MIRA
INFORM REPORT
|
Report Date : |
05.09.2011 |
IDENTIFICATION DETAILS
|
Name : |
WELSPUN ENERGY LIMITED (w.e.f. 28.11.2006) |
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Formerly Known
As : |
WELSPUN ENERGY PRIVATE LIMITED (w.e.f.28.07.2006) PRANAM TRADELINK PRIVATE LIMITED |
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Registered
Office : |
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Country : |
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Financials (as
on) : |
31.03.2010 |
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Date of
Incorporation : |
19.08.2002 |
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Com. Reg. No.: |
04-41136 |
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Capital
Investment / Paid-up Capital : |
Rs.0.500
Million |
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CIN No.: [Company Identification
No.] |
U51909GJ2002PLC041136 |
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Legal Form : |
A Closely Held Public Limited Liability Company. |
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Line of Business
: |
They are into power Generations (Solar and Thermal Power) |
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No. of Employees
: |
200 (Approximately) |
RATING & COMMENTS
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MIRA’s Rating : |
Ca (13) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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Status : |
Yet to Commenced Business |
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Payment Behaviour : |
Unknown |
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Litigation : |
Clear |
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Comments : |
Though the company was incorporated in the year 2002, the company is yet
to commence its commercial operations. The company’s plant is still on its
implementation stage. Payment terms are unknown. Initially, the company can be considered for business dealing on a
secured trade terms and conditions. |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – April 1, 2010
|
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. Satish Sharma |
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Designation : |
Finance Manager |
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Contact No.: |
91-9892703663 |
LOCATIONS
|
Registered Office : |
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Tel. No.: |
91-2836-279051/ 2/ 5/ 6 |
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Mobile No.: |
91-9892703663 (Mr. Satish Sharma) |
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Fax No.: |
91-2836-279051/ 050 |
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E-Mail : |
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Website : |
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Head Office : |
3rd Floor, Press Trust of |
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Tel. No.: |
91-11-66034600 / 66034627 |
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Fax No.: |
91-11-66273090 / 91 |
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Plant 1 : |
At |
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Plant 2: |
At Andhra Pradesh, Near |
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Note: |
Plant are under Construction, work will be finished by end of this
year. |
DIRECTORS
(AS ON 29.09.2010)
|
Name : |
Mr. Sitaram Somani |
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Designation : |
Director |
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Address : |
N-8/18, Ganpati Niwas, Bangur Niwas, Goregaon (West), Mumbai – 400090,
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Date of Birth/Age : |
23.01.1948 |
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Date of Appointment : |
15.09.2006 |
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Name : |
Mr. Balkrishna Goenka |
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Designation : |
Director |
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Address : |
Rocky Isle, 46/C, |
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Date of Birth/Age : |
15.08.1966 |
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Date of Appointment : |
29.09.2010 |
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Name : |
Mr. Vineet Mittal |
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Designation : |
Director |
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Address : |
7th Floor, Shubham Building, Gandhigram Road, Near Iskcon
Temple, Juhu, Mumbai – 400049, Maharashtra, India |
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Date of Birth/Age : |
05.09.1974 |
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Date of Appointment : |
10.02.2010 |
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Name : |
Mr. Devendra Patil |
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Designation : |
Director |
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Address : |
B/13, Yojna CHS Limited, Natwar Nagar, Road No.5, Jogeshwari (East),
Mumbai – 400060, |
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Date of Birth/Age : |
07.11.1959 |
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Date of Appointment : |
29.09.2010 |
KEY EXECUTIVES
|
Name : |
Mr. Mandar Arun Ranade |
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Designation : |
Company Secretary |
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Address : |
502, Rosewood F Wing, Prestige Residency, Near Waghbil Naka
Ghodbundar, Kavesar Village, Thane – 400607, Maharashtra, India |
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Date of Birth/Age : |
24.09.1980 |
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Date of Appointment : |
21.04.2010 |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
(AS ON 29.09.2010)
|
Names of Shareholders |
|
No. of Shares |
|
Krishiraj Trading Limited, |
|
273000 |
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Welspun Corp. Limited, |
|
273000 |
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Vineet Mittal |
|
252000 |
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Welspun Fintrade Limited, |
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251997 |
|
Devendra Patil |
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1 |
|
Pradeep Joshi |
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1 |
|
Shashikant Thorat |
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1 |
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Total |
|
1050000 |
(AS ON 30.09.2010)
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Category |
|
Percentage |
|
Bodies corporate |
|
76.00 |
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Directors or relatives of directors |
|
24.00 |
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Total
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|
100.00 |
BUSINESS DETAILS
|
Line of Business : |
They are into power Generations (Solar and Thermal Power) |
GENERAL INFORMATION
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No. of Employees : |
200 (Approximately) |
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Bankers : |
· IDBI Bank Mittal Court Branch, ·
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
Sureka Associates Chartered Accountant |
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Address : |
45C, Mandhana Manor, |
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Tel. No.: |
91-22-24306150/ 24327608 |
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Fax No.: |
91-22-24327608 |
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Email : |
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Subsidiaries : |
· Welspun Energy Rajasthan Private Limited CIN No. : U40108MH2006PTC165751 · Welspun Energy Resources Private Limited CIN No. : U40108MH2006PTC165671 · Welspun Energy Maharashtra Private Limited CIN No. : U40108MH2006PTC165673 · Welspun Energy Meghalaya Private Limited CIN No. : U40108MH2006PTC165672 · Welspun Energy Anuppur Private Limited CIN No. : U40108MH2007PTC170611 · Welspun Urja India Limited CIN No. : U40109MH2006PLC165964 · Welspun Renewables Energy Limited CIN No. : U40103MH2009PLC197021 · Welspun Energy Madhya Pradesh Limited CIN No. : U40300MH2009PLC197014 · Welspun Energy Chhattisgarh Limited CIN No. : U40103MH2009PLC197024 |
CAPITAL STRUCTURE
(AS ON 29.09.2010)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
10000000 |
Equity Share |
Rs.10/- each |
Rs.100.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1050000 |
Equity Share |
Rs.10/- each |
Rs.10.500
Millions |
(AS ON 31.03.2010)
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
1200000 |
Equity Share |
Rs.10/- each |
Rs.12.000 Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
50000 |
Equity Share |
Rs.10/- each |
Rs.0.500
Million |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
|
SHAREHOLDERS FUNDS |
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|
|
|
1] Share Capital |
0.500 |
0.500 |
0.500 |
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|
2] Share Application Money |
72.000 |
0.000 |
0.000 |
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|
3] Reserves & Surplus |
0.000 |
0.000 |
0.000 |
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|
4] (Accumulated Losses) |
(0.094) |
(0.061) |
(0.049) |
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NETWORTH |
72.406 |
0.439 |
0.451 |
|
|
LOAN FUNDS |
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|
|
1] Secured Loans |
0.000 |
0.000 |
0.000 |
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|
2] Unsecured Loans |
0.000 |
0.000 |
0.000 |
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|
TOTAL BORROWING |
0.000 |
0.000 |
0.000 |
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|
DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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|
|
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|
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TOTAL |
72.406 |
0.439 |
0.451 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
0.208 |
0.000 |
0.000 |
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Capital work-in-progress |
0.000 |
0.000 |
0.000 |
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INVESTMENT |
4.000 |
0.410 |
0.000 |
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|
DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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|
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|
|
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|
CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
0.000
|
0.000
|
0.000 |
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|
Sundry Debtors |
0.000
|
0.000
|
0.000 |
|
|
Cash & Bank Balances |
35.422
|
0.025 |
0.444 |
|
|
Other Current Assets |
0.000
|
0.000 |
0.000 |
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|
Loans & Advances |
26.143
|
0.000 |
0.000 |
|
Total
Current Assets |
61.565
|
0.025 |
0.444 |
|
|
Less : CURRENT
LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditor |
0.000
|
0.001 |
0.003 |
|
|
Other Current Liabilities |
0.006
|
0.002
|
0.000 |
|
|
Provisions |
0.000
|
0.000
|
0.000 |
|
Total
Current Liabilities |
0.006
|
0.003 |
0.003 |
|
|
Net Current Assets |
61.559
|
0.022 |
0.441 |
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.005 |
0.007 |
0.010 |
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|
Incidental expenditure pending for allocation |
6.634 |
0.000 |
0.000 |
|
|
|
|
|
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|
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TOTAL |
72.406 |
0.439 |
0.451 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2010 |
31.03.2009 |
31.03.2008 |
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|
|
SALES |
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|
|
|
|
|
Income |
0.000 |
0.000 |
0.000 |
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|
|
Other Income |
0.006 |
0.000 |
0.000 |
|
|
|
TOTAL |
0.006 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Audit Fees |
0.003 |
0.003 |
0.002 |
|
|
|
Printing and Stationery |
0.021 |
0.000 |
0.003 |
|
|
|
Profession Fees |
0.001 |
0.001 |
0.000 |
|
|
|
Stamp, Registration and Filling Fees |
0.009 |
0.005 |
0.000 |
|
|
|
Preliminary Expenses w/off |
0.003 |
0.002 |
0.002 |
|
|
|
TOTAL |
0.037 |
0.011 |
0.007 |
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|
|
|
|
|
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|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION |
(0.031) |
(0.011) |
(0.007) |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION |
0.003 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX |
(0.034) |
(0.011) |
(0.007) |
|
|
|
|
|
|
|
|
|
Less |
TAX |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
|
(0.034) |
(0.011) |
(0.007) |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
(0.061) |
(0.050) |
(0.042) |
|
|
|
|
|
|
|
|
|
|
BALANCE CARRIED
TO THE B/S |
(0.095) |
(0.061) |
(0.049) |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
(0.68) |
-- |
-- |
|
KEY RATIOS
|
PARTICULARS |
|
31.03.2010 |
31.03.2009 |
31.03.2008 |
|
PAT / Total Income |
(%) |
(566.67)
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
0.00
|
0.00 |
0.00 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
(0.06)
|
(44.00) |
(1.58) |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.00
|
(0.03) |
(0.02) |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Liability/Networth) |
|
0.00
|
0.01 |
0.01 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
10260.83
|
8.33 |
148.00 |
LOCAL AGENCY FURTHER INFORMATION
NOTE:
The Registered Office of the company has been shifted from N, Dikshanti Apartment,
Near Malav Talav, Near Devas Flats, Jivrajpurak, Ahmedabad,
WEBSITE DETAILS
WELSPUN GROUP OF
COMPANIES
·
Welspun
India Limited
· Welspun Zucchi Textiles Limited
·
Welspun Retail Limited
·
Welspun
Syntex Limited
·
Welspun
Global Brands Limited
·
Welspun Corp
Limited
(Formerly -
Welspun Gujarat Stahl Rohren Limited)
·
Welspun Tubular
LLC,
·
Welspun Middle
East Pipe LLC (Dammam, KSA)
·
Welspun
·
Welspun
Steel Limited
·
Welspun
Maxsteel Limited
·
Remi
Metals Gujarat Limited
·
Welspun Natural
Resources Private Limited
·
Welspun
Investments and Commercials Limited (Formerly - Welspun Investments Limited)
·
Welspun
Infratech Limited
·
Welspun Projects
Limited (Formerly - MSK Projects Limited)
·
Welspun USA,
Inc
·
Welspun Mexico
SA DE CV
·
Welspun UK
Limited
· Welspun Sorema Europe, S.A.
BOARD OF DIRECTORS:
Mr.
Balkrishna Goenka
Chairman
B.K. Goenka has spearheaded the growth of Welspun, transforming
it from a towel manufacturer to a global diversified conglomerate. Under his
able leadership and guidance Welspun today has emerged as the 2nd Largest
(Large Diameter) Pipe Company in the World (Financial Times,
Mr.
Vineet Mittal
Co-founder
and Managing Director
A graduate of
PRESS RELEASE
APOLLO MANAGEMENT AND
WELSPUN CONCLUDE ONE OF
Silvasa, August 18, 2011: In the Board meeting held at Silvasa, Board of Directors
of Welspun Corp Limited (WCL) authorized the issuance and allotment of CCDs and
GDR to certain affiliates of Apollo Global Management, LLC (together with its
subsidiaries, Apollo), one of the leading global alternative asset managers,
which effectively concludes one of India’s largest PE transactions between
Welspun Group (Welspun) and Apollo.
As a part of the total commitment, funds affiliated with
Apollo have invested approximately USD 290 million in WCL, of which
approximately USD 175 million has been invested by way of the preferential
allotment of FCD / CCD (Fully / Compulsorily Convertible Debentures) and
approximately USD 115 million by way of non-voting Global Depository Receipts
(GDR’s). The FCD’s / CCD’s carry a coupon of 5% and will be mandatorily fully
converted within 18 months into equity shares at Rupees 225 per share, which
represents 13.3% of the equity capital of WCL. Funds affiliated with Apollo
have also subscribed for non-voting GDR’s of USD 115 million at the same price
of Rupees 225 per share.
Further, funds
affiliated with Apollo have acquired 12.5% of the equity of Welspun Maxsteel
Limited (WMSL) from Welspun Steel Limited for a total consideration of
approximately USD 31 million. Such funds have also agreed to invest
approximately USD 29 million into WMSL to be used for additional capital
expenditures.
Mr. Sanjay Patel, Head of International Private Equity and
Senior Partner of Apollo Management International LLP and Mr. Mintoo Bhandari,
the Managing Director of AGM India Advisors Limited have been appointed to the
Board of WMSL as Apollo nominees. Furthermore, Mr. Mintoo Bhandari has also
been appointed to the Board of WCL as Apollo nominee.
Apollo and its
affiliates are also in active discussions with Welspun Infratech Limited
(WITL), a subsidiary of WCL, to explore an additional investment of up to USD
150 million in WITL and its subsidiaries, in the form of debt, equity or a
combination of the two. The end use of the funds in WITL will be project
specific and the form of such investments is being actively reviewed and
considered.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions between
a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.90 |
|
|
1 |
Rs.74.31 |
|
Euro |
1 |
Rs.65.41 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
4 |
|
PAID-UP CAPITAL |
1~10 |
2 |
|
OPERATING SCALE |
1~10 |
2 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
1 |
|
--PROFITABILIRY |
1~10 |
-- |
|
--LIQUIDITY |
1~10 |
2 |
|
--LEVERAGE |
1~10 |
1 |
|
--RESERVES |
1~10 |
-- |
|
--CREDIT LINES |
1~10 |
1 |
|
--MARGINS |
-5~5 |
-- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
NO |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
NO |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
13 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & 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.