MIRA
INFORM REPORT
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Report Date : |
10.01.2011 |
IDENTIFICATION DETAILS
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Name : |
NUCLEAR POWER CORPORATION OF INDIA LIMITED |
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Registered
Office : |
16th Floor, Centre -1, World Trade Centre, Cuffe Parade, Colaba,
Mumbai 400005, Maharashtra, India |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
03.09.1987 |
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Com. Reg. No.: |
11 - 149458 |
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CIN No.: [Company Identification
No.] |
U40104MH1987GOi149458 |
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TAN No.: [Tax Deduction and
Collection Account No.] |
MUMN09769E / PNEN03855F |
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PAN No.: [Permanent Account No.] |
AAACN3164F / AAACM3154F |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Generation of Power |
RATING and COMMENTS
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MIRA’s Rating : |
A (64) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Maximum Credit Limit : |
USD 919000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a government organization. It is a well established and
reputed company having fine track. Financial position of the company appears to
be sound. Fundamentals are strong and healthy. Trade relations are reported
as fair. Business is active. Payments are reported to be regular and as per
commitments. The company can be considered good for any normal business dealings at
usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
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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
Management Non Co Operative (Name Not Disclose)
LOCATIONS
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Registered Office : |
16th Floor, Centre -1, World Trade Centre, Cuffe Parade, Colaba,
Mumbai 400005, Maharashtra, India |
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Tel. No.: |
91-22-22182171 / 22182177 |
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Fax No.: |
91-22-22180109 |
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E-Mail : |
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Website : |
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Corporate Office : |
Nabhikiya Urja Bhavan, Anushakti Nagar, Mumbai 400094, |
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Tel. No.: |
91-22-25993000 / 25991000 |
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Fax No.: |
91-22-25994020 / 25563350 |
DIRECTORS
AS ON 31.03.2010
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Name : |
Dr. S K Jain |
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Designation : |
Chairman and Managing Director |
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Qualification : |
Graduate in Mechanical Engineering |
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Name : |
Mr. |
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Designation : |
Director – Technical |
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Qualification : |
Graduate in Mechanical Engineering |
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Name : |
Mr. Jagdeep Ghai |
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Designation : |
Director – Finance |
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Qualification : |
Graduate |
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Name : |
Mr. G. Nageswara Rao |
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Designation : |
Director – Operations |
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Qualification : |
Electrical Engineer |
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Name : |
Mr. K.C. Purohit |
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Designation : |
Director |
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Date of Birth/Age : |
10.05.1954 |
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Qualification : |
Graduate in Electrical Engineer |
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Name : |
Mr. A.P. Joshi |
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Designation : |
Director |
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Qualification : |
B Sc. |
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Name : |
Mr. S.B. Agarkar |
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Designation : |
Director - HR |
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Qualification : |
Graduate in Electrical Engineer |
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Name : |
Mr. V.R. Sadasivam, |
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Designation : |
Director |
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Qualification : |
Graduate |
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Name : |
Mr. T.S. Bhattacharya |
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Designation : |
Director |
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Qualification : |
M. Sc. In Nuclear Physics |
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Name : |
Mr. Chandan Roy |
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Designation : |
Director |
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Name : |
Dr. Nalini Bhat |
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Designation : |
Director |
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Qualification : |
Post Graduate in Physics |
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Name : |
Dr. Ratan Kumar Sinha |
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Designation : |
Director |
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Qualification : |
Graduate in Mechanical Engineering |
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Name : |
Mr. V.M. Kaul |
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Designation : |
Director |
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Qualification : |
Graduate in Mechanical Engineering |
KEY EXECUTIVES
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Name : |
Mr. Umesh Chandra |
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Designation : |
Senior Executive Director |
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Name : |
Mr. Sudhinder Thakur |
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Designation : |
Executive Director |
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Name : |
Mr. Srikar R. Pai |
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Designation : |
Company Secretary |
BUSINESS DETAILS
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Line of Business : |
Generation of Power |
PRODUCTION STATUS
AS ON 31.03.2010
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Particulars |
Commercial Units |
Installed
Capacity |
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Nuclear Energy |
Mwe |
4460 |
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Wind Energy |
Mwe |
10 |
GENERAL INFORMATION
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No. of Employees : |
11842 Approximately |
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Bankers : |
State Bank of |
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Facilities : |
Rs. In Millions SECURED LOAN
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Kalani and Company Chartered Accountants |
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Address : |
B-145B, Kalyanpath Mangal Marg, Bapu Nagar, Jaipur- 302015, |
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Associates/Subsidiaries : |
Nil |
CAPITAL STRUCTURE
AS On 31.03.2010
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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150000000 |
Equity Shares |
Rs. 1000 each |
Rs.150000.000 millions |
Issued, Subscribed and Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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|
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|
101453327 |
Equity Shares (Of the above,
96,68,611 Equity Shares allotted as fully paid up without payment being
received in cash.) |
Rs. 1000 each |
Rs.101453.327 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
101453.327 |
101453.327 |
101453.327 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves and Surplus |
128406.260 |
124987.817 |
120409.520 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
229859.587 |
226441.144 |
221862.847 |
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LOAN FUNDS |
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1] Secured Loans |
91872.000 |
65630.000 |
66870.000 |
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2] Unsecured Loans |
62747.017 |
74562.161 |
53958.435 |
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TOTAL BORROWING |
154619.017 |
140192.161 |
120828.435 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.0000 |
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TOTAL |
384478.604 |
366633.305 |
342691.282 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
124269.505 |
107182.835 |
112214.021 |
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Capital work-in-progress |
161124.365 |
173596.055 |
138460.893 |
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INVESTMENT |
24127.781 |
27326.264 |
29927.097 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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HEAVY Water Lease Charges Recoverable |
4120.994 |
1834.890 |
989.801 |
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CURRENT ASSETS, LOANS and ADVANCES |
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Inventories |
3887.710
|
3781.372 |
3610.783 |
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Sundry Debtors |
5034.896
|
5065.597 |
4294.023 |
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Cash and Bank Balances |
74491.313
|
51551.265 |
56625.047 |
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Other Current Assets |
4029.690
|
4010.244 |
4584.541 |
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Loans and Advances |
5884.537
|
4668.106 |
2413.931 |
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Total
Current Assets |
93328.146
|
69076.584 |
71528.325 |
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Less : CURRENT LI |
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Sundry Creditors |
2852.240
|
3208.605 |
3093.610 |
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Other Current Liabilities |
15242.731
|
6142.011 |
5541.362 |
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Provisions |
4397.216
|
3032.707 |
1793.883 |
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Total
Current Liabilities |
22492.187
|
12383.323 |
10428.855 |
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Net Current Assets |
70835.959
|
56692.677 |
61099.470 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
384478.604 |
366633.305 |
342691.282 |
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PROFIT and LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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SALES |
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|
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Sales |
38068.176 |
30105.551 |
34341.604 |
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Other Income |
6725.297 |
7710.324 |
8321.988 |
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TOTAL (A) |
44793.473 |
37815.875 |
42663.592 |
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Less |
EXPENSES |
|
|
|
|
|
|
|
Employees Remuneration |
6618.299 |
6425.945 |
3472.876 |
|
|
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Administrative Expenses |
2427.075 |
2032.556 |
1516.712 |
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Fuel and Heavy Water |
14176.709 |
10550.312 |
10821.258 |
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Operation and Maintenance Expenses |
3068.569 |
2889.200 |
2929.491 |
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TOTAL (B) |
26290.652 |
21898.013 |
18740.337 |
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|
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Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
18502.821 |
15917.862 |
23923.255 |
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|
|
|
|
|
|
|
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Less |
FINANCIAL
EXPENSES (D) |
4410.303 |
4887.827 |
4554.258 |
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|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
14092.518 |
11030.035 |
19368.997 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
7210.760 |
7060.852 |
7337.865 |
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|
|
|
|
|
|
PRIOR PERIOD
ADJUSTMENTS |
2141.185 |
(838.541) |
(19.004) |
|
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|
|
|
|
|
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|
PROFIT BEFORE
TAX (E-F) (G) |
4740.573 |
4807.724 |
12050.136 |
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|
|
|
|
|
|
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Less |
TAX (H) |
576.440 |
394.884 |
1265.174 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
4164.133 |
4412.840 |
10784.962 |
|
|
|
|
|
|
|
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|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
9806.465 |
7942.467 |
10942.865 |
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|
|
|
|
|
|
|
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Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
1000.000 |
1000.000 |
1000.000 |
|
|
|
Dividend |
0.000 |
323.852 |
235.489 |
|
|
|
Tax on Dividend |
0.000 |
55.039 |
40.021 |
|
|
|
Interim Dividend |
1500.000 |
1000.000 |
3000.000 |
|
|
|
Tax on Interim Dividend |
254.925 |
169.951 |
509.850 |
|
|
BALANCE CARRIED
TO THE B/S |
11215.673 |
9806.465 |
7942.467 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Others |
7380.664 |
8938.169 |
NA |
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
41.04 |
43.50 |
106.30 |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
9.29
|
11.66 |
25.27 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
12.45
|
15.96 |
35.08 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
2.17
|
2.72 |
6.55 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.02
|
0.02 |
0.05 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.77
|
0.67 |
0.59 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
4.15
|
5.57 |
6.85 |
LOCAL AGENCY FURTHER INFORMATION
SUNDRY CREDITORS
DETAILS
Rs. In Millions
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
|
|
|
|
Sundry Creditors |
2852.240
|
3208.605 |
3093.610 |
PERFORMANCE
HIGHLIGHTS
Improvement in the
indigenous fuel supply along with use of imported fuel for reactors under
safeguards resulted in higher average capacity factor of about 61% as against
50% for the previous year. Electricity generation, as per the billing cycle, in
2009-10 has been 18798 Million kWh (MUs) as against 14921 MUs in 2008-09
showing an increase of 26%. The revenue realisation has been maintained at a
high level of 99.8%. The tariffs for TAPS-3and4 were provisionally fixed prior
to the commercial operation based on the sanctioned cost. However, the project
has been completed earlier than the scheduled time, resulting in reduction of
total project cost. In addition to the reduced construction period, changed
debt equity structure from 1:1 to 2:1 and effective financing arrangement
mainly contributed in reducing the construction cost of the project and in turn
reduced the final tariff, which was based on actual completed cost of project.
The reduced final tariff was made effective retrospectively from the date of
commencement of commercial operation. This downward revision in tariffs for
TAPP-3and4 has resulted in the reduction in revenue by Rs. 2340 millions, which
includes Rs. 1990 millions pertaining to earlier years (prior period item).
Similarly, there has been a reduction of tariff for RAPS-2, 3 and 4 effective
from December 2008 affecting the revenue by Rs. 1590 millions.
The prior period
adjustments amounting to Rs. 2140 Millions consist of Rs. 1990 Millions
relating to tariff reduction of TAPS-3and4 and the balance Rs. 150 Millions
pertains to net off other prior period items.
KAPS-1 and NAPS-2
remained shut down for Enmasse Coolant Channel Replacement (EMCCR) activities during
the year. NAPS-2 activities have since been completed and the unit is awaiting
fuel loading.
With the
commissioning of RAPS-5and6 units (2 X 220 MW) during the year, the number of
Nuclear Power Reactors in operation in the country has increased to 19 with a
total installed capacity of 4560 MW including RAPS-1 (100 MW) owned by the
Government and operated by NPCIL.
The revenue from
sale of power generated from wind farm at Kudankulam during the year 2009-10
was Rs. 74.600 Millions The provision for taxation during the year is Rs. 580
Millions. The amount received towards Decommissioning levy and interest on
Research and Development (R and D), Renovation and Modernisation (RandM) and
Decommissioning levy has not been considered as income of the Company. These
funds are held by NPCIL on behalf of the Department of Atomic Energy (DAE) and the Decommissioning levy is recovered based on a
statutory notification issued by the DAE. However, the Income Tax Tribunal has
decided that the levies and interest earned on these funds be treated as income
of the company, an appeal has been filed in the Honorable High Court of
Maharashtra, Mumbai. During the year, the Company has appropriated Rs. 200
Millions from these funds towards the income tax, if finally, payable on these
levies.
The
Company, inspite of its operational exigencies, has been able to optimize its
efficiency and has been able to achieve a net profit of Rs. 4160 Millions after
tax. The Company has adopted Accounting Standard – 22 “Taxes on Income” issued
by the Institute of Chartered Accountants of India (ICAI) with effect from
2007-08. The accumulated net deferred tax liability as on March 31, 2010 was
Rs. 18460 Millions on account of timing differences between book and tax
profits. Since Income tax payable on income from generation of power is
recoverable from the beneficiaries, the amount of deferred tax, so recognized,
is recoverable on becoming a part of the current tax. Therefore, such deferred
tax is considered as recoverable and netted from such deferred tax liability /
expense.
CAPITAL
There was no
addition to the paid up share capital during the year. The Company has not
drawn any budgetary support from the Government of India. The total paid-up
capital continued to be Rs. 101450 Millions as on 31st March 2010, against the
Authorised Capital of Rs. 150000 Millions.
INDUSTRY OVERVIEW
India’s Power Sector
The Indian economy
has been growing steadily in the range of 8 - 9% in the recent past and is
expected to maintain its status as one of the fastest economies in the world
with long term GDP growth estimated to be around 9%. Driven by strong economic
growth, energy consumption in
COMPANY OVERVIEW
Role of NPCIL
In
Nuclear Power
Plant Operations
Starting with six
reactors in 1987, NPCIL now has a fleet of 19 reactors in operation and three
in advanced stages of construction. NPCIL owns and operates 18 nuclear power
reactors, in addition to operating Rajasthan Atomic Power Station Unit-1 (100
MW PHWR) owned by the DAE. The Company has to its credit more than 320 reactor
years of safe operation of nuclear power plants. A very high availability
factor, the hallmark of operational efficiency of a nuclear power plant, sets
apart the nuclear power reactors of NPCIL. In the year 2009-10, NPCIL reactors
achieved a weighted average availability factor of 92%. The generation and
Capacity Factor during the financial year were 18831 MU (inclusive of infirm
generation of 25 MUs from RAPS-5 and 3 MUs from RAPS-6) and 61% respectively as
against 14927 MUs and 50% respectively last year. Thus an increase in
generation by 26% over the last year resulting from improved fuel availability
has been achieved. MAPS-2 with a continuous operation of 431 days (25th January
2009 to 31st March 2010) joined four more reactors which had, in the past,
operated continuously for more than a year.
MANAGEMENT
DISCUSSION AND ANALYSIS
Outlook
In view of the
improved performance, strategic and tactical planning, nuclear power programme ahead
to realise the faster nuclear power capacity addition the outlook is bright for
NPCIL. Fuel by itself is not a major cost element for a nuclear power plant;
but supply mismatch can undermine these large capital investments. There has
been an improvement in domestic fuel availability over the last year, though
still much short of the requirement. However, with the improved fuel
availability from domestic and international sources (for reactors under
safeguards in accordance with the Separation Plan) and the construction of
three reactors under advanced stages of completion, the generation is expected
to increase progressively in future. With the addition of capacity of 220 MW by
completion of Kaiga-4 and KK-1and2 and the improved fuel availability, leading
to higher CFs, the financial performance of the company will witness a quantum
jump, enabling it to take up the large expansion program. The start of
KAPP-3and4 and RAPP-7 and 8 together with ‘in principle’ approval of sites for
a capacity of about 36000 MW provide the necessary basis for launch of large
nuclear power expansion. New projects are expected to be launched in the year
2010-11 and beyond.
FIXED ASSETS:
- Land building
- Railway
Sidings
- Plant and
Machinery
- Furniture and
Fixtures
- Office
Equipment
- Vehicles
- Software
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 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.45.37 |
|
|
1 |
Rs.70.04 |
|
Euro |
1 |
Rs.58.93 |
SCORE and RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
7 |
|
OPERATING SCALE |
1~10 |
7 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
7 |
|
--PROFITABILIRY |
1~10 |
7 |
|
--LIQUIDITY |
1~10 |
7 |
|
--LEVERAGE |
1~10 |
7 |
|
--RESERVES |
1~10 |
7 |
|
--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 |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
64 |
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.