MIRA
INFORM REPORT
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Report Date : |
18.01.2011 |
IDENTIFICATION DETAILS
|
Name : |
INDOSOLAR LIMITED |
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Formerly Known
As : |
ROBIN GARMENTS PRIVATE LIMITED ROBIN SOLAR PRIVATE LIMITED |
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Registered
Office : |
C-12, Friends Colony (East), |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
08.04.2005 |
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Com. Reg. No.: |
55- 134879 |
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CIN No.: [Company Identification
No.] |
U18101DL2005PLC134879 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
DELP13350B / DELR15134A |
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PAN No.: [Permanent Account No.] |
AAECP2108F / AADCR2872D |
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Legal Form : |
A Closely Held Public Limited Liability Company |
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Line of Business
: |
Manufacturer of
Photovoltaic Solar Cells |
RATING & COMMENTS
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MIRA’s Rating : |
B (26) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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Maximum Credit Limit : |
USD 5900000 |
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Status : |
Moderate |
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Payment Behaviour : |
Slow |
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Litigation : |
Clear |
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Comments : |
Subject is an established company having moderate track. Profitability
of the company is under severe pressure. There appears huge accumulated
losses recorded by the company. However 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
cautions. |
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
|
Name : |
Mr. Uma Shankar |
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Designation : |
Accounts Department |
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Date : |
14.01.2010 |
LOCATIONS
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Registered Office/ Factory1 : |
C-12, Friends Colony (East), |
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Tel. No.: |
91-11-2684 1375 / 26311706 |
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Fax No.: |
91-11-2684 3949 |
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E-Mail : |
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Website : |
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Area: |
1000 Sq.mtr (Registered office) 8 Acres (Factory) (Owned) |
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Corporate Office / Factory2 : |
3C/1, Ecotech – II, Udyog Vihar, District Gautam Budh Nagar, Greater
Noida 201 306, |
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Tel. No.: |
91 120 4762 500 |
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Fax No.: |
91 120 4762 533 / 4762525 |
DIRECTORS
AS ON 31.05.2010
|
Name : |
Mr. Bhushan Kumar Gupta |
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Designation : |
Chairman cum Managing Director |
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Address : |
C-12, Friends Colony (East), |
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Date of Birth/Age : |
26.01.1936 |
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Qualification : |
Entrepreneur |
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Date of Appointment : |
25.09.2009 |
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DIN No.: |
00168071 |
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Name : |
Mr. Hulas Rahul Gupta |
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Designation : |
Managing Director |
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Address : |
C-12, Friends Colony (East), |
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Date of Birth/Age : |
24.10.1959 |
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Qualification : |
B.B.A. |
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Date of Appointment : |
25.09.2009 |
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DIN No.: |
00297722 |
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Name : |
Mr. Anand Kumar Agarwal |
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Designation : |
Executive Director and Chief Financial Officer |
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Address : |
38, R P S Flats, Sheikh Sarai Phase-I, |
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Date of Birth/Age : |
07.07.1949 |
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Qualification : |
A.C.A. |
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Date of Appointment : |
25.09.2009 |
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DIN No.: |
00155299 |
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Name : |
Mr. Aditya Jain |
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Designation : |
Independent Non Executive Director |
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Address : |
F-63, Radhe Mohan Drive, Gadaipur Bandh Road, Chatarpur, Mehruali, New
Delhi 110074 |
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Date of Birth/Age : |
27.10.1960 |
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Date of Appointment : |
14.12.2009 |
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DIN No.: |
00835144 |
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Name : |
Mr. Ravinder Khanna |
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Designation : |
Independent Non Executive Director |
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Address : |
A-804, |
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Date of Birth/Age : |
26.02.1959 |
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Date of Appointment : |
14.12.2009 |
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DIN No.: |
01005216 |
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Name : |
Mr. Gautam Singh Kuthari |
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Designation : |
Independent Non Executive Director |
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Address : |
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Date of Birth/Age : |
31.08.1959 |
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Date of Appointment : |
31.05.2010 |
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DIN No.: |
00945195 |
KEY EXECUTIVES
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Name : |
Mr. Atul Kumar Mittal |
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Designation : |
Company Secretary and Compliance Officer |
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Address : |
21-B, Pocket – C, Mayur Vihar Phase – II, |
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Date of Birth/Age : |
10.04.1959 |
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Date of Appointment : |
25.09.20090 |
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Name : |
Mr. Uma Shankar |
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Designation : |
Accounts Department |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
AS ON 31.05.2010
|
Names of Shareholders |
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No. of Shares |
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Bhushan Kumar Gupta |
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56500001 |
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Hulas Rahul Gupta |
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80385494 |
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Greenlite Lighting Corporation, |
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70114500 |
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Priya Desh Gupta |
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1 |
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Abha Gupta |
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1 |
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Anand Kumar Agarwal |
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1 |
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Gurbaksh Singh Vohra |
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1 |
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Atul Kumar Mittal |
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1 |
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Brand Equity Treaties Limited, |
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1400000 |
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Total |
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208400000 |
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List of
Allottees |
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No.
of Shares Allotted |
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SCHMID Singapore Pte Limited, Singapur |
|
3640579 |
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Total |
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3640579 |
Equity Share Breakup (Percentage of Total Equity)
(AS ON 30.09.2010)
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Category |
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Percentage |
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Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others] |
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33.64 |
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Bodies corporate |
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0.68 |
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Directors or relatives of directors |
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65.68 |
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Total
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|
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
Photovoltaic Solar Cells |
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Products : |
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Exports : |
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Products : |
Photovoltic Solar Cells |
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Countries : |
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Imports : |
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Products : |
Raw Materials |
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Countries : |
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Terms : |
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Selling : |
L/C, Cash and Credit |
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Purchasing : |
L/C, Cash and Credit |
PRODUCTION STATUS [AS ON 31.03.2010]
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Particulars |
Unit |
Licensed
Capacity |
Installed
Capacity* |
Actual
Production |
|
Solar Cells |
Nos. |
NA |
52560000 |
6903988 |
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Solar Modules |
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**2472 |
*On triple shift annual basis
**Production of Solar modules includes 2,472 (Previous year: Rs. Nil)
received after conversion of solar cells.
GENERAL INFORMATION
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No. of Employees : |
Approximately 400 (Office 30, Factory 370) |
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Bankers : |
Corporation Bank Industrial Finance Branch, 1ST Floor, 16/10, Telephone: +91 11 2875 7455/ 2875 7639 Facsimile: +91 11 28750956 Email: cb447@corpbank.co.in Contact Person: Mr. V. S.Karthikeyan Website: www.corpbank.com Indian Bank G-41, Connaught Circus, Telephone: +91 11 2371 2162/ 2371 2164 Facsimile: +91 11 2371 8418 Email: ibnewdelhimain@vsnl.net Contact Person: Mr. G. Rangarajan Website: www.indianbank.in Union Bank of Industrial Finance Branch, M-11, 1ST Floor, Telephone: +91 11 2341 7401 - 07 Facsimile: +91 11 2341 7405 Email: ifbcp@unionbankofindia.com
Contact Person: Mr. Pankaj Sharma Website: www.unionbankofindia.com
Bank of Ground Floor, Bank of Telephone: +91 11 2331 0349 Facsimile: +91 11 2371 1267 Email: indel@bankofbaroda.com
Contact Person: Mr. R.K.Arora Website: www.bankofbaroda.com
Andhra Bank M-35, Telephone: +91 11 2341 5616 Facsimile: +91 11 2341 6043 Email: bmdel084@andhrabank.co.in
Contact Person: Mr. C.Bala Subramanyam Website: www.andhrabank.in Bank of Corporate Financial Services Branch, |
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Facilities : |
# Note 1:
Secured by first mortgage of all immovable properties of the Company, both present
and future and leasehold land, ranking pari-passu with all charge holders,
being lending banks forming a consortium. # Note 2:
Secured by a first charge by way of hypothecation of all moveable properties,
including moveable machinery, machinery procured under letter of credit,
machinery spares, equipments, electrical fittings, air conditioners, power
generators insulation, installations, fixtures, vehicles, movables and other
assets, construction equipments, tools and accessories, both present and future,
ranking pari-passu with all charge holders, being lending banks forming a
consortium. # Note 3:
Secured by an assignment of: (i) all the
escrow account and all rights and interests therein, present and future; (ii) the right,
title and interest, by way of first charge, in and under all of the project
documents, contracts, licenses, permits, consents; indemnities and securities
that may be furnished by any counter party under any project documents or
contracts in favour of the Company after obtaining the written consent of the
parties thereto, if necessary; and (iii) the right,
title and interest in, by way of first charge, all government approvals,
insurance policies. # Note 4: The
loan facilities are further secured by the pledge of 51% of the equity share
capital held by the promoters of the Company. # Note 5: The
loan facilities are also secured by way of personal guarantees given by the
Directors of the Company i.e. Mr. B. K. Gupta and Mr. H.R. Gupta. Note 6: Secured
by pari-passu first charge on inventory, book debts and current assets of the
company. Note 7: Secured
by first charge by way of hypothecation on pari-passu basis of all those
machinery, plant, capital goods and other assets purchased or to be purchased
whether installed or not. Further secured by way of hypothecation of all
plant and machinery installed at factory building on parri-passu with other
banks.
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
B S R and Associates Chartered Accountants |
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Address : |
Building No.10, 8th Floor, Tower-B, DLF, |
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Tel. No.: |
91-124-307 4000 |
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Facsimile : |
91-124-254 9101 |
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E-Mail : |
CAPITAL STRUCTURE
As on 31.03.2010
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
500000000 |
Equity Share |
Rs.10/- each |
Rs. 5000.000 Millions |
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Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
208400000 |
Equity Share |
Rs.10/- each |
Rs. 2084.000
Millions |
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|
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|
Note 1: Of the above, 185,000,000 equity shares of Rs. 10 each and
15,000,000 equity shares Rs. 0.50 each partly paid outstanding as at 1 January 2009,
were issued to the shareholders of Transferor Companies, pursuant to the scheme
of amalgamation.
Note 2: Pursuant to the scheme of amalgamation the Company has reduced
10,000 equity shares of Rs. 10 each during the year.
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 |
2084.000 |
0.100 |
0.100 |
|
|
2] Share Application Money pending allotment |
151.650 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
36.400 |
0.000 |
0.000 |
|
|
4] (Accumulated Losses) |
(802.460) |
(138.623) |
(0.038) |
|
|
5] Equity shares to be issued pursuant to the scheme of amalgamation |
0.000 |
1892.400 |
0.000 |
|
|
NETWORTH |
1469.590 |
1753.877 |
0.062 |
|
|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
5367.348 |
2448.319 |
0.000 |
|
|
2] Unsecured Loans |
70.000 |
0.000 |
0.000 |
|
|
TOTAL BORROWING |
5437.348 |
2448.319 |
0.000 |
|
|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
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TOTAL |
6906.938 |
4202.196 |
0.062 |
|
|
|
|
|
|
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APPLICATION OF FUNDS |
|
|
|
|
|
|
|
|
|
|
|
FIXED ASSETS [Net Block] |
6533.926 |
702.405 |
30.769 |
|
|
Capital work-in-progress |
100.612 |
3627.585 |
29.678 |
|
|
|
|
|
|
|
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INVESTMENT |
0.000 |
0.000 |
0.000 |
|
|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
773.383
|
29.472 |
0.000 |
|
|
Sundry Debtors |
231.050
|
0.000 |
0.000 |
|
|
Cash & Bank Balances |
241.097
|
307.105 |
1.655 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
|
|
Loans & Advances |
137.147
|
73.427 |
0.000 |
|
Total
Current Assets |
1382.677
|
410.004 |
1.655 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1014.189
|
526.175 |
62.030 |
|
|
Other Current Liabilities |
120.336
|
7.745 |
0.010 |
|
|
Provisions |
2.713
|
3.878 |
0.000 |
|
Total
Current Liabilities |
1137.238
|
537.798 |
62.040 |
|
|
Net Current Assets |
245.439
|
(127.794) |
(60.385) |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
26.961 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
TOTAL |
6906.938 |
4202.196 |
0.062 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
|
1125.167 |
0.000 |
|
|
|
Other Income |
|
189.618 |
7.396 |
|
|
|
TOTAL (A) |
|
1314.785 |
7.396 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
(Increase)/decrease in stock |
|
(296.740) |
0.000 |
|
|
|
Manufacturing expenses |
|
1614.565 |
0.000 |
|
|
|
Personnel costs |
|
84.976 |
47.693 |
|
|
|
Selling, administrative and other expenses |
|
115.831 |
36.183 |
|
|
|
TOTAL (B) |
|
1518.632 |
83.876 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
|
(203.847) |
(76.480) |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
|
271.876 |
0.319 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
|
(475.723) |
(76.799) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/ AMORTISATION (F) |
|
187.362 |
5.706 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
|
(663.085) |
(82.505) |
|
|
|
|
|
|
|
|
|
Less |
TAX (I) |
|
0.752 |
0.576 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-I) (J) |
|
(663.837) |
(83.081) |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
1049.457 |
0.000 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
|
1529.440 |
26.210 |
|
|
|
Capital Goods |
|
2372.610 |
275.287 |
|
|
TOTAL IMPORTS |
|
3902.050 |
301.497 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
(3.32) |
(1.06) |
|
Expected Sales (2010-2011) : Rs. 8000.000 Millions
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(50.49)
|
(1123.32) |
- |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
(58.93)
|
(0.00) |
-- |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(8.38)
|
(7.42) |
-- |
|
|
|
|
|
-- |
|
Return on Investment (ROI) (PBT/Networth) |
|
(0.45)
|
(0.05) |
-- |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
4.47
|
1.70 |
1000.65 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.22
|
0.76 |
0.03 |
LOCAL AGENCY FURTHER INFORMATION
DETAILS OF SUNDRY
CREDITORS
(Rs.
In Millions)
|
Particulars |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
Sundry Creditors |
1014.189
|
526.175 |
62.030 |
|
Total |
1014.189
|
526.175 |
62.030 |
Note:
The Registered office of the company has been shifted from F-16, Lajpat
Nagar-II, New Delhi-110024,
Trade References:
·
IFI Energia- SRL
·
Renergy Italia SPA
·
Energy System SPA
CHANGE OF STATUS /
NAME
The status of the company has been converted into a public limited
company vide fresh certificate of incorporation dated 12th day of
October, 2009 issued by the Registrar of Companies, NCT of Delhi and Haryana (ROC).
Furthe, the name of the company has been changed from ROBIN SOLAR LIMITED to
INDOSOLAR LIMITED vide fresh certificate of incorporation dated 30th
Day of October, 2009 issued by the ROC. The company has been allotted a new
corporate Identity Number (CIN) : U18101DL2005PLC134879 consequent upon such
conversion.
STATUS OF IMPLEMENTATION OF SOLAR CELL PROJECT
The Company
started the project for manufacturing of Solar Photovoltaic Cells by installing
two lines of 80 MW each. The first line has already commenced commercial
production with effect from 17th July 2009 and second line has commenced
commercial production with effect from 17th March 2010. The projected cost of
these lines were estimated to be Rs. 6200 Millions, however the actual amount
incurred till 17th March 2010 in the project for these two lines is Rs.
6732.700 Millions leading to cost overrun aggregating to Rs. 532.700 Millions.
They have submitted financial closure papers for the Special Incentive Package
(SIP) Scheme with the Ministry of Communications and Information Technology,
Government of India and are awaiting the formal approval for grant of 25%
capital subsidy from the Ministry.
SUMMARY OF INDUSTRY
Global scenario for solar power
Solar power worldwide has become a popular resource for renewable
energy. The increase in its popularity is reflected by the increase in total
annual production of crystalline silicon cells and thin film PV cells to a
consolidated level of 6,854 MW in 2008, six times the level in 2004 and
representing a compounded growth of almost 56.00% p.a. since 2004. Demand from
countries such as
Despite of the reduced demand between Q4 2008 and H1 2009, the Industry
is expected to see a strong revival in demand for Solar PV cells in Q1 2010
driven largely by
Prices through the PV chain held steady during the first three quarters
of 2008. The price decline path that started in 4Q08 (with the abrupt weakening
of end-market demand in
Market prices have seen some stabilization in 4Q 2009 because of strong
demand for products that are approved for use in bank-financed projects in
Overview of power industry in
The low per-capita consumption of electric power in
Overview of solar power industry in
In 2008, the majority of
Jawaharlal Nehru National Solar
The objective of the Solar Mission is to establish
CERC Policy for Solar Farms
The CERC Tariff Regulations lay down the normative parameters for
determination of tariff for renewable energy sources. The key features of the
CERC Tariff Regulations from solar PV perspective are:
The tariff period for solar PV defined as 25 years;
Normative debt-equity ration of 70:30;
Normative return on equity (“RoE”):
o Pre-tax 19% p.a for first 10 years; and
o Pre-tax 24% p.a 11th year onwards.
SUMMARY OF BUSINESS
Overview
They manufacture poly-crystalline solar photo-voltaic (“SPV”)
cells from silicon wafers utilizing crystalline silicon SPV cell technology for
converting sunlight directly into electricity through a process known as the
“photo-voltaic effect”. They market and sell their products to primarily module
manufacturers on a business-to-business platform, who in turn supply to the
system integrators who install the systems for grid and off-grid (roof top)
applications for use in the domestic market as well as markets in Europe,
Spain, Japan, Asia, Canada and USA.
Their ability to procure poly-silicon wafers at low cost and expand
their customer base is critical to their business. Economies of scale, ability
to enhance operational and SPV cell efficiency and pricing strategy are the
other fundamental enablers in their business.
They commenced work for setting up of their SPV cell manufacturing
facility in Greater Noida in January 2008. They have established one SPV cell
manufacturing line having an annual manufacturing capacity of 80 MW and
commenced commercial production in July 2009. The second SPV cell manufacturing
line having an annual manufacturing capacity of 80 MW is expected to commence
commercial production of SPV cells in March 2010. In order to prepare for an
increase in demand for SPV products in the future and to enhance scale to a
competitive level, they plan to increase their annual manufacturing capacity to
approximately 260 MW by 2011, with one additional manufacturing line of annual
manufacturing capacity of 100 MW.
They use a fully automated horizontal in-line, state-of-the-art
technology for manufacture of SPV cells which offer high average efficiency
levels of up to 16.00%. They have entered into arrangements with Schmid
Technology Systems GmbH (“Schmid”), one of the operators in SPV cell
manufacturing technology and a vertically integrated player in the SPV cell
industry, for delivery, installation and commissioning of the plant and
machinery at their facility, on a turnkey basis. As part of their manufacturing
capacity expansion plans, they propose to install a SPV manufacturing line with
‘selective emitter’ technology to be commissioned by their turnkey provider,
Schmid. ‘Selective emitter’ technology will give capability to produce improved
SPV cells of higher average efficiency up to 17.20%. Their research and development
team comprising three solar photo-voltaic and semi conductor researchers and
scientists focuses on continually enhancing their SPV cell Conversion
Efficiencies and improving their manufacturing operations.
Their management believes that it is preferable to follow a flexible mix
vis-ŕ-vis long term and spot market for procurement of silicon wafers, in
conjunction with market trends. They are currently negotiating silicon supply
contracts with certain suppliers to meet their current manufacturing capacity
of 80 MW and sufficient inventory levels in the future, with prices linked to
those prevailing in the spot market. Other raw materials such as chemicals,
silver and aluminium pastes are also procured from various suppliers at the
prevailing market prices.
The Company is one of the few companies selected by the Government of
India for grant of financial incentives under the “Special Incentive Package
Scheme” of 2007 notified by the Government of India and has been granted an
in-principle approval on June 1, 2009 by Ministry of Communication and
Information Technology, Government of India. Their manufacturing facility at
Greater Noida has been granted the status as an ‘Export Oriented Unit’ under
the Foreign Trade Policy 2009-2014 of the Government of India pursuant to which
they enjoy certain benefits, including free importability and entitlement to
avail of certain direct and indirect tax exemptions.
Strengthening of their brand name and expansion of their customer base
are integral parts of their sales and marketing strategy. They have associated
with the Semiconductor Equipment and Materials International,
Their Promoters, Mr. Bhushan Kumar Gupta and Mr. Hulas Rahul Gupta, have
a combination of managerial acumen as well as domestic and international
experience of approximately 30 and 20 years, respectively, in manufacturing,
marketing and customer relations.
INDUSTRY OVERVIEW
Till December 31, 2009, they had sold 3.36 MW of SPV cells and modules
for an aggregate contract value of Rs. 215.26 million. Their Orderbook is Rs. 4,748.72
million as of December 31, 2009 with five customers for delivery of 73.05 MW of
SPV cells.
On January 5, 2010, they have further entered into a contract with a
customer based in France for delivery of 5.03 MW of SPV cells for a contract
value of Rs. 315.20 million, based on conversion rate of € = Rs. 67.02 as on
December 31, 2009
Their Competitive Strengths
They believe their principal competitive strengths are as follows:
(a) State-of-the-art technologies for
manufacturing SPV cells obtained from Schmid
(b) Well positioned to receive tax breaks and
special incentives from the Government of India
(c) Early mover advantage in the domestic SPV
cell manufacturing space
(d) Committed and experienced promoters with
demonstrable track record
(e) Research and development initiatives that
leverage both third party collaborations and internal resources
Their Business Strategy
(f) Expand existing production capacities to
achieve economies of scale
(g) Expand their customer base, diversify
their sales effort and pursue a proactive marketing program
(h) To pursue opportunities and participate
in solar power projects incentivised by the Governmental authorities in
(i) Flexible approach for procurement of key
raw materials at favourable prices
(j) Continue to reduce their PW manufacturing costs, increase the throughput
of their production lines and enhance their SPV cell Conversion Efficiencies
(k) Implement stricter cash management and
control measures
GENERAL INFORMATION
The Company was incorporated under the Companies Act on April 8, 2005 as
“Robin Garments Private Limited”. Subsequently, the name was changed to “Robin
Solar Private Limited” pursuant to a special resolution of their shareholders
dated July 2, 2008. A fresh certificate of incorporation consequent to such
change of name was granted to The Company by the RoC on July 21, 2008.
Consequent upon amalgamation of the Transferor Company with The Company
pursuant to the Scheme, the name of the Company was changed to “Indosolar Limited”
and the status was changed to a public limited company. A fresh certificate of
incorporation consequent to such change in status was granted to the Company by
the RoC on October 12, 2009. Further, the name of the Company was changed to
“Indosolar Limited” and a fresh certificate of incorporation consequent to such
change was granted to the Company by the RoC on October 30, 2009.
INDUSTRY OVERVIEW
Global scenario for solar power
Solar power world wide has become a popular resource for renewable energy.
The increase in its popularity is reflected by the increase in total annual
production of crystalline silicon cells and thin film PV cells to a
consolidated level of 6,854 MW in 2008, six times the level in 2004 and
representing a compounded growth of almost 56.00% p.a. since 2004. Demand from
countries such as
Nearly ftheir years of the global solar photovoltaic industry growth,
limited only by supply capability, came to an end in the fourth quarter of
2008. For an industry whose end-market is to a great extent dependent on
government incentives, changes in government policy in Spain coupled with the
global economic turndown, which shut down financing options, the key to large
project driven market segments, caused this interruption is the growth
momentum..
Despite of the reduced demand between Q4 2008 and H1 2009, the Industry
is expected to see a strong revival in demand for Solar PV cells in Q1 2010
driven largely by
Market Demand
In 2008, the world crystalline silicon based PV market increased to
5,948 MW from 2,826 MW in 2006, a growth of 110.00% over the year, compared to
62.00% growth in 2007. Annual growth has now averaged a compound rate of 53.00%
since 2004. The graph given below reflects major PV markets and their market
size.
Market incentive programs for grid connected PV systems remain the main
driver for this growth. In 2008, the worldwide on-grid segment grew by 118.00%
(up from 69.00% growth in 2007) to 5,728 MW while off-grid market grew by only
11.00% to 220 MW. Italy has already taken the first steps towards policy
development that starts to embrace a transition to grid parity by remunerating
self consumption in the model “Scambio sul posto” and could reach grid parity
as soon as Spain.
After a dull H1 2009, the third quarter of 2009 saw end-market demand
rise by 63.00%. All major markets remained firm, with the strongest growth
evident in
Solar PV Supply Position
The figure below shows average capacity data for 2007 and 2008 for each
step in the PV manufacturing chain, with the ftheir steps of crystalline
silicon production, from silicon feedstock to modules, on the left and thin
films on the right.
The average manufacturing capacity of poly-silicon available to the PV
industry rose by 91.00% in megawatt terms in 2008 to reach a level equivalent
to 6,494 MW of crystalline silicon solar cells. Average wafering capacity grew
to 8,300 MW (up 81.00%), average cell capacity to 8,875 MW (up 83.00%) and average
module capacity to 10,375 MW (up 65.00%) as shown in the figure above. The PV
industry entered 2009 with an excess of 10.00 GW crystalline silicon wafer,
cell and module manufacturing capacity, but with a substantially lower silicon
feedstock capacity of 8.20 GW. This means that poly-silicon supply capability
remained the lowest across the manufacturing chain.
Solar Wafer Manufacturing Capacity
Global crystalline silicon wafer manufacturing capacity reached 10,736
MW at the end of 2008, an increase of 83.00%. Well over half (60.00%) the
world’s wafer manufacturing capacity was located in
Solar Cell Capacity
Global crystalline silicon cell capacity reached 11,706 MW at the end of
2008, an increase of 94.00%, while global thin film PV capacity grew by 173.00%
to 1,891 MW. It should be noted that cell manufacturing capacity data has been
overviewed at a 21.00% average, allocated differently according to regional
origin and technology.
The total annual production of crystalline silicon cells and thin film
PV reached a consolidated level of 6,854 MW, six times the level in 2004 and
representing compound growth of almost 56.00% p.a. since 2004.
Prices through the PV Business Chain
Prices through the PV chain held steady during the first three quarters
of 2008. The practical cessation of the Spanish market in Q4 2008, growth in
product supply and the global economic downturn caused a collapse in prices
through the whole PV chain by Q1 2009. For Q1 2009 vs. Q1 2008, poly-silicon,
wafer, cell and module price reductions ranged from 12.50% to 26.10%.
Poly-silicon spot prices saw the largest collapse from a peak of $450/kg to
$130/kg by Q1 2009. Fall in the Euro against the Yen in Q3- Q4 2008 added
complexity to the contracting environment.
The price decline path that started in 4Q08 (with the abrupt weakening
of end-market demand in
Global PV Chain Financial Transactions
Notwithstanding the intensity in the credit market collapse by fourth
quarter 2008, the PV industry chain raised between $12.50 billion and $13.50
billion in 2008, a new record for a single year. This is up from a range of
$9.00 billion to $10.00 billion in 2007.
Major PV Markets
The rapid rise of the Spanish market in 2008 came about as a result of a
government policy that set ‘feedin tariff’ terms at very attractive rates
considering the country’s excellent insolation conditions. Financial returns
for equity investors at double digit levels fuelled massive investment from
diverse institutional, commercial and private sources. Changes in government
policy during the last quarter of 2008 let to a near halt of end-customer
market.
The German market grew by 40% from 1,328 MW in 2007 to 1,855 MW in 2008.
This compares with growth of 37% in the year before.
The module prices declined in the last quarter of 2008, when the Spanish
market came to a near stand still and large volumes of modules were reallocated
from the Spanish to the German market.
applications (240 MW), with a minor contribution (2 MW) from off-grid
systems.
The strong market growth experienced in
Future outlook
Despite the downturn in 2008, it very clear that there is sufficient
margin through both the crystalline and thin film chains for the industry
leaders to sustain cuts in end-market prices and still deliver a positive
bottom line. All major markets remained firm, with the strongest growth evident
in
According to Solarbuzz, 4Q 2009 market demand will show strong growth of
46% over 3Q 2009 and will see a further 22% growth in in 1Q 2010. Year on year,
4Q 2009 will rise 92% and 1Q 2010 will grow by a remarkable 297%. Capacity
utilization show modest declines in 4Q 2009 for crystalline silicon wafers,
cells and modules, a trend which continues into 1Q 2010. There is the first
sign in 1Q 2010 that the current very high utilization level for poly-silicon
manufacturing may start to come under pressure as its subsides from 97% in 4Q to
92% in 1Q 2010. The thin film capacity utilization exhibits the strongest fall
to 38% as a result of low production volumes from large-scale capacity
expansion based on low efficiency (6-8%) thin film modules.
Market prices have seen some stabilization in 4Q 2009 because of strong
demand for products that are approved for use in bank-financed projects in
Overview of power industry in India
The low per-capita consumption of electric power in
The shortages in energy and peak power have been primarily due to the
slow pace of capacity addition. During the 10th Plan period (Fiscal 2002 to
Fiscal 2007), capacity addition achieved compared to target capacity addition
was 51.5%. During the 11th Plan period (Fiscal 2008 to Fiscal 2012), capacity
addition achieved was 9,263.0 MW or 56.7% of the target capacity addition of
16,335.2 MW in Fiscal 2008, while in Fiscal 2009, capacity addition achieved
was 3,453.7 MW, or 31.2% of the target capacity addition of 11,061.2 MW.
According to the CEA October 2009 Report, as on October 31, 2009, the total
installed power generation capacity in
The GoI has recognized the power sector as a key infrastructure sector
to be developed to sustain Indian economic growth and has taken various steps
to reform the power sector to attract private participation, increase
competition and reduce aggregate technical and commercial losses. Given
significant supply deficits, high growth potential and conducive government
policy, a large opportunity exists for private players to enter the electric
power segment.
Overview of solar power industry in India
The growth of solar power generation in
The policy roadmap required to promote the growth of solar power
industry in
In 2008,
Jawaharlal Nehru National Solar
The objective of the Solar Mission is to establish
To achieve this, the
7. To create an enabling policy framework for the deployment of 20,000
MW of solar power by 2022;
8. To ramp up capacity of grid-connected solar power generation to 1,000
MW within three years – by 2013, an additional 3000 MW by 2017 through the
mandatory use of the renewable purchase obligation by utilities backed with a
preferential tariff;
9. To create favourable conditions for solar manufacturing capability,
particularly solar thermal for indigenous production and market leadership;
10. To promote programmes for off grid applications, reaching 1,000 MW
by 2017 and 2,000 MW by 2022;
11. To achieve 15 million square meters solar thermal collector area by
2017 and 20 million by 2022; and
12. To deploy 20 million solar lighting systems for rural areas by 2022.
One of the strategies to achieve these targets will be to innovate,
expand and disseminate manufacturing capabilities. Currently, the bulk of
Importance and relevance of Solar energy in India
Cost: The objective of the Solar Mission is to
create conditions, through rapid scale up of capacity and technological
innovation to drive down costs towards grid parity. The mission anticipates
achieving grid parity by 2022 and parity with coal based thermal power by 2030.
Scalability:
Environmental Impact: Solar Energy is
environmentally friendly as it has zero emissions while generating electricity
or heat.
Security of Source: From an energy
security perspective, solar is the most secure of all sources, since it is
abundantly available. Theoretically, a small fraction of the total incident
solar energy (if captured effectively) can meet the entire country’s power
requirements.
The Solar Mission talks about a multi-pronged strategy to meet the
objectives laid down therein. The key
components of the strategy include:
Utility Connected applications: Constructing
the solar grid: The key driver promoting solar power would be through
a “renewable purchase obligation” mandated by power utilities with a specific
solar component. This will drive utility scale power generation, whether solar
PV or solar thermal. The solar purchase obligation will be gradually increased
while the tariff fixed for “solar purchase” will decline over time.
The below 80ş C Challenge – solar collectors:
The Solar Mission in its first two phases will promote solar heating
systems. The mission is setting an ambitious target for ensuring that
applications, domestic and industrial, below 80ş C are made solar enabled.
The off-grid opportunity:
A key opportunity for solar power lies in decentralized and off-grid
applications. In remote and far-flung areas where grid penetration is neither
feasible nor cost effective, solar energy applications are costeffective. They
ensure that people with no access, currently, to light and power, move directly
to solar, leap-frogging the fossil fuel trajectory of growth. The mission plans
to provide solar lighting systems under the ongoing remote village
electrification programme of the MNRE to cover about 10,000 villages and
hamlets.
Solar energy to power computers to assist learning in schools hostels,
management information systems to assist better management of forests in the
state of Madhya Pradesh, powering milk chilling plants in Gujarat, empowering
women ‘self help groups’ involved in ‘tussar’ reeling in Jharkhand, cold
chain management for ‘primary health centres’ are some examples of new areas,
being tried successfully in the country.
Manufacturing capabilities: Innovate, expand
and disseminate: Currently, the bulk of
R&D for Solar
To improve efficiencies in existing materials, devices and applications
and on reducing costs of balance of systems and to develop cost effective
storage technologies which would address both viability and storage
constraints.
BUSINESS
Overview
They manufacture poly-crystalline solar photo-voltaic (“SPV”)
cells from silicon wafers utilizing crystalline silicon SPV cell technology for
converting sunlight directly into electricity through a process known as the
“photo-voltaic effect”. They market and sell their products to primarily module
manufacturers on a business-to-business (“B2B”) platform, who in turn
supply to the system integrators who install the systems for grid and off-grid
(roof top) applications for use in the domestic market as well as markets in
Europe, Spain, Japan, Asia, Canada and USA.
Their ability to procure poly-silicon wafers at low cost and expand
their customer base is critical to their business. Economies of scale, ability
to enhance operational and SPV cell efficiency and pricing strategy are the
other fundamental enablers in their business.
They commenced work for setting up of their SPV cell manufacturing
facility in Greater Noida in January 2008. They have established one SPV cell
manufacturing line having an annual manufacturing capacity of 80 MW and
commenced commercial production in July 2009. The second SPV cell manufacturing
line having an annual manufacturing capacity of 80 MW is expected to commence
commercial production of SPV cells in March 2010. In order to prepare for an
increase in demand for SPV products in the future and to enhance scale to a
competitive level, they plan to increase their annual manufacturing capacity to
approximately 260 MW by 2011, with an additional manufacturing line of annual
manufacturing capacity of 100 MW (“Line 3”).
They use a fully automated horizontal in-line, state-of-the-art
technology for manufacture of SPV cells which offer high average efficiency
levels of up to 16.00%. They have entered into arrangements with Schmid, one of
the operators in SPV cell manufacturing technology and a vertically integrated
player in the SPV cell industry, for delivery, installation and commissioning
of the plant and machinery at their facility, on a turnkey basis. As part of
their manufacturing capacity expansion plans, they propose to install a SPV
manufacturing line with ‘selective emitter’ technology to be commissioned by
their turnkey provider, Schmid. ‘Selective emitter’ technology will give
capability to produce improved SPV cells of higher average efficiency up to
17.20%. Their research and development team comprising three solar
photo-voltaic and semi conductor researchers and scientists focuses on
continually enhancing their SPV cell Conversion Efficiencies and improving
their manufacturing operations.
Their management believes that it is preferable to follow a flexible mix
vis-ŕ-vis long term and spot market for procurement of silicon wafers, in conjunction
with market trends. They are currently negotiating silicon supply contracts
with certain suppliers to meet their current manufacturing capacity of 80 MW
and sufficient inventory levels in the future, with prices linked to those
prevailing in the spot market. Other raw materials such as chemicals, silver
and aluminium pastes are also procured from various suppliers at the prevailing
market prices.
The Company is one of the few companies selected for grant of financial
incentives under the “Special Incentive Package Scheme” of 2007 notified by the
Government of India and has been granted an inprinciple approval on June 1,
2009 by Ministry of Communication and Information Technology, Government of
India. Their manufacturing facility at Greater Noida has been granted the
status as an ‘Export Oriented Unit’ (“EOU”) under the Foreign Trade
Policy 2009-2014 of the Government of India pursuant to which they enjoy
certain benefits, including free importability and entitlement to avail of
certain direct and indirect tax exemptions.
Strengthening of their brand name and expansion of their customer base
are integral parts of their sales and marketing strategy. They have associated
with the Semiconductor Equipment and Materials International,
Till December 31, 2009, they had sold 3.36 MW of SPV cells and modules
for an aggregate contract value of Rs. 215.26 million. Their Orderbook is Rs.
4,748.72 million as of December 31, 2009 with five customers for delivery of
73.05 MW of SPV cells. On January 5, 2010, they have further entered into a
contract with a customer based in France for delivery of 5.03 MW of SPV cells
for a contract value of Rs. 315.20 million, based on conversion rate of € = Rs.
67.02 as on December 31, 2009.
Industry Background
Their business is primarily driven by market factors including (a)
government incentives such as “feed-in tariffs” and “green certificates” for
solar power and efforts by countries in the developed and emerging markets to
achieve ‘grid parity’; (b) increasing consumer awareness for alternatives
sources of energy, amid growing concerns in relation to global warming and
extinction of conventional fuels; and (c) growing industry demand for solar
power and desire for energy security.
The demand for SPV cells is determined by those countries which are
driven by solar grid parity and also by the demand for their customers’ solar
modules and other downstream solar power products, which in turn is affected
significantly by government subsidies and economic incentives in their targeted
or potential markets. Governmental bodies in many countries, most notably Germany,
Spain, Italy, the U.S., France, Japan, State of Ontario in Canada, India and
China, have provided subsidies and economic incentives to reduce dependency on
non-renewable sources of energy.
Restructuring
They have recently undergone a restructuring exercise pursuant to which
the erstwhile “Indosolar Limited” (the “Transferor Company”) was
amalgamated into the Company. The High Court of Delhi by its order dated
September 16, 2009 approved the scheme of amalgamation of the Transferor
Company with the Company with effect from the appointed date i.e., January 1,
2009 (the “Appointed Date”). Subsequently, the said the scheme of
amalgamation became effective on September 24, 2009. Pursuant to the said
restructuring exercise, all assets and liabilities of the Transferor Company
were transferred to the Company on a going concern basis with effect from the
Appointed Date. Further, all contracts, deeds, agreements, bonds, etc. to which
Transferor Company was a party, stood transferred in favour of the Company with
effect from the Appointed Date.
Competitive Strengths
They believe their principal competitive strengths are as follows:
State-of-the-art technologies for
manufacturing SPV cells obtained from Schmid
They use state-of-the-art technology for manufacture of SPV cells. They
have entered into arrangements with Schmid, one of the operators in SPV cell
manufacturing technology and a vertically integrated player in the SPV cell
industry, for delivery, installation and commissioning of the plant and machinery
at their facility, on a turnkey basis. As the poly-silicon wafers used for
manufacture of SPV cells are sensitive to atmospheric contaminants, their
manufacturing lines are completely automated and in-line horizontally operated,
with least human interference. The SPV cells produced by them are based on
proven technology i.e. crystalline silicon technology, which has certain
benefits over other competing technologies such as thin-film technology in
terms of complexity, efficiency and performance. They also use the ‘edge
isolation’ and the ‘light induced silver-plating’ (“Ag-LIP”)
technologies which offer higher average efficiency levels of up to 16.00%. The
following factors characterize their state-of-the-art technology and
manufacturing process:
1. High Conversion Efficiency, i.e., lower cost per kilowatt of
electricity produced;
2. High throughput, i.e. the volume of output in a given period of time
on a single line;
3. Fully automated facility for minimum employment of resources;
4. Integrated software solution for complete product tracing and
documentation; and
5. Regular audits and process improvement.
The terms of their arrangements with Schmid include its agreement to
provide performance guarantee equivalent to 10.00% of the agreed contract price
in relation to achievement of 93.00% yield ‘plant load factor’ and minimum
average cell efficiency of 15.50%. Schmid has also agreed to provide
replacement, repair and maintenance warranty services for a limited period of
time and to continuously upgrade the technological know-how and the process
technology for manufacture of SPV cells for a period of five years from the
date of the relevant agreement, for no additional charges.
The terms of their arrangements with Schmid include its agreement to
provide performance guarantee equivalent to 10.00% of the agreed contract price
in relation to achievement of 93.00% yield ‘plant load factor’ and minimum
average cell efficiency of 15.50%. Schmid has also agreed to provide
replacement, repair and maintenance warranty services for a limited period of
time and to continuously upgrade the technological know-how and the process
technology for manufacture of SPV cells for a period of fiveyears from the date
of the relevant agreement, for no additional charges.
Early mover advantage in the domestic SPV
cell manufacturing space
They believe that the steps taken by them to set-up their manufacturing
facility and the arrangements entered into by them with technology providers,
raw material suppliers and their consumers provide them an early mover
advantage establishing their presence in the domestic SPV cell manufacturing
space. They believe that their early mover advantage will allow them to
pre-empt competition and be among the first few companies to meet the demand
for SPV cells. It will also help them establish long-term relationships with
large customers and establish strong B2B presence in the market for SPV cells.
They also believe that an early mover advantage would enable them to gain
technological leadership, scale up, achieve significant sales volume and ride
down the experience curve ahead of their competitors.
Committed and experienced promoters with
demonstrable track record
Their Promoters and whole time Directors, Mr. Bhushan Kumar Gupta and
Mr. Hulas Rahul Gupta, are primarily responsible for the growth in their
business operations. With a combination of managerial acumen as well as
domestic and international experience in the manufacturing, marketing and
customer relation segments, they are well equipped to handle business
situations. Their Promoters are committed to devote their undivided attention
to their business.
In the past, their Promoters promoted a venture in the name of “Phoenix
Lamps India Limited in 1991(name later changed to “Phoenix Lamps Limited” and
presently known as “Halonix Limited”). Halonix Limited is engaged inter alia
in the business of manufacture of halogen automotive lamps, compact
fluorescent lamps and other general lighting lamps. In March 2007, their Promoters
exited from Halonix Limited by selling their entire stake to Argon India
Limited, a private equity fund.
Research and development initiatives that
leverage both third party collaborations and internal resources
They have adopted a systematic approach to their research and
development activities that are aimed at achieving both near-term manufacturing
efficiency gains and long-term competitiveness by leveraging internal resources
as well as third party collaborations.
Their research and development initiatives are led by a team of three
solar photo-voltaic and semiconductor scientists, namely, Dr. Dina Nath Singh,
Mr. R.B. Gupta and Mr. C. M. Kumar, with broad experience and established
credentials in the solar power industry. Their research and development team
focuses on continually enhancing their SPV cell Conversion Efficiencies and
improving their manufacturing operations. Their research and development team
monitors and reports on technological developments, trends and new governmental
policies affecting the industry. The team conducts its research on selected
topics and contributes to the development and training of their staff. They are
currently considering offers received from the University of Tokyo and PVG
Solutions Inc (Japan) who offer technology, training and identify process
improvements to increase the efficiency of the cells. They believe their
collaborative efforts with these institutions will keep them apprised of the
latest industry trends and developments, help them implement their own
initiatives and will contribute to their technological advancement.
HISTORY AND CERTAIN CORPORATE MATTERS
Brief History of the Company
The Company was incorporated under the Companies Act on April 8, 2005 as
“Robin Garments Private Limited”. Subsequently, their name was changed to
“Robin Solar Private Limited” pursuant to a special resolution of their
shareholders dated July 2, 2008 to reflect the present business of the Company
i.e., the business of solar cells. A fresh certificate of incorporation
consequent to such change of name was granted to the Company by the RoC on July
21, 2008.
The Transferor Company was amalgamated with the Company by an order dated
September 16, 2009 of the High Court of Delhi. Pursuant to the amalgamation in
terms of the Scheme, the Company’s status was changed from private limited
company to a public limited company and the name of the Company was changed to
“Indosolar Limited” as the erstwhile Transferor Company was widely known. A
fresh certificate of incorporation consequent to such change in status and name
was granted to the Company by the RoC on October 12, 2009 and October 30, 2009,
respectively. The Company is engaged in the business of manufacture
poly-crystalline SPV cells from silicon wafers utilizing crystalline silicon
SPV cell technology for converting sunlight directly into electricity through a
process known as the “photo-voltaic effect”. The Company is not operating under
any injunction or restraining
order.
As on the date of this Draft Red Herring Prospectus, the total number of
holders of Equity Shares is eight.
Changes in the Registered Office
At the time of incorporation, the registered office of their Company was situated at F-16, Lajpat Nagar -
II,
Major Events and
Milestones
Date Events
November 21, 2005 Execution
of lease deed with the GNIDA for grant of 27158.78 square meter of land
January 15, 2008 Execution
of joint business development agreement with the Transferor Company
January 13, 2008 Execution
of supply agreement with Schmid for planning, supply, installation and
commission of first line of
their solar cell project
February 14, 2008 Change
of the object of their Company from the
business of readymade garments to solar
energy cells
August 31, 2008 Execution
of lease agreement by the Transferor Company to lease the equipments to their
Company
October 15, 2008 Grant of
EOU status to their Company
September 7,2009 Grant of
occupancy certificate of Industrial building erected on Plot No 3C/1, Ecotech
–II
Sector, Udhyog
Vihar from GNIDA
January 16, 2009 Execution
of facility agreement for grant of loan by a consortium of banks led by
Bank of
July 17, 2009 Commencement
of commercial production of SPV cells with one manufacturing line
having an annual
manufacturing capacity of 80 MW
September 16,2009 Approval
of the Scheme by the High Court of
September 24, 2009 Filing of
the Scheme with the RoC by the Transferor Company and their Company
September 25, 2009
Grant of Equity Shares in the proportion
of 1:1 to the shareholders of Transferor Company, pursuant to the terms of the
Scheme
Brief Profile of their Directors
Mr. Bhushan Kumar Gupta, aged 73 years, is the Chairman of their Company since September 26, 2009 and is
associated with their Company since
January 15, 2008. Mr. Bhushan Kumar Gupta is a Canadian national and holds a
Canadian passport. He is an enterpreneur. He holds wide experience in various
industries, including lamp manufacturing industry in which he has around 19
years of experience. Prior to joining us, he was the chairman of Transferor
Company. He has also promoted Halonix Limited, where he acted as the managing
director from March 26, 1991 to March 31, 2000 and as chairman from April 30,
2004 to March 10, 2007.
Mr. Hulas Rahul Gupta, aged 50 years, is the Managing Director of
their Company since September 26, 2009
and is associated with their Company
since January 15, 2008. Mr. Hulas Rahul Gupta is a British national and holds a
British passport. As Managing Director of their
Company, he is responsible for its operations, growth and future
prospects. He holds a bachelor’s degree in business administration from
Mr. Anand Kumar Agarwal, aged 60 years, is an Executive Director and and
Chief Financial Officer of their Company
since July 1, 2008 and carries the overall responsibility for ‘Finance’ and
‘Accounts’ in their Company. He holds a
bachelors degree in commerce from Shri Ram College of Commerce,
Mr. Ravinder Khanna, aged 50 years, is an Independent Non-Executive
Director of their Company since December
14, 2009. He holds a Bachelors degree in Mechanical Engineering from P.E.C,
Mr. Aditya Jain, aged 49 years, is an Independent Non-Executive
Director of their Company since December
14, 2009. He holds a bachelor’s degree in mechanical engineering from Birla
Institute of Technology,
Mr. Gautam Singh Kuthari, aged 50 years, is an Independent
Non-Executive Director of their Company
since December 14, 2009. He holds a bachelors degree in commerce form the
CONTINGENT
LIABILITIES
a)
Bills discounted with banks outstanding as at 31
March 2010 Rs. 115.161 Millions (Previous year Rs. Nil)
b)
Estimated amount of contracts remaining to be
executed on capital account (net of advances) not provided for Rs. 11.529
Millions (Previous year Rs. 1623.790 Millions)
Bankers Charges
Report as per Registry
|
Corporate
identity number of the company |
U18101DL2005PLC134879 |
|
Name of the
company |
INDOSOLAR LIMITED |
|
Address of the
registered office or of the principal place of business in |
C-12 FRIENDS COLONY
(EAST), |
|
This form is for |
Modification of
Charge |
|
Charge
identification number of the charge to be modified |
10253793 |
|
Type of charge |
Book Debts Movable Property Floating Charge |
|
Particular of
charge holder |
Bank of Corporate Financial Services Branch, |
|
Nature of
instrument creating charge |
Supplemental
Composite Hypothecation Agreement Dated 12.11.2010 |
|
Date of
instrument Creating the charge |
12.11.2010 |
|
Amount secured by
the charge |
Rs. 935.000
Millions |
|
Brief of the principal
terms an conditions and extent and operation of the charge |
Terms of
Repayment Payable on demand Extent and
Operation of the charge 100% Others To secure all
amounts payable under revised various working capital credit facilities aggregating
to Rs 935.000 Millions granted to / enjoyed by the company together with all
interests, costs, charges, expenses, commission etc. |
|
Particulars of
the present modification |
The bank has
agreed to grant One Time Performance Guarantee facility of Rs. 280.000
Millions (equivalent to US $ 6.000 Million) with sub-limit SBLC- Rs. 280.000
Millions (equivalent to US E$ 6.000 Million) in lieu of existing One Time
Performance Guarantee Facility of Rs. 280.000 Millions. Thus the breakup of
aggregate facilities of rs. 935.000 Millions stands modified. |
|
Corporate
identity number of the company |
U18101DL2005PLC134879 |
|
Name of the
company |
INDOSOLAR LIMITED |
|
Address of the
registered office or of the principal place of business in |
C-12 FRIENDS COLONY
(EAST), |
|
This form is for |
Modification
of charge |
|
Charge
identification (ID) number of the charge to be modified |
10123124 |
|
Type of charge |
Immovable
property |
|
Particular of
charge holder |
Union Bank Of Industrial
Finance Branch, M-11, First
Floor, |
|
Nature of
instrument creating charge |
Letter from Union
Bank of |
|
Date of
instrument Creating the charge |
30/07/2010 |
|
Amount secured by
the charge |
Rs. 6721.300
Millions |
|
Brief of the
principal terms an conditions and extent and operation of the charge |
Rate
of interest Not Applicable Terms
of repayment On demand Margin Nil Extent
and operation of the charge On pari-passu
basis Others The above is to
secure various credit facilities from consortium banks as follows: Union Bank of Andhra Bank- Rs.
800 Millions + Rs. 445 Millions = Rs. 1245 Millions Bank of Corporation Bank-
Rs. 900 Millions + Rs. 485 Millions = Rs. 1385 Millions Indian Bank- Rs.
800 Millions + Rs. 415 Millions = Rs.
1215 Millions TOTALLING RS.
6721.30 Millions . |
|
Date of
instrument modifying the charge |
10/06/2009 |
|
Particulars of
the present modification |
Credit facilities
from consortium banks enhanced from Rs. 61 Millions Rs. 6721.300 Millions by way
of enhancement in working capital limit from Rs. 1500 Millions to Rs.
2121.300 Millions (under the consortium arrangement and UBI is acting as Lead
Bank of Consortium for term lending and working capital arrangement) by Union
Bank of India, Andhra Bank, Corporation Bank and Indian Bank. |
FIXED ASSETS
- Leasehold
land
- Building -
Factory
- Building -
Non Factory
- Building
(temporary structure)
- Plant and
machinery
- Furniture and
fixtures
- Office
equipment
- Vehicles
- Computers
As per website details
The Indian manufacturer for photovoltaic cells. Currently
160 MWp capacity with an average efficiency rating of 16+% peaking at 17.2%.
Production capacity is to be expanded to 260 MWp by end of 2011 fiscal year.
Line C will have the capability to produce both multi and mono crystalline
cells. Machinery and technology have been supplied by SCHMID GMBH on a turnkey
basis.
Located in Greater Noida,
“More than an industrial venture Indosolar is a mission, a
challenge and a commitment to make
They at Indosolar are solely committed to the admirations of
their stakeholder’s and it is their endeavor to succeed in all dynamics of global
business.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or investigation
registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.59 |
|
|
1 |
Rs.72.31 |
|
Euro |
1 |
Rs.60.73 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
3 |
|
OPERATING SCALE |
1~10 |
3 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
2 |
|
--PROFITABILIRY |
1~10 |
2 |
|
--LIQUIDITY |
1~10 |
3 |
|
--LEVERAGE |
1~10 |
3 |
|
--RESERVES |
1~10 |
2 |
|
--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 |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
26 |
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.