MIRA INFORM REPORT

 

 

Report Date :

05.01.2011

 

IDENTIFICATION DETAILS

 

Name :

SPECTRUM POWER GENERATION LIMITED

 

 

Registered Office :

3rd Floor, Plot No.231, 8-2-293/82/A/231, Road No.36, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

26.10.1992

 

 

Com. Reg. No.:

014937

 

 

CIN No.:

[Company Identification No.]

U40109AP1992PLC014937

 

 

Legal Form :

A closely held public limited liability company.

 

 

Line of Business :

Generate and Supply Electricity.

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (29)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 13455804

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is an established company having moderate track. There appears huge accumulated losses recorded by the company. Trade relations are reported as fair. Business is active. Payments are reported to be slow.

 

The company can be considered for business dealings with some caution.

 

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)

India

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

INFORMATION DECLINED BY

 

Note : Management non co-operative [ Name not disclosed ]

 

LOCATIONS

 

Registered Office :

3rd Floor, Plot No.231, 8-2-293/82/A/231, Road No.36, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh, India

Tel. No.:

91-40-23555725 / 26/ 28 / 29

Fax No.:

91-40-23555730

E-Mail :

info@spgl.co.in

lakshmanrao.r@spgl.co.in

 

 

Plant Address :

Beach Road, Uppada, kakinada, E.G. District, Andhra Pradesh, India

Tel. No.:

91-8869-245237

Fax No.:

91-8869-245284

 

 

 

 

DIRECTORS

 

AS ON 30.09.2010

 

Name :

Mrs. Neeta Mukerji

Designation :

Director

Address :

801, Radhika Apartment, Opposite Ravindra Natya Mandir, Prabhadevi, Mumbai – 400026, Maharashtra, India

Date of Birth/Age :

16.10.1965

Date of Appointment :

10.12.2008

 

 

Name :

Mr. Satish Kumar Sharma

Designation :

Whole Time Manager

Address :

771, Neelkanth Apartment, Sector – 13, Rohini, New Delhi – 440085, Delhi, India

Date of Birth/Age :

13.04.1956

Date of Appointment :

30.06.2009

 

 

Name :

Mr. Satish Konamaneni

Designation :

Whole Time Director

Address :

5-WV/35, Whisper Velley, Raidarga, Darga, Hyderabad – 500008, Andhra Pradesh, India

Date of Birth/Age :

25.06.1955

Date of Appointment :

05.09.2009

 

 

Name :

Mr. Pawan Kumar Agarwal

Designation :

Director

Address :

G/200/167, Sector 7, Rohini, New Delhi – 110085, Delhi, India

Date of Birth/Age :

20.10.1968

Date of Appointment :

30.06.2009

 

 

Name :

Mr. Dilip Nagar

Designation :

Director

Address :

D-18, Geetanjali Enclave, New Delhi – 110017, Delhi, India

Date of Birth/Age :

22.04.1967

Date of Appointment :

25.12.2006

 

 

Name :

Mr. Prasad Hari

Designation :

Director

Address :

B-2/37, Safdarjung, Enclave, New Delhi – 110029, Delhi, India

Date of Birth/Age :

29.04.1945

Date of Appointment :

19.02.2010

 

 

Name :

Mr. Anil Kumar

Designation :

Director

Address :

15/99, Punjabi Gali, Shah Gunj, Agra – 280010, Uttar Pradesh, India

Date of Appointment :

19.02.2010

 

 

Name :

Mr. Amreek Singh Sandhu

Designation :

Secretary

Address :

Flat No.3, 103-73/6, Amar Appartment, Teachers, Colony East Maredpally, Secunderabad – 500026, Andhra Pradesh, India

Date of Birth/Age :

27.08.1954

Date of Appointment :

31.07.2009

Date of Ceasing :

10.03.2010

 

 

Name :

Mr. Sanjit Kumar Patel

Designation :

Secretary

Address :

68A, Gautam Nagar, New Delhi – 110049, Delhi, India

Date of Birth/Age :

04.06.1973

Date of Appointment :

29.06.2010

 

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

Equity Shares

 

AS ON 30.09.2010

 

Names of Shareholders

 

No. of Shares

Purnacle Overseas Assets Limited, Island

 

149999994

Satish Sharma *

 

1

Sanjay Hasija*

 

1

Dilip Nagar*

 

1

Kannan Narain*

 

1

Pawan Kumar Agarwal*

 

1

A Ramarao*

 

1

ABC (India) Limited, Delhi

 

30000000

Cellcap Inform India Private Limited, New Delhi

 

30000000

ACB (India) Limited, New Delhi

 

175000000

Cellcap Inform India Private Limited, New Delhi

 

175000000

Assets Reconstruction Company (India) Limited, Mumbai

 

47170454

Life Insurance Corporation of India, Mumbai

 

520219

Industrial Investment Bank of India, Chennai

 

795934

UTI Mutual Fund

 

686689

Oriental Insurance Company Limited, New Delhi

 

62426

National Insurance Company Limited, Kolkata

 

72831

New India Assurance Company Limited, Mumbai

 

93639

United India Insurance Company Limited, Chennai

 

88437

General Insurance Company Limited, Mumbai

 

98842

ING Vysya Bank Limited, Bangalore

 

2432387

 

 

 

Total

 

612021858

 

Note :

* holding shares in trust on behalf of Pinnacle Overseas Assets Limited

 

AS ON 30.09.2010

 

Category

Percentage

Foreign holdings( Foreign institutional investor(s), Foreign companie(s) Foreign financial institution(s), Non-resident Indian(s) or Overseas Corporate bodies or Others

46.58

Bodies corporate

51.96

Directors or relatives of Directors

0.00

Other top fifty shareholders

0.00

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Generate and Supply Electricity.

 

 

 

 

GENERAL INFORMATION

 

No. of Employees :

Not divulged by the management.

 

 

Bankers :

Shivalik Technologies Private Limited, 20,Ground Floor, Siri Fort Road, New Delhi – 110049, India

 

 

Facilities :

 

Secured Loan

 

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

Assets Reconstruction Company (India) Limited

6902.437

6409.432

Other Financial Institutions and Banks

713.204

367.7056

Development of Differed payment Guarantee

--

1181.242

9% Compulsorily Convertible Debenture 

2750.000

3250.000

Cash Credit

490.832

--

 

 

 

Total

10856.473

11208.380

 

 

 

Unsecured Loan

 

Rs. In Millions

31.03.2010

Rs. In Millions

31.03.2009

Other than short term

 

 

From a directors

31.343

31.343

 

 

 

Total

31.343

31.343

 

 

 

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountant

Address :

1-8-385 and 385, 3rd Floor, Gowra Grand, SP Road, Begumpet, Secunderabad – 500003, Andhra Pradesh, India

Tel. No.:

91-40-40312600

Fax No.:

91-40-40312714

 

 

Holding Company :

Pinnacle Overseas Assets Limited

 

 

CAPITAL STRUCTURE

 

Authorised Capital :

No. of Shares

Type

Value

Amount

800000000

Equity Shares

Rs.10/- each

Rs. 8000.000 Millions

 

 

 

 

200000000

0.05% Redeemable Preference shares

Rs.10/- each

Rs. 2000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

210000000

Equity Shares

Rs.10/- each

Rs. 2100.000

Millions

 

 

 

 

176476800

0.05% Redeemable Preference shares

Rs.10/- each

Rs. 1764.768 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

3864.768

3264.768

3264.768

2] Share Application Money

0.000

0.000

0.000

3] Reserves & Surplus

0.000

0.000

0.000

4] (Accumulated Losses)

(3540.556)

(3112.852)

(2975.428)

NETWORTH

324.212

151.916

289.340

LOAN FUNDS

 

 

 

1] Secured Loans

10856.473

11208.380

11476.461

2] Unsecured Loans

31.343

31.343

31.343

TOTAL BORROWING

10887.816

11239.723

11507.804

DEFERRED TAX LIABILITIES

0.000

173.450

0.000

 

 

 

 

TOTAL

11212.028

11565.089

11797.144

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

4616.774

4942.869

5450.305

Capital work-in-progress

19.958

15.203

14.057

 

 

 

 

INVESTMENT

0.000

0.000

0.000

DEFERREX TAX ASSETS

0.000

0.000

0.000

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
640.211

470.943

389.216

 

Sundry Debtors
4172.025

4330.356

4119.439

 

Cash & Bank Balances
1357.131

1428.118

1345.630

 

Other Current Assets
0.000

0.000

0.000

 

Loans & Advances
614.566

934.934

702.225

Total Current Assets
6783.933

7164.351

6556.510

Less : CURRENT LIABILITIES & PROVISIONS
 

 

 

 

Sundry Creditors

200.683

510.246

195.323

 

Other Current Liabilities
5.514

45.089

27.848

 

Provisions
2.440

1.999

1.016

Total Current Liabilities
208.637

557.334

224.187

Net Current Assets
6575.296

6607.017

6332.323

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.459

 

 

 

 

TOTAL

11212.028

11565.089

11797.144

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

3262.606

4312.811

3342.761

 

 

Other Income

101.345

123.557

100.654

 

 

TOTAL                                     (A)

3363.951

4436.368

3443.415

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Generation, Administration and other expenses

2955.687

3411.550

2357.558

 

 

TOTAL                                     (B)

2955.687

3411.550

2357.558

 

 

 

 

 

Less

PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B)      (C)

408.264

1024.818

1085.857

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

432.208

449.160

476.011

 

 

 

 

 

 

PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D)                                       (E)

23.944

575.658

609.846

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

577.210

538.576

538.041

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

(601.154)

37.082

71.805

 

 

 

 

 

Less

TAX                                                                  (I)

(173.450)

174.505

1.012

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

(427.704)

(137.423)

70.793

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

(3112.852)

(2975.428)

(3046.222)

 

 

 

 

 

 

BALANCE CARRIED TO THE B/S

(3540.556)

(3112.852)

(2975.428)

 

 

 

 

 

 

Earnings Per Share (Rs.)

(2.72)

(0.92)

0.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
(12.71)

(3.09)

2.06

 

 
 

 

 

Net Profit Margin

(PBT/Sales)

(%)
(18.42)

0.85

2.14

 

 
 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)
(5.27)

0.30

0.59

 

 
 

 

 

Return on Investment (ROI)

(PBT/Networth)

 
(1.85)

0.24

0.24

 

 
 

 

 

Debt Equity Ratio

(Total Liability/Networth)

 
34.22

77.65

40.54

 

 
 

 

 

Current Ratio

(Current Asset/Current Liability)

 
32.51

12.85

29.24

 

 

 

LOCAL AGENCY FURTHER INFORMATION

 

Note :

 

Registered office address of the company has been shifted from 6-3-871, Snehalata, 2nd Floor, Greenlands Road, Begumpet, Hyderabad – 500016, Andhra Pradesh, India to present w.e.f. 01.01.2007

 

Sundry Creditors Details :

 

Particulars

31.03.2010

31.03.2009

31.03.2008

Sundry Creditors

 

 

 

-due to micro enterprises and small enterprises

--

--

--

-other sundry Creditors

200.683

510.246

195.323

 

 

 

 

Total

200.683

510.246

195.323

 

Industry Scenario :

 

The economic recession world over which commenced during the latter part of the previous year had hit the entire Indian economy too. In an integrated world economy the good and bad effect of economies elsewhere in the world will have invariable effect on Indian economy also, albeit in a difference in gravity. This economics recession which is next only to the great depression of 1930s has lead to several job losses, closure of industries, liquidity crunch, negative inflation, protectionism etc., to mention few. Several industries have deferred their expansion activities due to funds crunch.

 

The non-availability of adequate electricity continues to be a major stumbling block for the growth of Indian industries. India is the world’s seventh largest consumer of electricity and third in Asia, behind china and Japan. As such, the further of the Indian Power Industry is on a brighter side. Exploration of Gas by reliance Industries Limited in KG basin has solved the Gas problem to some extent while the demand-supply gap in power still exists to a major extent.

 

Operation :

 

The company produces 1569.58 MU of Power during the year review with a plant Load factory (PLF) of 87.32 % as against 1439.11 MU with a PLF of 80.14% in the year 2008-09. the company has achieved a Turnover of Rs. 3364.000 millions and has incurred a net loss of Rs. 427.700 millions and a Net Loss of Rs. 137.400 millions during the previous financial year 2008-09.

 

The company has undertaken major overhaul of major items of Plant and Machinery during the financial year under report. Further the company brought a spare rotor fro MHI, Japan in terms of the Long term spare parts Agreement entered into with them. Inspite of taking complete shut down for a month the company has been able to achieve more than 90% capacity utilization during the year under review. 

 

Background :

 

Spectrum Power Generation Limited was incorporated on 26th October, 1992 with an object to generate and supply electricity. The company had set up a 208 MW combined –Cycle Gas based power station at Kakinada, Andhra Pradesh.

 

The company has entered into an amended and restated long term power purchase agreement (PPA) with the transmission corporation of Andhra Pradesh (APTRANCO) [Formerly Andhra Pradesh State Electricity Board (APSEB)] on 23rd January, 1997 for supply of the entire power generated at the 208MW combined cycle Gas based Power Station at Kakinada.

 

Further, the company had entered into a long term gas purchase agreement with Gas Authority of India Limited on 19th August, 1993 for the supply of natural gas required for the Generation of Power.

 

 

Fixed Assets :

 

  • Land – Freehold
  • Leasehold Improvement
  • Buildings
  • Plant and Machinery
  • Electrical Equipments
  • Office Equipment
  • Furniture and Fittings
  • Computers
  • Vehicles

 

Form : 8

 

Corporate identity number of the company

U40109AP1992PLC014937

Name of the company

SPECTRUM POWER GENERATION LIMITED

Address of the registered office or of the principal place of  business in India of the company

3rd Floor, Plot No.231, 8-2-293/82/A/231, Road No.36, Jubilee Hills, Hyderabad – 500033, Andhra Pradesh

This form is for

Creation of charge

Type of charge

Others

Particular of charge holder

Shivalik Technologies Private Limited, 20,Ground Floor, Siri Fort Road, New Delhi – 110049, India

Nature of instrument creating charge

Deed Of Settlement

Date of instrument Creating the charge

23/06/2010

Amount secured by the charge

Rs. 96.500 millions

Brief of the principal terms an conditions and extent and operation of the charge

Rate of interest :

10% p.a.

 

Terms of repayment :

Principal - Monthly  -Rs. 1.170 millions (for 22 months incl. june payment) and bullet payment on 31-3-2012 of Rs. 81.900 millions.

 

Margin :

N.A.

 

Extent and operation of the charge :

a. The charge operates as security, inter alia for the due repayment by the company to Shivalik Technologies (P) Ltd. of an aggregate amount not exceeding Rs. 107.600 millions with interest @ 10% p.a.

 

b. The Security created by way of hypothecation and mortgage by deposit of title deeds is to be a continuing security

 

Other :

Nil

Short particulars of the property charged (Including location of the property)
  1. A. First charge on the whole of the moveable properties of the Company including its moveable Plant& Machinery, Machinery spares, Tools and Accessories and other moveables, both present and future
  2. land admeasuring 654 acres 09 cents situated at Villages Kommaragiri, Kottapalli and Kuthukudimilli in Kottapalli Mandal, East godavari District in the State of Andhra Pradesh

 

 

 

 

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. 44.84

UK Pound

1

Rs. 69.32

Euro

1

Rs. 59.79

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCORE & RATING EXPLANATIONS

 

SCORE FACTORS

 

RANGE

POINTS

HISTORY

1~10

5

PAID-UP CAPITAL

1~10

4

OPERATING SCALE

1~10

4

FINANCIAL CONDITION

 

 

--BUSINESS SCALE

1~10

3

--PROFITABILIRY

1~10

2

--LIQUIDITY

1~10

4

--LEVERAGE

1~10

4

--RESERVES

1~10

--

--CREDIT LINES

1~10

3

--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

NO

--LISTED

YES/NO

NO

--OTHER MERIT FACTORS

YES/NO

YES

TOTAL

 

29

 

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

-

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.