer by M/s. BHEL. The cumulative expenditure
incurred upto 31st March, 2010 was Rs.14078.200 Millions .
Joint Venture
Project
Coal based Thermal
Power Plant at Tuticorin (2x500 MW)
The Joint Venture Project between The
Company and the Tamilnadu Electricity Board (TNEB) viz., coal based
thermal power plant of 2x500 MW capacity at Tuticorin in Tamilnadu, is being
implemented by The Company at a GOI
sanctioned cost of Rs.49095.400 Millions
through NLC Tamilnadu Power Limited, the Subsidiary Company. The equity
participation in the JV Company by NLC and TNEB is in the ratio of 89:11 and
share of equity contribution of around Rs.13110.000 Millions to be made by The Company will be met through internal accruals
over a period of time. The JV Company had earlier tied up with M/s. Rural
Electrification Corporation Limited (REC) for its entire debt requirement of
Rs.34370.000 Millions With a view to
reduce the cost of debt component of the project, the JV Company has decided to
replace the REC loan partially with a rupee term loan of Rs.25000.000
Millions from Bank of Baroda and Bank
of India consortium and this exercise would reduce the overall cost of the
project and would also reduce the power tariff for the end consumers. The
balance debt requirement has been proposed to be partially tied up through
External Commercial Borrowings and through other forms of borrowing viz., issue
of bonds etc.
In respect of Main Plant Package of Steam Generator, Turbo Generator and
Electrostatic Precipitator, the contract has been awarded to M/s. BHEL during
the month of January 2009. M/s. BHEL has since commenced civil works for Boiler
and ESP foundations and the supplies are also in progress. Other major
contracts for this project viz., Coal Handling package, Circulating Water
System package, Bi-flue Chimney package, Transformer package and
Wind Power Project
The Company, as part of
diversification programme to sustain and improve upon the growth rate, has
decided to venture into green energy business by setting up a wind based power
project, with an initial capacity of 50 MW in Tirunelveli District in the State
of Tamilnadu at an estimated cost of Rs.3125.000 Millions with a time schedule of 10 months from the
zero date i.e. the date of placement of order. However, one machine will be
installed within four months from the zero date. Feasibility Report has been
prepared by ITCOT Consultancy Services and the Technical Consultant for this
project is Centre for Wind Energy Technology (CWET), a R&D department under
the Ministry of New & Renewable Energy Resources. Tender has been floated
for procuring Wind Turbine Generator and the evaluation of the bids received is
in process. Wind energy being a green energy source this project will be
entitled to get carbon credit for the power generated which would make the
project economically viable.
Project Funding
The projected debt funding requirement for the projects under
implementation viz., Mine-ll Expn., TPS-II Expn. and Barsingsar Mine-cum-Power
Project is around Rs 46410.000 Millions
The Company has already tied up
rupee term loan for Rs.25000.000 Millions
, through a consortium of domestic banks with Canara Bank as the
consortium leader and EURO 50 million foreign currency loan under External
Commercial Borrowing (ECB) route, syndicated by Calyon Bank presently renamed
as Credit Agricole Corporate & Investment Bank to fund the above projects.
The Company has also issued Secured
Redeemable Non-convertible Bonds for an aggregate amount of
Rs.6000.000Millions through private
placement to meet part of the debt requirement for the above projects. The
balance fund requirement of Rs.1250 Millions
has been tied up in the form of another rupee term loan with a
consortium of domestic banks with Canara Bankas the consortium leader.
Status of Advance
Action Proposals (AAP) sanctioned by Government of
The Company has proposed to set
up a new power plant of 1000 MW capacity as a replacement to the existing
Thermal Power Station-I at Neyveli. Ministry of Coal (MOC) had accorded
sanction for Advance Action proposals for Rs.178.500 Millions that included augmentation studies for the
existing mines. The proposal for setting up the above Thermal Power Project
(2x500 MW) at an estimated cost of Rs.55960.000 Millions has been submitted to the Government in
October 2009 for obtaining sanction. Necessary study for augmentation of
lignite from Mine-I and Mine-IA to meet the additional requirement of lignite
for the power project is in process. EIA/EMP Report has been submitted to
Ministry of Environment and Forests in January 2010 for the issue of
environmental clearance and the same has been considered by the Expert
Appraisal Committee. NOC from Airport Authority has been received. All the
constituent States of Southern Region have expressed their willingness to buy
powerfrom this project and signing of Power Purchase Agreement (PPA) is in
process. Ministry of Power has been addressed to decide the power allocation to
the beneficiary States and also to accord Mega Power Project status for this
project so as to avail certain duty concessions.
Bithnok Thermal
Power Project with linked Mine
It is proposed to set up a Thermal Power Plant of 250 MW capacity with
linked mine of 2.25 MTPA at Bithnok in Bikaner District in the State of
Barsingsar
Extension Power Project and Hadla & Palana Lignite Mine
The Company also proposes to set
up a Mine (2.5 MTPA) linking both Hadla & Palana lignite Blocks with the
250 MW power plant in Bikaner District of Rajasthan, as an extension of the
on-going Barsingsar Power Project and with a view to utilise the lignite deposits
in Hadla and Palana lignite blocks. Ministry of Coal has accorded sanction for
the Advance Action Proposal (AAP) at an estimated cost of Rs.10.85
Millions for carrying out certain
pre-project sanction activities. Preparation of Feasibility Report (FR) for
Hadla Mine and Thermal Power Project have been completed while the preparation
of FR for Palana Block is in process. As per the Feasibility Reports the
estimated cost of Hadla Mine project with outsourcing option for both
overburden and lignite removal is Rs.3501.300 Millions while the estimated cost of the power
project is Rs.16916.500 Millions
Preparation of EIA/EMP reportfor Mine and Power project is in advanced
stage.
Jayamkondam
Lignite based Mine-cum-Thermal Power Project
The Company has proposed to set
up a Lignite Mine(13.5 MTPA)-cum-Power (2x800 MW) project at Jayamkondam in the
State of
The Company has proposed to set
up a Mine (8.0 MTPA)-cum- Power (1000 MW) Project in the State of
Bithnok Thermal
Power Project with linked Mine
It is proposed to set up a Thermal Power Plant of 250 MW capacity with
linked mine of 2.25 MTPA at Bithnok in Bikaner District in the State of
Barsingsar
Extension Power Project and Hadla & Palana Lignite Mine
The Company also proposes to set
up a Mine (2.5 MTPA) linking both Hadla & Palana lignite Blocks with the
250 MW power plant in Bikaner District of Rajasthan, as an extension of the
on-going Barsingsar Power Project and with a view to utilise the lignite
deposits in Hadla and Palana lignite blocks. Ministry of Coal has accorded
sanction for the Advance Action Proposal (AAP) at an estimated cost of
Rs.108.500 Millions for carrying out
certain pre-project sanction activities. Preparation of Feasibility Report (FR)
for Hadla Mine and Thermal Power Project have been completed while the
preparation of FR for Palana Block is in process. As per the Feasibility
Reports the estimated cost of Hadla Mine project with outsourcing option for
both overburden and lignite removal is Rs.3501.300 Millions while the estimated cost of the power
project is Rs.16916.500 Millions
Preparation of EIA/EMP reportfor Mine and Power project is in advanced
stage.
Jayamkondam
Lignite based Mine-cum-Thermal Power Project
The Company has proposed to set
up a Lignite Mine(13.5 MTPA)-cum-Power (2x800 MW) project at Jayamkondam in the
State of
The Company has proposed to set up
a Mine (8.0 MTPA)-cum- Power (1000 MW) Project in the State of Gujarat, at an
aggregate estimated cost of Rs.64000.000 Millions as a Joint Venture with Gujarat Power
Corporation Limited. Ministry of Coal has sanctioned Rs 62.000 Millions for the Advance Action Proposal (AAP) for
taking up certain preliminary activities. The request of Government of Gujarat
for allocation of higher share of power has been referred to Ministry of Power.
However, GoG has evinced interest to develop the lignite block on its own to
generate power for the State and the issue has been referred to Ministry of
Coal.
Coal based Thermal
Power Plant at Orissa
A mega coal based Thermal Power Plant of capacity (4x500 MW) has been
proposed to be set up in the State of
Mine-
The Company is updating the
feasibility report prepared earlierto analyse the techno-economical viability
of Mine-Ill project of capacity 8.0 MTPA. On completion of the same, the
feasibility report fortheThermal Power Station-Ill of capacity of 1000 MW will
be finalised.
New initiatives
for Power Generation and Mining Power
Project in Uttar
Pradesh
The Company has proposed to enter
into a Joint Venture Agreement with Uttar Pradesh Rajya Vidyut Utpadan Nigam
Limited (UPRVUNL) for setting up a coal based power plant with a capacity of
2000 MW at an estimated cost of Rs.100000.000 Millions , in the State of
Joint Venture
project in Orissa
A Joint Venture Company among Mahanadi Coalfields Limited (MCL),
Hindalco and The Company with an equity
participation of 70:15:15 respectively has been established for mining coal
from Talabira II and III coal blocks. MCL, being the lead partner is carrying
out all pre-project activities to establish a Mine of 20.0 MTPA capacity. Mine
plan has been approved and land acquisition is in process. The share of coal
mined from this block will be shared in the same ratio as equity and will be
utilised by The Company for power
generation.
Devangudi Mine
Project
The Company has proposed to
explore the possibility of developing the Devangudi mine project of capacity of
1.7 MTPA located in the Neyveli lignite field.
Ultra Mega Power
Projects
To meet the growing demand for energy, Government of India (GOI) has
planned for developing large size power projects called Ultra Mega Power
Projects (UMPP), with a capacity of 4000 MW each in various States. The Company is exploring the feasibility of taking
part in UMPP at Cheyyur in the State of
Energy from other
sources
The Company as a part of
diversification has also proposed to set up a 25 MW Solar Power Project. Other
sources of energy viz., hydeland nuclear power projects will also be considered
by The Company depending upon theirviability.
Development of
Coal Blocks
Earlier The Company had planned
to acquire coal blocks abroad by forming NLC Videsh, a Subsidiary Company, to
meet its coal requirements for the new coal based power projects. MOC has
advised The Company to consider having
an arrangement with Coal India Limited (CIL) in the efforts towards acquisition
of coal assets abroad and also to consider to associate CIL as a JV Partner in
this regard. The Company also intends to take up development
of coal blocks allotted to State Government(s) and/or Private Companies either
individually or jointly with State Governments and/or private Companies as a
Public/Private Partnership project.
Power Project in
Madhya Pradesh
Members may be aware that The
Company had earlier planned to set up a power plant with a capacity of
1000 MW in the State of
Power Tariff
In accordance with the Tariff Regulations 2004, which allows tariff
revision twice during the tariff period (2004-09), the Central Electricity
Regulatory Commission (CERC) has issued final tariff order during the year, revising
the annual fixed charges on the additional capitalisation for the period
2007-09 in respect of all the powerstations of the Company. During the last year, the Terms and
Conditions of Tariff Regulations for the period 2009-14 was notified by CERC. The
objective behind the new regulation is to encourage higher performance for
which adequate incentives have been provided. While the operating norms have
been made more stringent, the return on equity has been increased. Tariff
petitions, as per the above Tariff Regulations 2009 in respect of all the
existing power stations and the Barsingsar TPS for the period 2009-14 have been
filed with the CERC and the hearing is in process.
Industrial
Relation
Industrial relation scenario was generally peaceful and cordial during
the year 2009-10. The Company has a
regular system of holding bi-partite meetings with the recognised unions
regarding the issues of common interest of all employees. The new scheme of
payment of Quarterly Plant Performance Reward (QPPR) & Productivity Linked
Incentive (PLI) were implemented w.e.f. 01.01.2007. Executive pay revision with
effect from 01.01.2007 has been implemented and Performance Related Pay for the
year 2007-08 was paid during the year under review to executives, following the
Department of Public Enterprises (DPE) Guidelines. MoU has been signed with the
recognised unions for implementing wage revision for workmen and non-executives
with effect from 01.01.2007.
Fixed Assets:
- Land
- Roads
- Buildings
- Electrical
.installations
- Water Supply
and Drainage
- Plant and
Machinery
- Furniture
& Equipment
- Vehicles
- Assets
Costing
- Intangible
assets software
- Mine
Development
- Mine-l
- Mine-IA
- Mine-ll
- Barsingsar
Mine
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.44.67 |
|
|
1 |
Rs.69.45 |
|
Euro |
1 |
Rs.59.37 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
7 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
7 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
67 |
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.