MIRA
INFORM REPORT
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Report Date : |
06.01.2011 |
IDENTIFICATION DETAILS
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Name : |
ESSAR POWER GUJARAT LIMITED |
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Registered
Office : |
Essar House, 11 Keshavrao Khadye Marg, Mahalaxmi, Mumbai 400034, |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
05.04.2007 |
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Com. Reg. No.: |
169703 |
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CIN No.: [Company Identification
No.] |
U74900MH2007PLC169703 |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Generation and Distribution of Electricity |
RATING and COMMENTS
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MIRA’s Rating : |
Ca (13) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Yet to Commence Business |
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Payment Behaviour : |
Unknown |
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Litigation : |
Clear |
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Comments : |
Subject is a subsidiary of Essar Power Limited. As per available
details of 2010. The company is yet to commence commercial operations.
Payment terms are not known, The company can be considered for business dealings with some caution.
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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
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Country Name |
Previous Rating (31.12.2009) |
Current Rating (01.04.2010) |
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A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
INFORMATION DECLINED BY
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Name : |
Mr. Nitin |
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Designation : |
Accountant |
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Date : |
06.01.2011 |
LOCATIONS
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Registered Office : |
Essar House, 11 Keshavrao Khadye Marg, Mahalaxmi, Mumbai 400034, |
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Tel. No.: |
91-22-66601100 |
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Fax No.: |
91-22-23544787 |
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E-Mail : |
DIRECTORS
AS ON 11.08.2010
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Name : |
Mr. Balaji C Singh |
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Designation : |
Director |
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Date of Birth/Age : |
05.05.1946 |
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Date of Appointment : |
05.04.2007 |
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Name : |
Mr. Govind Raghavan Venkatraman |
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Designation : |
Director |
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Date of Birth/Age : |
16.07.1945 |
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Date of Appointment : |
04.09.2009 |
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Name : |
Mr. Suresh V |
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Designation : |
Director |
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Date of Birth/Age : |
28.12.1957 |
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Date of Appointment : |
15.04.2009 |
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Name : |
Mr. Kalakota Vijaya Bhaskara Reddy |
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Designation : |
Director |
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Date of Birth/Age : |
01.07.1961 |
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Date of Appointment : |
15.04.2009 |
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Name : |
Mr. Jatinder D Mehra |
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Designation : |
Director |
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Date of Birth/Age : |
08.06.1948 |
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Date of Appointment : |
04.09.2009 |
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Name : |
Mr. Mahadev R Iyer |
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Designation : |
Director |
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Date of Birth/Age : |
01.07.1958 |
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Date of Appointment : |
04.09.2009 |
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Name : |
Mr. Vikram H Amin |
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Designation : |
Director |
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Date of Birth/Age : |
07.12.1958 |
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Date of Appointment : |
04.09.2009 |
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Name : |
Mr. Venkatesan V Singanallur |
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Designation : |
Director |
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Date of Birth/Age : |
01.10.1939 |
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Date of Appointment : |
04.09.2009 |
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Name : |
Mr. Dilip C Oommen |
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Designation : |
Director |
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Date of Birth/Age : |
28.03.1958 |
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Date of Appointment : |
04.09.2009 |
KEY EXECUTIVES
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Name : |
Mrs. Jayshree R Sarda |
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Designation : |
Secretary |
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Date of Birth/Age : |
17.06.1984 |
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Date of Appointment : |
09.05.2008 |
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Name : |
Mr. Nitin |
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Designation : |
Accountant |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 11.08.2010
|
Names of Shareholders |
No. of Shares |
|
Essar Power Limited, Mumbai |
1159093618 |
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Essar Power Limited Through Nominee Shri Shubh Srivastava, Mumbai |
10 |
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Essar Power Limited Through Nominee Shri K V B Reddy, Mumbai |
10 |
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Essar Power Limited Through Nominee Shri B C P Singh, Mumbai |
10 |
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Essar Power Limited Through Nominee Shri R R Pillai, Mumbai |
10 |
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Essar Power Limited Through Nominee Shri V T Joshi, Mumbai |
10 |
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Essar Power Limited Through Nominee Shri R K Sethi, Mumbai |
10 |
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Total |
1159093678 |
AS ON 27.09.2010
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Names allottees |
No. of Shares |
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Essar Power Limited, Mumbai |
152000000 |
AS ON 11.08.2010
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Equity Share
Breakup |
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Percentage of
Holding |
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Category |
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Bodies corporate |
|
100.00 |
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Total
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Generation and Distribution of Electricity |
GENERAL INFORMATION
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No. of Employees : |
Not Divulged by the Management |
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Bankers : |
Not Available |
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Financial Institute : |
IDBI Trusteeship Services Limited, |
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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 Accountant |
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Address : |
Heritage, 3rd Floor, Near Gujarat Vidyapith, Off |
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Tel. No.: |
91-79-27582542/27582543 |
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Fax No.: |
91-79-27582551 |
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Name : |
S R Batliboi and Company Chartered Accountant |
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Address : |
Jalan Mills Compound, 95 G K Marg, Lower Parel, Mumbai 400013, |
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Holding Company: |
Essar Power Limited, Mumbai |
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Ultimate Holding Company: |
Essar Global Limited, |
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Fellow Subsidiaries: |
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CAPITAL STRUCTURE
AS ON 11.08.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
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|
8000000000 |
Equity Shares |
Rs. 10 each |
Rs.80000.000 millions |
|
2000000000 |
Preference Shares |
Rs. 10 each |
Rs.20000.000 millions |
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
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|
1159093678 |
Equity Shares |
Rs. 10 each |
Rs.11590.936 millions |
AS ON 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
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|
4000000000 |
Equity Shares |
Rs. 10 each |
Rs.40000.000 millions |
|
1000000000 |
Preference Shares |
Rs. 10 each |
Rs.10000.000 millions |
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|
Rs.50000.000 millions |
Issued, Subscribed and Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
|
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|
622043678 |
Equity Shares |
Rs. 10 each |
Rs.6220.436 millions |
(Of the above Nil equity shares were allotted as fully paid up by way of
bonus shares from securities premium account. All the shares are held by the
holding company Essar Power Limited with its nominees)
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 |
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|
|
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1] Share Capital |
6220.436 |
5645.436 |
4.533 |
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2] Share Application Money |
2060.500 |
65.000 |
434.656 |
|
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3] Reserves and Surplus |
0.436 |
0.436 |
197.665 |
|
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4] (Accumulated Losses) |
(26.367) |
(0.415) |
(0.289) |
|
|
NETWORTH |
8255.005 |
5710.457 |
636.565 |
|
|
LOAN FUNDS |
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|
|
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1] Secured Loans |
3956.879 |
0.000 |
0.000 |
|
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2] Unsecured Loans |
5305.742 |
0.000 |
0.000 |
|
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TOTAL BORROWING |
9262.621 |
0.000 |
0.000 |
|
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DEFERRED TAX LI |
0.000 |
0.000 |
0.000 |
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|
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TOTAL |
17517.626 |
5710.457 |
636.565 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
769.011 |
37.452 |
0.882 |
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Capital work-in-progress |
21513.968 |
7059.854 |
1022.632 |
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INVESTMENT |
1651.646 |
0.000 |
0.000 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS and ADVANCES |
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Inventories |
0.000 |
0.000 |
0.000 |
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Sundry Debtors |
0.000 |
0.000 |
0.000 |
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Cash and Bank Balances |
470.752
|
158.649 |
53.132 |
|
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Other Current Assets |
0.000 |
0.000 |
0.000 |
|
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Loans and Advances |
139.935
|
130.972 |
38.239 |
|
Total
Current Assets |
610.687
|
289.621 |
91.371 |
|
|
Less : CURRENT LI |
|
|
|
|
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Sundry Creditors |
3810.465
|
1448.225 |
449.138 |
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Other Current Liabilities |
3207.778
|
250.726 |
28.931 |
|
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Provisions |
9.443
|
3.347 |
0.251 |
|
Total
Current Liabilities |
7027.686
|
1702.298 |
478.320 |
|
|
Net Current Assets |
(6416.999)
|
(1412.677) |
(386.949) |
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|
MISCELLANEOUS EXPENSES |
0.000 |
25.828 |
0.000 |
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|
|
|
|
|
|
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TOTAL |
17517.626 |
5710.457 |
636.565 |
|
PROFIT and LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
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SALES |
|
|
|
|
|
|
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Sales |
NA |
NA |
0.000 |
|
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Sundry Balance Written Back |
NA |
NA |
0.001 |
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TOTAL (A) |
NA |
NA |
0.001 |
|
|
|
|
|
|
|
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Less |
EXPENSES |
|
|
|
|
|
|
|
Professional Fees |
0.112 |
0.116 |
0.112 |
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|
|
Filing Fees |
0.012 |
0.010 |
0.000 |
|
|
|
Miscellaneous Expenditure Written Off |
25.828 |
0.000 |
0.178 |
|
|
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TOTAL (B) |
25.952 |
0.126 |
0.290 |
|
|
|
|
|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
(25.952) |
(0.126) |
(0.289) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
NA |
NA |
NA |
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|
|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
(25.952) |
(0.126) |
(0.289) |
|
|
|
|
|
|
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Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
NA |
NA |
NA |
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|
|
|
|
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|
|
PROFIT BEFORE
TAX (E-F) (G) |
(25.952) |
(0.126) |
(0.289) |
|
|
|
|
|
|
|
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|
Less |
TAX (H) |
0.000 |
0.000 |
0.000 |
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|
PROFIT AFTER TAX
(G-H) (I) |
(25.952) |
(0.126) |
(0.289) |
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Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(0.415) |
(0.289) |
NA |
|
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|
|
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|
BALANCE CARRIED
TO THE B/S |
(26.367) |
(0.415) |
(0.289) |
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|
Earnings Per
Share (Rs.) |
-- |
-- |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(0.00) |
(0.00) |
(28900.00) |
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|
Net Profit Margin (PBT/Sales) |
(%) |
(0.00) |
(0.00) |
(0.00) |
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Return on Total Assets (PBT/Total Assets} |
(%) |
(1.88) |
(0.03) |
(0.31) |
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Return on Investment (ROI) (PBT/Networth) |
|
(0.00)
|
(0.00) |
(0.00) |
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|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
1.97
|
0.29 |
0.75 |
|
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|
Current Ratio (Current Asset/Current Liability) |
|
0.08
|
0.17 |
0.19 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
Rs. In Millions
|
Particulars |
31.03.2010
|
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
Sundry Creditors (There are no dues
and outstanding lo be credited to Investor Education and Protection Fund) |
3810.465
|
1448.225 |
449.138 |
OPERATIONS
The Company is in
the process of implementing a 1,200 MW imported coal based thermal power plant
at Salaya, Dist Jamnagar,
The Company
further proposes to enhance its capacity by addition of a 1,320-MW imported
coal based supercritical expansion comprising of two units of 660 MW each. Land
required for the proposed expansion is already owned by the Company. The
estimated cost of the project is approximately Rs. 59900 millions, to be funded
in a debt: equity ratio of 3:l. EPC and fuel supply contracts have been
awarded. Financial tie up for the proposed expansion is expected to be
completed shortly. The Company expects to sell the power generated by this
expansion project to power distribution companies, industrial consumers and on
a merchant basis. Under the competitive bidding initiated by the Gujarat State
Government, the Company has recently signed a Power purchase agreement for
supply of 800 MW power on long term basis to Gujarat Urja Vikas Nigam Limited.
The power business
group has recently acquired mines in
The Company is yet
to commence commercial operations and has incurred an loss of Rs. 26.000
millions during the financial year under review. The Directors do not recommend
any dividend for the year.
FIXED ASSETS:
- Office
Equipments
- Computer
- Furniture and
Fixtures
- Air Craft
- Software
FORM 8
|
Corporate
identity number of the company |
ESSAR POWER GUJARAT LIMITED |
|
Name of the
company |
U74900MH2007PLC169703 |
|
Address of the
registered office or of the principal place of business in |
Essar House, 11 Keshavrao Khadye Marg, Mahalaxmi, Mumbai 400034, |
|
This form is for |
Modification of
charge |
|
Type of charge |
|
|
Particular of
charge holder |
IDBI Trusteeship Services Limited, Email: anjali@idbitrustee.co.in
|
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Nature of
instrument creating charge |
Deed of Mortgage
executed on January 8, 2010 in favour of IDBI Trusteeship Services Ltd,
(Security Trustee) |
|
Date of
instrument Creating the charge |
08.01.2010 |
|
Amount secured by
the charge |
Rs. 25525.000
millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Extent and operation of the charge The charge operates
as continuing security for the repayment of rupee term loan facility for an
aggregate of Rs. 25525 millions together with all interest, additional
interest, default interest, unreimbursed drawings, charges, expenses and
other monies whatsoever due and payable by Company to Lenders, Security
Trustee and Facility Agent under Rupee Term Loan Facility Agreement dated
September 29, 2008 and other Financing documents. |
|
Short particulars
of the property charged (Including location of the property) |
Borrowers'
movable properties incl plant and machinery, machine spares, tools and
accessories, furniture, fixtures, vehicle and other movable assets, both
present and future Borrowers'
immoveable properties (incl land) situated and lying at Villages Kajurda and
Sodha Taragi, both in Taluka Jam-Khambhalis, District: Borrowers'
Tangible and Intangible assets, including but not limited to its goodwill,
undertaking and uncalled capital, both present and future All Insurance
policies, performance bonds, contractors' guarantees and any LC provided by
any person under Project All the rights,
titles and interests of Borrower in respect of permits, Clearances, approvals
and interests of the Borrower in, to and in respect of Project Documents and
all contracts relating to the Project All the book
debts, operating cash flows, receivables, all other current assets,
commission, revenues of the Borrower, both present and future All the Accounts
and all other bank accounts of the Borrower All right, title
and interests of the Borrower in all the other assets (other than those
specifically mentioned hereinabove) including cash in hand and all monies and
investments |
|
Particulars of
the present modification |
The charge created
under Unattested Memorandum of Hypothecation dated May 19, 2009 to secure
rupee term loan Facility aggregating to Rs. 25525 millions and all other
amount payable by Borrower under Rupee Loan Facility Agreement dated
September 29, 2008 is now modified by creating further security pursuant to Deed of Mortgage dated January
8, 2010 over the assets specified therein to secure all amount payable by the
Borrower under the ICICI Rupee Loan Facility Agreement & other Financing
Documents. |
CMT REPORT (Corruption, Money Laundering and Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals have
been formally charged or convicted by a competent governmental authority for
any financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.20 |
|
|
1 |
Rs.70.27 |
|
Euro |
1 |
Rs.59.99 |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
1 |
|
--CREDIT LINES |
1~10 |
-- |
|
--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 |
|
13 |
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 and 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.