MIRA INFORM REPORT

 

 

Report Date :

18.05.2011

 

IDENTIFICATION DETAILS

 

Name :

ESSAR POWER LIMITED

 

 

Registered Office :

27th KM, Surat Hazira Road, Hazira, Surat-394270, Gujarat

 

 

Country :

India

 

 

Financials (as on) :

31.03.2010

 

 

Date of Incorporation :

30.10.1991

 

 

Com. Reg. No.:

11-63852

 

 

Capital Investment / Paid-up Capital :

Rs. 21926.500 Millions

 

 

CIN No.:

[Company Identification No.]

U40100MH1991PLC063852

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

SRTE00047F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Manufacturer and Importer of Generaters and Suppliers of Gas, Coal and Liquid Fuel Based Power.

 

 

No. of Employees :

800 (Approximately) 

 

 

RATING & COMMENTS

 

MIRA’s Rating :

B (30)

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Maximum Credit Limit :

USD 130000000

 

 

Status :

Moderate

 

 

Payment Behaviour :

Slow

 

 

Litigation :

Clear

 

 

Comments :

Subject is a part of Essar Group. It is a well established and a reputed company having moderate track. Trade relations are reported as fair. Business is active. Payments are reported to be slow but correct.

 

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

 

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

INFORMATION PARTED BY

 

Name :

Mr. John Noronha

Designated :

Deputy Manager – Finance

Contact No.:

91-22-66601100

Date :

17.05.2011

 

 

 

LOCATIONS

 

Registered Office/ Factory:

27th KM, Surat Hazira Road, Hazira, Surat-394270, Gujarat, India

Tel. No.:

91-261-2872400

Fax No.:

91-261-2872747

E-Mail :

essarpower@essar.com

Website :

www.essarsteel.com

www.essar.com

Area :

10000 sq. ft (Owned)

 

 

Corporate Office :

11, Kesavarao Khadye Marg, Mahalaxmi Essar House, 14th Floor, Mumbai – 400034, Maharashtra, India

Tel. No.:

91-22-24395066/ 66601100/24950606/40011100

Fax No.:

91-22-24954331/ 24954787/56604787/23544787

E-Mail :

essarpower@essar.com

sanjyot.rangnekar@essar.com

powersec@essar.com

Area :

Owned

 

 

Branches :

Located at:

 

  • Mumbai
  • Ahmedabad
  • Chennai
  • Hazira
  • New Delhi
  • Vadinar
  • Visakhapatnam

 

 

Overseas Office:

Located at:

 

  • Indonesia
  • China
  • United Kingdom
  • United Arab Emirates – Dubai
  • Canada
  • USA – New York
  • Kenya

 

 

DIRECTORS

 

As On 30.07.2010

 

Name :

Mr. Shashikant Nandkishore Ruia

Designation :

Director

Address :

40 B, Birla House, Ridge Road, Malabar Hill, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

23.12.1943

Date of Appointment :

23.12.2004

DIN No. :

00047050

 

 

Name :

Mr. Ravikant Nandkishore Ruia

Designation :

Director

Address :

BIN Hamoodah Villa No. 17, Plot No. 992, 332-14, Jumeirah Street, Dubai, UAE

Date of Birth/Age :

22.04.1949

Date of Appointment :

23.12.2004

Date of Ceasing :

08.05.2009

 

 

Name :

Mr. Arun Bhagawanprasad Srivastava

Designation :

Managing Director

Address :

Flat No. 1702, ERA-II, Marathon Next Gen, Opposite Peninsula Corporate Park, G K Marg, Lower Parel(W), Mumbai-400013, Maharashtra, India

Date of Birth/Age :

26.10.1947

Date of Appointment :

11.06.1998

Date of Ceasing :

30.04.2009

 

 

Name :

Mr. Prashant Shahikant Ruia

Designation :

Director

Address :

BIN Hamoodah Villa No. 17, Plot No. 992, 332-14, Jumeirah Street, Dubai, UAE

Date of Birth/Age :

04.06.1968

Date of Appointment :

11.06.1998

Date of Ceasing :

20.04.2009

DIN No. :

01187548

 

 

Name :

Mr. Anshuman Shahikant Ruia

Designation :

Director

Address :

67, A, Walkeshwar Road, Opposite Birla School, Mumbai-400006, Maharashtra, India

Date of Birth/Age :

11.03.1971

Date of Appointment :

30.10.1991

DIN No. :

00008501

 

 

Name :

Mr. Rewant Ravikant Ruia

Designation :

Director

Address :

BIN Hamoodah Villa No. 17, Plot No. 992, 332-14, Jumeirah Street, Dubai, UAE

Date of Birth/Age :

20.03.1983

Date of Appointment :

21.12.2006

DIN No. :

01187519

 

 

Name :

Mr. Singanallur V Venkatesan

Designation :

Director

Address :

F-401, The Atrium, Old No. 22, Kalakshetra Road, Thiuvanmiyur, Chennai-600041, TamilNadu, India

Date of Birth/Age :

01.10.1939

Date of Appointment :

30.10.1991

Date of Ceasing :

20.05.2009

 

 

Name :

Mr. Stanisilaus Dominic Coelho

Designation :

Director

Address :

65, IV B Cross, HIG Colony, RMV Extension, II Stage, Bangalore-560094, Karnataka, India

Date of Birth/Age :

11.03.1933

Date of Appointment :

28.08.2000

 

 

Name :

Mr. Ramkrishna Narayana

Designation :

Director

Address :

A-1/08, Silver Estate, Plot No F-29, Sector 50, Noida-201301, Utter Pradesh, India

Date of Birth/Age :

29.07.1937

Date of Appointment :

31.03.2003

DIN No. :

00008383

 

 

Name :

Mr. Mukul S Kasliwal

Designation :

Director

Address :

Niranjan 99 Marine Drive, Mumbai-400020, Maharashtra, India

Date of Birth/Age :

20.10.1964

Date of Appointment :

28.08.2000

DIN No. :

00058577

 

 

Name :

Mr. Kalakota Vijaya Bhaskara Reddy

Designation :

Whole Time Director

Address :

61, Marble Arch, 5th Road, Santacruz (E), Mumbai – 400055, Maharashtra, India

Date of Birth/Age :

01.07.1961

Date of Appointment :

01.04.2009

DIN No. :

01683467

 

 

Name :

Mr. Naresh Nayyar

Designation :

Additional Director

Address :

S-320, First Floor, Greater Kailash, Part II, New Delhi – 110048, Delhi, India

Date of Birth/Age :

26.03.1952

Date of Appointment :

30.03.2010

DIN No. :

00045395

 

 

Name :

Mr. Stanislaus J. Coelho

Designation :

Director

Date of Birth/Age :

77 Years

Date of Appointment :

28.08.2000

DIN No. :

00176467

 

 

KEY EXECUTIVES

 

Name :

Mr. T. S. Bhatt

Designation :

Sr. Vice President (Technicals)

 

 

Name :

Mr. Sanjyot Nilesh Rangnekar

Designation :

Secretary

Address :

D-604, Magnolia Enclave, Nahar’s Amrit Shakti, Near Chandivali Studios, Powai, Mumbai-400072, Maharashtra, India

Date of Birth/Age :

06.07.1970

Date of Appointment :

19.05.2007

Pan No. :

AANPR5686C

 

 

Name :

Mr. R. K. Sethi

Designation :

Account Officer

 

 

Name :

Mr. John Noronha

Designation :

Deputy Manager – Finance

 

 

Name :

Mr. BCP Singh

Designation :

CEO – Essar Power Gujarat Limited

 

 

Name :

Mr. RP Gupta

Designation :

CEo – Essar Power MP Limited

 

 

Name :

Mr. V Suresh

Designation :

Chief Financial Officer

 

 

Name :

Mr. Anil Matoo

Designation :

Head, Human Resources and Administration

 

 

Name :

Mr. Raahil Burhaani

Designation :

Chief Information Officer

 

 

 

 

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

 

AS ON 30.07.2010

 

Names of Equity Shareholders

No. of Shares

Essar Investments Limited – India

3

Essar Investments Limited Thru Nominee Shri R Vijay – India

1

Essar Investments Limited –With Prajakata Finance and Trading Limited – India

2

Essar Investments Limited with Teletech Investments (I) Limited – India

1

Essar Steel Limited – India

217000000

Essar Power Holdings Limited (Formerly Prime Hazira Limited) – Mauritius

308842112

Hazira Steel 2 – Mauritius

308842113

 

 

Total

834684232

 

 

Names of Preferences Shareholders

No. of Shares

Essar Power Holdings Limited (Formerly Prime Hazira Limited) – Mauritius

697602450

Hazira Steel 2 – Mauritius

697602451

IDFC Trustee Company Limited A/C India Infrastructure Fund – India

350000000

 

 

Total

1745204901

 

 

As On 27.09.2010

 

List of Allottees

 

No. of Shares

Essar Power Holdings Limited – Mauritius

 

106571516

Hariza Steel 2 – Mauritius

 

106571516

Total

 

213143032

 

AS ON 30.09.2009

 

Equity Share Breakup

Percentage of Holding

Category

 

Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]

74.000

Bodies corporate

26.000

Total

100.00

 

 

BUSINESS DETAILS

 

Line of Business :

Manufacturer and Importer of Generaters and Suppliers of Gas, Coal and Liquid Fuel Based Power.

 

 

Products :

Products Description

Item Code No.:

Electrical Energy

271600

 

 

Imports :

 

Products :

Adhesives

Countries :
  • US
  • Singapore

 

 

Terms :

 

Selling :

Cash / Credit (30 days / 60 days / 90 days)

 

 

Purchasing :

Cash / Credit (30 days / 60 days / 90 days)

 

 

PRODUCTION STATUS (As On 31.03.2010)

 

Particulars

Unit

Licensed Capacity*

Installed Capacity

Actual Production

 

 

 

 

 

Generation of Electricity

MW

NA

515

2730 Million Units

 

* The Licensed capacity is not given as licensing has been abolished vide Press Note No. 9 dated 02.08.1991 and Notification No. S.O. 477(3E) Dated 25.07.1991 Issued by Government of India, Ministry of Industry, Department of Industrial Development. 

 

GENERAL INFORMATION

 

Customers :

End Users and OEM’s

 

 

No. of Employees :

800 (Approximately) 

 

 

Bankers :
  • ICICI Bank Limited 
  • Punjab National Bank
  • Allahabad Bank
  • Vysya Bank
  • India Overseas Bank
  • Karnataka Bank
  • Indusind Bank
  • HDFC Bank Limited
  • Axis Bank Limited Trishul 3rd Floor, Opposite Samartheshwar Temple, law Garden Ellisbrdge, Ahmedabad – 380006, Gujarat, India
  • State Bank of India, Corporate Accounts Group Branch, Voltas House, 23, J N heredia marg, Ballard Estate, Mumbai – 400001, Maharashtra, India
  • Axis Bank, Universal Insurance Building, Sir P M Road, Fort, Mumbai – 400001, Maharashtra, India

 

 

Financial Institute

  • Infrastructure Development Finance Company Limited, Ramon House, H. T. Parekh Marg, 169, Backbay Reclamation, Mumbai – 400020, Maharashtra, India

 

 

Facilities :

Cash Credit: Rs. 3500.000 millions (Axis Bank)

 

Secured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

Rupee Term Loans*

 

 

From Banks

6241.000

7748.900

From Financial Institutions

642.900

928.600

Form Others

7.500

0.000

Working Capital Facility From Banks

 

 

Cash Credit Facilities

386.900

628.200

Total

7278.300

9305.700

 

*Repayment due within one year is Rs. 3836.100 millions (previous year Rs. 2786.100 millions)

 

SECURITY PROVIDED TO LENDERS

 

Rupee loans from banks and financial institutions Rs. 48863.900 Millions are secured by pari passu first charge on the Company’s assets, save and except book debts, inventory etc. both present and future, and are additionally secured by second charge on book debts, receivables, bank accounts and inventory of the Company and also by assignment of project documents and insurance policies. Out of Rs. 4833.900 millions, Rupee Term Loan Rs. 578.500 millions is also guaranteed by Essar investment Limited. Mortgage/Hypothecation is yet to be created for the zero coupon loan of Rs. 7.500 millions from others.

 

Rs. 2000.000 millions Rupee Term Loan from a Banks is secured by third charge on the company’s assets and corporate guarantee of Bhander Power Limited.

 

Working capital facility from banks is secured by a first charge by hypothecation of inventories and receivables and a second charge on fixed assets of the company and also guaranteed by Essar Investment Limited. 

 

TERMS OF CONVERSION

 

As per loan agreement of IDFC, in case of default in repayment of any two consecutive installments of principal amounts of the Loan or interest thereon or any combination thereof, the Lender shall have the right to convert at its option the whole or part of the defaulted amount of the Loan into fully paid up equity shares of the Company, at par.

 

Unsecured Loans

31.03.2010

Rs. In Millions

31.03.2009

Rs. In Millions

Short Term Loans*

 

 

From Banks

 

 

Corporate Loan

3000.000

1000.000

From others

0.000

500.000

Working Capital Facility

 

 

From Banks

 

 

Cash Credit Facilities

0.000

98.400

Total

3000.000

1598.400

* Repayment due within one year is Rs. 3000.000 millions (Previous year Rs. 1500.000 millions

 

 

Banking Relations :

--

 

 

Auditors :

 

Name :

Deloitte Haskins and Sells

Chartered Accountant

Address :

Heritage, 3rd Floor, Near Gujarat Vidyapith, Off Ashram Road, Ahmedabad, Gujarat, India

Tel No. :

91-79-27582542/27582543

Fax No. :

91-79-27582551

Pan No. :

AABFD7919A

 

 

Holding Company :
  • Essar Power Holdings Limited (EPOHL)

 

 

Fellow Subsidiaries :
  • Essar Global Capital Limited, Cayman
  • Essar Wind Power Private Limited (EWPL) (from 15.03.2010)

 

 

Associates :
  • Essar Steel Limited (ESTL)
  • Vadinar Power Company Limited (VPCL) (till 08.09.2009)

 

 

Subsidiaries :
  • Bhander Power Limited  (BPL)

      CIN No.: U31101MH1995PLC15250

  • Essar Electric Power Development Corporation Limited  (EEPDCL)

CIN: U40100MH1997PLC110104

  • Essar Wind Farms Limited

      CIN No.: U01403MH2007PLC166813

  • Essar Power Transmission Company Limited  (EPTCL)

      CIN No.: U99999MH2005PLC158615

  • Essar Power M.P. Limited ( EPMPL)

CIN No.: U40100MH2005PLC156845

  • Essar Power Overseas Limited (EPOSL) (formerly known as Pelican

      Holdings PTE Limited).

  • Essar Power Tamilnadu Limited (EPTL)

      CIN No.: U40106TN2007PLC062252

  • Essar Hazira Power SEZ Limited  (EHPSL)

      CIN No.: U40300MH2006PLC165139

  • Essar Power Gujarat Limited (EPGL)

      CIN No.: U74900MH2007PLC169703

  • Essar Power (Jharkhand) Limited  (EPJL)

      CIN No.: U31101MH2005PLC156860

  • Essar Power (Chattisgarh) Limited (EPCL)

      CIN No.: U40109MH2007PLC170966

  • ETHL Global Capital Limited (ETHL)
  • Essar Power Gujarat Limited  (EPGL) (Subsidiary till 3rd Jan’08)
  • Essar Wind Power Private Limited (EWPL) (till 14.03.2010)

     CIN No.: U31101MH2006PTC164542

  • Essar Power (Orissa) Limited (EPORL)

      CIN No.: U31101MH2005PLC156859

  • Essar Wind Farms Limited (EWFL) (till 29.12.2009)
  • Essar Power M P Limited

CIN: U40100DL2005PLC201961

  • Essar Power Salaya Limited (EPSL) (formerly Essar Power Paradeep Limited)

CIN: U40300MH2009PLC192682

  • Essar Power Hazira Limited (EPHL) (formerly known as Essar Hazira Power SEZ Limited)
  • Vadinar Power Company Limited (VPCL) (from 09.09.2009)

CIN:U40100GJ1997PLC033108

 

 

Joint Venture :
  • Mahan Coal Limited (MCL)

 

 

Enterprises commonly controlled or influenced by major shareholders / directors of the Company:

 
  • Essar Investments Limited ( EIL )
  • Essar Oil Limited  ( EOL )
  • Essar Teleholdings Limited  ( ETL )
  • Essar House Limited ( EHL)
  • Essar House Services Limited  (EHSL)
  • Essar Construction (India) Limited  ( ECIL)
  • Futura Travels Limited  ( FTL)
  • Arkay Holdings Limited (AHL)
  • India Securities Limited  ( ISL)
  • Aegis Limited (Aegis) (formerly known as Aegis BPO Services Limited)
  • Essar Properties Limited (EPRL)
  • Essar Projects Limited (EPL)
  • Essar Information Technology Limited  (EITL)
  • S.G. Chemicals Dyes and Trading Limited (SGC)
  • Essar Shipping Limited (ESL)
  • Essar Power (Jamnagar) Limited (EPJML)
  • Kroner Investments (India) Limited (KINL)
  • Trikaya Cultivation Private Limited (TCPL)
  • Essar Logistics Limited (ELL)
  • The Mobile Store Limited (TMSL)
  • Essar Projects Management Consultancy Limited (EPMCL)
  • Teletech Investments (India) Limited (TINIL)
  • Essar Minerals Resources Limited (EMRL)
  • Essar Steel Limited (ESTL) (from 04.10.2008)
  • Essar Infrastructure Services Limited (EISL) (formerly known as Essar House Services Limited)
  • Essar Projects (India) Limited (EPIL) (formerly known as Essar Construction (India) Limited)
  • Essar Steel (Hazira) Limited (ESHL)
  • Essar Steel (Orissa) Limited (ESTOL)
  • Essar Wind Farms Limited (EWFL) (from 30.12.2009)

 

 

CAPITAL STRUCTURE

 

AS ON 31.03.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25000000000

Equity Shares

Rs. 4 /- each

Rs. 100000.00 Millions

4750000000

Preference Shares

Rs. 20 /- each

Rs. 95000.00 Millions

500000000

Preferences Shares

Rs. 10 /- each

Rs. 5000.00 Millions

 

 

 

 

 

Total

 

Rs. 200000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

834684232

Equity Shares

Rs.4 /- each

Rs. 3338.700 Millions

754391987

0.01% Compulsorily Convertible Preferences Shares

Rs. 20 /- each

Rs. 15087.800 Millions

350000000

*Optionally Convertible Redeemable Preferences Shares

Rs. 10 /- each

Rs. 3500.000 Millions

 

* 0.1% for first two years and 8% thereafter

 

 

 

Total

 

Rs. 21926.500 Millions

 

Note:

 

Of the above:

Equity Shares:

 

Nil (Previous Year Nil) Equity shares are held by Essar Global Limited Cayman, the ultimate holding company

 

492714225 (Previous Year 300014225) Equity shares are held by Essar Power Holdings Limited, the Holding Company and a subsidiary of the ultimate holding company.

 

217000000 (Previous Year 217000000) Equity shares are held by Essar Steel Limited subsidiary of the ultimate holding company.

 

124970000 (Previous Year 124970000) Equity shares are held by Hazira Steel 2 subsidiary of the ultimate holding company.

 

Compulsorily Convertible Cumulative Preferences Shares:

 

During current year the company has issued 331470843 (previous year 433011050) 0.01% compulsorily convertible cumulative preference share (CCPS) of Rs. 20 each at a premium of Rs. 10 each. These are convertible into equity shares at the option of the holder at anytime after six months from the date of issue and before scheduled date of compulsory conversion. Each CCPS will be convertible into 5 equity shares for every CCPS held on date of conversion. The scheduled date for compulsory conversion is ten years from the date of issue of such preference shares as mentioned above.

During the year the company has converted 38540000 (previous year Nil) CCPS into equity shares exercising the option by the holder of the CCPS resulting into 192700000 equity shares.

 

Cumulative Redeemable Optionally Convertible Preferences Shares:

 

Cumulative Redeemable optionally convertible preference shares (OCPRS) issued on 18.03.2009, shall bear a coupon rate of 0.1% per annum for first two years from the date of allotment and coupon rate of 8% per annum for subsequent years till the date of redemption. These are redeemable in a single installment at the end of 7 years from the date of allotment with redemption premium.

 

These are convertible into equity shares at the option of the investor in the event of an IPO or an occurrence of events as mentioned in the investment agreement. The conversion price will be determined in accordance with the said agreement at the time of conversion.

 

Further, the company has also issued one warrant to the OCPRS Holder at a consideration of Rs. 100 which entitles the holder to subscribe to the equity shares of the company may time before IPO for an amount equivalent to 20% of OCPRS (Rs. 700.000 millions) at an exercise price linked to a predetermined valuation of the company.

 

 

As on 30.07.2010

 

Authorised Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

25000000000

Equity Shares

Rs. 4 /- each

Rs. 100000.00 Millions

4750000000

Preference Shares

Rs. 20 /- each

Rs. 95000.00 Millions

500000000

Preferences Shares

Rs. 10 /- each

Rs. 5000.00 Millions

 

 

 

 

 

Total

 

Rs. 200000.000 Millions

 

Issued, Subscribed & Paid-up Capital :

No. of Shares

Type

Value

Amount

 

 

 

 

834684232

Equity Shares

Rs.4 /- each

Rs. 3338.737 Millions

1395204901

0.01% Compulsorily Convertible Preferences Shares

Rs. 20 /- each

Rs. 27904.098 Millions

350000000

*Optionally Convertible Redeemable Preferences Shares

Rs. 10 /- each

Rs. 3500.000 Millions

 

* 0.1% for first two years and 8% thereafter

 

 

 

Total

 

Rs.  34742.835 Millions

 

 

After 30.07.2010

 

Authorised Capital : Rs. 200000.000 millions

 

Issued, Subscribed & Paid-up Capital : Rs. 49808.465 millions

 

FINANCIAL DATA

[all figures are in Rupees Millions]

 

ABRIDGED BALANCE SHEET

 

SOURCES OF FUNDS

 

31.03.2010

31.03.2009

31.03.2008

SHAREHOLDERS FUNDS

 

 

 

1] Share Capital

21926.500

15297.100

6419.800

2] Share Application Money

0.000

0.000

7483.200

3] Reserves & Surplus

10947.200

9780.600

6031.200

4] (Accumulated Losses)

0.000

0.000

0.000

NETWORTH

32873.700

25077.700

19934.200

LOAN FUNDS

 

 

 

1] Secured Loans

7278.300

9305.700

9399.600

2] Unsecured Loans

3000.000

1598.400

850.000

TOTAL BORROWING

10278.300

10904.100

10249.600

DEFERRED TAX LIABILITIES

2110.900

0.000

0.000

 

 

 

 

TOTAL

45262.900

35981.800

30183.800

 

 

 

 

APPLICATION OF FUNDS

 

 

 

 

 

 

 

FIXED ASSETS [Net Block]

8756.500

10027.300

11027.800

Capital work-in-progress

50.600

13.400

223.900

 

 

 

 

INVESTMENT

20730.200

18688.500

8293.100

DEFERREX TAX ASSETS

0.000

330.300

395.500

 

 

 

 

CURRENT ASSETS, LOANS & ADVANCES

 

 

 

 

Inventories
750.800
751.100
619.900

 

Sundry Debtors
7633.700
7253.900
5127.300

 

Cash & Bank Balances
258.000
213.100
535.500

 

Other Current Assets
0.000
0.000
0.000

 

Loans & Advances
8435.900
782.400
5675.000

Total Current Assets
17078.400
9000.500

11957.700

Less : CURRENT LIABILITIES & PROVISIONS

 

 

 

 

Sundry Creditors

900.500

1040.000

542.400

 

Current Liabilities
421.400
1026.400
1158.600

 

Provisions
30.900
11.800
13.200

Total Current Liabilities
1352.800
2078.200
1714.200

Net Current Assets
15725.600
6922.300
10243.500

 

 

 

 

MISCELLANEOUS EXPENSES

0.000

0.000

0.000

 

 

 

 

TOTAL

45262.900

35981.800

30183.800

 

 

 

 

PROFIT & LOSS ACCOUNT

 

 

PARTICULARS

31.03.2010

31.03.2009

31.03.2008

 

SALES

 

 

 

 

 

Income

7408.900

9534.400

8204.900

 

 

Other Income

679.800

105.400

92.300

 

 

TOTAL                                     (A)

8088.700

9639.800

8297.200

 

 

 

 

 

Less

EXPENSES

 

 

 

 

 

Cost of Fuel

3652.500

5494.500

4195.500

 

 

Operation, Maintenance and other expenses

825.200

917.700

848.300

 

 

Exceptional item

366.300

0.000

0.700

 

 

TOTAL                                     (B)

4844.000

6412.200

5044.500

 

 

 

 

 

Less

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

3244.700

3227.600

3252.700

 

 

 

 

 

Less

FINANCIAL EXPENSES                         (D)

1659.700

1625.200

1673.700

 

 

 

 

 

 

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

1585.000

1602.400

1579.000

 

 

 

 

 

Less/ Add

DEPRECIATION/ AMORTISATION                     (F)

1287.800

1276.500

1223.800

 

 

 

 

 

 

PROFIT BEFORE TAX (E-F)                               (G)

297.200

325.900

355.200

 

 

 

 

 

Less

TAX                                                                  (I)

2441.200

57.400

(276.400)

 

 

 

 

 

 

PROFIT AFTER TAX (G-I)                                  (J)

(2144.000)

268.500

631.600

 

 

 

 

 

Add

PREVIOUS YEARS’ BALANCE BROUGHT FORWARD

4721.400

5492.400

4420.800

 

 

 

 

 

Less

DUE TO ADJUSTMENT OF DEMERGER SCHEME

0.000

1075.600

NA

 

 

 

 

 

Less

APPROPRIATIONS

 

 

 

 

 

Preference dividend including dividend distribution tax

4.100

0.200

NA

 

 

Transferred to capital redemption reserve

0.000

63.700

NA

 

 

Transferred to preference redemption reserve

500.000

0.000

NA

 

 

Transfer from debenture redemption reserve

0.000

(100.000)

(440.000)

 

BALANCE CARRIED TO THE B/S

2073.300

4721.400

5492.400

 

 

 

 

 

 

IMPORTS

 

 

 

 

 

Raw Materials

-

860.300

 

 

Stores & Spares

117.900

210.400

NA

 

 

Capital Goods

1.000

2.500

 

 

TOTAL IMPORTS

118.900

1073.200

NA

 

 

 

 

 

 

Earnings Per Share (Rs.)

 

 

 

 

- Basic

(3.35)

0.42

1.04

 

- Diluted

(3.35)

0.13

0.88

 

 

Particulars

 

 

 

31.03.2011

Sales Turnover (Approximately) 

 

 

8500.000

 

Expected Sales (2011-12) : Rs.9500.000 Millions

 

The above information has been parted by Mr. John Noronha.

 

 

KEY RATIOS

 

PARTICULARS

 

 

31.03.2010

31.03.2009

31.03.2008

PAT / Total Income

(%)
(26.51)
2.78
7.61

 

 
 
 
 

Net Profit Margin

(PBT/Sales)

(%)

4.01

3.42
4.33

 

 

 

 

 

Return on Total Assets

(PBT/Total Assets}

(%)

1.15

1.71

1.55

 

 

 

 

 

Return on Investment (ROI)

(PBT/Networth)

 

0.01

0.01
0.02

 

 

 

 
 

Debt Equity Ratio

(Total Liability/Networth)

 

0.35

0.52
0.60

 

 

 

 
 

Current Ratio

(Current Asset/Current Liability)

 

12.62

4.33
6.98

 

 

LOCAL AGENCY FURTHER INFORMATION

 

The Details of Sundry Creditors:

Rs. In Millions

Particulars

31.03.2010

31.03.2009

31.03.2008

Sundry Creditors

 

 

 

Subsidiary Companies

95.400

450.700

0.000

Others

 

 

 

Others

805.100

589.300

542.400

Total

900.500

1040.000

542.400

 

 

FINANCE AND OPERATIONS:

 

Financial Highlights:

 

During the year, the Company reported a profit for the year of Rs 177.300 millions as against profit after tax of Rs 268.500 millions for the previous year. However, loss for the year after a one- time non cash adjustment of Rs 2321.300 millions to deferred tax asset pertaining to earlier periods in view of High Court ruling disallowing Company’s contention of not claiming depreciation for the years prior to 31.03.2001 and other tax disputes was Rs 2144.000 millions.

 

Both the Company and GUVNL appealed against the GERC’s ruling before the Appellate Tribunal for Electricity, New Delhi. The Appellate Tribunal held on 22.02.2010 that no compensation was liable to be paid by the Company to GUVNL for alleged wrongful diversion of power to Essar Steel or for the reimbursement of the annual fixed charges. The Appellate Tribunal further held that the Company was liable to refund to GUVNL the deemed generation incentive when naphtha was used as fuel paid on and after 14.09.2002 for which the Company has provided Rs 360.000 millions as “exceptional item”.

 

Operational Highlights:

 

Steam Turbine and Gas turbines have clocked 1,00,000 running hours in April 2009 and February 2010 respectively. The Power Plant availability remained at a high of 96%. The Plant Load Factor recorded a level of 61% (previous year 66%).The Company generated 2730 mus (previous 2964 mus). The PLF was affected due to lower offtake by the Company’s customers during the financial year.

 

The Company proposes to shift its registered office from the State of Maharashtra to the State of Gujarat, subject to necessary approvals. Necessary resolutions form part of the notice of the forthcoming Annual General Meeting.

 

Share Capital:

 

The Essar Group has embarked on major growth plans to increase its power generating capacity from the existing 1,200 MW to 6,000 MW by the year 2012 and to 11,470 MW by the year 2014. Essar Power Holdings, Mauritius has infused an amount of approximately Rs 9940.000 millions during the current financial year, against which the Company has issued 331,470,843 Compulsorily Convertible Cumulative Preference Shares (CCPS) of Rs 20 each at a premium of Rs 10 per CCPS to Essar Power Holdings Limited. Essar Power Holdings Limited has exercised its conversion option and 38,540,000 CCPS of Rs 20 each have been converted into 192,700,000 Equity shares of Rs 4 each as per CCPS terms.

 

Essar Group has recently consolidated its power assets held through Essar Power Holdings Limited and Oil and Gas assets held through Essar Energy Holdings Limited under Essar Energy PLC. Essar Energy PLC has recently raised Ł1.3 billion by way of an Initial Public Offering to institutional investors. Essar Energy is listed on the London Stock Exchange and is also a FTSE 100 company. This IPO was the largest ever Indian IPO to be listed on the LSE since 2007. Essar Energy's strategy is to create a world class, low-cost, India-focused energy company by capitalizing on India’s rapid growth in energy demand.

 

Contingent Liabilities:

Rs. In Millions

Sr. No

Description

31.03.2010

i)

Bills discounted with bank

350.000

ii)

Income tax liability not charged to P and L account due to pending appeal cases

2.100

iii)

Sales tax liability not charged to P and L account due to pending appeal case

9.100

iv)

Preference dividend (including tax thereon)

2.100

v)

Disputed tax on sale of electricity duty (excluding interest)

459.100*

vi)

Guarantees provided for other companies facilities

  • For subsidiary company
  • For joint venture
  • For others

 

14848.100

167.100

2000.000**

 

* The above levy including interest thereon, if adjudged as payable, would be reimbursable to the Company by Essar Steel Limited as per the terms of power purchase agreement with them. Previous Year ending 31.03.2009

 

Tax on sale of electricity aggregating to Rs. 86.500 Millions paid / adjusted against the aforesaid dues in an earlier year have been included under loans and advances in Schedule XI.

 

** The Company has provided Corporate Guarantee of Rs. 15370.000 Millions to hop Telecom Limited (LOOP) favoring State Bank of India (SBI) against term loan of Rs. 7250.000 Millions and bank guarantee of Rs. 8120.000 Millions availed by LOOP. Of the said guarantee, LOOP had utilized guarantee of Rs. 7250.000 Millions against the term loan avded from SBX. The Loan has since been paid fully. The bank guarantee will be utilised against the license fees payable by LUOP, after it starts operation.

 

During the year, the Company has further provided Corporate Gurantee of Rs. 4000.000 Millions to Loop Telecom Limited (LOOP] favoring SBI against term loan of Rs.4000.000 Millions and the said term loan is availed from SBI.

 

Essar Steel Limited (ESTL] has also provided similar Corporate Guarantees favoring SBI of Rs. 15370.000 Millions and Rs. 4000.000 Millions for the above facility availed by LOOP. The company has entered in to Memorandum of Understanding with ESTL to share the liability equally, if any, arises in future against this guarantee.

 

Since outstanding facility is Rs.4000.000 Millions as on 31.03.2010, the company has considered Rs.2000.000 Millions as it's contingent liability as at the year end.

 

Further, the company has also received counter guarantee for the same from Loop Mobile Holdings India Limited (formerly known as BPL communications Limited) for Rs. 15870.000 millions and Rs. 4000.000 Millions.

 

 

 

Bankers Charges Report as per Registry

 

 

Name of the company

ESSAR POWER LIMITED

Presented By

P. N. Krishnan, Company Secretary

1) Date and description of instrument creating the change

05-11-2004. Deed o Hypothecation executed by the  Company in favour Infrastructure Development Finance

Company Limited (IDFC)

2) Amount secured by the charge/amount owing on the securities of charge

The Rupee Term Load Rs. 2000.000 millions (Rupees Two Thousand Millions Only) against and advanced by IDFC to the Company (herein after referred to as “the Loan”) together with interest, additional interest, liquidated damages, cost, charges, expenses and other monies payable by the Company to IDFC in terms of the Loan Agreement dated the 5th day of November 2004 between the Company of the One Part and IDFC of the other Part (hereinafter referred to as “the Agreement”).

3) Short particular of the property charged. If the property acquired is subject to charge, date of the acquired of the property should be given

(a) The whole of the moveable properties of the Company in relation to the Project including its movable plant and machinery, machinery spares, loots and accessories and other movables, vehicles, furniture and fixtures and other moveables both present and future, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shati hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about all the Company’s factories, premises and godowns or wherever else the same may be or he held by any party to the order or disposition of the Company or in the course of transit or on high seas or on cfler, or delivery, howsoever and wheresoever in the possession of the Company and either by way of substitution or addition (hereinafter referred to as “the movables”) and the Company’s all operating cashflows, bookdebts, receivables, commissions, of the Company, treasury income, revenues in relation to the Project of whatsoever nature and wherever arising (hereinafter referred to as the receivables).

Provided that the charge of IDFC on the movables shall be subject to prior charges created /to be created in favour of the Company’s bankers on the Company’s stocks of raw materials, semi-finished and finished goods and consumable goods for securing the borrowings for working capital requirements in the ordinary course of business (hereinafter referred to as “the Bankers’ Goods”).

Provided further that the charge of IDFC on the receivables shall be subject to prior charges created/ to be created in favour of the Company bankers

(b) All intangibles assets of the Company, including but not limited to goodwill, trademark, uncalled capital, patent and the undertaking of the Company in respect of the Project, present and future.

(c) Alt the right, title, interest, benefits, claims and demands whatsoever of the Company in, to, under or in respect of the Project Documents including but not limited to the rights to recover payments arid the benefit of all receivables or other claims of the Lender under or in respect of the Project Documents, the right to compel performance under the Project Documents, the right to substitute or to be substituted for the Company thereunder.

(d) All the right, title, interest, benefits, claims and demands whatsoever of the Company in, to, under or in respect of any letter of credit, guarantee or performance bond that may be provided by any party to any Project Documents in favour of the Company, duly acknowledged and consented to, where required, by the relevant counter- parties to such Project Documents; (c all the right, title, interest, benefits, claims and demands whatsoever of the Company in the Clearances in relation to the Project; and (d) Insurance Contracts Insurance Proceeds in relation to the Project.

 

(e) At) the Borrower’s right, title and interest in and to all the bank accounts including without limitation the Retention Accounts, Debt Service Reserve Account (DSRA), any other bank accounts of the Borrower in relation to the Project, wherever maintained and operated and all amounts received to the credit of such account and all securities, instruments, investments and other property deposited in, credited thereto or required to be deposited therein arid credited thereto, provided such charge shall be subject to prior charges created in favour of the Company’s bankers.

 

The security interest created in favour of (DFC shall rank pan passu with the security interest created to be created in favour of the Project Lenders.

 

Capitalised terms used in this Form shall have the meaning assigned to them in the Agreement.

4) Gist of the terms and conditions and extent and operation of the charge.

(i) The charge operates as security on par) passu first charge basis, for the due repayment by the Company to lDFC at its Loan of Rs. 2000.000 millions, together with all interest, additional interest, liquidated damages, premia err prepayment, costs, charges, expenses and all other moneys in terms of the said Agreement.

 

(ii) The Company has undertaken to keep the goods hypothecated in marketable arid goad condition at its own cost and to insure the same in the joint names of the Company and IDFG.

 

(iii) All the goods hypothecated and all realisations and insurance proceeds thereof and all documents in respect of the said security are to be kept distinguishable and held as the exclusive property of IDFC.

 

iv) The security created under the said Deed of Hypothecation is to be a continuing security.

5) Name and Address and description of the person entitled to the charge.

Infrastructure Development Finance Company Limited,

Ramon House, H. T. Parekh Marg, 169, Backbay Reclamation, Mumbai - 400020.

6) Date  and brief description of instrument modifying the charge

23-03-2005. Indenture of Mortgage executed by the Company in favour of Infrastructure Development Finance Company Limited (JDFC) and others in respect of all the immovable properties of the Company situated at Surat, in the Ste of Gujarat as security together with all buildings, erections. godowns arid constructions of every description which are standing, erected or attached or shall at any time hereafter during the continuance of the security hereby constituted be erected and standing or attached thereto, interalia for due repayment and discharge of the company to IDFC of its Loan of Rs. 2000.000 millions, together with interest, liquidated damages, premia on prepayment, costs, charges, expenses and other monies payable by the Company to DEC wider the Loan Agreement.. A certified copy of the said Indenture of Mortgage is enclosed.

7) Particulars of modifications specifying the terms and conditions or the extent of operations of the charge in which modification is made and the details of the modification.

The IDFC Loan of Rs. 2000.000 millions together with interest, additional interest, liquidated damages, premia on prepayment, cost, charges, expenses and other monies payable by the Company to IDFC in terms of the Loan Agreement which is secured bfy the said Deed of 1-lypothecation dated the 5th day of November 2004 being the original charge is now also secured by the said Indenture of Mortgage created by the Company on 23 day of March 2005 in favour of IDFC and others.

 

 

 

Corporate identity number of the company

U40100MH1991PLC063852

Name of the company

ESSAR POWER LIMITED

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

Essar House, 11-Keshvrao Khade Marg, Mahalaxmi, Mumbai-400034, Maharashtra, India

 

This form is for

Modification of charge

 

80009204

Type of charge

Immovable property

Any interest in immovable property

Book Debts

Movable Property

Floating Charge

Others

Current Assets of the company present and future

Particular of charge holder

State Bank of India, Corporate Accounts Group Branch, Voltas House, 23, J N heredia marg, Ballard Estate, Mumbai – 400001, Maharashtra, India

e-mail id: vv.vedprakash@sbi.co.in

Nature of instrument creating charge

Indenture of mortgage dated 23.02.2010

Date of instrument Creating the charge

23.02.2010

Amount secured by the charge

Rs. 2780.000 Millions

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

Rate of Interest

As charged by each bank from time to time as per sanction terms

 

Terms of Repayment

On demand

 

Margin

Raw materials - 25%

Stores and spares - 50%

Debtors - 50%

 

Extent and Operation of the charge

The charge operates as security for due repayment of working capital facilities of Rs 2780.00 Millions together with interest, compound interest, addl interest, liquidated damages, costs, charges, expenses and other monies payable to the Consortium by the Company. These facilities which were earlier secured by the Jt Deeds of Hypo. dt. 28.12.2004, 01.09.2005, 03.09.2007 and 07.10.2009 are now secured by the indenture of mortgage dated  23.02.2010

Short particulars of the property or asset(s) charged (including complete address and location of the property)

1st charge by way of hypothecation on current assets namely stocks of raw materials, semi finished and finished goods, stores and spares not relating to plant and machinery (consumable stores and spares)

1st charge by way of hypothecation on current assets namely bills, receivables and book debts and all other moveables both present and future.

2nd charge on fixed assets incl land admeasuring H-26-25-05 or thereabout situate at Mouje Hazira Taluka Choryasi, Dist:Surat and plant and machinery with all its accessories, spares, tools and implements

Date of last modification prior to the present modification

07.10.2009

Particulars of the present modification

The facilities which were earlier secured by the Jt Deeds of Hypo. dt. 28.12.2004, Suppl deeds of hypo dt 01.09.2005 and 03.09.2007 and Joint deed of hypothecation dt 07.10.2009 and by Indenture of Mortgage dt 23.03.2005, 1st and 2nd Suppl indentures of mortgage dt 16.11.2005 and 03.09.2007 are now secured by Indenture of Mortgage dt 23.02.2010 for Rs. 2780.000 millions.

 

 

Fixed Assets:

 

  • Land – Freehold
  • Building
  • Plant and Machinery
  • Furniture and Fixture
  • Vehicles
  • Aircraft
  • Intangible Assets – Software

 

 

 

 

CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No records exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                  None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                          None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                          None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.

 

 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.45.07

UK Pound

1

Rs.72.97

Euro

1

Rs.63.57

 

 

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

4

--PROFITABILIRY

1~10

3

--LIQUIDITY

1~10

3

--LEVERAGE

1~10

3

--RESERVES

1~10

3

--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

 

30

 

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

 

Financial condition (40%)            Ownership background (20%)                 Payment record (10%)

Credit history (10%)                    Market trend (10%)                                Operational size (10%)

 

 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

-

NB

                                       New Business

-

 

 

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

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