MIRA
INFORM REPORT
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Report Date : |
07.01.2011 |
IDENTIFICATION DETAILS
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Name : |
WARDHA POWER COMPANY LIMITED |
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Registered
Office : |
8 2 293 82A |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
28.10.2005 |
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Com. Reg. No.: |
01-047917 |
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CIN No.: [Company Identification
No.] |
U40109AP2005PLC047917 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
HYDW00310C |
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PAN No.: [Permanent Account No.] |
AAACW6197R |
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Legal Form : |
A closely held Public Limited Liability Company. |
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Line of Business
: |
Manufacturer of Power Thermal. |
RATING & COMMENTS
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MIRA’s Rating : |
Ca (11) |
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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 KSK Electricity Financing India Private Limited.
As per available details of 2010, the company is yet to commence commercial
operations and is in the construction phase. Payments terms are not known. The company can be considered for business dealings with some caution.
The Profit and Loss of the company is not available. |
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) |
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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 PARTED BY (GENERAL INFOMATION)
|
Name : |
Mr. M. Ravi Chandran |
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Designation : |
Finance Department |
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Date : |
06.01.2011 |
LOCATIONS
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Registered Office : |
8 2 293 82A |
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Tel. No.: |
91-40-23559922 |
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Fax No.: |
91-40-23559930 |
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E-Mail : |
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Area : |
Rented |
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Factory : |
MIDC Industrial Estate, Warora Chandrapole District, |
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Branches : |
Located At |
DIRECTORS
As on 18.09.2010
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Name : |
Mr. Kishore Sethuraman |
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Designation : |
Director |
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Address : |
B 3 Subhagya Apartment, Gagan Mahal Colony, Domllguda,
Hyderabad-500029, |
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Date of Birth/Age : |
23.06.1962 |
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Date of Appointment : |
28.10.2005 |
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Name : |
Mr. Ayyappa Sastry Kolluri |
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Designation : |
Director |
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Address : |
84 Siddartha Nagar, P O Vengala Rao Nagar, Hyderabad-500038, |
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Date of Birth/Age : |
02.08.1959 |
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Date of Appointment : |
28.10.2005 |
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Name : |
Mr. Srinivas Chintapenta |
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Designation : |
Director |
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Address : |
P No. 59, H No. 32-76/1, Sainik Nagar, Ramakrishnapuram,
Secunnderabad-500056, |
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Date of Birth/Age : |
30.01.1961 |
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Date of Appointment : |
25.07.2009 |
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Name : |
Mr. Ramesh Kumar |
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Designation : |
Director |
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Address : |
P No 2, Patel Enclave Behind Kalyan Garden, Jai Jawahar Nagar, Yapral,
Secunderabad-500087, Andhra Pradesh, India |
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Date of Birth/Age : |
05.07.1961 |
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Date of Appointment : |
25.07.2009 |
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Name : |
Mr. Ajeet Kumar Agarwal |
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Designation : |
Director |
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Address : |
C 154, Vivek Vihar, New Delhi-110095, |
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Date of Birth/Age : |
30.05.1960 |
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Date of Appointment : |
10.09.2008 |
KEY EXECUTIVES
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Name : |
Mr. Prasad Saran MSR |
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Designation : |
Secretary |
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Address : |
D No. 2-22-195/3, Plot No. 155, Aruna Sociaety Near Jaya Nagar,
Opposite Kphb Colony, Kukatpally, Hyderabad-500072, Andhra Pradesh, India |
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Date of Birth/Age : |
01.08.1972 |
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Date of Appointment : |
25.07.2009 |
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Name : |
Mr. M. Ravi Chandran |
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Designation : |
Finance Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
As on 18.09.2010
|
Names of Shareholders |
No. of
Equity Shares |
No. of
Preferences Shares |
|
Viraj Profiles Limited, |
24942477 |
-- |
|
KSK Energy Ventures Limited, |
47762190 |
-- |
|
Graphite India Limited, |
2476558 |
-- |
|
Facor Steels Limited, |
1945867 |
-- |
|
Sona Alloys Private Limited, |
2653455 |
-- |
|
R.L. Steels and Energy Limited, |
2653455 |
-- |
|
Mahindra Hinoday Industries Limited, |
1768970 |
-- |
|
Mahindra and Mahindra Limited, |
1945867 |
-- |
|
Mahindra Vehicle Manufacturers Limited, |
1238279 |
-- |
|
Air Liquide India Holding Private Limited, |
1061382 |
-- |
|
Mahindra Ugine Steel Company Limited, |
6191395 |
-- |
|
Mahindra Forgings Limited, |
884485 |
-- |
|
KSK Electricity Financing India Private Limited, |
271875617 |
-- |
|
G.V. Pavan Kumar |
1 |
-- |
|
M. S. Phanisekhar |
1 |
-- |
|
B. Kalyan Chakravarthy |
1 |
-- |
|
Graphite India Limited, |
-- |
3123442 |
|
Facor Steel Limited, |
-- |
2454133 |
|
Sona Alloys Private Limited, |
-- |
3346545 |
|
R.L. Steels and Energy Limited, |
-- |
3346545 |
|
Mahindra Hinoday Industries Limited, |
-- |
2231030 |
|
Mahindra and Mahindra Limited, |
-- |
2454133 |
|
Mahindra Vehicle Manufacturers Limited, |
-- |
1561721 |
|
Air Liquide India Holding Private Limited, |
-- |
1338618 |
|
Mahindra Forgings Limited, |
-- |
1115515 |
|
Mahindra Ugine Steel Company Limited, |
-- |
7808605 |
|
|
|
|
|
Total |
367400000 |
28780287 |
As on 18.09.2010
|
Equity Share Breakup |
|
Percentage of Holding |
|
Category |
|
|
|
Bodies
corporate |
|
100.00 |
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Total |
|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of Power Thermal. |
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Terms : |
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Selling : |
Cash / Credit |
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Purchasing : |
Cash / Credit |
GENERAL INFORMATION
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Customers : |
Corporate |
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No. of Employees : |
250 (In Office 30) (In Factory 220) (Approximately) |
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Bankers : |
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Facilities : |
Note: Rupee Term Loan
From Banks and Financial Institutions:
Foreign Currency
Loan
|
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Financial Institution: |
Landt Infrastructure Finance Company Limited, |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Guru and Ram Chartered Accountant |
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Address : |
26, Dr. Radhakrishnan Salai, |
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Tel. No.: |
91-44-28474701/02 |
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Fax No.: |
91-44-28474703 |
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E-Mail : |
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Holding Company: |
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Ultimate Holding Company: |
K and S Consulting Group Private Limited |
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Step Up Holding Company: |
KSK Energy Ventures Limited |
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Fellow Subsidiary Company: |
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CAPITAL STRUCTURE
As on 18.09.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2750000000 |
Equity Shares |
Rs.10/- each |
Rs.27500.000 Millions |
|
250000000 |
Preferences Shares |
Rs.10/- each |
Rs.2500.000 Millions |
|
|
Total |
|
Rs.30000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
367400000 |
Equity Shares |
Rs.10/- each |
Rs.3674.000
Millions |
|
28780287 |
Preferences Shares |
Rs.10/- each |
Rs.287.802
Millions |
|
|
Total |
|
Rs.3961.802 Millions |
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
2750000000 |
Equity Shares |
Rs.10/- each |
Rs.27500.000 Millions |
|
250000000 |
Preferences Shares |
Rs.10/- each |
Rs.2500.000 Millions |
|
|
Total |
|
Rs.30000.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
62500000 |
Equity Shares |
Rs.10/- each |
Rs.625.000
Millions |
|
3120000 |
Class A Equity Shares |
Rs. 10/- each |
Rs.31.200
Millions |
|
92404380 |
Class A Equity Shares |
Rs. 10/- each |
Rs.92.404
Millions |
|
139339967 |
Class B Equity Shares |
Rs. 10/- each |
Rs.1393.399
Millions |
|
132535653 |
Class B Equity Shares |
Rs. 10/- each |
Rs.1325.356
Millions |
|
18517549 |
Class A Redeemable Preferences Shares |
Rs.10/- each
|
Rs.185.175
Millions |
|
|
Total |
|
Rs.2459.715 Millions |
Note:
1.
The above 62,500,000
Equity shares (As at 31 March 2009: Nil ) of Rs 10 each, fully paid up, are held
by KSK Energy Ventures Limited.
2.
The above 3,120.000 (As
at 31 March 2009: 3,120,000) Class A Equity shares of Rs. 10 each, fully paid
up are held by Vies) Profiles Limited.
3.
Out of die above
67,461,903 Class A Equity shares (As at 31 March 2009: 51,718,070) of Rs 10
each, Ra 1/-paid up, are held by consumers and 24,942,477 Class A Equity shares
(As at 31 March 2009: 40,686,310 1 of Rs 10 each, Rs 1/ paid up, are held by
KSK Energy Ventures Limited.)
4.
The above 139,339,967
Class B Equity shares (As at 3! March 2009: 134,160,000) of R 10 each, filly
paid up, are held by KSK Electricity Financing India Private Limited, the
holding Company.
5.
Out of the above
132,535,650 Class B Equity shares (As at 31 March 2009: 137,715,617) of Rs 10
each, Rs. 1/-paid up, are held by KSK Electricity Financing India Private
1,imild, the holding Company.
6.
The above 18,517,549 (As
at 31 March 2009: 8,924,120) OMI% Class - A Redeemable preference shares arc
held by consumers. These preference shares are redeemable at par at the end of
20 years from the date of allotment.
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 |
2459.715 |
1692.161 |
1602.920 |
|
|
2] Share Application Money |
3003.285 |
6249.091 |
1840.690 |
|
|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
|
|
NETWORTH |
5463.000 |
7941.252 |
3443.610 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
16912.831 |
9491.792 |
2455.477 |
|
|
2] Unsecured Loans |
300.000 |
0.000 |
306.400 |
|
|
TOTAL BORROWING |
17212.831 |
9491.792 |
2761.877 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
22675.831 |
17433.044 |
6205.487 |
|
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
742.978 |
801.383 |
139.332 |
|
|
Capital work-in-progress |
21793.004 |
16651.249 |
3398.137 |
|
|
|
|
|
|
|
|
INVESTMENT |
0.000 |
100.696 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
208.941
|
0.000 |
0.000 |
|
|
Sundry Debtors |
0.000
|
0.000 |
0.000 |
|
|
Cash & Bank Balances |
1067.918
|
1831.353 |
2781.707 |
|
|
Other Current Assets |
53.679
|
53.389 |
0.000 |
|
|
Loans & Advances |
1639.141
|
1121.935 |
197.197 |
|
Total
Current Assets |
2969.679
|
3006.677 |
2978.904 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
2741.094
|
3010.924 |
241.281 |
|
|
Other Current Liabilities |
59.745
|
114.944 |
18.527 |
|
|
Provisions |
28.991
|
1.093 |
51.078 |
|
Total
Current Liabilities |
2829.830
|
3126.961 |
310.886 |
|
|
Net Current Assets |
139.849
|
(120.284) |
2668.018 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
22675.831 |
17433.044 |
6205.487 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Debt Equity Ratio (Total Liability/Networth) |
|
3.66
|
1.59 |
0.89 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.05
|
0.96 |
9.58 |
LOCAL AGENCY FURTHER INFORMATION
Details of Sundry Creditors:
|
Particulars |
31.03.2010 (Rs. in millions) |
31.03.2009 (Rs. in millions) |
31.03.2008 (Rs. in millions) |
|
Sundry Creditors |
|
|
|
|
Dues to others
than micro and small enterprises |
2741.094
|
3010.924 |
241.281 |
Review of the
Project:
The 540MW coal based plant comprising of four units of 135MW each is
being set up as a coal based generation plant in a Power Special Economic Zone
in Maharashtra Industrial Development Centre, Warora Growth Centre, District
Chandrapur,
The year witnessed substantial progress towards completion of
construction of the main power plant but also the Company has been able to
successfully develop the associated infrastructure viz., water intake, railway
line for delivery of coal (from various coal blocks of Western Coalfields
Limited) into the power plant location.
With the progress on the first two units of 135 MW substantially
achieved, the company expects to meet the various PPA obligations entered.
Further, 2010-11 is expected to be the year for completion of construction of
all units of 135 MW each with substantial part of the resultant power delivery
to various Industrial Consumers in the state of
DEMERGER OF 3600MW
CHHATTISGARH COAL BASED POWER PROJECT FROM THE COMPANY
Keeping in view the benefits and interests of the shareholders, lenders,
creditors, employees, for better facilitation, effective management and
considering the geographical location of the two projects, the Board of
Directors of the Company at the their meeting held on 16th
September, 2009 approved the Scheme of Arrangement to demerge the 3600 MW
(6x600MW) Chhattisgarh Power Project into KSK Mahanadi Power Company Limited.
After obtaining the approval of the Shareholders, Lenders and Creditors
of the Company, an application was made to Hon’ble High Court of Andhra Pradesh
for sanctioning the scheme of arrangement, The Hon’ble High Court of Andhra
Pradesh approved the Scheme of Arrangement vide its order dated 26 February,
2010. As per the Scheme of Arrangement the appointed date of the demerger is
August, 2009 and the effect date is 31st March, 2010.
Upon the scheme becoming effective the demerged undertaking with effect
from appointed date stands transferred to KSK Mahanadi Power Company Limited at
its book value. Accordingly, the Assets and Liabilities of the deinerged
undertaking have been transferred to KSK Mahanadi Power Company Limited.
CHANGE IN CAPITAL
During the year Company allotted 95,93,429 0.0 1% Class A Redeemable Preference
Shares of Rs. 10/- each to Power Consumers of Warora Project and 6,25,00,000
Equity Shares of Rs. 10/- each to M/s KSK Energy Ventures Limited. Pursuant to
the Demerger of Chhattisgarh Project into KSK Mahanadi Power Company Limited
the share application money relating to Chhattisgarh Project has been
transferred along with assets and liabilities. Hence, there is an increase and
decrease in share capital and share application money as on 31st
March 2010.
Bankers Charges
Report as per Registry
|
This form is for |
Creation of
charge |
|
Corporate
identity number of the company |
U40109AP2005PLC047917 |
|
Name of the
company |
WARDHA POWER
COMPANY LIMITED |
|
Address of the
registered office or of the principal place of business in |
8 2 293 82A |
|
Type of charge |
Book Debts Movable Property
(not being pledge) |
|
Particular of
charge holder |
Indian Overseas Bank, Commercial and Institutional Finance Branch,
P.B. 351 98 A, Dr. R.K. Salai, Mylapore, Chennai-600004, |
|
Email q |
|
|
Nature of description
of the instrument creating or modifying the charge |
Letter of
Hypothecation Dated, 15.07.2010 |
|
Date of
instrument Creating the charge |
15.07.2010 |
|
Amount secured by
the charge |
Rs.600.000
Millions |
|
Brief particulars
of the principal terms an conditions and extent and operation of the charge |
Rate of Interest Cash Credit:
BPLR-1.00% (currently 11.00%) p.a Letter of Credit
: Commission: 50% of applicable commission Terms of
Repayment Tenor: One year Margin Cash Credit: 25% Letter of Credit:
10% Extent and
Operation of the charge The first pari
passu charge on the hypothecated assets will act as security for the due
repayment of monies payable by the borrowers to the Bank. |
|
Short particulars
of the property charged |
Entire Assets of
the Company on pari passu basis with Term Loan and Working Capital Lenders |
Fixed Assets:
- Land Free Hold and Land Development
- Land Lease Hold and Land
- Building
- Plant and Machinery
- Furniture and Fixtures
- Vehicles
- Office Equipments
- Data Processing Equipments
- Computer Software
Trade References:
- Viraj Profiles
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 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.45.31 |
|
|
1 |
Rs.70.26 |
|
Euro |
1 |
Rs.59.56 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
2 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
- |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
2 |
|
--RESERVES |
1~10 |
- |
|
--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 |
|
11 |
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.